UAE E-Pharmacy Market Research Report: Forecast (2024-2030)

Market Definition

An e-pharmacy, or electronic pharmacy, refers to a digital platform that enables consumers to purchase pharmaceutical products, medications, and healthcare items online. These platforms operate through websites or mobile applications, providing users with a convenient & accessible way to browse, order, and receive medications & healthcare products without the need to visit a physical pharmacy. E-pharmacies offers a wide range of products, including prescription and over-the-counter medications like vitamins, supplements, personal care items, etc.

Market Insights & Analysis: The UAE E-Pharmacy Market (2024-30):

The UAE E-Pharmacy Market is estimated to grow at a CAGR of around 15.2% during the forecast period, i.e., 2024-30. The market growth has been supported by the rising internet penetration, busy lifestyles, and the convenience offered by online shopping. Consumers have been increasingly turning to e-pharmacy platforms to purchase medications, healthcare products, and wellness items from the comfort of their homes or offices, thus boosting the growth of the E-pharmacy Market across the UAE. Moreover, the rising integration of information technology in the healthcare industry due to surging digitalization and an increasing tech-savvy population further boosted the growth of E-pharmacy in the country. Along with this, the implementation of electronic health records (EHRs), telemedicine platforms, and mobile health applications has also enhanced patient access to medical records, remote consultations, and health monitoring tools. For instance:

• In 2023, the UAE health authorities launched an updated version of the Al Hosn app, the national digital healthcare platform for vaccinations & more in the UAE.

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Additionally, advancements in healthcare IT infrastructure have improved communication & collaboration among healthcare professionals, leading to more efficient & coordinated care delivery. Thus, the convenience & accessibility offered by e-pharmacy platforms resonate with consumers seeking efficient healthcare solutions in today's digital age, further augmenting the growth of the UAE E-Pharmacy Market.

Besides, the rising consumer inclination towards online platforms & doorstep deliveries proliferates the market growth. The rapid development in internet penetration has considerably increased the usage of e-commerce platforms in recent years, as they offer many advantages, including cheaper rates, speedy at-home deliveries, and a diverse range of product possibilities. Moreover, as the pharmacy companies are collaborating with delivery companies to provide doorstep deliveries, it further augments the market growth. For instance:

• In 2023, Aster Pharmacy announced its partnership with Talabat UAE to deliver prescription medicines across the country.

This expansion in the e-commerce sector had a direct impact on the e-pharmacy industry, allowing enterprises to reach a large number of customers. Furthermore, technological advancements enabling firms to deliver better and more innovative services with better user interfaces and convenient solutions are aiding in enhancing the UAE E-Pharmacy Market size in the long run.

The UAE E-Pharmacy Market Driver:

Surging Internet & Smartphone Penetration to Boost E-Pharmacy Market – With a high-tech-savvy population & strategic government initiative, the country has been witnessing widespread internet accessibility. Along with this, the proliferation of smartphones and affordable data plans has also significantly contributed to this surge, enabling a large portion of the population to connect online seamlessly. For instance:

• In 2022, according to a consumer survey, about 65% of UAE consumers use smartphones to improve their shopping experience.

With a tech-savvy population and widespread smartphone & internet usage, more consumers are embracing the convenience of ordering medicines through online platforms such as websites & applications, further becoming one of the essential driving factors for infusing the UAE E-Pharmacy Market growth.

The UAE E-Pharmacy Market Opportunity:

Rising Government Initiatives for Digital Health Revolution to Open New Avenues for the Industry – The UAE government is placing a significant emphasis on catalyzing the digital health revolution in the country, driven by the government's commitment to innovation and technological advancement. The government has launched various initiatives, such as the UAE Vision 2021 and the Dubai Health Strategy 2021, to digitalize and upgrade the healthcare sector. Moreover, the Emirates Health Services (EHS) Innovation Strategy for 2023-2026 is geared towards building a sustainable healthcare future across the UAE.

Additionally, regulatory frameworks such as the Telemedicine Regulation issued by the Dubai Health Authority (DHA) provide a robust framework for adopting telehealth services. Therefore, as consumers increasingly access comprehensive healthcare services through digital platforms, it is expected to create significant opportunities for the UAE E-Pharmacy Market in the forecast period.

