Prescription Drugs - South Korea

South Korea

Highlights

The South Korean Prescription Drugs market is expected to witness substantial growth in the coming years.
By 2024, the revenue in this market is projected to reach US$22.84bn.
This growth is further expected to continue with an annual growth rate (CAGR 2024-2029) of 3.72%.
As a result, the market volume is estimated to reach US$27.42bn by 2029.
In comparison to other countries, United States is anticipated to generate the highest revenue in the Prescription Drugs market, reaching a staggering US$358.90bn in 2024.
This highlights the dominance of the US market in this sector.
When considering revenue per capita, in South Korea is expected to generate approximately US$441.50 per person in 2024.
This indicates the significant contribution of the Prescription Drugs market to the overall economy of the country.
Overall, the future looks promising for the Prescription Drugs market in South Korea, with strong revenue growth and a positive outlook for the coming years.
South Korea's prescription drug market is rapidly expanding due to increasing healthcare expenditure and a growing elderly population.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Prescription Drugs (Pharmacies) market in South Korea has been experiencing significant growth in recent years.

Customer preferences: South Korean customers have shown a strong preference for purchasing prescription drugs from pharmacies. This is due to several factors, including the convenience and accessibility of pharmacies, as well as the trust and confidence that customers have in the expertise of pharmacists. Additionally, customers in South Korea place a high value on the quality and safety of prescription drugs, and pharmacies are seen as a reliable source for these products.

Trends in the market: One of the key trends in the Prescription Drugs (Pharmacies) market in South Korea is the increasing demand for over-the-counter (OTC) drugs. OTC drugs are medications that can be purchased without a prescription, and they are becoming increasingly popular among South Korean consumers. This trend can be attributed to several factors, including the growing awareness and knowledge of health and wellness among consumers, as well as the convenience and cost-effectiveness of OTC drugs. Another trend in the market is the growing popularity of online pharmacies. With the increasing use of smartphones and the internet, more and more South Korean consumers are turning to online pharmacies to purchase their prescription drugs. Online pharmacies offer a wide range of products, competitive prices, and the convenience of home delivery, making them a preferred choice for many consumers.

Local special circumstances: South Korea has a well-developed healthcare system, which includes a strong network of pharmacies. The government has implemented policies to promote the growth and development of the pharmacy sector, including the establishment of a comprehensive drug distribution system and the implementation of strict regulations to ensure the quality and safety of prescription drugs. These factors have contributed to the strong presence of pharmacies in the market and the high level of trust that consumers have in these establishments.

Underlying macroeconomic factors: The growth of the Prescription Drugs (Pharmacies) market in South Korea can be attributed to several underlying macroeconomic factors. Firstly, South Korea has a rapidly aging population, which has led to an increase in the demand for healthcare services, including prescription drugs. Additionally, the rising disposable incomes of South Korean consumers have allowed them to spend more on healthcare products and services, including prescription drugs. Lastly, the government's focus on promoting the healthcare sector and the development of innovative healthcare technologies has created a favorable environment for the growth of the Prescription Drugs (Pharmacies) market in South Korea. In conclusion, the Prescription Drugs (Pharmacies) market in South Korea is experiencing significant growth due to customer preferences for purchasing prescription drugs from pharmacies, the increasing demand for OTC drugs, the growing popularity of online pharmacies, the well-developed healthcare system in the country, and the underlying macroeconomic factors such as the aging population and rising disposable incomes.

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.