Philippines Pharmacy Retail Market Outlook to 2025

The report titled “Philippines Pharmacy Retail Market Outlook to 2025 - By Market Structure (Organized and Unorganized), By Location (Standalone and Hospital Based), By Region (North, Central and South), By Product Sales (Prescribed Medicines, OTC Products, Non Pharma Products and Medical Equipments), By Drug Type (Generic And Patented) and By Therapeutic Class” provides a comprehensive analysis of the retail pharmacy operations in the Philippines. The report covers various aspects including the current healthcare scenario, current market size, segmentations, usage of contraceptives and family planning, health insurance scenario, industry cycle, supply structure for pharmacy retail, trends & development, issues & challenges, SWOT Analysis, BCG Matrix, Hybrid Pharmacy Scenario, Online Pharmacy Regulations, Major Telemedicine Providers and Operating Model for Online Pharmacies. The report concludes with Competition Scenario, Future Projections for the industry including market revenue by 2025, market segmentations, Covid 19 impact and analysts’ recommendations.

Philippines Pharmacy Retail Market Overview and Size:

The Philippines Pharmacy Retail Market is a booming industry backed by the growing demand for the generic medicines and increase in the number of chain pharmacies. The market had presence of different type of pharmacy stores such as Chinese drugstores, traditional medicine shops which are now replaced with modern American style pharmacies. The independent pharmacies and regional chains are being acquired by big national chains for expedited expansion. Further, some chains have also adopted the franchise model for store expansion. The high price for pharmaceutical products has shifted the consumer towards the consumption of generic medicines which are now in high demand. The government is revamping the public medicine distribution system in order to make them accessible to the people in rural areas. Online pharmacies are a relatively new concept and are gaining traction in the region. The market witnessed a growth of 3.4% during 2014-2019.

Philippines Pharmacy Retail Market Segmentation

By Market Structure: ThePhilippines Pharmacy Retail is dominated by the Unorganized Pharmacies in terms of number of stores. However, the unorganized pharmacies dominate in terms of revenue. The organized pharmacies are able to attract more customers due to in store convenience facilities such as medical checkup and consultations, customer loyalty schemes and wide product assortments. Most of the organized chains are concentrated in the developed parts of the country especially in the Luzon Islands.

By Type of Store Location: The market is segmented into two type of stores Hospital Based Pharmacies and Standalone Pharmacies. Standalone Pharmacies dominated the market in 2019, both in terms of revenue and number of pharmacies.These pharmacies attract greater footfall due to the convenient locations and wider product assortments.

By Type of Sales: Prescribed Medicines were the most selling product categories in the market in 2019. The demand was mostly for maintenance medicines. Demand for prescribed medicines is higher in hospital based pharmacies than standalone pharmacies. In standalone pharmacies, OTC products and Non Pharma Products contributed a significant share.

By Type of Drug: The generic medicines can be grouped into different sub-segments priced at different tiers which includes Branded Generics, Uni-Branded Generics, House-Brands and Unbranded Generics. The low prices for generic medicines have made them popular among the Filipino consumers. The market for patented medicines is less than the market for generic medicines.

By Therapeutic Class: The medicines sold in the Philippines Pharmacy Retail can be classified in different groups such as cardiovascular, anti-infective, gastro intestinal, anti diabetic, vitamins, minerals and nutrients, respiratory, and others. The cardiovascular drugs have highest demand due to high rate of Coronary Heart Diseases (CHD) in the country.

Competitive Landscape in the Philippines Pharmacy Retail Market

The Philippines Pharmacy Retail Market has presence of ~29,000 pharmacies, a mix of independent pharmacies and chain pharmacies as of 2019. However, the competition is highly concentrated. The top five pharmacy chains in the country are Mercury Drug Corporation, Watsons Personal Care Stores, South Star Drug Inc, The Generics Pharmacy and Rose Pharmacy accounting for majority share in the market on the basis of revenue. The competition is driven on the basis of the number of stores, product offerings, the range of product categories, services, customer loyalty scheme, private label goods and marketing & promotion. The main parameters of competition among chains are Number of Stores, Pricing, In-Store Services, Customer Loyalty Schemes, Product Variety, Non-Pharmaceutical Products Availability.

Philippines Pharmacy Retail Market Future Outlook & Projections:                                

The Philippines Pharmacy Retail Market will not decline in terms of revenue due to the Covid 19 pandemic and will have a positive growth. However, certain small pharmacies are expected to go out of operations due to the lockdown. The major chains are moving towards an Omni Channel model by expanding their operations in E-Commerce. These chains will continue to acquire independent pharmacies and regional chains as part of their expansion strategy. Due to the high demand for generic medicines most of the new stores opening will be focusing on selling generic medicines. In orderto reducehealthcare costs and make medicines more affordable, the government has revamped Botika Ng Bayan Initiative to provide medicines at subsidized rate especially focusing on rural areas. The Philippines Pharmacy Retail Market is expected to grow at a CAGR of 3.0% on the basis of the revenue generated during the forecast period of 2019-2025.

Key Segments Covered

• By Market Structure (In USD Billion)

Organized Market

Unorganized Market

• Type of Store Location (In USD Billion)

Standalone Pharmacy

Hospital Based Pharmacy

• By Region (In USD Billion)

North

Central

South

• By Type of Sales (In USD Billion)

Prescribed Medicines

OTC Products

Non Pharmaceutical Products

Medical Equipment

• By Type of Drug (In USD Billion)

Generic

Patented

• By Therapeutic Class (In USD Million)

Cardiovascular

Anti-Infectives

Pain/Analgesics

Anti Diabetic

Vitamins/Minerals /Nutrients

Dermatology

Respiratory

Gastro Intestinal

Neuro

Oncology

Contraceptive

Gynecological

Ophthalmological

Others

Companies Covered

Mercury Drug Corporation

Watsons Personal Care Stores

SouthStar Drug Inc.

The Generics Pharmacy

Rose Pharmacy

Generika Drugstores

Several Regional Players & Others

Key Target Audience

Pharmaceutical Manufacturer Companies

Pharmaceutical Importing Companies

Pharmaceutical Distributing Companies

Major Retail Companies

E-Commerce Pharmaceutical Retailers

Consultancy Companies

Industry Associations

Regulation Bodies

Time Period Captured in the Report:

Historical Period: 2014-2019

Forecast Period: 2020-2025

Key Topics Covered in the Report

Healthcare System in the Philippines

Major Hospitals & Doctors in the Women Healthcare      

Usage of Contraception & Family Planning in the Philippines

Health Insurance in the Philippines

Supply Structure of the Philippines Pharmacy Retail Market

Trends & Development in the Philippines Pharmacy Retail Market

Issues & Challenges in the Philippines Pharmacy Retail Market

SWOT Analysis & BCG Matrix in the Philippines Pharmacy Retail Market

Philippines Pharmacy Retail Market Size & Segmentation, 2014-2019

Online Pharmacy Regulations in the Philippines

Telemedicine & Growth of Online Medical Consultation in the Philippines

Major Telemedicine Providers in the Philippines

Operating Model of Hybrid Pharmacies

Competition Scenario, Market Share, Cross Comparison of Major Players (Online & Offline) and Company Profile

Assessing Regional Pharmacies in the Philippines

Corona Virus Impact on the Consumer Behavior & Pharmacy Sales

Future Market Size and Segmentations, 2019-2025F

Covid 19 Impact on the Philippines Pharmacy Retail Market

Analysts’ Recommendations