Pharmacies - United Arab Emirates

The Pharmacies market in the United Arab Emirates is forecasted to achieve a revenue of US$5.27bn by the year 2024.
It is expected that the revenue will exhibit a compound annual growth rate (CAGR 2024-2029) of 4.42%, resulting in a market volume of US$6.54bn by 2029.
When compared to other countries globally, United States is projected to generate the highest revenue with US$387.30bn in 2024.
In terms of per capita figures, each person in the United Arab Emirates is expected to generate a revenue of US$549.30 in 2024.
The United Arab Emirates pharmacy market is witnessing a surge in demand for high-quality healthcare products and services.

Definition:
Pharmacies are physical or digital places where mainly pharmaceuticals and medical products are sold. Additionally, they also sell other items that are generally found in a pharmacy, such as food supplements, cosmetic products, and other health-related goods. A large proportion of pharmaceuticals are only available on prescription; the rest of the product range of pharmacies is sold over the counter (OTC). Besides selling products, pharmacies also advise customers, inform them about undesirable effects of the products, and detect possible interactions with other medicines.

Structure:
The Pharmacies market consists of two markets: Prescriptions Drugs and OTC Products. The Prescription Drugs market covers all products – mainly pharmaceuticals – that are only available on prescription. The OTC Products market comprises all products that are sold over the counter (OTC), including pharmaceuticals, medical devices, and other items that are generally found in a pharmacy.

Additional information:
The KPIs shown include revenue, revenue growth, average revenue per pharmacy, average revenue per capita, number of pharmacies, pharmacy density, users, and the online sales share for the OTC Products market. Revenues are generated through offline and online spending by (B2C) consumers and include VAT. B2B and B2G sales as well as other pharmaceutical sales through hospitals or retail stores, such as supermarkets, are not included.
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Prescription pharmaceuticals
Prescription medical products
OTC pharmaceuticals
OTC medical products
Pharmacy-usual items

Services such as vaccinations
Sales through hospitals or retail stores

The Pharmacies market in United Arab Emirates has been experiencing significant growth in recent years.

Customer preferences: Customers in United Arab Emirates have shown a strong preference for convenient and accessible healthcare services, which has contributed to the growth of the Pharmacies market. With a busy lifestyle and a growing population, customers are looking for pharmacies that offer a wide range of products and services, including prescription medications, over-the-counter drugs, and health and wellness products. Furthermore, customers in United Arab Emirates value high-quality customer service and personalized advice from pharmacists, which has led to an increase in demand for pharmacies that prioritize patient care and provide expert guidance.

Trends in the market: One of the key trends in the Pharmacies market in United Arab Emirates is the increasing adoption of digital technologies. Pharmacies are leveraging technology to enhance the customer experience and improve operational efficiency. Online ordering and home delivery services have become more popular, allowing customers to conveniently access their medications and healthcare products. Additionally, pharmacies are utilizing digital platforms to provide virtual consultations and medication management services, enabling customers to receive healthcare advice remotely. This trend is driven by the growing use of smartphones and internet connectivity in United Arab Emirates, as well as the desire for contactless and convenient healthcare solutions. Another trend in the market is the focus on preventive healthcare and wellness. Customers in United Arab Emirates are becoming more proactive in managing their health and are seeking out pharmacies that offer a wide range of wellness products and services. Pharmacies are expanding their product offerings to include vitamins, supplements, and natural remedies, catering to the increasing demand for holistic health solutions. Additionally, pharmacies are providing health screenings and wellness programs to educate and empower customers to take control of their health. This trend is driven by a growing awareness of the importance of preventive healthcare and a desire for a healthier lifestyle.

Local special circumstances: The Pharmacies market in United Arab Emirates is influenced by the country's unique healthcare system. United Arab Emirates has a mix of public and private healthcare providers, with the government playing a significant role in healthcare delivery. The government has implemented various initiatives to improve access to healthcare services, including the establishment of primary healthcare centers and the provision of free or subsidized healthcare for citizens. This has created opportunities for pharmacies to collaborate with the government and participate in public health programs. Pharmacies in United Arab Emirates also face regulatory requirements, such as the need for licensed pharmacists and adherence to quality standards, which ensure the safety and efficacy of medications and healthcare products.

Underlying macroeconomic factors: The growth of the Pharmacies market in United Arab Emirates is supported by several macroeconomic factors. The country has a high per capita income and a strong economy, which enables customers to afford healthcare products and services. Additionally, United Arab Emirates has a young and growing population, which contributes to the increasing demand for healthcare. The government's focus on healthcare infrastructure development and the promotion of medical tourism also drive the growth of the Pharmacies market. Furthermore, the COVID-19 pandemic has further accelerated the adoption of digital healthcare solutions and increased the demand for pharmacies, as customers seek to prioritize their health and wellbeing.

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.

This report presents a comprehensive analysis and additional information on the Health market, in a PDF format.

The global online pharmacy sector was estimated at 32 billion U.S. dollars by the end of 2023. In the United States, forecasts indicate that this figure would reach approximately 5.7 billion, solidifying its position as one of the largest online pharmacy markets. However, China dominates the pharma e-commerce industry worldwide, generating nearly 8.5 billion dollars in revenue. With China at the forefront, it is no wonder digital pharmacies make up the fastest-growing segment in the Asian digital health market.