Prescription Drugs - Vietnam

Vietnam

Highlights

Vietnam is projected to see a significant increase in revenue within the Prescription Drugs market.
By 2024, the revenue is expected to reach US$3.20bn.
Furthermore, it is anticipated that the market will experience a Compound Annual Growth Rate (CAGR) of 4.34% between 2024 and 2029, resulting in a market volume of US$3.96bn by 2029.
When compared globally, United States is projected to generate the highest revenue within the Prescription Drugs market, with an estimated revenue of US$358.90bn in 2024.
Taking into consideration the total population figures, in Vietnam is expected to generate a per person revenue of US$32.21 in 2024.
This showcases the significant impact and potential of the Prescription Drugs market in the country.
Vietnam's prescription drug market is experiencing significant growth due to increasing healthcare spending and a growing middle class.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

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

Customer preferences: Customers in Vietnam have shown a growing preference for prescription drugs from pharmacies due to several reasons. Firstly, pharmacies offer a convenient and accessible option for customers to purchase their medications. With the increasing urbanization in Vietnam, more people are living in cities where pharmacies are easily accessible. Additionally, the rise of e-commerce has made it even more convenient for customers to order prescription drugs online and have them delivered to their doorstep. This has further fueled the demand for prescription drugs from pharmacies.

Trends in the market: One major trend in the Prescription Drugs (Pharmacies) market in Vietnam is the increasing demand for over-the-counter (OTC) drugs. OTC drugs are medications that can be purchased without a prescription from a healthcare professional. This trend can be attributed to several factors. Firstly, the rising awareness of self-medication among consumers has led to an increased demand for OTC drugs. Consumers are becoming more knowledgeable about their health and are seeking ways to address minor ailments without visiting a doctor. Additionally, the affordability and accessibility of OTC drugs make them an attractive option for consumers. Another trend in the market is the growing popularity of online pharmacies. Online pharmacies provide a convenient and discreet way for customers to purchase prescription drugs. The ability to compare prices and read reviews online has also contributed to the increasing popularity of online pharmacies. Moreover, the COVID-19 pandemic has accelerated the adoption of online pharmacies as people are more cautious about visiting physical stores.

Local special circumstances: Vietnam has a rapidly aging population, which is driving the demand for prescription drugs. As people age, they are more likely to develop chronic health conditions that require long-term medication. This has led to an increased demand for prescription drugs from pharmacies. Furthermore, the Vietnamese government has been implementing various healthcare reforms to improve access to healthcare services. This includes expanding the coverage of health insurance and increasing investment in healthcare infrastructure. These reforms have contributed to the growth of the Prescription Drugs (Pharmacies) market in Vietnam as more people are able to afford and access healthcare services, including prescription drugs.

Underlying macroeconomic factors: Vietnam has been experiencing strong economic growth in recent years, which has positively impacted the Prescription Drugs (Pharmacies) market. As the disposable income of the population increases, people are willing to spend more on healthcare, including prescription drugs. Moreover, the growing middle class in Vietnam has led to an increased demand for higher quality healthcare services, including prescription drugs. In conclusion, the Prescription Drugs (Pharmacies) market in Vietnam is developing due to customer preferences for convenient and accessible options, the increasing demand for OTC drugs, the growing popularity of online pharmacies, the aging population, healthcare reforms, and strong macroeconomic factors.

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.