July 13, 2024
North America E-Pharmacy Market

North America E-pharmacy Market Is Trending Due To Increasing Digital Healthcare Adoption

The North America e-pharmacy market is witnessing increased adoption led by the rising penetration of online platforms and digital healthcare trends in the region. E-pharmacies provide prescription and over-the-counter drugs to customers through online channels. They offer various advantages such as doorstep delivery, discounted prices, convenience of ordering from home, and expanded product catalogs compared to brick-and-mortar stores. The growing prevalence of chronic diseases and increasing geriatric population propel the demand for medications on a regular basis, driving the need for e-pharmacies.

North America E-pharmacy Market is estimated to be valued at US$ 58.64 Mn in 2024 and is expected to exhibit a CAGR of 4.0% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the North America E-Pharmacy Market Demand are BASF SE, Dow Chemical Company, Borgers A.G., Faurecia S.A., Adient Plc, Lear Corporation. The increasing internet penetration and rising adoption of online platforms for healthcare needs have augmented the demand for e-pharmacy services in the region. According to statistics, over 60% of US consumers have purchased prescription drugs online at least once in 2021. E-pharmacies offer doorstep delivery along with options for prescription refills and appointment bookings, thereby gaining widespread popularity.

Major players in the market have undertaken several strategic initiatives such as partnerships, new product launches and mergers & acquisitions to cater to the growing needs of customers. For instance, in 2022, CVS Health partnered with Instacart to provide same-day delivery for CVS Pharmacy products across the United States. The global e-pharmacy market demonstrated an upward expansion, capturing a sizable market share in emerging nations. Players are focusing on geographic expansions and establishing facilities in countries with high growth potential.

Market Key Trends

One of the key trends gaining traction in the North America e-pharmacy market is subscription services or plans. These plans allow customers to order their prescribed maintenance medications on a recurring basis at discounted prices. They offer benefits like wallet-friendly pricing, automated refills & deliveries, and reminders for prescription renewals. This trend is favorably impacting the repeat orders and revenues of e-pharmacy vendors. The introduction of innovative subscription models will continue to drive the North America market in the forthcoming years.

Porter’s Analysis

Threat of new entrants: Low barrier to entry due to low capital requirement however established players have economies of scale and brand loyalty advantage.

Bargaining power of buyers: Moderate bargaining power due to presence of large retailers however convenience of online services is increasing buyer dependence on e-pharmacies.

Bargaining power of suppliers: Low due to fragmented supplier base and ease of switching to alternative suppliers.

Threat of new substitutes: Low as pharmaceutical e-commerce faces limited threat from substitute distribution channels due to convenience offered.

Competitive rivalry: Intense due to presence of large e-commerce giants and pure play e-pharmacies competing on pricing and product assortment.

North America particularly United States accounts for more than 70% of the total e-pharmacy market value in the region driven by high acceptance of online retailing and availability of insurance coverage for telemedicine and e-prescriptions. Canada is expected to emerge as the fastest growing geographical market owing to Government initiatives promoting digital healthcare transformation and increasing adoption of internet medications purchase among consumers.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it