India Pharmacy Retail Market Outlook to 2020 - Growth Driven by Surge in OTC Drugs Sales and Expansion of Online Pharmacies
November 2015
113
About the Report
About the Report
The report titled “India Pharmacy Retail Market Outlook to 2020 – Growth Driven by Surge in OTC Drugs Sales and Expansion of Online Pharmacies” provides a comprehensive analysis of the various aspects such as market size of the India Pharmacy Retail and Online Pharmacy Retail Market. The report also covers the market segmentation on the basis of organized & unorganized pharmacies, prescribed drugs, OTC drugs & private label products, category of drugs and generic & patented drugs. The report shares the company profile and competitive landscape for major players in the organized pharmacy sector and online pharmacy market.
The pharmacy retail market in India is driven by growth in the pharmaceuticals sector, registered revenues of INR ~ billion in FY’2015. With the advent of online pharmacy retailers in the market, the industry is likely to witness a surge in the coming future. The retail pharmacy in the India has escalated at a CAGR of 19.4% from INR ~ billion in FY’2010 to INR ~ billion in FY’2015. The surge in growth is chiefly guided by the escalation in urbanization, increase in household expenditures, increasing smartphone users, need for convenience and rising literacy rate in the country coupled with growing medical awareness.
The pharmacy retail market in India is majorly comprised of organized and unorganized pharmacy retailers and unorganized pharmacies predominantly occupy the market. There has been a recent trend of hyperlocal delivery in online pharmacies. The revenues generated through online pharmacy sales were registered at INR ~ million in FY’2015. Tier 2 cities have accounted for ~% of the market share in the overall online pharmacy market in India whereas demand from Tier 1 cities stood as the highest at ~%. Medidart is the leading player in this domain which has registered a promising revenue share of INR ~million during FY’2015.
The organized pharmacy retail market in India is primarily occupied by three main market players which are Apollo Pharmacy, MedPlus and Guardian Lifecare. Apollo is the leading market player with ~ stores across India in FY’2015 and it has commanded ~% of the market share in the organized retail industry. Med Plus’s average annual sale per outlet is INR ~
million per store and it has a ~% market share in the organized market.
In the short run, the pharmacy retail market poise a compelling opportunity with increased government spending on the healthcare sector along with initiatives to increase health-related awareness in rural regions of the country. However in the long run, the revenues pertaining to the pharmacy retail market is expected to contribute the most from the OTC drugs segment.
This market is expected to grow fast as more companies is expected to enter into the market with wide range of OTC products. It will provide a new dimension to the overall retail pharmacy market. The growth of this market, in the long run, will be further infused by the shift of pharmacy stores to be a “wellness store” and preference towards high quality medicines due to behavioral changes.
The market for pharmacy retail is evolving at a brisk rate. Large Investments in the market; an increase in FDI in the pharmacy retail market, and changing lifestyle and disease profile of patients have been significantly changing the pharmacy retail market outlook in India. Revenues from Retail Pharmacy in India are expected to expand to INR ~ billion in
FY’2020, at a CAGR of 14.0% from FY’2016 to FY’2020.
Key Topics Covered in the Report:
- The market size of the pharmacy retail market.
- The market size of the online pharmacy retail market.
- Market segmentation of pharmacy retail market on the basis of organized and unorganized pharmacy, hospital based &
- standalone pharmacy, prescribed drugs, OTC drugs and private label products, category of drugs and generic and patented
- drugs.
- Market segmentation of pharmacy retail market on the basis of rural and urban demand.
- Market segmentation of pharmacy retail market on the basis of major states and their contribution in revenue.
- Market segmentation of pharmacy retail market on the basis of regional distribution of revenue.
- Market segmentation of online pharmacy retail market on the basis of by demand from cities.
- Market segmentation of online pharmacy retail market on the basis of consumer profile- gender, age and mode of payment.
- Snapshot on Online Pharmacy Market in India
- Trends and Developments in the pharmacy retail market and online pharmacy retail market.
- Business and Investment Model of Pharmacy Retail market In India.
- Competitive landscape and company profiles of the major organized players in retail pharmacy market.
- Future outlook and projections of the pharmacy retail market and online pharmacy retail market –on the basis of revenues in India.
