The Taxable Retail Market comprises medical devices, veterinary products, over-the-counter drugs and dietary supplements sold through retail outlets. These products aim to improve health, treat minor injuries or illnesses without requiring a prescription or consultation. The market has witnessed consistent growth driven by an aging population and rising consumer interest in self-medication for better quality of life. Advancements in healthcare infrastructure and availability have enabled wider accessibility of these products to people.
The Global Taxable Retail Market is estimated to be valued at US$ 19.15 BN in 2024 and is expected to exhibit a CAGR of 8.0% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Taxable Retail are Allergan, Novartis, Pfizer, Takeda Pharmaceutical Company, Cook Medical, Medtronic, Johnson & Johnson, AstraZeneca, GlaxoSmithKline, Sanofi, Merck, Abbott Laboratories, Bayer, Astellas Pharma, Aurobindo Pharma, Ferring Pharmaceuticals, Salix Pharmaceuticals, Eli Lilly, Bristol-Myers Squibb, Boehringer Ingelheim. Key players are focused on strategic collaborations to expand their product portfolio and global footprint.
The demand for taxable retail products is growing significantly with rising healthcare spending globally. Increased consciousness among consumers about preventive healthcare and availability of generic drugs are augmenting the market growth.
Taxable Retail Market Share players are expanding their business operations across developing regions of Asia Pacific, Latin America, Middle East and Africa to tap the opportunities presented by increasing disposable incomes in these markets. New product launches, acquisitions and partnerships are the preferred strategies adopted by companies to establish themselves in international markets.
Market key trends
One of the key trends prevalent in the Taxable Retail Market is the shift towards e-commerce platforms. Companies have strengthened their online presence and offer doorstep delivery services to provide enhanced convenience to customers. This has boosted product reach as well as sales volumes. Self-medication is a growing trend among consumers who prefer to treat minor ailments using OTC drugs rather than visiting a physician, unless absolutely necessary. Increasing preference for herbal and homeopathic drugs is another trend being witnessed in the market.
Porter’s Analysis
Threat of new entrants: New companies find it difficult to enter this market as it requires huge capital investments and long approval timelines for new drugs and medical devices. Also, established brands have strong customer loyalty.
Bargaining power of buyers: Individual consumers have low bargaining power due to inelastic demand for healthcare products. However, large buyers like hospitals and pharmacy chains can negotiate for better pricing and terms.
Bargaining power of suppliers: Major suppliers of active pharmaceutical ingredients and raw materials have some bargaining power due to specialized expertise required. However, suppliers are many to prevent creation of monopoly.
Threat of new substitutes: Threat is low as healthcare products undergo rigorous testing and have few substitutes for treating specific ailments. However, some lifestyle changes and alternative medicines pose slow competition.
Competitive rivalry: Intense as top companies invest heavily in R&D and compete on product innovation, quality, and marketing. Brand loyalty and patents provide some competitive advantage.
Geographical Regions
North America accounts for the largest share of the taxable retail market, valued at US$ 6.98 billion in 2024 due to high healthcare spending and aging population in USA and Canada. Growth is steady rather than dramatic.
The Asia Pacific region is seeing the fastest growth in the taxable retail market at a CAGR of 11.8% during the forecast period. China and India have rising incomes, huge patient pool and increased healthcare access, driving higher spends on medicines, medical devices and clinical services in the region.