Growth in private label products in
the medicines and non pharmaceutical products has led to surge in the store
footfall among multiple pharmacies in the Philippines. Increase in the
lifestyle related diseases such as Coronary Heart Diseases, Strokes,
Hypertension and Diabetes combined with other factors has led to growth in the
market for Pharmacy retail in the Philippines.
Decline in the Pharmacy Growth: The number
of pharmacies in the Philippines is growing at a declining rate due to low
expansion/ less opening of the unorganized ghost pharmacies. “Ghost Pharmacies”
are basically those stores that operate without the presence of a licensed
pharmacist. The FDA started finding such pharmacies and cancelled their License
to Operate, thereby leading to decline in the total number of Pharmacies in the
Philippines. The organized pharmacies are on continuous expansion, with the
adoption of franchise based model. The organized pharmacies are expanding
tremendously with some of franchise based chains opening up to 100 stores in a
year
Increase in the Demand of Generic
Drugs: The Philippines have some of the highest pricing level of
the medicines in the ASEAN countries. The major reason for this is the high
prices charged by the innovator brands. As most of the company imports their
drugs in the Philippines they attract import duties, which further increase the
retail price of the medicine. This has shifted the consumers to use generic
drugs more than the patented drugs in the country. This was facilitated with
the growth in the total number of generic drugstores across the country. The
government of Philippines is also focusing on increasing the reach of generic
medicines.
Increase in Health Insurance
Coverage: In 2017, approximately 66% of the population was insured by
PhilHealth (the government administered insurance plan), as compared to 38%
during the year 2008. In 2018, 25,706 stand-alone health insurance policies
which insured a total of 745,800 lives were issued by life insurance companies.
On the other hand, non-life insurance companies issued approximately 121,209
stand-alone health insurance schemes that insured a total of 302,081 lives.
Increase in Number of Lifestyle
Diseases: There has been increase in the lifestyle related diseases in
the Philippines. Coronary Heart Diseases, Strokes, Hypertension and Diabetes
are some of the most common diseases found in the Philippines. As per a WHO
report, strokes are responsible for approximately 12% death each year.
Analysts at Ken Research in their latest publication “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)”
suggests that by de-cluttering of stores, rising mergers and acquisitions,
adopting centralized monitoring system, development of new retail channels and
increasing traction of mail order based pharmacies in the country will give a
boost to pharmacy retail market revenues in the Philippines in the near future
thereby, registering a CAGR of 4.2% in terms of revenue and 2.0% in terms of
total number of pharmacies during the forecast period 2019-2023. The market is
further expected to be driven by increase in demand of the prescribed medicines
and generic drugs in the country.
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
For
more information on the research report, refer to below link:
Related
Reports
Contact
Us:
Ken Research
Ankur Gupta, Head Marketing &
Communications
+91-9015378249
