Prescription Drugs - Japan

Japan

In Japan, the revenue in the Prescription Drugs market is estimated to reach €68.05bn in 2024.
It is expected to exhibit an annual growth rate (CAGR 2024-2029) of 2.07%, leading to a market volume of €75.38bn by 2029.
When compared to other countries worldwide, United States is projected to generate the highest revenue of €332.90bn in 2024.
In terms of per capita figures, the revenue per person in Japan is forecasted to be €0.56k in 2024.
In Japan, there is a growing trend towards personalized medicine and the use of advanced technology in the prescription drug market.

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

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Analyst Opinion

The Prescription Drugs (Pharmacies) market in Japan is experiencing significant growth and development.

Customer preferences: Japanese consumers have a strong preference for purchasing prescription drugs from pharmacies due to the convenience and accessibility they offer. Pharmacies in Japan are typically located in close proximity to residential areas, making it easy for customers to access their medications. Additionally, pharmacies in Japan are known for their knowledgeable and helpful staff, who can provide advice and guidance on medication usage. This personalized service is highly valued by Japanese consumers, who prioritize the expertise and trustworthiness of pharmacists.

Trends in the market: One of the key trends in the Prescription Drugs (Pharmacies) market in Japan is the increasing demand for over-the-counter (OTC) medications. OTC medications are drugs that can be purchased without a prescription, and they are becoming more popular among Japanese consumers. This trend can be attributed to several factors, including the rising prevalence of self-medication and the growing awareness of the effectiveness of OTC medications for common ailments. As a result, pharmacies in Japan are expanding their OTC medication offerings to cater to this growing demand. Another trend in the market is the integration of technology in pharmacy operations. Many pharmacies in Japan are adopting digital solutions to streamline their processes and improve customer experience. For example, some pharmacies now offer online ordering and home delivery services, allowing customers to conveniently receive their medications without having to visit a physical store. Additionally, digital platforms are being used to provide medication reminders and dosage information to patients, enhancing medication adherence and overall health outcomes.

Local special circumstances: Japan has a rapidly aging population, which has significant implications for the Prescription Drugs (Pharmacies) market. As the elderly population grows, there is a higher demand for medications to manage chronic conditions and age-related ailments. This demographic shift is driving the expansion of the market, as pharmacies strive to meet the healthcare needs of the aging population. Furthermore, the Japanese government has implemented policies to support the elderly population, such as the provision of universal healthcare coverage and subsidies for prescription medications. These initiatives contribute to the growth of the Prescription Drugs (Pharmacies) market in Japan.

Underlying macroeconomic factors: Japan is known for its strong healthcare system and high life expectancy. The country has a well-established infrastructure for healthcare delivery, including a network of pharmacies that play a crucial role in providing essential medications to the population. The government's commitment to healthcare and the well-being of its citizens creates a favorable environment for the growth of the Prescription Drugs (Pharmacies) market. Moreover, Japan's stable economy and high disposable income levels enable consumers to afford prescription medications and contribute to the overall growth of the market. In conclusion, the Prescription Drugs (Pharmacies) market in Japan is experiencing growth and development driven by customer preferences for convenience and accessibility, the increasing demand for OTC medications, the integration of technology in pharmacy operations, the aging population, and the underlying macroeconomic factors. These factors collectively contribute to the expansion of the market and present opportunities for further growth and innovation in the future.

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.