India Online Pharmacy Market - Forecast (2024-2030)

The India online pharmacy market size is forecast to reach USD 26.85 billion by 2029, after growing at a CAGR of 46.35% during the forecast period 2024-2029. The Indian online pharmacy market has grown significantly in recent years due to The rising incidence of chronic diseases including diabetes, hypertension, and respiratory disorders is fueling the Indian online pharmacies market's remarkable expansion. The number of individuals with chronic diseases is rising, which has boosted the Indian online pharmacy market. Along with this, the government's additional incentive to pursue the Digital India initiative has encouraged entrepreneurs to enter India's online pharmacy sector. 

The report “India Online Pharmacy Market – Forecast (2024-2029)”, by IndustryARC, covers an in-depth analysis of the following segments of the India online pharmacy market.

By Platform Type: App-Based, Web Based.

By Drug Type: Prescription Drugs, Over-the-Counter Drugs.

By Product Type: Skin Care, Dental, Cold and Flu, Vitamins, Others.

By Geography:  India.

• Initiatives like the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) are expanding the pharmaceutical market, which is supporting the sector's growth. The program's goal is to guarantee that high-quality, reasonably priced medications are available all around the nation. 

• The pandemic has accelerated consumer acceptance of e-commerce, even if they were already trending that way. A Razorpay poll indicates that between April and September 2020, e-commerce transactions rose by 71.3%. Additionally, e-commerce usage in Tier III areas increased by 53% YoY in 2020.

• According to an IBEF India prediction from May 2019, the Indian online pharma market is estimated to develop at a startling compound annual growth rate (CAGR) of 65.5%, from $360 million (Rs. 26.5 billion) to $2.7 billion (Rs. ~199 billion) by 2023.

App Based Platform dominated the India online pharmacy market in 2023. Millions of Indians are using their smartphones to access the internet, a huge increase in the country's smartphone penetration rate. By giving customers a simple way to access online pharmacy services straight from their smartphones, app-based platforms take advantage of this trend. This accessibility helps explain why app-based platforms are becoming more and more popular in the Indian market. A simplified and intuitive user interface is provided by mobile apps, which improves the user experience in general. App-based platforms offer clients a smooth and convenient purchasing experience with features like one-click ordering, prescription uploads, and personalized suggestions in addition to intuitive navigation. This emphasis on user experience helps explain why app-based systems are becoming more and more popular in the online pharmacy space.

For instance, In March 2023, MrMed, an online pharmacy retailer of super-specialty medications, launched a mobile application. The app, which is compatible with both Android and iOS, makes it simple for patients and caregivers to buy specialty medications at reasonable costs.

The Prescription Drugs segment dominated the India online pharmacy market in 2023. This can be attributed to the fact that none of the online pharmacies in operation in India allow patients to purchase drugs without a prescription. If a patient does not have a prescription or uploads their information to the online pharmacy portal, the pharmacies will refer them to their doctor consultants, who will then create a prescription for the patient, which they can then upload to the online pharmacy website or app and place an order for the necessary medications. The factors that propel the expansion of the prescription-based category in the Indian online pharmacy market include healthcare integration, regulatory support, patient safety, expert consultation, quality assurance, and regulatory compliance. Due to these causes, internet pharmacies are increasingly adopting prescription-based methods to meet the changing demands and expectations of Indian consumers of healthcare.

Cold and Flu dominated the India online pharmacy market in 2023. A wide variety of cold and flu remedies from different manufacturers and brands are available at online pharmacies. Consumers can select items that fit their preferences and treatment needs from a large assortment of prescription and over-the-counter drugs. This wide selection of products adds to the appeal of internet pharmacies offering cold and flu cures. In the Indian online pharmacy industry, the COVID-19 pandemic's effects, seasonal demand, convenience, a broad product selection, health awareness, digital health solutions, promotional offers, and discounts are all contributing factors to the rise of the cold and flu segment. Online pharmacies provide consumers with easily accessible and effective ways to manage their cold and flu symptoms, in response to their changing healthcare needs.

