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U.S. Online Pharmacy Market - Industry Outlook & Forecast 2021-2026

June 2021 | 152 pages | ID: U51FEB4F46F8EN
Arizton Advisory & Intelligence

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In-depth Analysis and Data-driven Insights on the Impact of COVID-19 Included in U.S. Online Pharmacy Market Report

The U.S. online pharmacy market by revenue is expected to grow at a CAGR of approx. 19% during the period 2020–2026.

Automated prescription filling, automated customer relationship management, direct-to-the-patient sales of medicines are other major factors increasing the adoption of online pharmacies across the US. The market is shifting toward the direct-to-patient model as the ever-expanding digital world opens doors to new services and consumer-friendly online experiences. The ease and familiarity of online purchasing attract several patients to search for virtual care medications and wellness options. This has increased online pharmacies to advertise more and acquire more consumers through digital platforms. The COVID-19 pandemic has further accelerated this shift as most healthcare professionals and patients have adapted to the virtual way to purchase medicines. The trend expects to increase drastically across the US post-COVID-19.

The following factors are likely to contribute to the growth of the U.S. online pharmacy market during the forecast period:
  • Rise in Direct to Patient Drug Sales
  • Improved E-commerce Technology driving demand
  • Increased Adoption of E-prescriptions among US Customers
  • Adoption of Automatic Prescription Refills and Automated Customer Relationship Management
The study considers the U.S. online pharmacy market's present scenario and its market dynamics for the period 2020?2026. It covers a detailed overview of several market growth enablers, restraints, and trends. The report offers both the demand and supply aspects of the market. It profiles and examines leading companies and other prominent ones operating in the market.

U.S. ONLINE PHARMACY MARKET SEGMENTATION

The U.S. online pharmacy market research report includes a detailed segmentation by drug type, product, modality, pharmacy type. The prescription-based US online pharmacy market is likely to cross USD 132 billion by 2026. A significant factor driving the growth of prescription-based medicines via online mode is cost-efficiency. Consumers prefer to purchase drugs from online stores as they offer medications at a low price than retail outlets. Among US adults prescription-taking medications, 1.5% reported having purchased medicines outside the US due to high costs. Hence, online pharmacies are seen as the best solution for providing prescription medications at discounted prices, thereby observing growth.

In 2020, the medication segment accounted for approx. 76% in the U.S. online pharmacy market share. The increase in the patient population along with the increased geriatric population is increasing the demand for medications. There is an increase in consumers preferring online pharmacy platforms to purchase medicines due to high purchase convenience. Many customers and patients prefer using online pharmacies for refilling long-term medications.

The mobile app-based segment will likely grow at a CAGR of over 19% from 2020 to 2026. Mobile applications play a significant role in the global online pharmacy market. They help online pharmacies to get in touch with consumers directly, thereby increasing the patient base. Mobile applications help online pharmacies to position their pharmacies effectively. Mobile applications providing refill prescription facilities, secure two-way messaging, HIPAA compliant mobile app will increase the customer base for online pharmacies. Vendors prioritize digital advertising and marketing to attract more audience as many patients spend their time online.

The U.S. online pharmacy market by the online branch of brick and mortar expects to reach approx. USD 80 billion by 2026. Most retail companies in the US tend to own an online channel to promote their products and increase the customer base. This trend has been prevalent in the US for a long period. However, during the COVID-19 pandemic, the country further accelerated the adoption of online pharmacy channels.

