Prescription Drugs - Nigeria

Nigeria

The Prescription Drugs market in Nigeria is expected to witness significant growth in the coming years.
According to projections, the revenue in this market is expected to reach US$2.81bn in 2024.
Furthermore, it is anticipated that the market will experience a steady annual growth rate (CAGR 2024-2028) of 3.70%.
This growth will lead to a substantial increase in the market volume, which is estimated to reach US$3.25bn by 2028.
When compared globally, it is worth noting that United States is projected to generate the highest revenue in the Prescription Drugs market, with a staggering amount of US$358.90bn in 2024.
This highlights the dominance of the United States in the pharmaceutical industry.
In terms of per person revenues, in 2024, in Nigeria is expected to generate approximately US$12.26 per person.
This figure provides insights into the economic impact of the Prescription Drugs market on the population of Nigeria.
The prescription drug market in Nigeria is rapidly expanding due to increasing healthcare access and a growing middle class.

Key regions: France, Canada, United States, Australia, Europe

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Analyst Opinion

The Prescription Drugs (Pharmacies) market in Nigeria has been experiencing significant growth in recent years.

Customer preferences: Customers in Nigeria have shown a strong preference for purchasing prescription drugs from pharmacies rather than other sources. This is due to the trust and reliability associated with pharmacies, as well as the convenience of being able to consult with a pharmacist and receive professional advice. Additionally, the increasing prevalence of chronic diseases in Nigeria has led to a higher demand for prescription drugs, further driving the growth of the market.

Trends in the market: One of the key trends in the Prescription Drugs (Pharmacies) market in Nigeria is the increasing number of pharmacies. As the population continues to grow, there is a greater need for accessible healthcare services, including pharmacies. This has led to a rise in the number of pharmacies opening across the country, particularly in urban areas. Furthermore, there has been a shift towards the establishment of larger pharmacy chains, which are able to offer a wider range of products and services to customers. Another trend in the market is the growing popularity of generic drugs. With rising healthcare costs, customers in Nigeria are increasingly opting for generic versions of prescription drugs, which are more affordable than their branded counterparts. This trend is also driven by the government's efforts to promote the use of generic drugs as a cost-saving measure in the healthcare system.

Local special circumstances: Nigeria has a large population, with a significant portion of the population living in rural areas. This poses challenges in terms of accessibility to healthcare services, including pharmacies. In response to this, there has been a growing trend of mobile pharmacies, which provide door-to-door delivery of prescription drugs to customers in remote areas. This innovative approach has helped to bridge the gap in healthcare access and meet the needs of underserved populations.

Underlying macroeconomic factors: The growth of the Prescription Drugs (Pharmacies) market in Nigeria is also influenced by underlying macroeconomic factors. The country's economy has been steadily growing, leading to an increase in disposable income and healthcare spending. This has translated into higher demand for prescription drugs as more Nigerians are able to afford healthcare services. Additionally, the government has implemented policies to improve healthcare infrastructure and expand access to essential medicines, further driving the growth of the market. In conclusion, the Prescription Drugs (Pharmacies) market in Nigeria is experiencing significant growth due to customer preferences for pharmacies, the increasing number of pharmacies, the popularity of generic drugs, local special circumstances, and underlying macroeconomic factors. As the market continues to develop, it is expected that pharmacies will play a crucial role in meeting the healthcare needs of the Nigerian population.

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.