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Philippines Pharmacy Retail Market Outlook 2023: Ken Research

Press release   •   Jul 23, 2019 18:00 IST

The report titled “Philippines Pharmacy Retail Market Outlook 2023 - By Organized and Unorganized Segment, By Standalone and Hospital Based Pharmacies, By Region, By Generic and Patented Drug, By Prescribed Medicines, OTC Products, Non Pharmaceutical Products and Medical Equipments, by Therapeutic Class (Anti-Infective, Cardiovascular, Gastro Intestinal, Anti Diabetic, Vitamins, Minerals and Nutrients, Respiratory, Pain Analgesics, Dermatology, Neuro, Gynaecological and Others)” provides a comprehensive analysis of the Philippines pharmacy retail market including market introduction, overview and genesis, market size and segmentations. Extensive focus has been placed in quantifying the industry revenue over the period, 2013-2023. The report covers aspects such as value chain, business and investment model, pre-requisites for a pharmacy, regulatory framework, growth drivers, major trends and developments, issues and challenges, import scenario in the industry, SWOT analysis, comparative analysis and competition landscape of the industry. The report also covers future industry analysis by segments. The report is useful for existing pharmacy chains, potential entrants, investors and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.

Philippines Pharmacy Retail Market Overview and Size:

The Philippines pharmacy retail market is a booming industry backed by the growth in the organized retail chains and the demand for the generic medicines in the country. Medicines stores have been present in the Philippines market since the 20th century. There were different kind of stores such as Chinese drugstores and traditional medicine shops. Afterwards, organized pharmacy stores expanded their distribution network in the different regions. The organized chains are on a continuous expansion and were observed to generate the majority of the revenue for the industry. High costs of pharmaceutical products have led to growth in the demand for generic medicines. The government has also taken up initiatives for improving the medicine distribution system in the country and increase the reach of generic medicines to the different consumers. Philippines have the third highest market for the pharmaceutical products amongst the ASEAN countries. Online / mail order pharmacies also started to gain traction in the country.

Philippines Pharmacy Retail Market Segmentation

By Market Structure (Organized and Unorganized Market)

Philippines pharmacy retail market was dominated by the organized segment as these chains have established a good relation with the customers on the basis of the store convenience and different customer loyalty schemes. On the other hand, unorganized segment is mostly prevalent in the countryside and rural areas where the organized chains are not present.

Type of Store Location (Standalone and Hospital Based Stores)

The standalone stores are able to generate greater revenue than the hospital based stores as most of the patients prefer to purchase from the standalone stores due to their cost efficiency. In addition to that, standalone stores maintain a wide range of non pharmaceutical products which increases the store footfall.

By Type of Sales (Prescribed Medicines, Over the Counter Products, Non Pharma Products and Medical Equipment)

Sales towards prescribed medicines were observed to dominate Philippines pharmacy retail market during the year 2018. The demand is majorly facilitated by the sales in the hospital based stores and standalone stores near a hospital. This was followed by the OTC products, Non Pharmaceutical Products and medical equipment.

By Type of Drug (Generic and Patented)

The generics category consists of a number of sub-segments existing at different pricing tiers including branded generics, Uni-branded generics, house-brands and unbranded generics. Traditionally, the market consisted of branded and unbranded generics but big local companies have launched Uni-brands such as Pharex and RiteMed at a discounted price lower than the branded generics, therefore have experienced high growth. The remaining market was captured by patented segment.

By Therapeutic Class

The Philippines pharmacy market has different group of therapeutic drug classes such as anti-infective, cardiovascular, gastro intestinal, anti diabetic, vitamins, minerals and nutrients, respiratory, pain analgesics, dermatology, neuro, gynecological and others. The cardiovascular drugs have highest demand due to high rate of Coronary Heart Diseases (CHD) in the country.

Comparative Landscape in the Philippines Pharmacy Retail Market

Competition stage within Philippines pharmacy retail market was observed as highly concentrated along with the presence of major pharmacy retail chains and independent stores in the country. The top five major pharmacy chains present in the market are Mercury Drug Corporation, Watsons Personal Care Stores, South Star Drug Inc, Rose Pharmacy and The Generics Pharmacy. The competition is driven on the basis of the number of stores, product offerings, the range of product categories, services, customer loyalty scheme, private label goods and marketing & promotion.

