European Online Pharmacy Market (by Type, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)

An online pharmacy is a website that offers to deliver, distribute, or dispense medication to customers through the internet. The online pharmacy market is expanding, with prospective new market entrants attempting to capitalize on the e-script market potential. This might put pressure on the OTC market as more rivals enter the Rx market, as well as put a stop to the post-pandemic boom in online pharmacy sales when the impact of the pandemic fades and the usual flu/cold season returns.

Several well-known brick-and-mortar pharmacies in Eastern Europe are moving their attention to online sales channels in order to boost their consumer base. The increased consumer awareness of the various extra benefits of online pharmacy services, such as rapid delivery options, open payment ways, cashback, reduced offers, and so on, is also driving industry expansion. The European online pharmacy market is projected to reach US$23.61 billion in 2023, growing at a CAGR of 16.96% over the projected period.

Segment Covered

By Type: In terms of type, the report identifies two segments of the online pharmacy market: Online OTC and Online Rx. Online OTC lead the market with the largest share owing to the increasing internet penetration and increasing knowledge of the benefits of online services, particularly for over-the-counter (OTC) medications.

Geographic Coverage

According to this report, the European online OTC pharmacy market is divided into the following regions: Germany, the UK, Italy, France, Spain, Netherlands, Belgium, Austria, and Rest of the Europe. Germany held the maximum share in the market owing to the increasing demand for online medications and doorstep delivery. The German retail pharma market stands out as the most significant market for online pharmacies in Europe given its size and regulation. While several large European markets are much less relevant as they have not opened prescription drugs (Rx) to mail-order. The German online OTC pharmacy can be further divided into two segments based on type namely, BP (Beauty Products), HP (Healthcare Products), Nutrition, and Medicine-related OTC products. The BP, HP, Nutrition segment held the major share in the market. Moreover, the report also provides the analysis of German Online Rx market. The online Rx pharmacy market is growing in Germany in the past few years driven by the convenience and cheaper costs of purchasing prescription drugs online, especially under the lockdown situation.

Top Impacting Factors

Growth Drivers

• Aging Population
• Increasing Number of Internet Users
• Increasing Health Care E-Commerce
• Convenience & Lower Pricing

Challenges

• Regulatory Environment
• Cyber Threats and Data Security

Trends

• Integration of AI in Pharmacy Sector
• Rising Implementation of E-Prescriptions
• Escalating Adoption of New Technology

Driver: Increasing Number of Internet Users

Rising internet penetration is one of the region's development drivers, resulting in the quick acceptance of new technologies as well as a need for digital health platforms. In Europe, people are discovering the benefits of the internet and prefer e-commerce to classic stores. Most purchases are made using devices such as a laptop, tablets, desktops, and smartphones. The penetration of the Internet via a smartphone takes the largest share and is the latest trend that stimulates market growth. Owing to the shift in consumer preference toward the online purchase of medicines and augmented penetration of high-speed internet, the online pharmacy market in Europe is expected to grow further in the coming years.

Challenge: Regulatory Environment

The regulatory environment for pharmacies varies by country across Europe. Although Germany is phasing in e-prescriptions and allows prescriptions and OTC medication to be sold online, some countries have tighter restrictions. For instance, in Switzerland, non-prescription medicines can be delivered by mail only when specifically allowed by a doctor, creating a more challenging environment for online pharmacies to compete. On the other hand, in Austria, since 2015, e-pharmacies have been allowed to sell non-prescription medication; however, prescription medication is still not allowed to be sold online. Thus, the regulatory environment in Europe has created a huge hurdle for online pharmacies in the past few years.

Trend: Integration of AI in Pharmacy Sector

Artificial intelligence improves the quality of services. It provides operational efficiency, accurate diagnosis, effective disease prevention, and daily health prevention to increase trust and customer loyalty. Analytical technologies, like AI and cognitive computing, have also helped gather insight from the deluge of large and diverse data sets. Even retail pharmacies have started investing in Artificial intelligence (AI) tools to improve service, cut costs, and optimize stock availability. The goal is to improve patient access to virtual care via mobile devices, using AI analytics to find the most efficient way to share medical information between patients, healthcare providers, and treatment centers. Hence the increasing integration of AI in the pharmacy sector would drive the growth of online pharmacies in Europe.

The COVID-19 Analysis

The COVID-19 pandemic has significantly fueled growth in the European online pharmacy market. Due to the travel bans and lockdowns, as well as the concern over contracting SARS-CoV2, more people were turning to online pharmacies to buy both prescription and OTC medications. Additionally, virtual-based teleconsultation was replacing in-person doctor appointments, which resulted in the development of digital prescriptions and further boosted the European online pharmacy market. Practices such as electronic transfer of prescriptions, and services such as the home delivery of medicines are expected to continue to some extent in the post-COVID era, thus driving the market growth.

Analysis of Key Players

The European online pharamcy market is fragmented. The key players in the European online pharamcy market are Zur Rose Group, Chemist4U, Apotea, MedExpress, LloydsPharmacy, Shop Apotheke Europe, ChemistDirect, Parafarmacia-Online, UK Meds Direct Ltd., Medikamente-per-klick, Euro-Pharmas, and Meds Apotek AB.