Pharmacies - Eastern Africa | Statista Market Forecast

The Pharmacies market in Eastern Africa is projected to reach a revenue of US$4.13bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.85%, resulting in a market volume of US$4.99bn by 2029.
In global comparison, United States will generate the highest revenue with US$387.30bn in 2024.
When considering the total population figures, per person revenues of US$9.00 are generated in 2024.
In Eastern Africa, there is a growing trend of pharmacies offering a wide range of traditional herbal remedies alongside modern pharmaceutical products.

Definition:
Pharmacies are physical or digital places where mainly pharmaceuticals and medical products are sold. Additionally, they also sell other items that are generally found in a pharmacy, such as food supplements, cosmetic products, and other health-related goods. A large proportion of pharmaceuticals are only available on prescription; the rest of the product range of pharmacies is sold over the counter (OTC). Besides selling products, pharmacies also advise customers, inform them about undesirable effects of the products, and detect possible interactions with other medicines.

Structure:
The Pharmacies market consists of two markets: Prescriptions Drugs and OTC Products. The Prescription Drugs market covers all products – mainly pharmaceuticals – that are only available on prescription. The OTC Products market comprises all products that are sold over the counter (OTC), including pharmaceuticals, medical devices, and other items that are generally found in a pharmacy.

Additional information:
The KPIs shown include revenue, revenue growth, average revenue per pharmacy, average revenue per capita, number of pharmacies, pharmacy density, users, and the online sales share for the OTC Products market. Revenues are generated through offline and online spending by (B2C) consumers and include VAT. B2B and B2G sales as well as other pharmaceutical sales through hospitals or retail stores, such as supermarkets, are not included.
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Prescription pharmaceuticals
Prescription medical products
OTC pharmaceuticals
OTC medical products
Pharmacy-usual items

Services such as vaccinations
Sales through hospitals or retail stores

The Pharmacies market in Eastern Africa is experiencing significant growth and development.

Customer preferences: Customers in Eastern Africa have shown a strong preference for accessible and affordable healthcare services. Pharmacies provide a convenient option for patients to access medication and healthcare products without having to visit a hospital or clinic. Additionally, customers value the expertise and advice of pharmacists, who can provide guidance on medication usage and potential side effects. As a result, pharmacies have become an integral part of the healthcare system in Eastern Africa.

Trends in the market: One of the key trends in the Pharmacies market in Eastern Africa is the increasing demand for over-the-counter (OTC) medications and health products. Customers are increasingly seeking self-care options and are willing to purchase OTC medications for minor ailments. This trend is driven by factors such as rising healthcare costs, limited access to healthcare facilities in rural areas, and the growing awareness of preventive healthcare measures. Another trend in the market is the expansion of pharmacy chains. Large pharmacy chains are emerging in major cities, offering a wide range of products and services. These chains have the advantage of economies of scale, allowing them to offer competitive prices and a wider selection of products. Additionally, pharmacy chains are investing in technology and digital platforms to enhance customer experience and improve efficiency in supply chain management.

Local special circumstances: Eastern Africa is a region with a high burden of infectious diseases, such as malaria, HIV/AIDS, and tuberculosis. This has created a significant demand for medications and treatments, which pharmacies play a crucial role in fulfilling. Pharmacies in Eastern Africa often stock a wide range of antimalarial drugs, antiretroviral therapy, and antibiotics to meet the needs of the local population. Furthermore, the region has a rapidly growing population, which is expected to drive the demand for healthcare services, including pharmacies. With increasing urbanization and a rising middle class, more people are seeking access to quality healthcare and are willing to spend on medications and health products.

Underlying macroeconomic factors: The Pharmacies market in Eastern Africa is influenced by various macroeconomic factors. Economic growth and increasing disposable incomes are driving the demand for healthcare services. As the economy improves, more people are able to afford medications and healthcare products, leading to increased sales in pharmacies. Additionally, government investments in healthcare infrastructure and policies that promote universal healthcare coverage are expected to further boost the Pharmacies market. Governments in Eastern Africa are focusing on improving healthcare access and affordability, which will benefit pharmacies by increasing the customer base and reducing out-of-pocket expenses for patients. In conclusion, the Pharmacies market in Eastern Africa is experiencing growth and development due to customer preferences for accessible and affordable healthcare services, the increasing demand for OTC medications, the expansion of pharmacy chains, the high burden of infectious diseases, the growing population, and underlying macroeconomic factors such as economic growth and government investments in healthcare.

Data coverage:

The data encompasses B2C enterprises. Figures are based on offline and online spending by consumers, including VAT. Not included are B2B and B2G sales, or other pharmaceutical sales through hospitals or retail stores such as supermarkets.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market market. As a basis for evaluating markets, we use industry associations, third-party studies and reports and survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as healthcare expenditure per country, consumer healthcare spending, GDP and internet penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, forecasts are based on historical developments, current trends, and key market indicators, using advanced statistical methods. For forecasting digital trends such as the online-pharmacy sales share we use exponential trend smoothing and the s-curve method. The main drivers are healthcare expenditure per country and consumer healthcare spending.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. GCS data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Health market, in a PDF format.

The global online pharmacy sector was estimated at 32 billion U.S. dollars by the end of 2023. In the United States, forecasts indicate that this figure would reach approximately 5.7 billion, solidifying its position as one of the largest online pharmacy markets. However, China dominates the pharma e-commerce industry worldwide, generating nearly 8.5 billion dollars in revenue. With China at the forefront, it is no wonder digital pharmacies make up the fastest-growing segment in the Asian digital health market.