E-pharmacy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The E-pharmacy Market is segmented by Drug Type (Prescription Drugs and Over-the-Counter (OTC) Drugs), Product Type (Skin Care, Dental, Cold and Flu, Vitamins, Weight Loss, and Other Product Types), and Geography (North America, Europe, Asia-Pacific, Middle-East and Africa, and South America). The report offers the value (in USD million) for the above segments.

Market Snapshot

E-pharmacy Market Size
Study Period: 2019-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 13.8 %
E-pharmacy Market Companies

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Market Overview

The e-pharmacy market is expected to register a CAGR of 13.8% over the forecast period, 2022-2027.

The market is expected to witness drastic growth over the COVID-19 pandemic. The lockdown and travel restrictions, along with the fear of getting infected with the SARS-CoV2 virus, led to an increased dependence on online pharmacies for the purchase of both over-the-counter and prescription drugs. Also, in-person doctor visits are being replaced by virtual-based teleconsultations, which results in the generation of digital prescriptions. Similarly, key players are coming up with various strategies to combat the pandemic. For instance, in March 2020, CVS Health began to implement new measures to balance the demand for the off-label use of drugs that are used in the treatment of both COVID-19 and other chronic diseases. Additionally, as the trend of non-contact delivery has been in progress, given the COVID-19 pandemic, the demand for e-pharmacy has increased over the current crisis.

The growth of the e-pharmacy market is attributed to a rise in the number of internet consumers, increased access to web-based and online services, and the rising implementation of e-prescriptions in hospitals and other healthcare services.

E-prescription is the electronic prescribing technology that allows healthcare professionals to go paperless by sending prescriptions in digital format instead of handwritten prescriptions. Doctors are now preferring e-prescriptions to allow patients to get easy access to medicine with the help of e-prescriptions. Countries, like the United Kingdom, are putting more effort into the implementation of e-prescriptions. The NHS hospitals in England are planning to go paperless by the year 2020. This may increase the demand for e-prescription technology rapidly in the future. The major advantage of e-prescription is that one can easily upload their e-prescription on the e-pharmacy website and order medicine online without any hurdle. Therefore, due to the increasing implementation of e-prescriptions, uploading the prescription online has become easy and less time-consuming. Thus, all the aforementioned factors augment the growth of the market.

Scope of the Report

As per the scope of the report, e-pharmacy is an online pharmacy that operates over the internet and provides medicines to consumers through mail or shipping companies. The e-pharmacy cuts down the long chain of distributors and directly provides medicine to the end user at a lesser price. The e-pharmacy market is expected to register a CAGR of 13.8% over the forecast period, 2022-2027. The e-pharmacy market is segmented by drug type (prescription drugs and over-the-counter (OTC) drugs), product type (skin care, dental, cold and flu, vitamins, weight loss, and other product types), and geography (North America, Europe, Asia-Pacific, Middle-East and Africa, and South America). The report offers the value (in USD million) for the above segments.

Drug Type
Prescription Drugs
Over-the-Counter (OTC) Drugs
Product Type
Skin Care
Cold and Flu
Weight Loss
Other Product Types
North America
United States
United Kingdom
Rest of Europe
South Korea
Rest of Asia-Pacific
Middle-East and Africa
South Africa
Rest of Middle-East and Africa
South America
Rest of South America

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Key Market Trends

The Over-the-Counter Drugs Segment, under Drug Type, is Expected to Grow at the Fastest Rate during the Forecast Period

The over-the-counter drug segment is poised to witness lucrative growth over the forecast timeframe. Major industry trends, such as Rx to OTC switch by pharmaceutical manufacturers, a growing tendency of people toward self-medication in developing regions, increasing burden of pain, and inclination of customers towards online pharmacies are strongly driving the segmental growth.

The increasing patent expiration rates result in switching from Rx to OTC by the companies as a counterstrategy. In February 2020, the US Food and Drug Administration converted three prescription drugs to over-the-counter drugs, including GlaxoSmithKline’s Voltaren Arthritis Pain, Alcon’s Pataday Twice Daily Relief, and Once Daily Relief (olopatadine HCl ophthalmic solution/drops, 0.2%). This resulted in easy access to the mentioned drugs for the customers. Also, in the current COVID-19 pandemic, the e-pharmacy market, particularly for the OTC drugs, witnessed significant growth, as consumers are reluctant to visit clinics for minor ailments for fear of being infected by COVID-19.

Additionally, the economic benefits from OTC drug usage are attributable to savings on drug costs and costs incurred on a clinical visit. This factor significantly attributes vertical growth in emerging economies.

E-pharmacy Market Share

North America Holds the Largest Market Share of the E-pharmacy Market and is Expected to Witness the Same Trend over the Forecast Period

North America accounts for the largest share of the studied market. This can be primarily attributed to the more significant number of internet users and higher adoption of online services, which are expected to augment the market's growth over the forecast period.