Products
Products
Online Pharmacies, OTC Drugs, Prescribed Drugs, Private Label Products, Generic Drugs, Patented Drugs, Anti- Infective Drugs, Cardiovascular Drugs, Gastro-intestinal Drugs, Vitamins and Minerals, Pain and Analgesic Drugs, Anti- Diabetic Drugs
Companies
Apollo Pharmacy, MedPlus, Himalaya healthcare, Religare wellness, Guardian Lifecare, Medidart.com, Buydrug.in, Onerx.in
Table of Contents
Table of Contents
1. India Pharmacy Retail Market Introduction
1.1. Historical Overview
1.2. Current Outlook
1.3. Future Outlook
2. India Pharmacy Retail Market Size, FY’2010-FY’2015
2.1. By Domestic Sales Revenues, FY’2010-FY’2015
2.2. By Number of Stores, FY’2010-FY’2015
3. India Pharmacy Retail Market Segmentation
3.1. By Organized and Unorganized Retail Pharmacies, FY’2010-FY’2015
3.1.1. By Number of Pharmacies, FY’2015
3.1.2. By Revenues, FY’2010-FY’2015
3.2. By Hospital Based and Standalone Pharmacies, FY’2015
3.2.1. By Number of Pharmacies, FY’2015
3.2.2. By Revenues, FY’2010-FY’2015
3.3. By Prescribed Drugs, OTC Drugs and Private Label Products, FY’2015
3.3.1. Hospital Based Pharmacies, FY’2015
3.3.2. Standalone Pharmacies, FY’2015
3.4. By Category of Drugs, FY’2015
3.5. By Generic and Patented Drugs, FY’2015
3.6. By Rural and Urban Demand, FY’2015
3.7. By Region, FY’2015
3.8. By Major States, FY’2015
4. Growth Drivers of India Pharmacy Retail Market
Growth in pharmaceutical sector
Rising healthcare expenditure
Changes in disease profile
Changing Lifestyle and Awareness
Growth in OTC Segment
Urbanization and Increase in Middle Class Population
More Penetration in Rural Areas by Organized Market
5. Issues and Challenges in India Pharmacy Retail Market
Shortage of Certified Pharmacists
Fragmented and Unorganized Market
Highly Regulated
Widespread Availability of Counterfeit Drugs
Rise in Real Estate Prices
Attracting and Retaining Professionals
6. Trends and Development in India Pharmacy Retail Market
Loyalty Schemes Offered by Organized Pharmacies
Introduction of Health Insurance Plans
Emergence of “Wellness Stores”
Growth in Value Added Service and Tie Ups
Expansion of E-Pharmacy
Increase in Hospital Based Pharmacies
7. Laws and Policies for Operation of a Pharmacy Retail Store in India
Ownership and Practice Legislation
Ownership Rules, Restrictions and Qualifications
8. Pre-requisites for India Pharmacy Retail Market
Competition
Stringent Requirement
Procurement Channels
Discount Policy
Doorstep Delivery
Software Requirement
9. SWOT Analysis of India Pharmacy Retail
10. Company Profile of Major Organized Pharmacy Retail Market in India
10.1. Apollo Pharmacy
10.1.1. Company Overview
10.1.2. Key Performance Indicators
10.1.3. Business Model
10.1.4. Business Strategies
10.2. Medplus Health Services
10.2.1. Company Overview
10.2.2. Key Performance Indicators
10.2.3. Business Model
10.2.4. Business Strategies
10.3. Himalaya Drug Company
10.3.1. Company Profile
10.3.2. Key Performance Indicators
10.3.3. Business Model
10.3.4. Business Strategies
10.4. Religare Wellness
10.4.1. Company Profile
10.4.2. Business Strategy
10.5. Guardian Lifecare
10.5.1. Company Profile
10.5.2. Key Performance Indicators
10.5.3. Business Model
10.5.4. Business Strategy
10.6. Comparative Analysis of Major Organized Pharmacy Chains in India Pharmacy Retail Market
11. Competitive Landscape of Major Organized Players in India Pharmacy Retail Market
12. Major Deals, Alliances and New Players in India Pharmacy Retail market
13. Snapshot on India Online Pharmacy Market
13.1. India Online Pharmacy Market Introduction and Size by Revenues, FY’2015
13.2. India Online Pharmacy Market Segmentation by Demand from Cities, FY’2015
13.3. Consumer Profiles for India Online Pharmacy Market
Classification by Gender, FY’2015
Mode of Payment Preferred
Government Regulation in Online Pharmacy Market of India
13.4. Market Share of Major Players in India Online Pharmacy Market, FY’2015
13.5. Competitive Landscape of Major Players in India Online Pharmacy Market
13.6. India Online Pharmacy Market Future Outlook and Projections, FY’2016-FY’2020
14. Comparative Analysis of International Pharmacy Stores with Indian Organized Pharmacy Retail Market
14.1. US Drug Store Market- Overview
On the Basis of Number of Stores
On the Basis of Revenue
15. Business Model of a Retail Pharmacy Store in India- Organized and Unorganized
Investment
Margins
Fixed cost
Variable cost
16. Investment Model to Set Up a Pharmacy Retail Store in India