The UAE E-Pharmacy Market Challenge:

Existence of Counterfeit Drugs & Fraudulent Online Pharmacies to Hamper Market Growth – The lack of regulatory enforcement, limited oversight, and the anonymity afforded by online platforms contributed to the proliferation of counterfeit medications and illicit online pharmacies. Consumers have been observed to face the risk of receiving substandard, expired, or counterfeit drugs when purchasing medicines from unverified online sources, which has been compromising their health & safety. Thus, the instances of delivering counterfeit drugs undermined consumer’s trust and confidence in e-pharmacy platforms, which has been hindering their adoption and dampening the growth of the UAE E-Pharmacy Market.

Moreover, fraudulent online pharmacies may engage in deceptive practices, such as selling prescription medications without proper authorization or falsifying medical records. Hence, these practices would raise legal & ethical concerns, further negatively impacting market growth in the coming years.

The UAE E-Pharmacy Market Trend:

Escalating Adoption of AI Technology in the Healthcare Sector – The increasing demand for personalized healthcare solutions and the need for operational efficiency have led to a surge in the adoption of artificial intelligence (AI) in the healthcare sector. Over the years, AI-powered algorithms have been used to streamline various aspects of e-pharmacy operations, including medication management, inventory optimization, and customer service.

These AI-driven solutions enhance the accuracy of medication recommendations, predict consumer preferences, and optimize supply chain logistics. Additionally, AI-enabled chatbots and virtual assistants are being deployed to provide personalized customer support & medication-related information, improving user experience and engagement. For instance,

• In 2022, the 'myAster' app by Aster DM Healthcare announced to leverage the advanced capabilities of AI and ML to offer a comprehensive solution for patients and customers in the UAE. 

Consequently, the integration of AI in e-pharmacy platforms not only enhances efficiency and scalability but also contributes to improved healthcare outcomes and patient satisfaction, serving as a major trend in the UAE E-Pharmacy Market.

The UAE E-Pharmacy Market (2024-30): Segmentation Analysis

The UAE E-Pharmacy Market study by MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment & includes predictions for the period 2024–2030 at the country level. In accordance to the analysis, the market has been further classified as:

Based on the Drug Type

• Over-the-counter (OTC) Drugs
• Prescription Drugs

The Over-the-Counter (OTC) Drugs segment held a major share of the market during the historical period and is predicted to flourish in the future years (2024-30) as well. This is owing to the growing emphasis on self-care and wellness among consumers. The rising efforts for self-care have fueled the popularity of OTC products for managing minor ailments and preventive healthcare.

Additionally, the COVID-19 pandemic has accelerated the adoption of OTC medications, as consumers seek solutions for common health concerns like immunity boosting without visiting healthcare facilities. Furthermore, e-pharmacy platforms are expanding their OTC product offerings, including vitamins, supplements, skincare products, and pain relievers, to cater to diverse consumer needs & preferences, further augmenting the segment growth.

Based on Product Type:

By Product Type

• Cold and Flu
• Vitamins & Minerals
• Body Care
  • Skin Care
  • Hair Care
  • Sun Care
  • Others
• Weight Loss
• Dental
• ENT
• Cardio care
• Others (Baby Care, Maternity Care, etc.)

The demand for Cold & Flu care drugs has been improving considerably in recent years. The prevalence of cold and flu symptoms is increasing across the country, specifically after the COVID-19 instance, leading to increased demand for related medications and remedies in the country. Additionally, the pandemic has heightened awareness about respiratory health, prompting individuals to seek preventive measures and treatments for common respiratory illnesses.

Furthermore, the convenience & accessibility offered by e-pharmacy platforms made it easier for consumers to purchase over-the-counter cold & flu medications online, driving the market growth. Moreover, the increasing adoption of telemedicine and virtual consultations allows healthcare professionals to diagnose and prescribe medications remotely, thus augmenting the segment's growth in the UAE E-Pharmacy Market.

The UAE E-Pharmacy Industry Recent Development:

• 2023: Aster Pharmacy in the UAE has teamed up with Talabat UAE to offer prescription medicine purchases through the Talabat app starting February 2023. Customers can upload prescriptions for delivery within 90 minutes and also buy OTC medicines and Health and Wellness items with delivery in 30 minutes or less.
• 2022: Saha Jamal Pharmacy announced its pioneering efforts in integrating its extensive expertise & commitment to customer service into the digital sphere. The SahaJamal online pharmacy in the UAE would offer a wide array of products from skincare & mother care to medical equipment, baby care, sports nutrition, rehabilitation, vitamins, and supplements, among others.

Gain a Competitive Edge with Our UAE E-Pharmacy Market Report

• The UAE E-Pharmacy Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• The UAE E-Pharmacy Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.