Current Potential of the Philippines Pharmacy
Retail Market?
The market
is currently at the growth stage and the revenues generated by the Pharmacy
Retail in the Philippines was evaluated at PHP ~ billion during 2018,
inclining from PHP ~ billion in 2013. The organized pharmacy chains are playing
an important role in the development of pharmaceuticals market by introducing
new store formats and customer friendly services. These stores are providing
various other services such as medical consultation, counseling, health
check-ups and others in addition to the product offerings. The chains are
present in most of the regions in the Philippines prominently in the Manila,
Luzon, Visayas and Mindanao region. The demand is facilitated on the basis of
prescription medicines as the customers prefer to purchase medicines prescribed
by the doctor.
Demand for
OTC products is growing in the country as the medical awareness and health
knowledge is increasing among the consumers. The pharmacy stores stock a wide
range of non pharmaceutical products which includes personal care products,
daily living needs and FMCG products. These companies are partnering with the
pharmacy chains as the chains have developed a good distribution network in the
different regions of the Philippines, which the supermarkets and hypermarkets
currently lack. The industry registered a CAGR of ~% for the period 2013-2018.
It is estimated that the market will grow at a CAGR of ~% in the period
2018-2023.
Philippines Pharmacy Retail Market
Segmentation
By Type of Market Structure (Organized and
Unorganized Market:
Philippines pharmacy retail market was dominated by the organized segment as
these chains have established a good relation with the customers on the basis
of the store convenience and different customer loyalty schemes. On the other
hand, unorganized segment is mostly prevalent in the countryside and rural
areas where the organized chains are not present.
By Type of Store Location (Standalone and
Hospital Based Stores):
The standalone stores are able to generate greater revenue than the hospital
based stores as most of the patients prefer to purchase from the standalone
stores due to their cost efficiency. In addition to that, standalone stores
maintain a wide range of non pharmaceutical products which increases the store
footfall.
By Region: (North, Central and South): Northern region
constitutes National Capital Region and Central Luzon. Pharma sales are most in
the North as the NCR region over there has the most per capita GDP in the
country during. The remaining market share was collectively captured by central
and south region.
By Type of Drug (Generic and Patented): The generics category consists of a
number of sub-segments existing at different pricing tiers including branded
generics, Uni-branded generics, house-brands and unbranded generics. Traditionally,
the market consisted of branded and unbranded generics but big local companies
have launched Uni-brands such as Pharex and RiteMed at a discounted price lower
than the branded generics, therefore have experienced high growth. The
remaining market was captured by patented segment.
By Type of Sales (Prescribed Medicines, Over
the Counter Products, Non Pharma Products and Medical Equipment):
Sales
towards prescribed medicines were observed to dominate Philippines pharmacy
retail market during the year 2018. The demand is majorly facilitated by the
sales happening in the hospital based stores and standalone stores near a
hospital. This was followed by the OTC products, Non Pharmaceutical Products
and medical equipment.
By Therapeutic Class:
The
Philippines pharmacy market has different group of therapeutic drug classes
such as anti-infective, cardiovascular, gastro intestinal, anti diabetic,
vitamins, minerals and nutrients, respiratory, pain analgesics, dermatology,
neuro, gynecological and others. The market has most demand for the
cardiovascular drugs due to high rate of Coronary Heart Diseases (CHD) in the
country.
WHAT IS THE COMPETITION SCENARIO in the Philippines
pharmacy retail market?
Competition
stage within Philippines pharmacy retail market was observed as highly
concentrated along with the presence of major pharmacy retail chains and
independent stores in the country. The top five major pharmacy chains present
in the market are Mercury Drug Corporation, Watsons Personal Care Stores,
SouthStar Drug Inc, Rose Pharmacy and The Generics Pharmacy. The competition is
driven by the number of stores, product offerings, range of product categories,
services, customer loyalty scheme, private label goods and marketing &
promotion.
Majority of
the unorganzied players lack the resources in comparision to the organized
players and therefore aren’t able to compete with them. The major competition
parameters for the different players are:
Type of
Medicines offered
Pricing of
the Medicines
Location and
Number of Stores
Different
Type of Product Offerings
In Store
Experience and Customer Loyalty Schemes
Value Added
Services
The
promotion techniques used and others
The majority
of the organized pharmacy chains have limited their presence to the developed
regions and are available in the major regions and provinces. They need to
increase their store presence in the semi-urban and rural areas in order to
increase their market penetration in those regions. The adoption of franchise
model by some chains is good for this as those chains are expanding rapidly in
the region and have been able to establish their presence in the market over a
short period of time.
WHAT is the FUTURE Outlook for the Philippines
pharmacy retail market?
Over the
forecast period, the Philippines pharmacy retail market is expected to register
a positive CAGR in terms of revenue during the forecast period 2019-2023,
driven on the expected growth in the total number of organized stores in the
country. The organized chains are expected to include the online sales channel
in their distribution system and adopt the omni sales channel strategy. As the
medicine market is being dominated by the demand for generic medicines, total
number of drugstores providing generic medicines are expected to increase in the
near future. The government of Philippines has revived the Botika Ng Bayan
initiative which used to provide the medicines in the Philippines at subsidized
rates. The government of Philippines aims to expand it to each of the barangay
(village) in the Philippines and provide generic medicines in order to reduce
the healthcare costs.
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
Key
Topics Covered in the Reports
Executive Summary
Research Methodology
Philippines Pharmacy Retail Market
Introduction, Overview and Genesis
Value Chain of Philippines Pharmacy
Retail Market
Philippines Pharmacy Retail Market
Size, 2013-2018
Philippines Pharmacy Retail Market
Segmentation, 2013-2018
Business Model for a Retail Pharmacy
Store in the Philippines
Pre-Requisites for the Philippines
Pharmacy Retail Market
Regulatory Framework in the
Philippines Pharmacy Retail Market
Growth Drivers in the Philippines
Pharmacy Retail Market
Trends in the Philippines Pharmacy
Retail Market
Issues and Challenges in the
Philippines Pharmacy Retail Market
Import Scenario in the Philippines
Pharmacy Retail Market
SWOT Analysis of the Philippines
Pharmacy Retail Market
Cross Comparison of International
Pharmacy Stores with the Philippines Organized Pharmacy Retail Market
Porter Five Forces Analysis for the
Philippines Pharmacy Retail Market
Comparative Landscape in the
Philippines Pharmacy Retail Market
Snapshot of Major Players Using Omni
Channel Model in the Philippines Pharmacy Retail Market
Snapshot of Emerging Hybrid Model in
the Philippines Pharmacy Retail Market
Philippines Pharmacy Retail Market
Future Outlook and Projections, 2019-2023
Analyst Recommendations for the
Philippines Pharmacy Retail Market
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more information on the research report, refer to below link:
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