Pharmacies - Vietnam | Statista Market Forecast

In Vietnam, the Pharmacies market is anticipated to witness significant growth, with projected revenue reaching US$4.93bn in 2024.
This growth is expected to continue at a steady pace, with an annual growth rate (CAGR 2024-2029) of 4.92%.
By 2029, the market volume is estimated to reach US$6.26bn.
When comparing in Vietnam to other countries globally, it's important to note that United States is expected to generate the highest revenue in the Pharmacies market, with an estimated revenue of US$387.30bn in 2024.
To understand the scale of revenue generated in Vietnam, it is useful to consider the per person revenue figures.
In 2024, the per person revenue in Vietnam is projected to be US$49.51.
This indicates the amount of revenue generated per individual in relation to the total population.
Vietnam's pharmacy market is experiencing a surge in demand for traditional herbal remedies and alternative medicines.

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.
For more information on the data displayed, use the info button next to the boxes.

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 Vietnam is experiencing significant growth and development due to various factors.

Customer preferences: Customers in Vietnam are increasingly seeking convenience and accessibility when it comes to healthcare products and services. Pharmacies offer a one-stop solution for their healthcare needs, providing a wide range of prescription and over-the-counter medications, as well as health and wellness products. Customers appreciate the convenience of being able to purchase medications and healthcare products in one place, without the need for a doctor's prescription. Additionally, the growing awareness and emphasis on preventive healthcare has led to an increased demand for vitamins, supplements, and other wellness products, which are readily available in pharmacies.

Trends in the market: One of the key trends in the Pharmacies market in Vietnam is the increasing number of pharmacy chains and the expansion of existing ones. This trend is driven by the need to meet the growing demand for healthcare products and services, as well as the desire to provide a better customer experience. Pharmacy chains are able to offer a wider range of products, competitive pricing, and a more convenient shopping experience compared to independent pharmacies. The expansion of pharmacy chains also allows them to reach a larger customer base, including customers in rural areas who may have limited access to healthcare facilities. Another trend in the market is the growing popularity of online pharmacies. With the increasing penetration of smartphones and internet access in Vietnam, more customers are opting to purchase healthcare products online. Online pharmacies offer the convenience of home delivery, competitive pricing, and a wide range of products. Additionally, they provide customers with the option to consult with pharmacists online, making it easier to obtain advice and information about medications and healthcare products.

Local special circumstances: Vietnam has a rapidly aging population, with a significant increase in the number of elderly people in recent years. This demographic shift has led to an increased demand for healthcare products and services, including medications. Pharmacies play a crucial role in meeting the healthcare needs of the elderly population, providing them with easy access to medications and healthcare products. Additionally, pharmacies often offer services such as blood pressure monitoring, diabetes management, and medication counseling, which are particularly important for the elderly population.

Underlying macroeconomic factors: Vietnam has experienced strong economic growth in recent years, leading to an increase in disposable income and consumer spending. This has contributed to the growth of the Pharmacies market, as customers have more purchasing power to spend on healthcare products and services. Additionally, the government of Vietnam has been investing in healthcare infrastructure and implementing healthcare reforms, which have improved access to healthcare services and increased the demand for medications and healthcare products. In conclusion, the Pharmacies market in Vietnam is developing and growing due to customer preferences for convenience and accessibility, the expansion of pharmacy chains, the popularity of online pharmacies, the aging population, and the underlying macroeconomic factors. These factors are driving the demand for healthcare products and services, and pharmacies are well-positioned to meet this demand.

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.