Prescription Drugs - Canada

Canada

The Prescription Drugs market in Canada is expected to witness significant growth in the coming years.
According to projections, the revenue in this market is estimated to reach €41.49bn by 2024.
This growth is anticipated to continue with an annual growth rate (CAGR 2024-2029) of 5.10%, resulting in a market volume of €53.21bn by 2029.
When compared globally, it is noteworthy that United States is the leading market in terms of revenue generation.
In 2024, United States is projected to generate a revenue of €332.90bn.
This indicates the dominance of the United States in the Prescription Drugs market.
Taking into account the total population figures, it is interesting to note that per person revenues in Canada are estimated to be €1.06k in 2024.
This provides an insight into the economic impact of the Prescription Drugs market on an individual level.
Canada's prescription drug market is experiencing a surge in demand for innovative biologics and specialty medications.

Key regions: Japan, China, Europe, Australia, Canada

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Analyst Opinion

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

Customer preferences: Customers in Canada have shown a growing preference for prescription drugs purchased from pharmacies. This can be attributed to the convenience and accessibility offered by pharmacies, as well as the trust and reliability associated with these establishments. With the increasing prevalence of chronic diseases and the aging population in Canada, the demand for prescription drugs has been steadily rising.

Trends in the market: One of the key trends in the Prescription Drugs (Pharmacies) market in Canada is the shift towards online pharmacies. With the advancement of technology and the increasing use of smartphones, more and more customers are opting to purchase their prescription drugs online. Online pharmacies offer the convenience of home delivery, as well as the ability to compare prices and access a wider range of medications. This trend is expected to continue as e-commerce continues to grow in Canada. Another trend in the market is the increasing focus on generic drugs. Generic drugs are more affordable than their brand-name counterparts and offer the same therapeutic benefits. As the cost of healthcare continues to rise in Canada, both consumers and the government are looking for ways to reduce expenses. This has led to an increased demand for generic drugs, which are often available at a lower price point.

Local special circumstances: One of the unique aspects of the Prescription Drugs (Pharmacies) market in Canada is the presence of public healthcare. The Canadian healthcare system provides universal coverage for prescription drugs to all residents, regardless of their income or employment status. This has created a stable demand for prescription drugs in the country, as individuals have access to necessary medications without having to worry about the cost. However, the increasing cost of prescription drugs has put pressure on the government to find ways to control expenses, leading to a greater emphasis on cost-effective options such as generic drugs.

Underlying macroeconomic factors: The growth of the Prescription Drugs (Pharmacies) market in Canada can be attributed to several underlying macroeconomic factors. Firstly, the aging population in Canada has led to an increased demand for prescription drugs, as older individuals are more likely to require ongoing medical treatment. Additionally, the increasing prevalence of chronic diseases, such as diabetes and cardiovascular conditions, has further fueled the demand for prescription medications. Furthermore, the Canadian economy has been relatively stable in recent years, with low unemployment rates and steady economic growth. This has provided individuals with the financial means to afford prescription drugs and has contributed to the growth of the market. In conclusion, the Prescription Drugs (Pharmacies) market in Canada is experiencing significant growth due to customer preferences for convenience and accessibility, as well as the increasing demand for prescription medications driven by an aging population and the prevalence of chronic diseases. The shift towards online pharmacies and the focus on generic drugs are key trends in the market. The presence of public healthcare and the stable Canadian economy are also contributing factors to the market's development.

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.