North America E-Pharmacy Market Research Report - Segmentation by Drug Type (Over-the-Counter (OTC) Drugs and Prescription Drugs); By Product Type (Skin Care, Dental, Cold and Flu, Vitamins, Weight Loss, and Others); By Platform (App-Based and Web-Based); Payment Method (Cash on Delivery, Online Payment); and Region - Size, Share, Growth Analysis | Forecast (2024 2030)

Market Size and Overview:

The North America E-Pharmacy Market was valued at USD 27.84 Billion and is projected to reach a market size of USD 78.68 Billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 16%.

The electronic pharmacy sector, offering online consultations, medicines, information, and insurance services, emerged in the early 2000s, marking a shift from traditional offline medical services. With significant growth, the market has been propelled by the COVID-19 pandemic and accelerated by digitalization. Anticipated advancements in telehealth services and internet availability are expected to further expand this market, projecting substantial growth in the forecasted period.

Key Market Insights:

Estimations indicate a global online pharmacy sector worth US$ 32 billion by 2023. The United States is forecasted to reach approximately 5.7 billion, positioning itself as a leading online pharmacy market. However, China remains the dominant force in global pharmaceutical e-commerce, generating revenue nearing $8.5 billion.

Surveying US physicians revealed a remarkable shift: 65 percent did not use telehealth pre-pandemic, whereas during the peak, 43 percent consulted over 50 percent of their patients through telehealth. Future estimates suggest a continued use of telehealth for 10 to 49 percent of appointments.

In the US, a 2022 survey noted 23 percent preferring virtual appointments for chronic conditions post prior experiences with virtual healthcare.

The North American online pharmacy market is set to hit USD 45.34 billion in 2023, expected to grow at a compound annual growth rate (CAGR) of 12.41% till 2028, reaching USD 81.37 billion.

A Western European study observed one in five individuals obtaining medicines online without prescriptions, prompting pharmaceutical companies to invest in improving patient awareness regarding correct prescriptions.

North American ePharmacy Market Drivers:

Increased demand for e-pharmacy services is propelling market expansion.

The surge in online service adoption is fostering market growth. Post-pandemic, various surveys and studies demonstrate a preference for virtual consultations, medications, and other health-related services. According to Statista's 2022 data, 52 percent of surveyed American adults utilized telemedicine via live video calls with their healthcare providers. This shift eliminates miscellaneous expenses like transportation, making medical costs more affordable. Accessing a wider array of medications from the comfort of their homes contributes to this trend. Additionally, North America's technological advancements and presence of leading companies in this sector augment market growth. Stable internet connectivity in many regions further fortifies this trend. Moreover, the convenience of digital modes aligns with the hectic schedules of individuals.

The aging population is a significant contributor to market expansion.

Statista's 2022 statistics revealed that approximately 17.3 percent of the US population were 65 or older, with projections indicating an increase to 22 percent by 2050. Changing lifestyles, dietary habits, environmental factors, and the prevalence of chronic conditions like diabetes, hypertension, heart disease, cancer, Parkinson's, Alzheimer's, and paralysis contribute to difficulties in accessing clinics and hospitals. For individuals facing these challenges, ePharmacy emerges as a convenient avenue to acquire prescription medications.

Challenges and Constraints in the e-Pharmacy Market:

Critical concerns such as health security, data privacy, internet reliability, and delayed deliveries persist in the market.

Counterfeit or non-prescribed drug sales remain a substantial obstacle, posing severe health risks and endangering public well-being. Data security stands as another significant hurdle due to the sensitivity of clinical records stored within applications, making data breaches a serious concern leading to fraud and consumer losses. Additionally, remote, rural, and underserved areas lacking stable internet connectivity face limited accessibility. Delayed shipments, especially in international deliveries, can lead to health complications due to prolonged waiting periods for medications.

Opportunities in the North America e-pharmacy market:

Increasing adoption of electronic devices provides opportunities, integrating telehealth services with e-pharmacy applications. Order transparency, personalized medical recommendations through AI, and global expansion due to improved internet access in remote areas are promising prospects.

