Growing Presence of Pharmacy Chains and Increasing Health Awareness Driving the Pharmacy Retail Industry in Vietnam: Ken Research

Growing Per Capita Drug Expenditure: The per capita spending on medicines in Vietnam is consistently rising each year. The average drug expenditure per capita was USD 9.8 in 2005 & rose to USD 22.25 in 2010. It further grew from USD 34.48 in 2014 to USD 59.32 in 2019, witnessing a CAGR of ~11.5% over the period. In the recent years, organized pharmacy stores have come up in many major urban regions in the country. This has further contributed to rising expenditure.

Rising Incidents of Non-Communicable Diseases: The country is experiencing a shift from communicable diseases to non-communicable diseases. NCDs such as cardiovascular diseases, cancers, maternal & pre-natal conditions, chronic respiratory diseases and diabetes are becoming increasingly common. The contribution of NCDs to total deaths in Vietnam was ~80% in 2018, while 71.4% of the total cases were attributed to NCDs in the same year. This has led to the increase in demand for drugs from various therapeutic classes at pharmacies across Vietnam.

Aging Population: Vietnam is one of the countries with the fastest aging population in South East Asia. The country’s proportion of population aged above 65 years increased from 7% in 2015 to 7.9% in 2018 whereas the proportion of population above 60 years of age reached ~11.9% in 2018. The proportion of population above 80 yrs of age (2.16% in 2018) in the country is expected to triple to almost 6% of the population by 2050, leading to higher demand for maintenance medicines.

Impact of COVID-19 on Retail Pharmacy Sales: The outbreak of Covid-19 pandemic in the country in the beginning of 2020impacted the pharmaceutical industry in Vietnam with supply chain disruptions. Imports of medicines & raw materials from China & India declined due to factory closures in these countries. On the retail side, a shift of consumers towards buying OTC products was observed. There was stockpiling demand for non-prescription drugs such as analgesics, antipyretics, pain relievers, cough & fever, eye drops, nasal solutions among others. Pharmacies also started stocking up and supplying essentials such as face masks, sanitizers, immunity boosters, vitamins, etc. Most pharmacies witnessed an increase in customer footfall as well as spending.

Analysts at Ken Research in their latest publication “Vietnam Pharmacy Retail Market Outlook to 2025-By Market Structure (Organized & Unorganized); By Region (North, South & Central); By Hospital-based & Street/Mall-based; By Product Categories (Prescribed, OTC, Non-Pharmaceutical Products & Medical Equipment); By Therapeutic Areas; and By Product Type (Patented & Generic Drugs)” observed that there has been a surge in the number of pharmacy retail chains in Vietnam in the recent years with electronic giants such as FPT & Mobile World Group entering the pharmaceutical retail industry. Rapid store expansion by these players and rising drug spending has contributed to the growth of the market. The Pharmacy Retail Industry in Vietnam is expected to grow at a CAGR of 8.1% on the basis of revenue and4.6%on the basis of number of pharmacies over the forecast period 2019-2025.

Vietnam Pharmacy Retail Market (Basis Revenue and Number of Pharmacies):-

Vietnam Pharmacy Retail Market Segmentations (On the basis of Sales Volume)

By Market Structure (On the basis of Revenue and Number of Pharmacies)

Organized Market

Unorganized Market

By Product Category (On the basis of Revenue)

Prescribed Drugs

Over-the-Counter Products

Non-Pharmaceutical Products

Medical Equipment

By Region (On the basis of Revenue & Number of Pharmacies)

North

Central

South

By Therapeutic Areas (On the basis of Revenue)

Cardiovascular

Anti-Diabetic

Pain Relief/Analgesics

Vitamins/Minerals/Nutrients

Anti-Infective

Respiratory

Gastrointestinal

Neuro

Gynecology

Others

By Drug Type (On the basis of Revenue)

Generics

Patented

By Location (On the basis of Number of Pharmacies)

Street/Mall Based

Hospital Based

Pharmacy Retail Chains Covered:-

Pharmacity

Long Chau

Guardian

Medicare

Phano Pharmacy

An Khang

Trung Son

VinFa

Eco Pharmacy

My Chau

SK Plus Pharmacy

Key Target Audience:-

Pharmaceutical Manufacturing Companies

Pharmacy Retail Companies

Independent Pharmacies

Industry Associations

Government and Regulatory Bodies

Telemedicine Companies

Pharmaceutical Distributors & Wholesalers

Time Period Captured in the Report:-

Historical Period: 2014-2019

Forecast Period:  2020-2025

For More Information on the research report, refer to below link:-

Vietnam Pharmacy Retail Market

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Taiwan Pharmacy Retail Market Outlook to 2025 - By Market Structure (Organized and Unorganized), By Region (Taipei Division, Northern Division, Central Division, Southern Division, KaoPing Division and Eastern Division), By Product Sales (Prescribed Medicines, OTC Products, Non Pharma Products and Medical Equipment’s), By Drug Type (Generic And Patented) and By Therapeutic Class

Philippines Pharmacy Retail Market Outlook to 2025 - By Market Structure (Organized and Unorganized), By Location (Standalone and Hospital Based), By Region (North, Central and South), By Product Sales (Prescribed Medicines, OTC Products, Non Pharma Products and Medical Equipments), By Drug Type (Generic and Patented) and By Therapeutic Class

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