Pharmacies - Azerbaijan

Azerbaijan

In Azerbaijan, the Pharmacies market is expected to witness substantial growth in the coming years.
According to projections, the revenue in this sector is estimated to reach US$0.78bn in 2024.
Furthermore, it is anticipated that the market will experience a steady annual growth rate of 3.93% (CAGR 2024-2028), leading to a market volume of US$0.91bn by 2028.
When compared globally, it is worth noting that United States is expected to generate the highest revenue in the Pharmacies market, with an estimated amount of US$387.30bn in 2024.
To put things into perspective, the per person revenues in Azerbaijan's Pharmacies market sector are projected to be around US$74.18 in 2024.
This indicates the financial impact of this market on the population as a whole.
Pharmacies in Azerbaijan are increasingly focusing on expanding their range of alternative and natural remedies to cater to the growing demand for holistic healthcare.

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

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Analyst Opinion

The Pharmacies market in Azerbaijan is experiencing significant growth and development due to several key factors.

Customer preferences: Customers in Azerbaijan have shown a growing preference for accessing healthcare services and purchasing medications from pharmacies. This can be attributed to the convenience and accessibility that pharmacies provide, as they are often located in close proximity to residential areas. Additionally, customers appreciate the professional advice and guidance offered by pharmacists, who are seen as trusted healthcare advisors.

Trends in the market: One notable trend in the Pharmacies market in Azerbaijan is the increasing demand for over-the-counter (OTC) medications. Customers are seeking self-care solutions for common ailments and are more willing to purchase OTC medications without a prescription. This trend is driven by the convenience and cost-effectiveness of OTC medications, as well as the growing health awareness among the population. Pharmacies are responding to this trend by expanding their range of OTC products and providing more information and guidance to customers. Another trend in the market is the growing popularity of online pharmacies. Customers are increasingly turning to online platforms to purchase medications and healthcare products, as it offers the convenience of home delivery and a wider range of products. Online pharmacies also provide customers with the ability to compare prices and read reviews, enhancing their shopping experience. Pharmacies in Azerbaijan are adapting to this trend by establishing their online presence and offering online ordering and delivery services.

Local special circumstances: Azerbaijan has a rapidly aging population, which is contributing to the growth of the Pharmacies market. As the elderly population increases, there is a greater demand for medications and healthcare services. Pharmacies are playing a crucial role in meeting the healthcare needs of this demographic by providing easy access to medications and offering specialized services such as medication management and counseling.

Underlying macroeconomic factors: The growing economy of Azerbaijan is also driving the development of the Pharmacies market. As disposable incomes rise, customers have more purchasing power to spend on healthcare products and services. This has led to an increase in the demand for medications and healthcare products, further fueling the growth of pharmacies in the country. Additionally, the government's focus on improving healthcare infrastructure and accessibility has created a favorable environment for the expansion of the Pharmacies market. In conclusion, the Pharmacies market in Azerbaijan is experiencing growth and development due to customer preferences for convenient healthcare services, the increasing demand for OTC medications, the rise of online pharmacies, the aging population, and the country's growing economy. These factors are driving the expansion of pharmacies and shaping the future of the market in Azerbaijan.

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.