The North America e-pharmacy market provides consumers with access to prescription and over-the-counter medications through online platforms. Key advantages include the convenience of home delivery and timely processing of orders without having to visit physical stores. This is especially beneficial for those residing in remote areas or those with limited mobility. E-pharmacies are also seen as an affordable option by consumers as they offer lower prices compared to brick-and-mortar pharmacies due to lower operating costs.
The global North America E-pharmacy Market is estimated to be valued at US$ 50.9 Bn in 2023 and is expected to exhibit a CAGR of 18% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
E-pharmacies offer significant discounts of up to 80% on various generic drugs compared to traditional pharmacy retail prices. They are also able to negotiate better pricing deals with drug manufacturers as they handle bulk orders and deliver medications across wide regions. This makes medicines more affordable for consumers. The cost benefits will attract more customers to the online channel and drive the North America e-pharmacy market growth during the forecast period.
Threat of new entrants: The threat of new entrants is low in the North America E-pharmacy market due to the presence of established players and high costs involved in operations.
Bargaining power of buyers: The bargaining power of buyers is high as customers can easily switch between E-pharmacy brands and visit brick-and-mortar pharmacies as well based on pricing and promotional offers.
Bargaining power of suppliers: suppliers have moderate bargaining power as there are several medicine suppliers in the region suppliers can switch between.
Threat of new substitutes: Threat from substitutes is moderate as brick-and-mortar pharmacies provide an alternative to customers.
Competitive rivalry: The competitive rivalry is high due to the presence of established brands focusing on expanding their product portfolios and service offerings.
Strengths: Access to wide range of medicines, convenient doorstep delivery services, easy registration and ordering process on websites and mobile apps.
Weaknesses: Issues with incorrect or lost orders, dependency on internet connectivity, security and privacy concerns regarding online payments.
Opportunities: Untapped rural market, growth in geriatric population needing regular medicines, introduction of new services like consultations.
Threats: Strict regulations, supply chain disruptions, increased competition from brick-and-mortar pharmacies.
The North America E-Pharmacy Market Demand is expected to witness high growth during the forecast period due to rising internet penetration and increasing preference for online shopping among customers. The growth in the region is driven by increasing access to medicines and convenience offered by E-pharmacies. The global North America E-pharmacy Market is estimated to be valued at US$ 50.9 Bn in 2023 and is expected to exhibit a CAGR of 18% over the forecast period 2023-2030.
Regional analysis shows that the U.S holds the majority share in the North America E-pharmacy market due to growing health awareness and adoption of new technologies in the country. Canada follows next and is witnessing rapid growth in E-pharmacy adoption owing to expanding medicinal infrastructure and increasing healthcare investments.
Key players operating in the North America E-pharmacy market are CVS Caremark, Zur Rose Group AG, PlanetRX.com Inc., Walgreen Company, Familymeds, Inc, Medisave, The Kroger Co., Cigna, Optum Rx, Inc, Giant Eagle, Walmart, Inc.,Express Scripts Holding Company, Optum Rx, Inc., Rowlands Pharmacy, Apollo Pharmacy and Netmeds. The major players are focusing on expanding their product portfolios through M&A activities and strengthening operational efficiencies.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it