Pharmacies - Philippines | Statista Market Forecast

In the Philippines, the revenue in the Pharmacies market is estimated to reach US$6.44bn by 2024.
It is expected that the revenue will exhibit an annual growth rate (CAGR 2024-2029) of 3.77%, resulting in a market volume of US$7.75bn by 2029.
When compared globally, United States is projected to generate the highest revenue of US$387.30bn in 2024.
In terms of per person revenues, it is estimated that US$54.09 will be generated in 2024.
The pharmacy market in the Philippines is experiencing a surge in demand for herbal remedies and traditional medicine.

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 Philippines is experiencing significant growth due to various customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in the Philippines have shown a strong preference for pharmacies as their primary source of healthcare products and services. This preference can be attributed to the convenience and accessibility that pharmacies offer. With a large number of pharmacies located in urban areas and even in rural communities, customers can easily access essential medicines, over-the-counter drugs, and other healthcare products. Additionally, pharmacies in the Philippines often provide personalized services such as health consultations and medication advice, which further enhance customer satisfaction and loyalty.

Trends in the market: One of the key trends in the Pharmacies market in Philippines is the increasing demand for generic medicines. Generic medicines are more affordable compared to branded ones, making them a popular choice among cost-conscious customers. The government's efforts to promote the use of generic medicines through various initiatives and policies have further fueled this trend. As a result, pharmacies in the Philippines are expanding their range of generic medicines to cater to the growing demand. Another notable trend in the market is the rising popularity of online pharmacies. With the increasing penetration of smartphones and internet connectivity, more customers are opting to purchase healthcare products online. Online pharmacies offer the convenience of doorstep delivery and a wide range of products to choose from. This trend has prompted traditional brick-and-mortar pharmacies to establish their online presence and offer e-commerce services to stay competitive.

Local special circumstances: The Philippines has a rapidly growing population, which directly impacts the demand for healthcare products and services. As the population increases, so does the need for pharmacies to cater to the healthcare needs of the people. The government has recognized this need and has been actively promoting the establishment of more pharmacies, especially in underserved areas. This has led to the opening of new pharmacies and the expansion of existing ones, creating more job opportunities and contributing to the overall economic development of the country.

Underlying macroeconomic factors: The Pharmacies market in Philippines is also influenced by various macroeconomic factors. One such factor is the country's growing middle class. As more people move up the income ladder, their purchasing power increases, allowing them to spend more on healthcare products and services. This has led to an increase in the demand for pharmacies and has created a favorable market environment for the industry. Additionally, the government's focus on universal healthcare and the implementation of social health insurance programs have also contributed to the growth of the Pharmacies market in Philippines. These initiatives have improved access to healthcare services for a larger portion of the population, leading to increased demand for pharmacies and their products. In conclusion, the Pharmacies market in Philippines is experiencing significant growth due to customer preferences for convenience and accessibility, the increasing demand for generic medicines, the rise of online pharmacies, local special circumstances such as population growth and government support, and underlying macroeconomic factors such as the growing middle class and universal healthcare initiatives. These factors are driving the development of the market and creating opportunities for both traditional and online pharmacies to thrive in the Philippines.

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.