The Prescription Drugs (Pharmacies) market in Ethiopia has been experiencing significant growth in recent years.
Customer preferences: Ethiopian consumers have shown a growing demand for prescription drugs, leading to an increase in the number of pharmacies across the country. This can be attributed to several factors, including a rising population, improved access to healthcare services, and an increase in chronic diseases. Additionally, the government has implemented policies to promote the availability and affordability of prescription drugs, further driving the demand.
Trends in the market: One of the key trends in the Prescription Drugs (Pharmacies) market in Ethiopia is the shift towards online pharmacies. With the increasing penetration of smartphones and internet access, consumers are becoming more comfortable with purchasing prescription drugs online. This trend is particularly prominent in urban areas, where consumers value the convenience and time-saving benefits of online shopping. Online pharmacies also offer a wider range of products and competitive prices, attracting a growing number of customers. Another trend in the market is the increasing focus on generic drugs. Generic drugs are more affordable compared to branded drugs, making them a preferred choice for cost-conscious consumers. The government has also implemented policies to promote the use of generic drugs, including price controls and incentives for pharmacies to stock and sell generic alternatives. This has led to an increase in the availability and accessibility of generic drugs in the market.
Local special circumstances: Ethiopia is a low-income country with a large population, which presents unique challenges and opportunities for the Prescription Drugs (Pharmacies) market. While the demand for prescription drugs is high, affordability remains a significant barrier for many consumers. As a result, pharmacies in Ethiopia often cater to a wide range of income groups, offering both branded and generic drugs to meet the diverse needs of the population. Furthermore, the healthcare infrastructure in Ethiopia is still developing, particularly in rural areas. This has led to a concentration of pharmacies in urban areas, where the majority of the population resides. However, efforts are being made to improve healthcare access in rural areas, which could potentially create new opportunities for pharmacies to expand their reach.
Underlying macroeconomic factors: The growth of the Prescription Drugs (Pharmacies) market in Ethiopia is supported by several macroeconomic factors. The country has experienced steady economic growth in recent years, which has contributed to an increase in disposable income and consumer spending. This has allowed more individuals to afford prescription drugs and seek healthcare services. Additionally, the government has recognized the importance of the healthcare sector in driving economic development and has implemented policies to support its growth. This includes investments in healthcare infrastructure, training programs for healthcare professionals, and the development of a regulatory framework to ensure the quality and safety of prescription drugs. In conclusion, the Prescription Drugs (Pharmacies) market in Ethiopia is experiencing significant growth due to increasing customer demand, the shift towards online pharmacies, and the focus on generic drugs. The local special circumstances, such as the affordability challenge and the need for improved healthcare access in rural areas, present both challenges and opportunities for pharmacies. The underlying macroeconomic factors, including economic growth and government support, further contribute to the development of the market.
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.
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