Drug Type
  • Prescription
  • OTC
Product
  • Medications
  • Health Wellness & Nutrition
  • Personal Care & Essentials
  • Others
Modality
  • Mobile Applications
  • Websites
Pharmacy Type
  • Online Branch of Brick and Mortar
  • Independent Online Only Pharmacies
  • Partnerships with Neighborhood Pharmacies
Geography
  • US
INSIGHTS BY VENDORS

The U.S. online pharmacy market is witnessing a steady flow of start-ups entering the industry. The COVID-19 pandemic has increased the importance of online pharmacies in the country. Many physicians, patients, and healthcare providers have increased the adoption of telehealth, which has increased the number of teleconsultations in the country. Large hospitals have received 500% more online consultations, and e-prescriptions among healthcare providers have also increased. These factors have accelerated the growth of the online pharmacy market in the US. A change in consumer behavior patterns has increased opportunities for market growth. However, strict adherence to regulatory guidelines and the prevalence of counterfeiting and fake websites selling unhealthy products are hindering the market. Kroger, CVS Health, CIGNA (Express Scripts), Walgreens Boots Alliance, and Rite Aid are the key players in the U.S. online pharmacy market.

Prominent Vendors
  • Kroger
  • CVS Health
  • CIGNA (Express Scripts)
  • Walgreens Boots Alliance
  • Rite Aid
Other Prominent Vendors
  • Alto Pharmacy
  • Blink Health
  • BioPlus Specialty Pharmacy
  • Batell Drug
  • Carepoint Pharmacy
  • Foundation Care
  • Fruth Pharmacy
  • Giant Eagle
  • Gogomeds.com
  • Healthwarehouse
  • Hi-School Pharmacy
  • Hims & Hers Health
  • Henry Ford Health System
  • Kinney Drugs
  • KwikMed
  • MedVantx
  • Medicure
  • Medly Pharmacy
  • Northwestpharmacy.com
  • OptumRx
  • PillPack
  • Ro Pharmacy
  • Rx-24-online.com
  • Walmart Stores
  • Woori Pharmacy
KEY QUESTIONS ANSWERED:

1. What are major trends influencing the US Online Pharmacy landscape?

2. How big is the US online pharmacy market?

3. Which product segment accounted for the largest US online pharmacy market in 2020?

4. What are the factors driving the US online pharmacy market?

5. Who are the key players in the US online pharmacy market?
1 RESEARCH METHODOLOGY

2 RESEARCH OBJECTIVES

3 RESEARCH PROCESS

4 SCOPE & COVERAGE

4.1 Market Definition
  4.1.1 Inclusions
  4.1.2 Exclusions
  4.1.3 Market Estimation Caveats
4.2 Base Year
4.3 Scope Of The Study
  4.3.1 Market Segmentation By Drug Type
  4.3.2 Market Segmentation by Product
  4.3.3 Market Segmentation by Modality
  4.3.4 Market Segmentation by Pharmacy Type

5 REPORT ASSUMPTIONS & CAVEATS

5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation

6 MARKET AT A GLANCE

7 INTRODUCTION

7.1 Overview
7.2 Impact Of COVID-19 On Us Online Pharmacy
7.3 Regulations For Online Pharmacies In US
7.4 E-Pharmacy Comparison In US Versus Global Market
7.5 Online Pharmacy Start-Ups and Their Investments

8 MARKET OPPORTUNITIES & TRENDS

8.1 Rise In Direct-To-Patient Drug Sales
8.2 Increase In Demand For Advanced E-Commerce Technologies
8.3 High Adoption Of E-Prescriptions Among US Customers

9 MARKET GROWTH ENABLERS

9.1 Increasing Teleconsultation And Diagnostic Support
9.2 Growing Penetration Of Internet And Mobile Applications
9.3 High Adoption Of Automated Prescription Refill And CRM Solutions

10 MARKET RESTRAINTS

10.1 Sale Of Unapproved Drugs And FDA Warnings
10.2 Competition From Traditional And Medical Product Retailers
10.3 Strict Regulatory Framework For Online Sale Of Drugs

11 MARKET LANDSCAPE

11.1 Market Overview
11.2 Market Size & Forecast
11.3 Five Forces Analysis
  11.3.1 Threat of New Entrants
  11.3.2 Bargaining Power of Suppliers
  11.3.3 Bargaining Power of Buyers
  11.3.4 Threat of Substitutes
  11.3.5 Competitive Rivalry

