Prescription Drugs - Philippines

Philippines

In the Philippines, the revenue in the Prescription Drugs market is forecasted to reach US$1.27bn in 2024.
It is expected to experience an annual growth rate (CAGR 2024-2029) of 3.25%, resulting in a market volume of US$1.49bn by 2029.
When compared globally, United States is projected to generate the highest revenue in the Prescription Drugs market, amounting to US$358.90bn in 2024.
In terms of per person revenues, in the Philippines is estimated to generate US$10.64 in 2024.
The Philippines has seen a rise in demand for generic prescription drugs due to the government's push for affordable healthcare.

Key regions: Japan, China, Europe, Australia, Canada

Market

Region

Region comparison

Currency

Analyst Opinion

The Prescription Drugs (Pharmacies) market in Philippines has been experiencing significant growth in recent years.

Customer preferences: Customers in the Philippines have shown a growing preference for prescription drugs from pharmacies. This can be attributed to several factors, including the convenience of accessing medications from local pharmacies, the trust and familiarity associated with these establishments, and the availability of qualified pharmacists who can provide guidance and advice on medication usage. Additionally, the affordability of prescription drugs in pharmacies compared to other healthcare providers has also contributed to the popularity of this market segment.

Trends in the market: One of the key trends in the Prescription Drugs (Pharmacies) market in Philippines is the increasing demand for generic drugs. Generic drugs are more affordable compared to their branded counterparts, making them a popular choice among cost-conscious consumers. The government's push for the use of generic drugs through various initiatives and policies has further fueled this trend. As a result, pharmacies have expanded their offerings of generic drugs to cater to the growing demand. Another trend in the market is the rise of online pharmacies. With the increasing penetration of the internet and smartphones in the Philippines, consumers are increasingly turning to online platforms to purchase prescription drugs. Online pharmacies offer the convenience of doorstep delivery and easy access to a wide range of medications. This trend has been further accelerated by the COVID-19 pandemic, as consumers have sought to minimize physical contact and reduce the risk of exposure to the virus.

Local special circumstances: The Philippines has a large population, with a significant portion residing in rural areas. This poses a unique challenge in terms of access to healthcare services, including prescription drugs. Pharmacies play a crucial role in bridging this gap by providing accessible and affordable medications to both urban and rural communities. The presence of pharmacies in various locations across the country ensures that individuals can easily obtain the medications they need, regardless of their geographical location.

Underlying macroeconomic factors: The growing Prescription Drugs (Pharmacies) market in Philippines can be attributed to several macroeconomic factors. The country's expanding middle class, coupled with increasing disposable incomes, has led to higher healthcare expenditure. As a result, more individuals are seeking prescription drugs to address their healthcare needs. Additionally, the government's focus on improving healthcare infrastructure and increasing healthcare spending has also contributed to the growth of the market. In conclusion, the Prescription Drugs (Pharmacies) market in Philippines is witnessing significant growth due to customer preferences for convenience, affordability, and trust in pharmacies. The rise of generic drugs and online pharmacies, along with the unique circumstances of the local market, further contribute to the market's development. These trends are supported by underlying macroeconomic factors such as the growing middle class and increased healthcare expenditure.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on offline and online spending by consumers, including VAT. Not included are B2B and B2G sales, or other pharmaceutical sales through hospitals or retail stores such as supermarkets.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market market. As a basis for evaluating markets, we use industry associations, third-party studies and reports and survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as healthcare expenditure per country, consumer healthcare spending, GDP and internet penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, forecasts are based on historical developments, current trends, and key market indicators, using advanced statistical methods. For forecasting digital trends such as the online-pharmacy sales share we use exponential trend smoothing and the s-curve method. The main drivers are healthcare expenditure per country and consumer healthcare spending.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. GCS data is reweighted for representativeness.