Market Trends of Global Healthcare Distribution Industry
This section covers the major market trends shaping the Healthcare Distribution Market according to our research experts:
Retail Pharmacy is Expected to Witness a Significant Growth Over the Forecast Period
A retail pharmacy is defined as any pharmacy where drugs are compounded, dispensed, stored, or sold or where prescriptions are filled or dispensed to the general public. The retail pharmacy daily deals with a large number of prescriptions and is thus expected to drive this market. In developed countries, the high availability of healthcare schemes and programs led to a significant increase in the number of prescriptions. in 2021, an article published in the journal Integrated pharmacy research and practice, summarizes the high affordability and availability of pharmaceutical drugs especially generic drugs in retail pharmacy stores, the government has also imposed the clinical pharmacy practice in recent years which has increased the number of pharmacists working in clinically advanced roles worldwide, this has resulted in better pharmacist-provided services and clinical interventions have been shown to reduce the risk of potential adverse drug events and improve patient outcomes, and the pharmacist activities are cost-effective or have a good cost: benefit ratio. These benefits associated with it are increasing the demand for this segment over the forecasted period.
The growing incidence of chronic diseases like hypertension, diabetes, cardiovascular diseases, and cancer, which require prolonged medication, is directly related to an increase in the number of prescriptions, which further can drive the growth of the retail pharmacy market during the forecast period. For instance, DiabetesAtlas.org 2021 reported that about 536.6 million people were estimated to have diabetes in 2021 and this number will increase to 642.7 million by 2030. Thus, the high prevalence rate of chronic diseases like diabetes is expected to drive this market. Due to above mentioned aforesaid reasons, retail pharmacies have witnessed significant growth over the forecast period.
North America is Expected to Dominate the Healthcare Distribution Market
North America is expected to dominate the market owing to factors such as the rapid expansion of the pharmaceutical and biopharmaceutical industry, rising demand for specialty drugs and generics, and large-scale adoption of advanced technologies such as Artificial Intelligence and blockchain in the healthcare sector. With the rapid advancement of technologies and the coming of AI-based technologies have improved the supply chain efficiency of healthcare distribution services. The use of artificial intelligence technology has boosted distribution practices globally. For instance, in 2021 according to the journal SAGE, an article titled, “Digital Transformation: An Overview of the Current of the Art of the Research” summarizes that by using (Artificial Technology) AI, businesses can offer shipment updates to customers. When tracking technology fails, an (Artificial Intelligence) AI system can track the delay in the delivery so companies can easily provide an estimate of delivery time to their customers. These programs can analyze things like average shipment times and weather patterns to offer accurate results. Proper computational data generated by these technologies ensure the effective distribution of healthcare services and make the entire distribution process convenient. Moreover, with the significant increase in the number of prescriptions filled at retail pharmacies, and effective supply chain management, distributors have turned to modern industrial technology such as machine learning and Artificial Intelligence for big data and standardized influence, due to this the healthcare distribution market is effectively growing in the United States. Using AI technologies in healthcare, coupled with patients’ growing adoption of AI-enabled devices, allows collection and storage of and access to large-scale data, both by healthcare providers and technology vendors.
Further, advanced healthcare infrastructure and increasing investments by biotechnology companies in research activities are expected to drive market growth in the region. The infrastructure and along with the skilled manpower can also be an initiative to increase the efficiency of the healthcare distribution services. For instance, Tecsys Inc, a Canadian healthcare distributor company reports that the proper infrastructure of the warehouse management system can provide the efficient strategic potential of the supply chain and maintains the healthcare distribution market into a transparent, efficient, and optimized network. The company’s patented visual logistic technology has provided clear visual instructions to increase efficiency and accuracy.
For another instance, in 2022 Cardinal Health a distributor of pharmaceuticals acquired Scala Med a HIPAA-compliant, smart platform that transfers prescriptions directly to patients via a secure mobile app. ScalaMed pivots prescription management from provider to patient, allowing patients to send prescriptions written by their provider directly to any pharmacy for the first fill. The platform offers patients greater flexibility, easier access, and price comparison to select the pharmacy of their choice. This acquisition will result in reduced administrative burden and better connectivity while prescribing the drug, which will result in better healthcare distribution services at various levels.
Therefore, owing to the aforesaid factors the growth of the studied market is anticipated in the North America Region.