12 DRUG TYPE

12.1 Market Snapshot & Growth Engine
12.2 Market Overview
12.3 Prescription
  12.3.1 Market Overview
  12.3.2 Market Size & Forecast
12.4 Over The Counter (OTC)
  12.4.1 Market Overview
  12.4.2 Market Size & Forecast

13 PRODUCT

13.1 Market Snapshot & Growth Engine
13.2 Market Overview
13.3 Medication
  13.3.1 Market Overview
  13.3.2 Market Size & Forecast
13.4 Health, Wellness, & Nutrition
  13.4.1 Market Overview
  13.4.2 Market Size & Forecast
13.5 Personal Care
  13.5.1 Market Overview
  13.5.2 Market Size & Forecast
13.6 Others
  13.6.1 Market Overview
  13.6.2 Market Size & Forecast

14 MODALITY

14.1 Market Snapshot & Growth Engine
14.2 Market Overview
14.3 Mobile Application
  14.3.1 Market Overview
  14.3.2 Market Size & Forecast
14.4 Web Based
  14.4.1 Market Overview
  14.4.2 Market Size & Forecast

15 PHARMACY TYPE

15.1 Market Snapshot & Growth Engine
15.2 Market Overview
15.3 Online Branch Of Brick & Mortar Pharmacy
  15.3.1 Market Overview
  15.3.2 Market Size & Forecast
15.4 Independent Online-Only Pharmacies
  15.4.1 Market Overview
  15.4.2 Market Size & Forecast
15.5 Partnership Site With Neighborhood Pharmacies
  15.5.1 Market Overview
  15.5.2 Market Size & Forecast

16 COMPETITIVE LANDSCAPE

16.1 Competition Overview
16.2 Market Share Analysis
  16.2.1 CVS Health
  16.2.2 Cigna (Express Scripts)
  16.2.3 Walgreens Boots Alliances
  16.2.4 Rite Aid
  16.2.5 The Kroger

17 KEY COMPANY PROFILES

17.1 The Kroger
  17.1.1 Business Overview
  17.1.2 Key Strategies
  17.1.3 Key Strengths
  17.1.4 Key Opportunities
17.2 CVS Health
  17.2.1 Business Overview
  17.2.2 Key Strategies
  17.2.3 Key Strengths
  17.2.4 Key Opportunities
17.3 CIGNA (Express Scripts)
  17.3.1 Business Overview
  17.3.2 Key Strategies
  17.3.3 Key Strengths
  17.3.4 Key Opportunities
17.4 Walgreens Boots Alliance
  17.4.1 Business Overview
  17.4.2 Key Strategies
  17.4.3 Key Strengths
  17.4.4 Key Opportunities
17.5 RITE AID
  17.5.1 Business Overview
  17.5.2 Key Strategies
  17.5.3 Key Strengths
  17.5.4 Key Opportunities

18 OTHER PROMINENT VENDORS

18.1 ALTO Pharmacy
  18.1.1 Business Overview
18.2 BLINK Health
  18.2.1 Business Overview
18.3 Bioplus Specialty Pharma
  18.3.1 Business Overview
18.4 Bartell Drugs
  18.4.1 Business Overview
18.5 Carepoint
  18.5.1 Business Overview
18.6 Foundation Care
  18.6.1 Business Overview
18.7 Fruth Pharmacy
  18.7.1 Business Overview
18.8 Giant Eagle
  18.8.1 Business Overview
18.9 Gogomeds.Com
  18.9.1 Business Overview
18.10 Healthwarehouse
  18.10.1 Business Overview
18.11 Hi-School Pharmacy
  18.11.1 Business Overview
18.12 Hims & Hers Health
  18.12.1 Business Overview
18.13 Henry Ford Health System
  18.13.1 Business Overview
18.14 Kinney Drugs
  18.14.1 Business Overview
18.15 KWIKMED
  18.15.1 Business Overview
18.16 Medvantx
  18.16.1 Business Overview
18.17 Medicure
  18.17.1 Business Overview
18.18 Medly Pharmacy
  18.18.1 Business Overview
18.19 Northwestpharmacy.Com
  18.19.1 Business Overview
18.20 Optumrx
  18.20.1 Business Overview
18.21 Pillpack
  18.21.1 Business Overview
18.22 RO Pharmacy
  18.22.1 Business Overview
18.23 RX-24-Online.Com
  18.23.1 Business Overview
18.24 Wal-Mart Stores
  18.24.1 Business Overview
18.25 Woori Pharmacy
  18.25.1 Business Overview