Philippines Pharmacy Retail Market Future Outlook and Projections:

The Philippines pharmacy retail market is expected to register a positive CAGR in terms of revenue during the forecast period 2019-2023, driven on the expected growth in the total number of organized stores in the country. The organized chains are expected to include the online sales channel in their distribution system and adopt the omni sales channel strategy. As the medicine market is being dominated by the demand for generic medicines, total number of drugstores providing generic medicines are expected to increase in the near future. The government of Philippines has revived the Botika Ng Bayan initiative which used to provide the medicines in the Philippines at subsidized rates. The government of Philippines aims to expand it to each of the barangay (village) in the Philippines and provide generic medicines in order to reduce the healthcare costs.

Key Segments Covered

Market Structure

Organized Market

Unorganized Market

Type of Store Location

Standalone Pharmacy

Hospital Based Pharmacy

Region

North

Central

South

Type of Sales

Prescribed Medicines

OTC Products

Non Pharmaceutical Products

Medical Equipment

By Type of Drug

Generic

Patented

By Therapeutic Class

Anti-Infectives

Cardiovascular

Gastro Intestinal

Anti Diabetic

Vitamins/Minerals /Nutrients

Respiratory

Pain/Analgesics

Dermatology

Neuro

Gynecological

Others

Key Target Audience

Existing Pharmaceutical Retailers in the Philippines

Existing Pharmaceutical Distributors in the Philippines

Existing Pharmaceutical Wholesalers in the Philippines

Existing Pharmaceutical Manufacturers in the Philippines

Existing Pharmaceutical Importer in the Philippines

New Market Entrants- Domestic Retailer

New Market Entrants- Domestic Distributor

New Market Entrants- Domestic Wholesaler

New Market Entrants- Domestic Manufacturer

New Market Entrants- Foreign Retailer

New Market Entrants- Foreign Distributor

New Market Entrants- Foreign Wholesaler

New Market Entrants- Foreign Manufacturer

Market Associations

Investors & Venture Capital Firms

Real Estate Companies

Government Bodies

Time Period Captured in the Report:

Historical Period: 2013-2018

Forecast Period: 2019-2023

Companies Covered:

Mercury Drug Corporation

Watsons Personal Care Stores

SouthStar Drug Inc.

Rose Pharmacy

The Generics Pharmacy

Key Topics Covered in the Reports

Executive Summary

Research Methodology

Philippines Pharmacy Retail Market Introduction, Overview and Genesis

Value Chain of Philippines Pharmacy Retail Market

Philippines Pharmacy Retail Market Size, 2013-2018

Philippines Pharmacy Retail Market Segmentation, 2013-2018

Business Model for a Retail Pharmacy Store in the Philippines

Pre-Requisites for the Philippines Pharmacy Retail Market

Regulatory Framework in the Philippines Pharmacy Retail Market

Growth Drivers in the Philippines Pharmacy Retail Market

Trends in the Philippines Pharmacy Retail Market

Issues and Challenges in the Philippines Pharmacy Retail Market

Import Scenario in the Philippines Pharmacy Retail Market

SWOT Analysis of the Philippines Pharmacy Retail Market

Cross Comparison of International Pharmacy Stores with the Philippines Organized Pharmacy Retail Market

Porter Five Forces Analysis for the Philippines Pharmacy Retail Market

Comparative Landscape in the Philippines Pharmacy Retail Market

Snapshot of Major Players Using Omni Channel Model in the Philippines Pharmacy Retail Market

Snapshot of Emerging Hybrid Model in the Philippines Pharmacy Retail Market

Philippines Pharmacy Retail Market Future Outlook and Projections, 2019-2023

Analyst Recommendations for the Philippines Pharmacy Retail Market

For more information on the research report, refer to below link:

Philippines Pharmacy Retail Market Outlook 2023

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