The taxable retail market comprises pharmaceutical and medical devices used in retail healthcare facilities to treat both chronic and acute conditions. These products include generic and branded drugs covering therapy areas such as pain management, diabetes, cardiovascular diseases, cancer, gastrointestinal disorders and respiratory diseases. Medical devices available in retail setting include wound care products, ostomy care products, incontinence products and disposable gloves and masks. The increasing prevalence of chronic diseases and rising healthcare costs have resulted in greater adoption of taxable retail products which are cost effective compared to hospital visits.
The Global Taxable Retail Market is estimated to be valued at US$ 15.55 Mn in 2024 and is expected to exhibit a CAGR of 5.3% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in The Taxable Retail Market 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. These players dominate the market with their wide distribution networks and range of products catering to chronic therapy areas like diabetes, cardiovascular diseases, pain management etc.
The growing demand for prescription and generic drugs along with medical devices from retail healthcare facilities to treat various acute and chronic conditions is driving the growth of the taxable retail market. Self-administration of medications at home care settings and retail pharmacies is becoming a popular method of treatment for various diseases due to cost effectiveness and convenience.
Globally, the taxable retail market is expanding strongly, especially in emerging economies where affordability of retail healthcare is greater than hospital visits. Countries like India, China, Brazil, Mexico are witnessing higher adoption of taxable retail products due to growing disease burden, rising incomes and massive expansions in retail pharmacies.
Market Key Trends
One of the major trends gaining prominence in the taxable retail market is the increasing sales of healthcare equipment and supplies through online pharmacies and e-commerce websites. The option of purchasing prescription drugs, generic medicines, allergy and chronic disease medications, first aid and wound care products from the comfort of home is boosting the popularity of online channels among users. Various players have launched their own e-pharmacies or are selling through third party websites which is expected to significantly contribute to the growth of the taxable retail market during the forecast period.
Porter’s Analysis
Threat of new entrants: New players find it difficult to enter the taxable retail market as it requires huge investment for infrastructure and distribution network.
Bargaining power of buyers: Buyers have high bargaining power as there are numerous players offering similar products.
Bargaining power of suppliers: A few big players dominate the supply market giving them high bargaining power over manufacturers.
Threat of new substitutes: Substitutes are less as taxable retail goods have well established demand but new substitute opportunities can emerge.
Competitive rivalry: Competition is high as major players compete for market share and new product developments.
Geographical regions: North America accounts for over 40% of the global taxable retail market value owing to high healthcare spending and adoption of new drugs and devices. The U.S. contributes to the major share within North America.
Europe is the second largest regional market led by countries like Germany, U.K, France, Italy and Spain. Asia Pacific region is witnessing the fastest growth in taxable retail market value driven by expanding medical services, rising disposable income and growing health awareness in China, India and other developing countries.
