Pharmacies - Kenya

Kenya

In Kenya, the Pharmacies market is expected to experience significant growth in the coming years.
According to projections, the revenue in this market is set to reach US$1.15bn by 2024.
Furthermore, it is anticipated that the market will continue to expand at an annual growth rate (CAGR 2024-2029) of 4.89%, resulting in a market volume of US$1.46bn by 2029.
When compared to other countries globally, United States is expected to generate the highest revenue in the Pharmacies market, reaching a staggering US$387.30bn in 2024.
This showcases the dominant position of the United States in this sector.
To put the revenue figures into perspective, in Kenya, the per person revenue in the Pharmacies market is estimated to be US$20.51 in 2024.
This indicates the amount of revenue generated per individual in relation to the total population of the country.
Kenya's pharmacy market is experiencing a surge in demand for herbal remedies as consumers seek natural alternatives to traditional medicine.

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

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Analyst Opinion

The Pharmacies market in Kenya is experiencing significant growth and development.

Customer preferences: Customers in Kenya have shown a strong preference for pharmacies as a convenient and accessible source of healthcare products and services. Pharmacies offer a wide range of over-the-counter medications, prescription drugs, and health-related products, making them a one-stop shop for consumers' healthcare needs. Additionally, pharmacies often provide additional services such as health consultations, vaccinations, and health screenings, further enhancing their appeal to customers.

Trends in the market: One of the key trends in the pharmacies market in Kenya is the increasing demand for generic drugs. Generic drugs are more affordable compared to branded medications, making them a popular choice for cost-conscious consumers. The government's efforts to promote the use of generic drugs through policies and regulations have also contributed to their growing popularity. As a result, pharmacies are expanding their range of generic medications to meet the rising demand. Another trend in the market is the growing popularity of online pharmacies. With the increasing penetration of smartphones and internet connectivity in Kenya, more consumers are turning to online platforms to purchase their healthcare products. Online pharmacies offer the convenience of doorstep delivery and a wide range of products, making them an attractive option for busy urban consumers. Pharmacies have recognized this trend and are investing in their online presence to cater to the changing preferences of customers.

Local special circumstances: Kenya has a rapidly growing population, with a significant proportion of the population living in urban areas. This urbanization trend has led to an increased demand for healthcare services, including pharmacies. The concentration of people in cities creates a larger customer base for pharmacies, leading to the establishment of more outlets in urban areas. Additionally, the presence of hospitals and clinics in urban centers further drives the demand for pharmacies, as patients often require prescription medications after receiving medical treatment.

Underlying macroeconomic factors: The Kenyan economy has been experiencing steady economic growth in recent years, which has contributed to the development of the pharmacies market. As the economy expands, consumers have more disposable income to spend on healthcare products and services, including medications. This increased purchasing power has fueled the growth of the pharmacies market, as consumers are willing to spend more on their health and well-being. In conclusion, the pharmacies market in Kenya is developing due to customer preferences for convenient and accessible healthcare options, such as pharmacies. The growing demand for generic drugs and the rise of online pharmacies are key trends in the market. The local special circumstances of urbanization and the presence of hospitals and clinics further contribute to the growth of the market. Additionally, the steady economic growth of Kenya has provided consumers with more disposable income to spend on healthcare, driving the development of the pharmacies market.

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.