Pharmacies - South Africa

South Africa

The Pharmacies market in South Africa is expected to reach a projected revenue of €6.00bn in 2024.
It is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 5.17%, leading to a market volume of €7.72bn by 2029.
When compared globally, United States is projected to generate the highest revenue of €359.10bn in 2024.
In terms of per capita figures, in South Africa is expected to generate a revenue of €98.25 per person in 2024.
The pharmacy market in South Africa is experiencing a significant increase in demand for natural and herbal remedies.

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

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Analyst Opinion

The Pharmacies market in South Africa is experiencing significant growth and development.

Customer preferences: Customers in South Africa are increasingly seeking convenience and accessibility when it comes to purchasing pharmaceutical products. This has led to a rise in the popularity of pharmacies, as they offer a one-stop solution for all healthcare needs. Customers appreciate the convenience of being able to purchase prescription medications, over-the-counter drugs, and other healthcare products in one location. Pharmacies also provide a range of services, such as health consultations and advice, which further enhance the customer experience.

Trends in the market: One of the key trends in the Pharmacies market in South Africa is the increasing demand for generic medications. Generic drugs are more affordable compared to their branded counterparts, making them an attractive option for customers. The government has also implemented policies to promote the use of generic medications, further driving their demand. Pharmacies are capitalizing on this trend by stocking a wide range of generic drugs, thereby catering to the needs and preferences of cost-conscious customers. Another trend in the market is the growing focus on wellness and preventive healthcare. Customers are becoming more proactive in managing their health and are seeking products and services that promote overall well-being. Pharmacies are responding to this trend by expanding their offerings to include a variety of wellness products, such as vitamins, supplements, and natural remedies. They are also providing additional services, such as health screenings and vaccinations, to help customers take a proactive approach to their health.

Local special circumstances: South Africa has a high burden of disease, with a significant portion of the population suffering from chronic conditions such as HIV/AIDS, diabetes, and cardiovascular diseases. This has created a strong demand for pharmaceutical products and healthcare services. Pharmacies play a crucial role in meeting this demand by providing access to essential medications and healthcare advice. They serve as a vital link between healthcare providers and patients, ensuring that individuals have access to the medications they need to manage their conditions effectively.

Underlying macroeconomic factors: The Pharmacies market in South Africa is also influenced by several macroeconomic factors. The country has a rapidly growing middle class, which has led to increased healthcare spending. As disposable incomes rise, customers are willing to spend more on healthcare products and services, including pharmaceuticals. Additionally, the government has implemented policies to improve access to healthcare, such as the National Health Insurance (NHI) scheme. This has resulted in increased healthcare coverage and a greater demand for pharmaceutical products. In conclusion, the Pharmacies market in South Africa is experiencing growth and development due to customer preferences for convenience and accessibility, the increasing demand for generic medications, the focus on wellness and preventive healthcare, the high burden of disease in the country, and underlying macroeconomic factors such as the growing middle class and government healthcare policies. Pharmacies in South Africa are well-positioned to meet the evolving needs of customers and play a crucial role in the healthcare ecosystem.

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.