Pharmacies - Nigeria | Statista Market Forecast

The projected revenue in the Pharmacies market in Nigeria is expected to reach US$14.81bn in 2024.
This is based on the forecasted annual growth rate (CAGR 2024-2029) of 5.68%.
As a result, the market volume is expected to reach US$19.53bn by 2029.
In comparison to other countries, United States is expected to generate the highest revenue in the Pharmacies market, reaching US$387.30bn in 2024.
When considering the population figures, the per person revenue in Nigeria is projected to be US$64.64 in 2024.
Nigeria's pharmacy market is experiencing a surge in demand for traditional herbal medicines as consumers seek alternative remedies.

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.
For more information on the data displayed, use the info button next to the boxes.

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 Nigeria is experiencing significant growth and development in recent years.

Customer preferences: Customers in Nigeria have shown a growing preference for purchasing pharmaceutical products from pharmacies. This is due to several factors, including the convenience of having a wide range of products available in one location, the assurance of purchasing genuine and quality medications, and the availability of professional advice from pharmacists.

Trends in the market: One of the key trends in the Pharmacies market in Nigeria is the increasing number of pharmacies across the country. This can be attributed to the rising demand for pharmaceutical products and services, as well as the government's efforts to improve access to healthcare. As a result, more pharmacies are opening up in both urban and rural areas, providing greater accessibility to medications for the population. Another trend in the market is the growing popularity of online pharmacies. With the increasing penetration of the internet and smartphones in Nigeria, more people are turning to online platforms to purchase their medications. Online pharmacies offer the convenience of doorstep delivery and the ability to compare prices and products, making them an attractive option for many consumers.

Local special circumstances: Nigeria has a large population, which presents both opportunities and challenges for the Pharmacies market. On one hand, the large customer base provides a significant market for pharmacies to tap into. On the other hand, the high population density in urban areas can lead to intense competition among pharmacies. In order to stand out in this competitive landscape, pharmacies need to offer quality products, excellent customer service, and competitive pricing.

Underlying macroeconomic factors: The growth of the Pharmacies market in Nigeria can also be attributed to several macroeconomic factors. The country has been experiencing economic growth in recent years, which has led to an increase in disposable income for many Nigerians. This has resulted in higher healthcare spending, including the purchase of pharmaceutical products. Additionally, the government has been investing in healthcare infrastructure and implementing policies to improve access to healthcare services, which has further fueled the growth of the Pharmacies market. In conclusion, the Pharmacies market in Nigeria is witnessing significant growth and development due to customer preferences for convenience and quality, the increasing number of pharmacies, the rise of online pharmacies, the large population, and favorable macroeconomic factors. These trends and circumstances are expected to continue driving the growth of the market in the coming years.

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.