19 REPORT SUMMARY

19.1 Key Takeaways
19.2 Strategic Recommendations

20 QUANTITATIVE SUMMARY

20.1 Market By Drug Type
20.2 Market By Modality Type
20.3 Market By Product
20.4 Market By Pharmacy Type

21 APPENDIX

21.1 Abbreviations

LIST OF EXHIBITS

Exhibit 1 Segmentation of US Online Pharmacy Market
Exhibit 2 Market Size Calculation Approach 2020
Exhibit 3 Comparison of Traditional and Online Pharmacies Distribution Channel
Exhibit 4 Rise in Direct-to-Patient Drug Sales
Exhibit 5 Increase in Demand for Advanced E-commerce Technologies
Exhibit 6 High Adoption of E-prescriptions among US Customers
Exhibit 7 EHR Adoption Rate in US (%)
Exhibit 8 Increasing Teleconsultation and Diagnostic Support
Exhibit 9 Increase in Adoption of Telemedicine Among Physicians
Exhibit 10 Growing Penetration of Internet and Mobile Applications
Exhibit 11 Internet Penetration in US 2020
Exhibit 12 High Adoption of Automated Prescription Refill and CRM Solutions
Exhibit 13 Sale of Unapproved Drugs and FDA Warnings
Exhibit 14 Illegal Online Pharmacy in US
Exhibit 15 Competition from Traditional and Medical Product Retailers
Exhibit 16 Strict Regulatory Framework for Online Sale of Drugs
Exhibit 17 Five Reasons for Consumer Shifting Online Pharmacies
Exhibit 18 Online Pharmacy Market in US 2020–2026 ($ billion)
Exhibit 19 Online Pharmacy Market in US by Drug Type
Exhibit 20 Online Pharmacy Market in US by Modality
Exhibit 21 Online Pharmacy Market in US by Product
Exhibit 22 Online Pharmacy Market in US by Pharmacy Type
Exhibit 23 Five Forces Analysis 2020
Exhibit 24 Incremental Growth by Segment 2020 & 2026
Exhibit 25 Online Pharmacy Market in US by Drug Type
Exhibit 26 Online Pharmacy Market in US by Drug Type: Incremental Growth
Exhibit 27 Online Pharmacy Market in US by Drug Type: Absolute Growth
Exhibit 28 Preference for Online Pharmacies for Prescription Medications among Consumers
Exhibit 29 US Online Pharmacy Market by Prescription: Incremental & Absolute Growth
Exhibit 30 US Online Pharmacy Market by Prescription 2020–2026 ($ billion)
Exhibit 31 Online Over the Counter Pharmacy Market in US: Incremental & Absolute Growth
Exhibit 32 Purchase Percentage of Online Pharmacy Over-the-Counter Medications in US
Exhibit 33 Online Pharmacy Over-the-Counter Market in US 2020–2026 ($ billion)
Exhibit 34 Incremental Growth by Segment 2020 & 2026
Exhibit 35 Online Pharmacy Market in the US by Product Type
Exhibit 36 Online Pharmacy Market in US by Product Type: Incremental Growth
Exhibit 37 Online Pharmacy Market in US by Product Type: Absolute Growth
Exhibit 38 US Online Pharmacy Market by Medication: Incremental & Absolute Growth
Exhibit 39 Rise in Older Population in US (millions)
Exhibit 40 Online Pharmacy Market in US by Medication 2020–2026 ($ billion)
Exhibit 41 Online Pharmacy Market in US by Health, Wellness, & Nutrition: Incremental & Absolute Growth
Exhibit 42 Online Pharmacy Market in US by Health, Wellness, & Nutrition 2020–2026 ($ billion)
