The global online pharmacy market size was valued at USD 19.50 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 10.6% from 2021 to 2028. The market growth is attributed to the digitalization of the healthcare sector backed up by government initiatives to provide digital facilities, including online pharmacy. For instance, realizing the importance of online pharmacy, vide order number 403/2020-D dated 24 March 2020 included delivery of medicine through e-commerce as an essential service. Moreover, the increasing use of smartphones and rising internet penetration are likely to propel the growth of the market. Smartphone and internet penetration continues to climb up in developed and developing economies.
According to the GSMA data, the mobile industry connects over 3.5 billion population to internet services i.e. 47% of the global population. And mobile data continues to become more affordable and accessible across the globe. The Covid-19 pandemic had a positive impact on the market growth. Consumer demand and the adoption of online channels have been increased during the pandemic to avoid public contact. Countries across the world are trying to find ways to minimize the business loss and its impact on health and livelihoods, thus increasingly adopting the digital route. This resulted in the emergence of new online pharmacies during this period, which, in turn, has driven the market.
The growth of the market is restrained by the lack of physical evaluation and insufficient surety of safety of personal and financial information. The market growth is restrained by the lack of trust by the consumers as some online pharmacies do not dispense drugs through licensed pharmacies. Properly inspected and regulated pharmacies require safe dispensing practices and an overlook of a licensed pharmacist. Buying from unlicensed pharmacies increases the chances of getting substandard, adulterated, and counterfeit medicines. Data security of consumers’ personal, financial, and health records is of important concern. Some online pharmacies fail to provide adequate technology for security, which discourages many consumers and restrains the market growth.
The analgesics segment accounted for the largest revenue share of over 25.0% in 2020. Among the OTC medicines, analgesics or painkillers are the most frequently bought medicines for various conditions, including muscle pain, dental ache, headache, and the common cold to relieve ache. In addition, the geriatric population suffering from muscle and bone-related pain can be attributed to the higher usage of analgesics as with age, muscle and bone health deteriorates. World population statistics revealed that in 2020, the share of the population aged 65 years and above represented 9.3% of the total population. Studies suggest that more than half of this population suffer from chronic pain and a large portion of them consume analgesics for pain relief.
The vitamins and minerals segment is anticipated to register the fastest CAGR of 11.5% from 2021 to 2028. Various health problems such as digestion problems, bone problems, and skin disorders arise due to the deficiency of vitamins and minerals. According to the World Health Organization, 42% of children under the age of 5 and 40% of pregnant women are anemic due to the deficiency of iron, folate, and vitamins B12. The increasing awareness regarding the relationship between health problems and vitamin and mineral deficiencies is increasing the consumption of vitamins and minerals globally. This is eventually driving the vitamins and minerals segment.
North America dominated the market and held a revenue share of over 30.0% in 2020. The growth is attributed to the higher consumption by the U.S. due to a higher tendency of self-medication in adults. According to the U.S. Consumer Healthcare Products Association, 81% of adults use OTC medicine for self-medication. Moreover, the strong presence of online pharmacy companies in the region contributes to the market growth. Consumers in the region are highly aware and positively inclined towards online pharmacy. Additionally, higher usage of smartphones and the internet in the region is fueling the regional market growth. According to the International Telecommunication Union of United Nations, 90% of North Americans use internet services, which is the highest in the world.
Asia Pacific is expected to register the highest growth rate of 11.4% from 2021 to 2028. An increasing number of smartphone users, rising penetration of the internet in the region, and growing service providers are contributing to the market growth. In addition, increasing initiatives of the governments for digitization of the healthcare systems are supporting the regional market growth. Consumer sentiments towards online pharmacy are getting positive and deepening in the metro as well as non-metro areas, which significantly drives the regional market. Furthermore, the expansion and emergence of online pharmacies in the region are contributing to the market growth. For instance, in July 2019, Ping An Healthcare and Technology launched one-minute consultation and one-hour drug delivery service in 80 cities across China. Similarly, in August 2020, Amazon launched an online pharmacy service in India.
The market is characterized by the presence of large and small key players. These key players are focusing particularly on expanding their businesses to the untapped regions or countries. For instance, Netmeds Marketplace Ltd. opened its first franchise store in Maharastra, India in 2018 and in Karnataka, India in 2019. In addition, key players are focusing on mergers and acquisitions to increase the market reach and market share. For instance, on 31st January 2020, CVS Health Corp. announced the completion of the acquisition of Target’s Pharmacy and MinuteClinic. Similarly, in 2018, Amazon.com, Inc. acquired PillPack, Inc., an online pharmacy based in the U.S. Some prominent players in the global online pharmacy market include:
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Report Attribute |
Details |
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Market size value in 2021 |
USD 21.1 billion |
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Revenue forecast in 2028 |
USD 42.7 billion |
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Growth Rate |
CAGR of 10.6% from 2021 to 2028 |
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Base year for estimation |
2020 |
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Historical data |
2017 - 2019 |
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Forecast period |
2021 - 2028 |
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Quantitative units |
Revenue in USD million/billion and CAGR from 2021 to 2028 |
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Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
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Segments covered |
Type, region |
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Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
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Country scope |
U.S.; Canada; U.K.; Germany; France; China; India; Japan; Brazil; Argentina; Saudi Arabia; South Africa |
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Key companies profiled |
CVS Health Corporation; Walgreens Boots Alliance Inc.; UnitedHealth Group Inc.; Amazon.com, Inc.; The Kroger Co.; Pharmacy2U Ltd.; Walmart Inc.; HealthWarehouse.com, Inc.; PharmEasy; Netmeds Marketplace Ltd. |
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Customization scope |
Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional & segment scope. |
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Million Insights has segmented the global online pharmacy market report on the basis of type and region:
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