In recent years, the E-commerce sector has seen an acceleration in the Indian online pharmacy market. As a result, entrepreneurs and industrialists are now eager to capitalize on the expanding market. Investment in this industry has increased dramatically as a result of modifications to the laws and regulations governing Internet pharmacies. The pharmacy industry has a fantastic chance to enter the E-commerce space now more than in the past.

For instance, according to Invest India, the adoption of digital channels and shifting consumer tastes are predicted to drive e-commerce penetration to 11% by 2024. Additionally, Due to the difficulty in accessing pharmacies, the medical needs of rural India are not adequately met. Due to the previous ten years, e-commerce has driven an ever-expanding logistical network, which has given e-pharmacies an advantage in meeting the unmet medical demands of a large population. Currently, online pharmacies serve more than 20,000 pin codes, and this figure is anticipated to rise in the future.

For instance, according to IBEF India, India's e-commerce industry has revolutionized the country's business practices and opened up new markets for consumer-to-business (C2B), consumer-to-consumer (C2C), direct-to-consumer (D2C), and business-to-business (B2B) transactions. Significant markets like D2C and B2B have grown enormously in the last few years. By FY27, the D2C market in India is anticipated to grow to $60 billion. It is anticipated that the total e-commerce market will expand by 21.5% in 2022 to reach $74.8 billion and that it will reach $350 billion by 2030.

People have started buying most of their requirements online, from groceries as a result of rising internet penetration and smartphone use. E-commerce has rapidly expanded in many sectors. Online pharmacies have emerged as a promising industry, enabling consumers to make purchases from the convenience of their homes, due to the significant change in consumer behavior.

For instance, according to the Indian Brand Equity Foundation, Currently, there are about 50 online pharmacies in India; estimates place the market value at $0.5 billion in 2019 or 2-3% of total pharmacy sales in the country. By 2025, the market is expected to grow at a compound annual rate of 44% to reach $4.5 billion. In addition to higher customer uptake, online pharmacies have seen a steady rise in investor interest, with $700 million invested in the sector in 2020.

For instance, according to Invest India, the increased use of 4G internet connection and affordable smartphones has led to a rise in internet penetration. The Digital India effort is expected to result in 850 million internet users in the nation by 2025.

The number of internet users is predicted to rise sharply in the future due to the Digital India project. Alongside this, the government has launched numerous e-healthcare projects, which has increased demand for the online pharmacy market's expansion in India.

The credibility of the whole India online pharmacy industry is damaged by fraudulent and unlawful online pharmacies. Because they are worried about the safety and legitimacy of the products they will receive, consumers may be reluctant to buy drugs online. The expansion of reputable online pharmacies may be hampered by this lack of confidence. Drug abuse and misuse can rise as a result of illicit internet pharmacy sites that enable the selling of prescription drugs without the necessary medical supervision. People might get prescribed drugs without a valid medical reason or in larger amounts than advised, which exacerbates drug abuse problems and public health anxieties.

By tackling these issues, the India online pharmacy industry can reduce risks and increase consumer trust, which will promote long-term growth and guarantee the secure and efficient distribution of pharmaceuticals via online channels.

Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the India online pharmacy market. in 2023, The major players in the India online pharmacy market are 1mg.com., Healthkart.com., Netmeds.com., PharmEasy.com., Medlife.com., SastaSundar.com., Flipkart Health Plus, PharmEasy, Netmeds, EMEDIX and Others.

In 2023, MrMed, an online pharmacy retailer of ultra-specialty medications, declared the release of its mobile application. The app, which is compatible with both Android and iOS, makes it simple for patients and caregivers to buy specialty medications at reasonable costs.

In 2020, Amazon launched an online pharmacy in Bangalore, to expand its reach into new areas in one of its primary international markets, The Amazon Pharmacy service provides over-the-counter medications for common illnesses including colds and coughs, prescription medications, and some conventional treatment.