With the growing burden of COVID-19 in the United States, the American Association of Homeopathic Pharmacists (AAHP) has come up with the law the Coronavirus Aid Relief and Economic Security (CARES) Act (HR 748). This legislation was incorporated to encourage the consumers to depend more on OTC products to relieve self-treatable symptoms, which can be reimbursed through pre-tax funds. Therefore, with the rising awareness of online pharmacies, it is expected that these initiatives from the government are expected to boost the adoption of online pharmacy services for the purchasing of the drugs without hassle in the United States market, which helps in the growth of the E-pharmacy market in this region.

Additionally, the growing prevalence of minor illnesses, such as flu, fever, backache, cough, and cold, increases the demand for OTC medications, and thus, the dependence on online pharmacies increases to obtain these drugs. Additionally, the ease of getting the medicines from the comfort of home is expected to drive the e-pharmacy market in North America, especially the United States. Also, the high concentration of market players and the incorporation of advanced technologies by key players to improvise the experience of online medicine purchase by customers are expected to drive the market's growth in North America. For instance, in November 2020, Amazon launched an online pharmacy service in the United States for both generic and prescription medications.

E-pharmacy Market Analysis

Competitive Landscape

The e-pharmacy market is moderately competitive, with a few players currently dominating the market. The key market players of the market comprise CVS Health Corporation, Albertsons Companies Inc., ALTO, and Axelia Solutions (Pharmeasy), among others. These players are adopting various marketing strategies to gain a higher share in the e-pharmacy market and focusing on expanding their geographic presence, especially in developing regions that offer lucrative opportunities. For instance, in December 2020, Express Scripts Holdings introduced “Express Scripts Parachute Rx,’’ which offers extensive discounts on prescription medicines, with an aim to offer medications at an affordable price during the COVID-19 situation.

Recent Developments

  • In March 2021, Phoenix UK bought the online platform Co-op Health to help independent pharmacies compete in the digital pharmacy market.
  • In November 2021, Flipkart Group entered the healthcare sector through the launch of Flipkart Health+. As part of this development, the group signed definitive agreements to acquire a majority share in Sastasundar Marketplace Limited, which owns and operates SastaSundar.com, an online pharmacy and digital healthcare platform.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Increased Access to Web-based and Online Services

      2. 4.2.2 Rising Implementation of E-prescriptions in Hospitals and Other Healthcare Services

    3. 4.3 Market Restraints

      1. 4.3.1 Increasing Number of Illegal Online Pharmacies

      2. 4.3.2 Low Penetration in Rural Areas in Developing Countries

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry


    1. 5.1 Drug Type

      1. 5.1.1 Prescription Drugs

      2. 5.1.2 Over-the-Counter (OTC) Drugs

    2. 5.2 Product Type

      1. 5.2.1 Skin Care

      2. 5.2.2 Dental

      3. 5.2.3 Cold and Flu

      4. 5.2.4 Vitamins

      5. 5.2.5 Weight Loss

      6. 5.2.6 Other Product Types

    3. 5.3 Geography

      1. 5.3.1 North America

        1. United States

        2. Canada

        3. Mexico

      2. 5.3.2 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Italy

        5. Spain

        6. Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. China

        2. Japan

        3. India

        4. Australia

        5. South Korea

        6. Rest of Asia-Pacific

      4. 5.3.4 Middle-East and Africa

        1. GCC

        2. South Africa

        3. Rest of Middle-East and Africa

      5. 5.3.5 South America

        1. Brazil

        2. Argentina

        3. Rest of South America


    1. 6.1 Company Profiles

      1. 6.1.1 CVS Health Corporation

      2. 6.1.2 Cigna Corporation (Express Scripts Holdings)

      3. 6.1.3 Giant Eagle Inc.

      4. 6.1.4 Optum Rx Inc.

      5. 6.1.5 The Kroger Co.

      6. 6.1.6 Walgreen Boots Alliance (Walgreen Co.)

      7. 6.1.7 Amazon.com Inc.

      8. 6.1.8 Axelia Solutions (Pharmeasy)

      9. 6.1.9 Apex Healthcare Berhad (Apex Pharmacy)

      10. 6.1.10 Apollo Pharmacy

      11. 6.1.11 DocMorris (Zur Rose Group AG)

      12. 6.1.12 Netmeds.com

    2. *List Not Exhaustive

**Subject to Availability
**Competitive Landscape Covers - Business Overview, Financials, Products and Strategies, and Recent Developments

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Frequently Asked Questions

The Global E-Pharmacy Market market is studied from 2019 - 2027.

The Global E-Pharmacy Market is growing at a CAGR of 13.8% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

Optum Rx Inc., Giant Eagle Inc., Rowlands Pharmacy, Walmart Stores Inc., Walgreen Co are the major companies operating in Global E-Pharmacy Market.

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