Europe e-Pharmacy Market - Focused Insights 2024-2029

MARKET INSIGHTS

The Europe e-pharmacy market was valued at USD 29.65 billion in 2023 and is expected to reach USD 79.43 billion by 2029, growing at a CAGR of 17.85% during the forecast period. The European e-pharmacy market is experiencing significant growth, driven by increasing internet and smartphone penetration, digitalization in healthcare, and technological advancements like AI and wearable devices. The COVID-19 pandemic accelerated e-commerce adoption, boosting e-pharmacy usage. These online platforms provide convenient access to OTC and prescription medications, adhering to regional regulations. E-pharmacies offer an online platform for purchasing medications and healthcare services, delivering them directly to consumers' homes. They provide both OTC and prescription medicines, adhering to regional government regulations. In Europe, some countries permit the online sale of prescription medications, expanding access to essential medicines.

CURRENT MARKET LANDSCAPE AND DEVELOPMENTS

The Europe e-pharmacy market is characterized by significant diversity due to differing regulations and demographics. While the UK and Germany allow online prescription sales, other nations are focusing on digital healthcare strategies. Finland, for example, has an advanced e-prescription system, enabling purchases in Estonia. Sweden and Denmark are leaders in integrating digital tools into healthcare, including pharmacies. Estonia also boasts a robust electronic healthcare infrastructure, with well-established e-pharmacies.

MARKET OPPORTUNITIES & DRIVERS

Signifcant Developments in Europe ePharmacy

The European e-pharmacy market has seen significant development, primarily driven by growth in the EU-5 countries. Healthcare sector advancements, such as the 2022 introduction of the CBeP system in six countries, have created favorable conditions for market expansion. Germany's implementation of mandatory e-prescriptions in 2024 has notably increased public awareness and acceptance of e-pharmacies, leading to significant growth opportunities.

Enhancing E-Pharmacy Efficiency through Delivery Management

The integration of e-pharmacies with delivery management solutions is driving a new era in the industry. These platforms offer comprehensive services, including data storage, reporting, e-prescription management, and multi-store functionality. Real-time inventory updates ensure customers can easily select and purchase necessary medications. Integrated payment options and streamlined business procedures further enhance the efficiency of e-pharmacy operations.

Growing Internet and E-commerce Penetration

Europe's ongoing expansion of internet infrastructure, reaching even remote regions, is driving increased awareness of online retail, including e-pharmacies. The resulting growth in e-commerce has fostered consumer familiarity with online purchasing. E-pharmacies are now integral to the pharmaceutical supply chain and are experiencing growing market acceptance. Purchasing medications from verified online sources is now a prevalent practice, notably in Germany and the UK.

INDUSTRY RESTRAINTS

Availabality of Substandard and Counterfeit Medicines

The proliferation of counterfeit, substandard, and falsified drugs poses a significant challenge to public health across Europe and worldwide, impacting both physical and online pharmacies. The WHO identifies these drugs as a major threat, with an estimated 11% of medicines being substandard or falsified. E-pharmacies, while convenient, increase the risk of counterfeit drugs entering the supply chain. Despite seemingly legitimate appearances, 50% of online drugs may be counterfeit, according to the WHO. The NABP reports 85% of online pharmacy drugs violate safety standards, and 25% of patients have reported adverse effects.

SEGMENTATION INSIGHTS

• Insights By Medicine Type: The OTC segment leads the Europe e-pharmacy market, capturing the largest share. The convenience of accessing a wide range of OTC products, such as dietary supplements and personal care items, is a key revenue driver. The growing emphasis on home care, preventive healthcare, and self-medication is boosting OTC sales through e-pharmacies. Digital marketing through social media and influencer campaigns is expected to further stimulate demand, leveraging the extensive online user base.
• Insights By Platform: The mobile segment is experiencing the most rapid expansion (18.03% CAGR) within the Europe e-pharmacy market. Mobile devices offer unparalleled convenience for online medicine purchases, contributing to a post-pandemic rise in mobile-driven searches for healthcare solutions. This growth is underpinned by factors such as widespread smartphone adoption, increased internet usage among older demographics, and the integration of digital tools within healthcare settings, including cross-border e-prescription allowances.
• Insights By Product Type: The medication segment dominated the Europe e-pharmacy market in 2023, capturing 75% of the market share. The prevalence of self-medication for common ailments, such as colds and flu, is a key driver. Permissive regulations allowing the online sale of prescription and OTC medications, coupled with increased e-prescription usage, are significantly contributing to this growth.
• Insights By Age Group: The above-50 age segment leads growth in the Europe e-pharmacy market, propelled by the increasing geriatric population and the resulting burden of chronic diseases. With approximately 95% of this demographic affected by at least one chronic condition, e-pharmacy usage and prescription demand are elevated. The sustained growth of the aging population in Europe creates a substantial potential market for e-pharmacy services.

GEOGRAPHICAL ANALYSIS

The EU-4 & UK hold the largest market share in the Europe e-pharmacy sector, primarily due to the allowance of prescription medicine sales in Germany and the UK. Germany's progressive e-prescription implementation further fuels growth. While France leads in revenue with OTC sales, Italy and Spain represent emerging markets with development opportunities. The expansion of e-pharmacy services in Germany and the UK is significantly driven by e-health platform adoption and mandatory e-prescriptions.

COMPETITIVE LANDSCAPE

The Europe e-pharmacy market, featuring 51 vendors, exhibits moderate competition with a few dominant players. Despite this, the market offers substantial growth potential for new entrants. Major players utilize strategies such as facility development, promotional activities, M&A, and partnerships to solidify their market share. These companies provide diverse service portfolios and prioritize high-quality service delivery. Prominent vendors include DocMorris, Redcare Pharmacy, Atida Santé Discount, and Boots.

RECENT VENDORS ACTIVITIES

• DocMorris (2024): Will supply Zur Rose Pharmacy customers with OTC and prescription medicines from its Heerlen center, closing the Zur Rose Pharma GmbH location in December 2024.
• DocMorris (2024): Increased investment in prescription medicine (Rx) customers due to year-on-year Rx sales growth in Europe.
• SHOP APOTHEKE EUROPE/Galenica (2023): Formed MediService Ltd., a leading Swiss online pharmacy, through a strategic partnership.