Standalone Pharmacy Store
Hospital Based Pharmacy
17. India Pharmacy Retail Market Future Outlook and Projections, FY’2016-FY’2019
17.1. Cause and Effect Relationship between Macroeconomic and Industry Factors in India Pharmacy Retail Market Prospects
18. Analyst Recommendations
18.1. Recommendations
19. Macroeconomic Indicators Affecting the India Pharmacy Retail Market
19.1. India Pharmaceutical Market Size, FY’2010-FY’2020
19.2. Total Population of India, FY’2010–FY’2020
19.3. Private Final Consumption Expenditure on Healthcare, FY’2010-FY’2020
19.4. Telemedicine Market Size in India, FY’2010-FY’2020
20. Appendix
20.1. Market Definitions
20.2. Abbreviations
20.3. Research Methodology
Data Collection Methods
Approach
Market Size Modelling
Variables (Dependent and Independent)
Multi Factor Based Sensitivity Model
Final Conclusion
20.4. Disclaimer
List of Figure
Figure 1: India Pharmacy Retail Market Size on the Basis of Revenues in INR Billion, FY’2010-FY’2015
Figure 2: India Pharmacy Retail Market Size on the Basis of Number of Pharmacy Stores, FY’2010-FY’2015
Figure 3: India Pharmacy Retail Market Segmentation on the Basis of Organized and Unorganized Pharmacies by Number of Pharmacies in Percentage (%), FY’2010-FY’2015
Figure 4: India Pharmacy Retail Market Segmentation on the Basis of Organized and Unorganized Pharmacies by Revenues in Percentage (%), FY’2010-FY’2015
Figure 5: India Pharmacy Retail Market Segmentation by Hospital Based & Standalone Pharmacies on the Basis of Number of Pharmacies in Percentage (%), FY'2010- FY'2015
Figure 6: India Pharmacy Retail Market Segmentation by Hospital Based & Standalone Pharmacies on the Basis of Revenues in Percentage (%), FY'2010-FY'2015
Figure 7: India Pharmacy Retail Market Segmentation on the Basis of Prescribed Drugs, OTC Drugs and Private Labeled Products of Hospital Based Pharmacy by Revenues in Percentage (%), FY’2015
Figure 8: India Pharmacy Retail Market Segmentation by Category of Drugs (Anti-Infective, Cardiovascular, Gastro- Intestinal, Vitamin and Minerals, Respiratory, Pain and Analgesic, Anti-Diabetic and Others) on the Basis of Revenues in Percentage (%), FY’2015
Figure 9: India Pharmacy Retail Market Segmentation on the Basis of Generic and Patented Drugs by Revenues in Percentage (%), FY’2015
Figure 10: India Pharmacy Retail Market Segmentation by Rural and Urban Demand on the Basis of Revenues in Percentage (%), FY’2015
Figure 11: India Pharmacy Retail Market Segmentation by Regional Distribution on the Basis of Revenues in Percentage (%), FY’2015
Figure 12: India Pharmacy Retail Market Segmentation by Major States on the Basis of Revenues in Percentage (%), FY’2015
Figure 13: Total Healthcare Expenditure in India in USD Billion, FY’2010-FY’2015
Figure 14: Number of Hospital Based Pharmacies in India, FY’2010-FY’2015
Figure 15: SWOT Analysis of India Pharmacy Retail Market
Figure 16: India Online Pharmacy Market Segmentation by Tier 1, Tier 2 and Tier 3 Cities on the Basis of GMV in Percentage, FY’2015
Figure 17: Gender-Wise Split of Online Shoppers for Pharmaceutical Drugs on the Basis of Orders Placed in Percentage, FY’2015
Figure 18: Preferred Mode of Payment for Online Pharmaceutical Products Shopping in Percentage, FY’2015
Figure 19: Market Share of Major Players in India Online Pharmacy Market on the Basis of Sales Revenues in Percentage, FY’2015
Figure 20: India Online Pharmacy Market Future Projections on the Basis of Revenues in INR Million, FY’2016-FY’2020
Figure 21: Business Model of a Retail Pharmacy Store in India
Figure 22: India Pharmacy Retail Market Future Projections on the Basis of Revenues in INR Billion, FY’2015-FY’2019
Figure 23: India Pharmacy Retail Market Segmentation on the Basis of Prescribed Drugs, OTC Drugs and Private Labeled Products of Hospital Based Pharmacy by Revenues in Percentage (%), FY’2020
Figure 24: India Pharmaceutical Market Size on the Basis of Revenue in INR Billion, FY’2010-FY’2020
Figure 25: Total Population of India in Million, FY’2010-FY’2020
Figure 26: Final Private Consumption on Healthcare in India in INR Million, FY’2010-FY’2020
Figure 27: India Telemedicine Market Size on the Basis of Revenues in INR Million, FY’2015-FY’2019
List of Table
Table 1: Ranking of Major Organized Pharmacy Chains on the Basis of their Social Media Engagement
Table 2: India Pharmacy Retail Market Segmentation on the Basis of Organized and Unorganized Pharmacies by Number of Pharmacies, FY’2010-FY’2015
