Prescription Drugs - Hungary

Hungary

In Hungary, the revenue in the Prescription Drugs market is estimated to reach US$2.64bn by 2024.
It is expected to exhibit an annual growth rate (CAGR 2024-2029) of 3.33%, leading to a market volume of US$3.11bn by 2029.
Comparing it globally, United States is projected to generate the highest revenue in the Prescription Drugs market, amounting to US$358.90bn in 2024.
In terms of per person revenues, in Hungary is expected to generate US$264.10 in 2024.
"Due to strict regulations and government control, Hungary has seen a rise in the demand for locally produced prescription drugs."

Key regions: Japan, China, Europe, Australia, Canada

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Analyst Opinion

The Prescription Drugs (Pharmacies) market in Hungary has been experiencing steady growth in recent years.

Customer preferences: Hungarian customers have shown a strong preference for purchasing prescription drugs from pharmacies rather than other channels. This is due to the trust and reliability associated with pharmacies, as well as the convenience of being able to consult with a pharmacist before making a purchase.

Trends in the market: One notable trend in the Hungarian Prescription Drugs (Pharmacies) market is the increasing demand for over-the-counter (OTC) drugs. Customers are increasingly seeking self-medication options for common ailments, such as cold and flu symptoms, which has led to a rise in sales of OTC drugs in pharmacies. This trend can be attributed to the growing awareness and knowledge among consumers about the benefits and safety of OTC drugs. Another trend in the market is the growing popularity of online pharmacies. Customers are increasingly turning to online platforms to purchase prescription drugs, driven by the convenience of home delivery and the ability to compare prices and products. This trend is expected to continue as more customers become comfortable with online shopping and as online pharmacies improve their services and product offerings.

Local special circumstances: One of the unique aspects of the Hungarian Prescription Drugs (Pharmacies) market is the strict regulations and control over the sale of prescription drugs. In Hungary, only licensed pharmacies are allowed to sell prescription drugs, ensuring the safety and quality of the products. This regulatory framework has created a highly regulated market, with a limited number of pharmacies operating in the country. As a result, competition among pharmacies is relatively low, allowing them to maintain higher prices and profit margins.

Underlying macroeconomic factors: The growth of the Prescription Drugs (Pharmacies) market in Hungary can be attributed to several underlying macroeconomic factors. Firstly, the aging population in Hungary has led to an increased demand for prescription drugs, as older individuals tend to have more health issues and require ongoing medication. This demographic shift has created a larger customer base for pharmacies, driving sales and revenue growth. Secondly, the overall improvement in the Hungarian economy has increased disposable income levels, allowing customers to afford prescription drugs. As the economy continues to grow, more individuals are able to access healthcare services and afford necessary medications. Lastly, the government's focus on healthcare and the provision of universal healthcare coverage has also contributed to the growth of the Prescription Drugs (Pharmacies) market. The government's investment in healthcare infrastructure and services has improved access to healthcare for the population, leading to increased demand for prescription drugs. In conclusion, the Prescription Drugs (Pharmacies) market in Hungary is experiencing steady growth due to customer preferences for pharmacies, increasing demand for OTC drugs, the popularity of online pharmacies, strict regulations, an aging population, improved economic conditions, and government focus on healthcare. These factors are expected to continue driving the growth of the market in the coming years.

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.