Pharmacies - Ethiopia

Ethiopia

In Ethiopia, the revenue in the Pharmacies market is projected to reach US$489.50m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of -2.73%, resulting in a market volume of US$426.30m by 2029.
When compared globally, United States is expected to generate the highest revenue of US$387.30bn in 2024.
In terms of per person revenues, US$3.77 will be generated in 2024.
The pharmacy market in Ethiopia is experiencing a surge in demand for traditional herbal medicines.

Key regions: United States, China, Germany, Japan, Europe

Market

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Currency

Analyst Opinion

The Pharmacies market in Ethiopia has been experiencing significant growth in recent years.

Customer preferences: Customers in Ethiopia have shown a growing preference for pharmacies as a convenient and accessible source for their healthcare needs. Pharmacies provide a wide range of over-the-counter medications, as well as prescription drugs, making them a one-stop shop for customers' medical needs. Additionally, pharmacies often offer personalized services such as health consultations and advice, which further attract customers.

Trends in the market: One of the key trends in the Pharmacies market in Ethiopia is the increasing demand for generic drugs. Generic drugs are more affordable compared to their branded counterparts, making them a popular choice among customers who are looking to save on healthcare expenses. This trend is driven by the rising healthcare costs in the country and the need for affordable medications. Pharmacies are responding to this trend by expanding their range of generic drugs and offering them at competitive prices. Another trend in the market is the growing popularity of online pharmacies. With the increasing penetration of internet and smartphones in Ethiopia, customers are increasingly turning to online platforms for their healthcare needs. Online pharmacies offer the convenience of ordering medications from the comfort of one's home and often provide door-to-door delivery services. This trend is particularly appealing to customers in rural areas who may have limited access to physical pharmacies.

Local special circumstances: Ethiopia has a large population, with a significant portion living in rural areas. Access to healthcare facilities, including pharmacies, can be challenging in these remote areas. Pharmacies in Ethiopia are adapting to this challenge by setting up satellite branches or mobile pharmacies in rural areas, ensuring that customers in these regions have access to essential medications. This initiative has been well-received by the local population and has contributed to the growth of the Pharmacies market in Ethiopia.

Underlying macroeconomic factors: Ethiopia has been experiencing steady economic growth in recent years, which has led to an increase in disposable income among the population. As a result, people are willing to spend more on healthcare and are seeking better quality medications. This has created a favorable environment for the growth of the Pharmacies market in Ethiopia. In conclusion, the Pharmacies market in Ethiopia is experiencing significant growth due to customer preferences for convenient and accessible healthcare services. The increasing demand for generic drugs and the rise of online pharmacies are notable trends in the market. Additionally, the establishment of satellite branches and mobile pharmacies in rural areas has addressed the challenge of limited access to healthcare facilities. The steady economic growth in Ethiopia has also contributed to the growth of the Pharmacies market by increasing disposable income and the willingness to spend on healthcare.

Methodology

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.