North America E-Pharmacy Market Segmentation:

North American ePharmacy Market Segmentation by Drug Type:

• Over-the-counter (OTC) medications
• Prescription drugs

In terms of drug type segmentation, the North American e-pharmacy market predominantly comprises Over-the-counter (OTC) drugs, constituting approximately 70% of the market share. This dominance can be attributed to factors such as convenience, reliability, and an escalating demand. The restricted availability of OTC drugs in physical pharmacies and medical stores also contributes to this trend. The surge in self-service utilization further propels the growth of this segment, augmented by consumer confidence in authenticity. OTC drugs, suitable for addressing minor ailments like colds, allergies, and sore throats, are anticipated to witness significant growth during the forecast period. Meanwhile, Prescription drugs, necessitating authorization from licensed professionals, constitute the fastest-growing segment, primarily due to the rising prevalence of chronic and genetic diseases. The integration of telehealth platforms further bolsters the expansion of this segment.

North American ePharmacy Market Segmentation by Product Type:

• Skincare

• Dental

• Colds and flu

• Vitamins

• Weight loss

• Others

Within the North American e-pharmacy market, the skincare segment emerges as one of the most substantial segments. Recent years have witnessed a proliferation of beauty and wellness products encompassing moisturizers, sunscreens, anti-aging creams, hand creams, serums, cleansers, etc. Influencers on various social media platforms have significantly raised awareness regarding the importance of maintaining healthy skin, consequently driving the sales of these products. Moreover, the escalating demand for organic skincare products further fuels the advancement of this segment. The cold and flu category, on the other hand, experiences rapid growth, especially evident during the COVID-19 pandemic and owing to the increased prevalence of respiratory illnesses.

North American ePharmacy Market Segmentation by Platform:

• App-Based
• Web-Based

The app-based segment stands out as the largest and swiftest-growing platform in the North American e-pharmacy market, claiming a share exceeding 70%. This dominance is attributed to several factors including app authenticity, a substantial and trusting consumer base, streamlined order tracking, convenience, user-friendly features, and secure payment gateways.

North American ePharmacy Market Segmentation by Payment Method:

• Cash on delivery
• Online Payment

Online payment emerges as the most prevalent and predominant payment method in the North American e-pharmacy market, commanding a share of around 76%. This popularity is propelled by its convenience, widespread demand, internet accessibility, seamless transactions, and secure platforms. Conversely, the cash on delivery method exhibits the fastest growth rate, notably in regions with unstable internet connections and among demographics finding technology complex or harboring concerns about online fraud and security breaches.

North American ePharmacy Market Segmentation: Regional Analysis:

• United States
• Canada
• Mexico

Regionally, the United States leads the North American e-pharmacy market with a substantial share of 40%. This growth is underpinned by technological advancements, economic stability, the presence of key industry players, a burgeoning population, increasing chronic illnesses, robust infrastructure, and high market demand. States like New York, California, and Massachusetts particularly contribute to this trend. Projections indicate a significant growth trajectory for the US e-pharmacy market, expected to surge from USD 21 billion in 2022 to USD 86 billion in 2030 at a CAGR of 19.3%. Canada emerges as the fastest-growing region, boasting a share of approximately 32%. This growth is attributed to governmental initiatives, the rapid expansion of companies, global collaborations, improved internet connectivity, an expanding population, disease prevalence, and technological advancements.

COVID-19 Impact Analysis on the North American ePharmacy Market:

The outbreak of the virus exerted a positive impact on the e-pharmacy market in North America. The implementation of lockdowns, social distancing measures, and movement restrictions steered consumers toward online platforms, leading to a surge in online sales. To minimize exposure risk, individuals turned to telehealth services unless an in-person healthcare visit was imperative. This resulted in a considerable upsurge in prescription orders through e-pharmacy applications. State investments in healthcare applications further bolstered the market. Online home testing kits for COVID-19 witnessed increased purchases, and households resorting to e-pharmacies grew by 2.5 times during the lockdown period. Even after the pandemic, the trend of digitization continued, contributing to sustained market expansion.

Latest Trends and Developments:

Companies in the e-pharmacy industry are actively striving to expand their market share through strategic alliances, investments, and acquisitions. Apart from maintaining competitive pricing, significant investments are directed towards advancing existing technologies and exploring novel innovations, fostering further industry expansion.

One of the recent trends involves the enhancement of digital payment systems, particularly emphasizing contactless transactions supported by various encryption methods. Initiatives are underway to facilitate online transactions in remote areas, ensuring accessibility. Major companies have integrated their digital wallets with user-friendly features to enhance ease of use.

Key Players:

• CVS Health

• Walgreens

• Amazon Pharmacy

• Express Scripts Holding Company

• OptumRx

• Zur Rose Group AG

• Medisave

• DocMorris

• Rowlands Pharmacy

• The Kroger Co.