Wednesday, July 24, 2019

Philippines Pharmacy Retail Market is driven by the High Sale of Prescription Drugs Coupled with Growth in the Private Label Medicines: Ken Research Analysis

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:

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Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249

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