US Digital Pharmacy Market to Grow at a CAGR of 17.25% to reach US$ 2,40,216.87 million from 2022 to 2030

The US digital pharmacy market size is expected to grow from US$ 67,242.93 million in 2022 to US$ 2,40,216.87 million by 2030; it is estimated to register a CAGR of 17.25% from 2022 to 2030.

Analyst’s ViewPoint

The US digital pharmacy market analysis explains market drivers such as the upsurge in online purchase of prescription medicines during the COVID-19 pandemic and an increasing inclination toward online platforms. Further, integrated web-based online pharmacy interfaces are expected to emerge as new trends in the market during 2022–2030. Based on drug type, the US digital pharmacy market is bifurcated into prescription medicine and over-the-counter medicine. The prescription medicine segment held a larger market share in 2022, and the same segment is anticipated to register a higher CAGR of 17.83% during 2022-2030. The US digital pharmacy market, by product, is segmented into personal care, vitamins & supplements, medicines & treatments, and other products. The medicine and treatment segment held a larger market share in 2022, and this segment is anticipated to register a higher CAGR during the forecast period. Based on platform, the US digital pharmacy market is categorized into app-based and website-based. The app-based segment is expected to account for a maximum share of the market during 2022–2030. Based on gender, the US digital pharmacy market is bifurcated into male and female. The female segment is expected to account for a maximum share of the US digital pharmacy market during 2022–2030.

A digital pharmacy is an internet-based selling platform for medicines, and it operates as an independent internet-only site, an online branch of a brick-and-mortar pharmacy, or a site representing a partnership among pharmacies.

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US Digital Pharmacy Market: Strategic Insights

US Digital Pharmacy Market

• Market Size 2022
  US$ 67,242.93 Million
• Market Size 2030
  US$ 2,40,216.87 Million

Market Dynamics

GROWTH DRIVERS

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FUTURE TRENDS

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OPPORTUNITIES

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Regional Overview

• United State

Market Segmentation

Drug Type

• Prescription Medicine
• Over-the-Counter Medicine

Product

• Personal Care
• Vitamins and Supplements
• Medicine and Treatment

Platform

• App-Based
• Website Based

Gender

• Male
• Female

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Market Insights

Upsurge in Online Purchase of Prescription Medicines During COVID-19 Pandemic Propels US Digital Pharmacy Market

According to a report published by the ASOP Global Foundation in 2020, nearly 50% of the American population purchased medicines online due to convenience and cost benefits. Increasing benefits of digital pharmacies and its adoption is leading to increase pharmacy on demand. As per another survey conducted by Abacus Data on 1,500 American consumers, 4 in 10 Americans (42%) purchased medicines online in 2020, recording a 7% rise in the number of online buyers of medicines from 2020 to 2021. Moreover, purchase trends in the US indicate Americans buy an array of prescription drugs online, ranging from products prescribed against chronic and ongoing conditions (23% for all purchases), including high blood pressure, asthma, and diabetes, to specialty prescriptions such as cancer and hormone replacement therapy drugs (each accounting 11% of all purchases). Additionally, 64% of the individuals purchased medicines online for the first time in 2021, with intentions to continue buying online medicine even after the pandemic ends. The preference for online buying of medicines is mainly due to the convenience of buying, accessibility to products, and reduced cost of prescription medication (discounts, special offers, etc.). According to a survey conducted by healthinsurance.com, there was a 340% increase in telemedicine usage among Medicare recipients in the US in 2021. 33% of the increased users revealed that they preferred ordering prescription medicines through an online pharmacy during the COVID-19 pandemic. Thus, an increase in the number of online purchases of prescription medicines, rising number of digital pharmacists, coupled with the rapidly spurring e-commerce industry and a massive shift in consumer behavior toward online purchases, favors the US digital pharmacy market growth.

Future Trend

Integrated Web-Based Online Pharmacy Interface Emerges as Key Trend

Integrated e-healthcare systems incorporated with web-based pharmacy interfaces that are accessible to pharmacists and patients are likely to emerge as new trends in the US digital pharmacy market in the coming years. Programs made available by online pharmacies to provide online support to people buying medicines are a notable example of such interfaces. For instance, patients administered with statins as a part of their treatments are likely to discontinue or show irregularities in taking medicines, thereby accelerating the online pharmacy platforms. Reminders and live chat with a pharmacy team member trained in providing adherence support to people consuming statin-based prescribed medicines can help avoid the discontinuation of doses.

