Pharmacies - Africa

Africa

In Africa, the Pharmacies market is expected to witness a substantial growth in revenue, with projections indicating that it will reach US$43.98bn in 2024.
This growth is further anticipated to continue at an annual growth rate of 5.03%, resulting in a market volume of US$53.51bn by 2028.
When compared globally, it is noteworthy that United States is expected to generate the highest revenue in the Pharmacies market, estimated to be US$387.30bn in 2024.
In terms of per capita revenue, in Africa is projected to generate approximately US$33.84 per person in 2024.
This figure demonstrates the contribution of the Pharmacies market to the overall economy of the continent.
In South Africa, pharmacies are increasingly expanding their services to offer a wider range of healthcare products and services, including vaccinations and chronic disease management.

Key regions: United States, China, Germany, Japan, Europe

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Analyst Opinion

The Pharmacies market in Africa is experiencing significant growth and development due to several key factors. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors are all contributing to the expansion of the Pharmacies market in Africa.

Customer preferences: Customers in Africa are increasingly seeking convenient and accessible healthcare services. Pharmacies offer a wide range of over-the-counter medications, health products, and prescription drugs, making them a one-stop shop for healthcare needs. Additionally, pharmacies often provide personalized advice and consultations, which is highly valued by customers. The convenience and personalized service offered by pharmacies are driving customer preferences towards these establishments.

Trends in the market: One of the key trends in the Pharmacies market in Africa is the increasing focus on online and e-commerce platforms. With the rise of digital technology, customers are now able to order medications and healthcare products online, which provides greater convenience and accessibility. This trend is particularly beneficial for customers in remote areas who may have limited access to physical pharmacies. Online pharmacies are also able to offer a wider range of products and competitive pricing, which attracts customers. The growth of online platforms is expected to continue driving the expansion of the Pharmacies market in Africa.

Local special circumstances: Africa is a diverse continent with varying healthcare needs and challenges. In many countries, there is a lack of healthcare infrastructure and limited access to quality healthcare services. Pharmacies play a crucial role in bridging this gap by providing accessible and affordable healthcare solutions. In some regions, pharmacies are the primary healthcare providers, especially in rural areas where medical facilities may be scarce. The importance of pharmacies in addressing local healthcare challenges is a significant factor contributing to the growth of the Pharmacies market in Africa.

Underlying macroeconomic factors: The Pharmacies market in Africa is also influenced by underlying macroeconomic factors. Economic growth and rising disposable incomes in many African countries have led to an increase in healthcare spending. As people have more money to spend on healthcare, the demand for pharmacy services has also grown. Additionally, governments and healthcare organizations are recognizing the importance of pharmacies in the overall healthcare system and are implementing policies to support their growth. These factors, combined with the increasing prevalence of chronic diseases and the aging population, are driving the expansion of the Pharmacies market in Africa. In conclusion, the Pharmacies market in Africa is experiencing significant growth and development due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The convenience and accessibility offered by pharmacies, the rise of online platforms, the role of pharmacies in addressing local healthcare challenges, and the economic growth in many African countries are all contributing to the expansion of the Pharmacies market in Africa.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on offline and online spending by consumers, including VAT. Not included are B2B and B2G sales, or other pharmaceutical sales through hospitals or retail stores such as supermarkets.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market market. As a basis for evaluating markets, we use industry associations, third-party studies and reports and survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as healthcare expenditure per country, consumer healthcare spending, GDP and internet penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, forecasts are based on historical developments, current trends, and key market indicators, using advanced statistical methods. For forecasting digital trends such as the online-pharmacy sales share we use exponential trend smoothing and the s-curve method. The main drivers are healthcare expenditure per country and consumer healthcare spending.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. GCS data is reweighted for representativeness.