India Pharmacy Retail Market Outlook to 2020 – Growth Driven by Surge in OTC Drugs Sales and Expansion of Online Pharmacies” provides a comprehensive analysis of the various aspects such as market size of the India Pharmacy Retail and Online Pharmacy Retail Market. The report also covers the market segmentation on the basis of organized & unorganized pharmacies, prescribed drugs, OTC drugs & private label products, category of drugs and generic & patented drugs. The report shares the company profile and competitive landscape for major players in the organized pharmacy sector and online pharmacy market. Pharmacy retail market in India is driven by growth in the pharmaceutical sector, registered revenues of INR ~ billion in FY’2015. With the advent of online pharmacy retailers in the market, the industry is likely to witness a surge in the coming future. The retail pharmacy in the India has escalated at a CAGR of 19.4% from INR ~ billion in FY’2010 to INR ~ billion in FY’2015. The surge in growth is chiefly guided by the escalation in urbanization, increase in household expenditures, increasing smartphone users, need for convenience and rising literacy rate in the country coupled with growing medical awareness.

1. India Pharmacy Retail Market
Report - 2020

2. The pharmacy sector in India has been rapidly
evolving over the years from FY’2010-FY’2015
with a constant establishment of new pharmacies
across the country. There has been intense
competition amongst stores and consolidation
among providers of pharmacy products. In
pharmacy retail, notable changes have been
observed in organized pharmacies.
The pharmacy retail market in India has witnessed
revenues worth INR ~ Billion in FY’2015 and has
grown at a CAGR of 19.4% for the period
FY’2010-FY’2015.

3. With an increase in penetration of organized
players, the market has become highly
competitive hence; innovative marketing
strategies and new business models are being
introduced in the market in order to sustain
profits.
This market has been segmented on the basis of
various sectors such as organized & unorganized,
hospital based & standalone, prescribed drugs,
OTC drugs & private label products and generic
and patented.

4. With rising awareness among people, there has
been a noticeable shift of customers towards
organized players such as Apollo, MedPlus and
other organized pharmacies which offer high
quality medicines and drugs.
The total number of pharmacy stores in India
stood at ~ during FY’2015 due to increasing
government expenditure on healthcare as well as
surge in per capita healthcare expenditure. New
trends such as hospital based pharmacies and
wellness stores concept have also contributed in
the expansion process and growth of the overall
market.

5. The pharmacy retail market in the India has
witnessed an unprecedented growth in the recent
years on account of improvement in medical
awareness through the efforts of media. The
surge in growth has been complemented by
improvement in accessibility of pharmacy stores,
diversification of products and an increase in
health consciousness amongst the people. The
organized pharmacy retail market in India is
comprised of several companies such as Apollo
Pharmacies which posses a large product
portfolio of pharmaceutical products.

6. These companies have faced stiff competition from
the unorganized market, as they command a
higher share of the industry in terms of both
revenues and number of pharmacies.
The sale of OTC drugs is expected to drive the
market as enhanced self medication trend has
developed in the population of India. More
number of people has been purchasing
medication on the basis of self attained
knowledge from internet and other media
sources which have significantly reduced the
need for specialized prescriptions for many
medical requirements.

7. The retail pharmacy market is likely to enhance
since there is an increase in government
spending on health care sector along with
initiatives taken to increase health related
awareness in rural regions of the country. In the
future, the market is expected to reach INR ~
billion by FY’2020.
Standalone pharmacies include both organized and
unorganized standalone pharmacies and it has
been dominating the pharmacy retail market in
India since the past many years, registering a
share of 92.7% with 827,405 pharmacies in
FY’2015.

8. Hospital based pharmacy; on the other hand,
formed 7.3% of the overall market sales with
64,783 pharmacies in the fiscal year 2015. The
demand of medicines and other pharmaceutical
products in a hospital based pharmacies is
primarily driven by in-patients and out-patients
of the hospital which comes for consultation. In
the absence of competitors in the hospital
premises, hospital based pharmacies have
monopoly over the others.

