Prescription Drugs - Taiwan

Taiwan

Highlights

In Taiwan, the revenue in the Prescription Drugs market is estimated to reach US$7.45bn in 2024.
It is expected to exhibit an annual growth rate (CAGR 2024-2029) of 4.96%, leading to a market volume of US$9.49bn by 2029.
When compared globally, United States is projected to generate the highest revenue of US$358.90bn in 2024.
In terms of per person revenues, it amounts to US$311.20 in 2024.
Taiwan's prescription drug market is thriving, driven by a strong healthcare system and an increasing demand for innovative and personalized medications.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

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

Customer preferences: Customers in Taiwan have a strong preference for purchasing prescription drugs from pharmacies rather than other channels. This is primarily due to the convenience and accessibility of pharmacies, which are located in almost every neighborhood in the country. Customers appreciate the professional advice and guidance provided by pharmacists, who can help them choose the right medications and answer any questions they may have. Additionally, customers trust the quality and authenticity of prescription drugs sold in pharmacies, as they are regulated by the Taiwan Food and Drug Administration.

Trends in the market: One of the key trends in the Prescription Drugs (Pharmacies) market in Taiwan is the increasing demand for over-the-counter (OTC) medications. Customers are becoming more proactive in managing their health and are seeking self-care options for common ailments. Pharmacies in Taiwan have responded to this trend by expanding their range of OTC medications and providing more information and education to customers about these products. This has not only increased revenue for pharmacies but has also improved customer satisfaction. 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 factors such as convenience, competitive pricing, and a wider range of products. Online pharmacies in Taiwan have capitalized on this trend by offering home delivery services and implementing stringent quality control measures to ensure the safety and authenticity of the medications they sell.

Local special circumstances: Taiwan has a rapidly aging population, with a high prevalence of chronic diseases such as diabetes, hypertension, and cardiovascular diseases. This has led to an increased demand for prescription drugs, as elderly individuals require ongoing medication to manage their conditions. Pharmacies in Taiwan have adapted to this demographic shift by providing specialized services and products for the elderly, such as medication adherence programs, home delivery services, and medication management systems. These initiatives have not only improved the health outcomes of the elderly population but have also created new revenue streams for pharmacies.

Underlying macroeconomic factors: Taiwan has a strong healthcare system and a robust pharmaceutical industry, which has contributed to the growth of the Prescription Drugs (Pharmacies) market. The government has implemented policies to ensure the affordability and accessibility of prescription drugs, such as price controls and reimbursement schemes. This has made prescription drugs more affordable for customers, leading to increased demand. Additionally, the government has invested in healthcare infrastructure and technology, which has improved the efficiency and effectiveness of pharmacies in Taiwan. These macroeconomic factors have created a favorable environment for the growth of the Prescription Drugs (Pharmacies) market in Taiwan.

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.