Based on a latest EY report ‘e-pharma: delivering healthier outcomes’, the players of e-pharma are likely to achieve a united market size of US $2.7 billion by the year 2023 from which about the US $360 million presently in the coming four years. The crucial growth operators for e-pharma sector are multiplied on internet infiltration as well as smartphone device possessions together with the convenience of ordering medicines utilizing an e-commerce channel, growth in chronic illness, increasing per capita income as well as ultimate healthcare expense.
According to, National Leader- E-Commerce and Consumer Internet and Partner, EY India, Ankur Pahwa, Presently, India is embracing to e-commerce platform speedily accompanying mobile-first consumer behaviour as well as enhancing infrastructure for paying digitally, and e-pharmacies, one of the divisions of e-commerce, are initiated to hold the momentum and undergo comprehensive growth potential. The market for e-pharma is likely to grow at an extraordinary pace in the coming four years with the revived support and attention of the government as well as households towards healthcare expenditure and the speedy embracing of the internet by the users. It will not solely generate the value for the clients rather it would create an anchor of B2B prospects moving forward.
E-pharma demonstrates a total addressable market size of US $9.3 billion as of the year 2019 and is calculated to be increased at a CAGR of 18.1% to arrive at the US $18.1 billion by the year 2023. Appealingly, about 35% of the local pharmaceutical market give an account to chronic medicines as well as the rest 54% to acute medications. From this, e-pharmacies are likely to grab 85% of the chronic market as well as 40% market for the acute medications, which is 25% in the year 2019, followed by the year 2023. This is likely to grow in the acute target market by the e-pharma enterprises, which could be considered as an attribute to an enhancement in the previous mile logistics with the association of domestic pharmacies as well as integrating into present hyperlocal standards.
Cash burn scenario in the e-pharma market is a common factor, due to a reduction in costs (nearly 35% for few) increases the margins in the series (nearly 30-32%). Although, the competition to scale, needs higher adoptions, as well as discounts, are essential to it, however, profitability solely cannot be gained by functional efficiency as well as minimizing the delivery expense; discounts have to shed down to logical levels to gain equilibrium and any kind of significant profitability.
E-pharma companies have alternate revenue-creating potentials prospects which could, in addition, enhance their comprehensive market above the estimated US$2.7 billion by the year 2023. By giving diagnostics (collection of samples), ePrescription (it would be for both doctors as well as patients to view previous prescriptions, without caring about their physical presence at one place) also health insurance services could be improved illness and employing with the customers, minimal acquisition expenses, support to enhance unit economies as well as broaden the services portfolio.