9. India pharmacy retail market is majorly driven by
small and unorganized pharmacy stores in the
country. In the present scenario the market is
highly dominated by the unorganized players
with their contribution in revenue by ~% in
FY’2015. The organized chains of pharmacies are
quite new in the business. They will require a
couple of years to create their own customer
base along with expanding their market share.
Due to the wide availability of unorganized
pharmacies, these retailers have witnessed a
higher number of customers which have in turn
bolstered their sales revenues.

10. The increase in personal disposable income of the
population has contributed significantly to the
growth of the market as there has been elevation
in focus on personal healthcare. Changing
lifestyle and increasing stress levels have been
observed as the key growth drivers of the
pharmacy retail market in India as they driven
sales of medicines. This trend has developed due
to a huge increase in urbanization and working
population in the country.
The growth of the Indian OTC market has been
one of the fastest in the world.

11. The Indian OTC market is extremely competitive at
present. Both organized and unorganized players
have added new sections of OTC drugs in their
stores due to the trend of self-treatment by the
young Indian population.
Additionally, in order to drive sales, many
organized retailers have also established their
online presence. This has resulted in an
increased reach of the retailers which has in turn
driven their sales revenues.

12. There are several aspects that need to be
considered for establishing a retail pharmacy in
India. In the below mentioned case, a land area
of ~ square feet is required to set up a pharmacy
store in a semi-urban area. The area for
standalone pharmacy is taken on a rental basis
where the promoter’s contribution is ~% of the
total investment. There is an initial cost of
furnishing, required furniture and the computer
software such as LIS and PIS is also taken into
account.

13. Based on the sales realization and the operating
expenses, the pre-tax profit would amount INR ~
per year. This would generate return on
investment of ~% and pre-tax profit on sales of
~%.
Apart from the above mentioned quantitative
factors, in order to successfully operate a
pharmacy store in India, owners must establish a
strong procurement network which can comprise
of wholesalers, distributors or manufacturing
companies.

14. Online pharmacies have changed the global
pharmaceutical distribution chain quite
significantly. The era of online pharmacies began
more than a decade ago with the launch of drug
distributing websites in Canada in the late 1990s.
Online Pharmacies have been a preferred method
of buying medicines in overseas countries such
as Europe, USA and others but in India; this
segment is at its miniscule stage and is growing
at a tremendous rate.

15. The population is becoming more Tech savvy and
wishes to purchase almost every product through
online means, since it saves a lot of time and
also provides flexibility in terms of making
payments and other factors.
In India a limited numbers of online pharmacies
are operational through different means. Apollo
Pharmacy has installed fax machines in clinics of
doctors, from where prescriptions are faxed to
Apollo stores, which then deliver the medicines
to customers at the desired location.

16. The online pharmacy Retail market in India has
mainly emerged in the current fiscal year
FY’2015. This has posted the revenues originated
by online pharmacies at INR ~ million during
FY’2015. Medidart has been the leading player in
this category which has accounted for
approximately ~% of market share in the overall
online pharmacies market during FY’2015. Some
of the other players that have their presence in
the market are namely Medplus.com, buydrug.in,
online pharmacy and several others.

17. The major demand for online pharmacy products
has emerged from Tier 1 cities which have
accounted for ~% of the overall GMV during
FY’2015. The domination of urban class
population in these cities alleged with higher tech
savvy population, supported by better
distribution networks in these cities have helped
the market to generate higher amount of
revenues especially from these cities.

18. Online pharmacy products are majorly been
demanded by males, which have accounted
for ~% of all the orders placed, while on the
other side, females have accounted for ~%
volume of the orders placed in FY’2015. Cash
on Delivery was the most preferred mode of
payment which accounted for a share of ~%
in the overall payment made in FY’2015. This
mode is more prevalent as customers are
unsure about the quality of the products that
are being delivered to them and are reluctant
to pay the money in advance.

19.  Read Detail Report here –
https://www.kenresearch.com/healthcare/pharmaceuticals
/india-pharmacy-stores-market-report/3896-91.html
 Contact:
Ken Research
Ankur Gupta, Head Marketing &
Communications
ankur@kenresear.com
 Website : www.kenresearch.com

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