Online Pharmacy Market (Segment of Health Tech Market in KSA) is expected to growth at a robust CAGR of 9.0% in next 5 years, says a report by Ken Research
The Health Tech Market in KSA is highly consolidated with highly competitive rivalry among the competitors. Some of the popular Health Tech brands like Nahdi Medical Co., Cura and Balsam United compete on the basis of price, business model, delivery option, average number of consultancies per day, consultation split, margin, customization and technology.
1. COVID-19 Pandemic Propels Growth in KSA’s Online Pharmacy Market with Strong CAGR from 2017-2022 Due to Government Restrictions.
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The COVID-19 pandemic and a growing online population have increased reliance on online pharmacies in recent years. By 2022, the elderly population (65+) is expected to account for around 4% of the KSA population, further contributing to the growth of the e-pharmacy sector as they make up a significant portion of the general pharmacy market. In 2019, 15.6% of the healthcare budget was allocated to healthcare in KSA, which has also benefited the e-pharmacy market.
2. Challenges Faced by KSA’s Online Pharmacy Market: Stringent Regulations for Prescribed Drugs and Risks of Data Breaches.
Importing prescription drugs into KSA is a strict and lengthy process with government-imposed measures to prevent abuse. In the competitive online pharmacy market, price wars pose a challenge for new entrants. E-pharmacies lack physical evaluations, making it easier for users to bypass safety nets, increasing the risk of prescription fraud. Efficient software and transparent privacy policies are essential for preventing the leaking of financial and personal information to third parties.
3. Addressing Challenges: High Smartphone Penetration and Convenient Services of Online Pharmacies Driving Market Growth in KSA.
Online pharmacies provide convenience to consumers who can order prescription medicines without leaving their homes, especially for those who live far from physical pharmacies, the elderly, disabled, and those with busy schedules. With a high smartphone penetration rate in KSA, reaching 92.5% in 2022, online pharmacies have become more accessible to consumers, and they offer discounted prices and reliable sources of medicine. The privacy of online platforms is also appealing to customers with sensitive health conditions.
Time Period Captured in the Report:
- Historical Period: 2017-2022
- Base Year: 2022
- Forecast Period: 2022-2027
- KSA Online Pharmacy Market:
- Nahdi Medical Co.
- Al-Dawaa Pharmacy
- Boots Pharmacy
- Ghaya Pharmacies Ltd.
- KSA Online Health Consultation Market:
- KSA Healthcare IT Solutions Market:
- Balsam United
- Anova Health
- Cloud Pital