Exhibit 43 Online Pharmacy Market in US by Personal Care: Incremental & Absolute Growth
Exhibit 44 Online Pharmacy Market in US by Personal Care 2020–2026 ($ billion)
Exhibit 45 Online Pharmacy Market in US by Others: Incremental & Absolute Growth
Exhibit 46 Online Pharmacy Market in US by Others 2020–2026 ($ billion)
Exhibit 47 Incremental Growth by Segment 2020 & 2026
Exhibit 48 Online Pharmacy Market in the US by Modality
Exhibit 49 Online Pharmacy Market in US by Modality: Incremental Growth
Exhibit 50 Online Pharmacy Market in US by Modality: Absolute Growth
Exhibit 51 Online Pharmacy Market in US by Mobile Application: Incremental & Absolute Growth
Exhibit 52 Online Pharmacy Market in US by Mobile Application 2020–2026 ($ billion)
Exhibit 53 Online Pharmacy Market in US by Web based: Incremental & Absolute Growth
Exhibit 54 Online Pharmacy Market in US by Web based 2020–2026 ($ billion)
Exhibit 55 Incremental Growth by Segment 2020 & 2026
Exhibit 56 Online Pharmacy Market in US by Pharmacy Type
Exhibit 57 Online Pharmacy Market in US by Pharmacy Type: Incremental Growth
Exhibit 58 Online Pharmacy Market in US by Pharmacy Type: Absolute Growth
Exhibit 59 Online Pharmacy Market in US by Online Branch of Brick & Mortar Pharmacy: Incremental & Absolute Growth
Exhibit 60 Online Pharmacy Market in US by Online branch of Brick-and-Mortar Pharmacy 2020–2026 ($ billion)
Exhibit 61 Online Pharmacy Market in US by Independent Online-Only Pharmacy: Incremental & Absolute Growth
Exhibit 62 Online Pharmacy Market in US by Independent Online-Only Pharmacy 2020–2026 ($ billion)
Exhibit 63 Online Pharmacy Market in US by Partnership Site with Neighborhood Pharmacies: Incremental & Absolute Growth
Exhibit 64 Online Pharmacy Market in US by Partnership Sites with Neighborhood Pharmacies 2020–2026 ($ billion)
Exhibit 65 Grid Representation of Online Pharmacy Vendors in US
Exhibit 66 Market Share of Tier I & Tier II Players
Exhibit 67 The Kroger Revenue 2018–2020 ($ billion)
Exhibit 68 The Kroger Revenue by Segment 2018–2020 ($ billion)
Exhibit 69 CVS Health Revenue 2018–2020 ($ billion)
Exhibit 70 CIGNA Revenue 2018–2020 ($ million)
Exhibit 71 Walgreens Boots Alliance Revenue 2018–2020 ($ million)
Exhibit 72 Rite Aid Revenue 2018–2020 ($ billion)

LIST OF TABLES

Table 1 Key Caveats
Table 2 Currency Conversion 2013?2020
Table 3 E-pharmacy Comparison of Global versus US Market
Table 4 Funding of Online Pharmacy Start-Ups
Table 5 List of FDA Warning Letters Online Pharmacies
Table 6 Online Pharmacy Market in US by Drug Type 2020?2026 ($ billion)
Table 7 Online Pharmacy Market in US by Drug Type (%)
Table 8 Online Pharmacy Market in US by Modality 2020?2026 ($ billion)
Table 9 Online Pharmacy Market in US by Modality (%)
Table 10 Online Pharmacy Market in US by Product 2020?2026 ($ billion)
Table 11 Online Pharmacy Market in US by Product (%)
Table 12 Online Pharmacy Market in US by Pharmacy Type 2020?2026 ($ billion)
Table 13 Online Pharmacy Market in US by Pharmacy Type (%)


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