Table 3: India Pharmacy Retail Market Segmentation by Market Structure by Revenues in INR Billion, FY'2010- FY'2015
Table 4: India Pharmacy Retail Market Segmentation by Hospital Based & Standalone Pharmacies on the Basis of Number of Pharmacies, FY'2010- FY'2015
Table 5: India Pharmacy Retail Market Segmentation by Hospital Based & Standalone Pharmacies on the Basis of Revenues in INR Billion, FY'2010- FY'2015
Table 6: India Pharmacy Retail Market Segmentation on the Basis of Prescribed Drugs, OTC Drugs and Private Label Products of Hospital Based Pharmacies by Revenues in INR Billion, FY’2015
Table 7: India Pharmacy Retail Market Segmentation on the Basis of Prescribed Drugs, OTC Drugs and Private Labeled Products of Standalone Pharmacies by Revenues in Percentage (%), FY’2015
Table 8: India Pharmacy Retail Market Segmentation on the Basis of Prescribed Drugs, OTC Drugs and Private Label Products of Standalone Pharmacies by Revenues in INR Billion, FY’2015
Table 9: India Pharmacy Retail Market Segmentation by Category of Drugs (Anti-Infective, Cardiovascular, Gastro- Intestinal, Vitamin and Minerals, Respiratory, Pain and Analgesic, Anti-Diabetic and Others) on the Basis of Revenues in INR Billion, FY’2015
Table 10: India Pharmacy Retail Market Segmentation on the Basis of Generic and Patented Drugs by Revenues in INR Billion, FY’2015
Table 11: India Pharmacy Retail Market Segmentation by Rural and Urban on the Basis of Revenue in INR billion, FY’2015
Table 12: India Pharmacy Retail Market Segmentation by Regional Distribution on the Basis of Revenues in INR Billion, FY’2015
Table 13: India Pharmacy Retail Market Segmentation by Major States on the Basis of Revenues in INR Million and by Organized and Unorganized Stores, FY’2015
Table 14: Major Insurance Companies in India and their Gross Direct Premium in INR Crores, FY’2013-FY’2014
Table 15: Key Performance Indicators of Apollo Pharmacy
Table 16: Key Performance Indicators of Med Plus
Table 17: Key Performance Indicators of Himalaya Drug Company
Table 18: Key Performance Indicators of Guardian Life care
Table 19: Comparative Analysis of Major Organized Pharmacy Chains (Apollo Pharmacy, Medplus, Himalaya Drug Company, Religare Wellness and Guardian Life care) in India Pharmacy Retail Market, FY’2015
Table 20: Competitive Landscape of Major Organized Players (Trust Chemists and Druggist, Health and Glow, Zydus Wellness, Wellness Forever) in India Pharmacy Retail Market
Table 21: Major Deals, Alliances, Funding, Acquisitions in the India Pharmacy Retail Market, FY'2010-FY'2015
Table 22: India Online Pharmacy Market Size on the Basis of Revenues in INR Million, FY’2015
Table 23: India Online Pharmacy Market Segmentation by Tier 1, Tier 2 and Tier 3 Cities on the Basis of GMV in INR Million, FY’2015
Table 24: Market Share of Major Players in India Online Pharmacy Market on the Basis of Sales Revenues in INR Million, FY’2015
Table 25: Competitive Landscape of Major Players (Medidart, MedPlus, Buydrug.in, Onerx.in) in India Online Pharmacy Market
Table 26: Leading Organized Pharmacy Retail Stores in the US with their Number of Stores, 2014
Table 27: Required Parameters for the Establishment of a Standalone Retail Pharmacy Store in India
Table 28: Monthly Expenses Incurred in a Retail Pharmacy Store in India
Table 29: Assumptions for Setting up a Retail Pharmacy Store in India
Table 30: Means of Finance for establishing a Retail Pharmacy Store in India
Table 31: Annual Cost of Production in a Retail Pharmacy in India
Table 32: Financial Indicators related to Establishment of a Retail Pharmacy Store in India
Table 33: Required Parameters for the Establishment of an Hospital Based Retail Pharmacy Store in India
Table 34: Annual Expenses in a Hospital Based Retail Pharmacy Store in India
Table 35: Assumptions Made for Setting up a Hospital Based Pharmacy
Table 36: Means of Finance for Establishing a Hospital based Pharmacy in India
Table 37: Annual Cost of Setting up a Hospital Based Pharmacy in India
Table 38: Financial Indicators related to Establishment of a Hospital Based Retail Pharmacy Store in India
Table 39: Cause and Effect Relationship between Dependent and Independent Factors Prevailing in India Pharmacy Retail Market
Table 40: Correlation Matrix of India Pharmacy Retail Market
Table 41: Regression Coefficients Output of India Pharmacy Retail Market
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