Report Segmentation and Scope

Drug Type-Based Insights

Based on drug type, the US digital pharmacy market is bifurcated into prescription medicine and over-the-counter medicine. The prescription medicine segment held a larger market share in 2022, and the same segment is anticipated to register a higher CAGR of 17.83% during the forecast period. A doctor fills out a digital prescription online and sends it directly to prescription centers over the internet. Prescription centers are electronic databases that issue and process medicines, baby food, and medical devices. Prescriptions are by default public, but they can only be changed by the concerned doctor. In the private prescription, only patients are allowed to purchase prescribed medicines, while in the authorized prescription, prescription medicines can be purchased at a pharmacy by the patient or by people authorized by the patient on the online portal. Individuals purchasing the prescribed medicines need to show the pharmacist their identity documents, including a photograph and an identification number. If the medicine is purchased for another person, the buyer must also know their personal identification number. Post buyers’ verification, pharmacists would locate the correct prescription in the prescription center based on the buyer's identification code (mentioned in the prescription).

Product-Based Insights

Based on product, the US digital pharmacy market is segmented into personal care, vitamins & supplements, medicines & treatments, and other products. The medicine & treatments segment is further segregated as sexual health, neurological disorders, heartcare, diabetes, weight loss, and others. The medicine and treatment segment held a larger market share in 2022, and the segment is anticipated to register a higher CAGR of 17.87% during the forecast period. Heartcare accounts for a maximum share of the US digital pharmacy market for the medicines & treatments segment. According to the Heart Failure Society of America, the US reported an increase in the number of heart failure patients who were admitted twice or multiple times due to the lack of care coordination in 2020. This is due to the lack of a consistent provider, follow-up care, and the ability to track blood pressure and weight at home. The Heart Failure Society of America also revealed that medications were the main cause of readmissions. Health issues, including cardiovascular diseases, can be effectively evaluated, diagnosed, monitored, and followed through digital pharmacy. The use of patient data generated through wearables, and blood pressure and pulse monitoring devices; electrocardiograms; sleep parameters; pulse oximetry; etc., is instrumental for the understanding of health. Digital medicine enables the valid interpretation of diagnostic data in a timely manner, enabling the adoption of optimal treatment. To identify risk factors correctly and develop practical approaches to improve preventive measures, remote monitoring tools and an optimized prevention scheme will be used along with precision medicine data. Telepharmacy has an adequately proven clinical efficacy and cost-effectiveness, but the inclusion of these services in healthcare models may offer a unique opportunity to improve cardiovascular screening and care.

Several major adverse cardiovascular events, including mortality, are reduced by statins. The COVID-19 pandemic has dramatically transformed care delivery, by promoting the inclusion of the rapid adoption of telemedicine in primary care and hyperlipidemia treatment. According to an article published in the National Library of Medicine in 2021, as a result of COVID-19, in-person visits decreased, but telemedicine visits increased. It was found that statin prescribing rates were higher during telemedicine visits than in-person visits during April and May 2020. As hyperlipidemia does not always require a physical examination for management, telemedical care delivery may be an effective use case for hyperlipidemia management. Additionally, telemedicine visits may have allowed clinicians to spend more time addressing chronic conditions like hyperlipidemia than in-person meetings.

Platform-Based Insights

In terms of platform, the US digital pharmacy market is categorized into app-based and website-based. The app-based is further segmented into telehealth pharmacy apps, medication management apps, health and wellness apps, compounding pharmacy apps, and others. The app-based segment held a larger market share in 2022, and the same segment is anticipated to register a higher CAGR of 17.60% during the forecast period. Telehealth pharmacy apps are expected to account for a maximum share of the market for the app-based segment during 2022-2030. Virtual healthcare can be accessed through telehealth apps from anywhere. According to CDC data published in 2021, 37.0% of adults used telemedicine in 2020, including provider visits, online prescriptions, and mental health services. The best telehealth apps can be downloaded free of cost and are easy to use, and they often completely cover insurance services. A few examples of telehealth pharmacy apps are Hims & Hers, GoodRx, K Health, and Doctor on Demand. GoodRx offers services such as low-cost visits, easy prescription refills via mail, and visits without health insurance.

