How is Vietnam
Pharmacy Retail Market Positioned?
Vietnam
is one of the fastest growing pharmaceutical markets in South East Asia. The
pharmacy retail market, although having presence of pharmacy chains since many
years, gained momentum particularly in the last decade with entry of new
players and growing healthcare expenditure and health & wellness awareness.
Various social and economic factors have contributed to the growth of the
industry. Vietnam has been experiencing a fast growing proportion of aging
population. The proportion of population above 65 years of age has increased
from ~% in 2015 to ~% in 2018 and is expected to triple to ~% by 2050, leading to
higher demand for maintenance medicines in the country. The per capita drug
expenditure in the country has also increased from USD ~ in 2014 to USD ~ in
2019.
In
2019, there were ~ pharmacies in Vietnam including drugstores, hospital
dispensaries and drug cabinets of commune health stations. The number of pharmacies
increased at a CAGR of ~% over the review period 2014-2019. On the basis of
revenue, the industry grew from USD ~ billion in 2014 and crossed USD ~ billion
in 2019, witnessing a CAGR of ~%. The medicine retail channel through
pharmacies accounts for approximately ~% of the total pharmaceutical market in
2019. In the recent years, the industry has witnessed a growth of modern
pharmacy chains. Most pharmacy chains in Vietnam are currently focusing on the southern
region, particularly Ho Chi Minh and neighboring provinces. These pharmacies
offer a wide portfolio of products ranging from Pharma to FMCG.
Vietnam Pharmacy Retail Market Segmentation
By Market Structure: The
presence of Organized Pharmacies is low in Vietnam in comparison as these
chains have recently started expanding. The unorganized market dominated both
in the number of stores and revenues as of 2020.
By
Region: Vietnam can be classified into three
regions namely northern, southern and central. The southern region,
particularly Ho Chi Minh & neighboring provinces, accounts for the highest
number of pharmacies as well as industry revenue due to concentration of
pharmacy chains as well population. The remaining revenue is contributed by the
northern & central regions.
By Type of Product Category: Prescribed
Medicines contributed the maximum revenue share in the total market in 2020.
Organized Pharmacies are however starting to focus on Non-Pharma Products as
well due to higher margins and in order to expand their product portfolio.
By Location of Pharmacy: Majority
of the pharmacy stores in Vietnam were observed to be located outside hospital
premises in busy streets, malls, shopping complexes, etc. A small proportion of
the pharmacies are located inside hospital premises.
By Therapeutic Areas: Drugs for cardiovascular diseases were most sold in pharmacies
across Vietnam in 2020. Anti-diabetic, pain relief/analgesics, anti-infective
& respiratory drugs were also largely demanded. NCDs accounted for ~% of
the total deaths in Vietnam in 2018 and are leading higher drug sales across
various therapeutic classes.
Major Trends and Growth Drivers
in Vietnam Pharmacy Retail Market
Rising Per Capita Drug Expenditure: Due to rising health awareness and prevalence of communicable & non-communicable diseases, the per capita expenditure on medicines is also consistently increasing. The per capita drug spending increased a CAGR of ~% over the period 2014-2019, from $ ~ in 2014 to $ ~ in 2019.
Health Insurance Coverage: The number of total population participating in the national insurance program reached ~ million, accounting for ~% of the population in 2018. The coverage is further expected to increase to ~% of the total population by the end of 2020.
Rising Cases of NCDs: Non-communicable cases are consistently rising in Vietnam particularly cardiovascular diseases, cancers, pre-natal & maternal conditions, chronic respiratory diseases, diabetes & more. NCDs accounted for ~% of the total deaths & ~% of the total cases in Vietnam in 2018.
Aging Population: Vietnam is one of the countries with the fastest aging population in South East Asia. The proportion of population above 60 years of age reached ~% in 2018, while the proportion of population above 80 years reached ~%. The median age in the country is also expected to increase from ~ years in 2017 to ~ years by 2050, thus highlighting the growth of aging population in the nation.
Competition
Scenario in the Vietnam Pharmacy Market
The Vietnam Pharmacy Retail Market has a presence of ~
pharmacies as of 2019. The market has a mix of chain and independent pharmacies
with majority of pharmacies being independent or standalone. Organized
pharmacies together accounted for ~% of the industry revenue in 2019. The top
five pharmacy chains on the basis of number of stores are Pharmacity, Long
Chau, Guardian, Medicare and Phano Pharmacy as of November 2020. The
competition in market is highly fragmented, with pharmacy chains accounting for
a very small percentage of the total industry revenue as well as total number
of stores. The organized chains are trying to establish a strong presence in
the market by rapidly expanding their store network, offering various services
such as integrating stores with latest technologies for better in-store
experience, membership programs & loyalty schemes, special promotion offers
and discounts, delivery services and more.
Vietnam Pharmacy
Retail Market Future Outlook and Projections
The pharmacy retail market in Vietnam is expected
to reach at a value of USD ~ Billion by 2025 registering a CAGR of ~% during
the forecast period of 2019-2025. The outbreak of Covid-19 pandemic stimulated
the shift of customers towards preventive healthcare & over-the-counter products
and growing the consumption for vitamins, dietary supplements and functional
foods. Other factors as ageing population, rapid store expansion of organized
pharmacies, increase in per capita drug expenditure and rising adoption of
e-pharmacies is expected to drive the growth of the industry.
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
Key
Topics Covered in the Report:-
Overview
and Genesis of Vietnam Pharmacy Retail Industry
Vietnam Demographics, Healthcare Overview & Health
Statistics
Usage of Contraception & Family Planning Practices
in Vietnam
Health Insurance Scenario
Trends
and Growth Drivers in the Industry and Challenges Faced
Vietnam
Pharmacy Retail Market Size and Segmentations, 2014-2019
Telemedicine
& Growth of Hybrid Pharmacies
Customer
Decision Making Parameters & Brand Perception Mapping
Industry
SWOT Analysis and BCG Matrix
Cross
Comparisons between Pharmacy Retail Chains and Company Profiles
Future
Market Size and Segmentations, 2020-2025F
Covid-19
Impact on the Industry, Future Trends & the Way Forward
Analysts’
Recommendations
For More Information on the research report, refer to below
link:-
Vietnam Pharmacy
Retail Market
Related Reports:-
Contact
Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
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