Gender-Based Insights

By gender, the market is bifurcated into males and females. The females segment held a larger market share in 2022, and the same segment is anticipated to register a higher CAGR of 17.64% during the forecast period.

US Digital Pharmacy Market, by Drug Type – 2022 and 2030

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Country Analysis

The US digital pharmacy market is expected to reach US$ 2,40,216.87 million in 2030 from US$ 67,242.93 million in 2022. The market is estimated to grow at a CAGR of 17.25% from 2022 to 2030. The growth of the market is attributed to an upsurge in the online purchase of prescription medicines during the COVID-19 pandemic and an increasing inclination toward online platforms. However, illicit practices in online pharmacy operations hinder the market growth.

Several start-ups in the US have entered the online pharmacy space and received substantial venture capital funding. E-commerce giants such as Amazon have entered into this space through partnerships, while many physical stores are launching their online services. Small pharmacies and distributors in the US have established online shops, which have reported small-scale online sales. An upsurge in the popularity of online platforms and e-commerce has triggered the digitalization of pharmacy [prescription drugs and over-the-counter (OTC) medication] in the US.

Nimble, formerly operating as a conventional, physical pharmacy, is now adapting to online presence. The company raised ~US$ 60 million in funding from Y Combinator, Sequoia Capital, DAG Ventures, First Round Capital, and Khosla Ventures. It further seeks to partner with physical pharmacies to offer delivery services. In 2020, Walmart acquired the startup CareZone and purchased its prescription management technology to make Walmart’s online channel more competitive. The CareZone mobile app helps individuals and families manage a variety of chronic illnesses and medications. Families can access their insurance information and scan labels for speed and convenience. Through this acquisition, Walmart plans to boost its digital health and wellness tools.

The majority of people in the US live within 5 miles of community pharmacies, but rural and urban patients have difficulty accessing pharmacy services. A few of the factors affecting medication accessibility are nationwide pharmacy shutdowns, transportation problems, disability-related problems, and economic challenges, which lead to pharmacy deserts as stated by the US Department of Agriculture. A study from the Journal of the American Medical Association, published in 2023, reported that states that adopted telepharmacy policies experienced a decrease in pharmacy deserts, and telepharmacies are virtually closer to people with high medical needs than traditional pharmacies. There are currently 28 states in the US that permit the practice of telepharmacy, with differing statuses and regulations.

The integration of artificial intelligence (AI) and machine learning makes the automation of medication monitoring, smart reminders, and personalized treatment recommendations possible. Moreover, augmented reality (AR) and virtual reality (VR) technologies can enhance the experience of telepharmacy customers. Thus, telepharmacy has the potential to revolutionize medicine dispensation, consultations, and patient care with the advent of advanced communication platforms, in turn, addressing the surging demands for convenient healthcare services.

The report profiles leading players operating in the US digital pharmacy market. These include Amazon.com Inc, Goodrx Holdings Inc, The Cigna Group, CVS Health Corp, Walmart Inc, Hims & Hers Health Inc, Roman Health Pharmacy LLC, Apex Pharmacy Inc, LloydsPharmacy Ltd, Pharmacy2U Ltd, Docmorris NV, and Truepill.

• In August 2020, Amazon, Inc. announced the launch of an online pharmacy in India to serve in the city of Bengaluru. This is the latest move by the e-commerce giant to widen its reach in a key growth market. The Amazon Pharmacy will offer both over-the-counter and prescription-based drugs as well as basic health devices and traditional Indian herbal medicines. 
• In September 2023, GoodRx announced a collaboration with MedImpact offering a seamless experience for MedImpact members at the pharmacy counter. Additionally, the collaboration will allow both companies to deliver more savings to consumers without any additional effort and offer a program for seamless data integration. This is achieved by ensuring patients are given alerts about any negative drug interactions through MedImpact's rigorous drug safety review.

Company Profiles

• Amazon.com Inc  
• Goodrx Holdings Inc
• The Cigna Group  
• CVS Health Corp  
• Walmart Inc
• Hims & Hers Health Inc
• Roman Health Pharmacy LLC
• Apex Pharmacy Inc
• LloydsPharmacy Ltd
• Pharmacy2U Ltd
• Docmorris NV  
• Truepill

US Digital Pharmacy Report Scope