Report Overview

Growing population and healthcare needs and increased focus on healthcare infrastructure are expected to boost the growth of South Africa Retail Pharmacy Market during the forecast period between 2024 and 2030.

South Africa Retail Pharmacy Market - Industry Trends & Forecast Report, 2030

The South Africa Retail Pharmacy Market size was estimated to be worth USD 4.17 billion in 2023. During the forecast period between 2024 and 2030, the South Africa Retail Pharmacy Market size is projected to grow at a CAGR of 5.19%, reaching a value of USD 7.35 billion by 2030. Major growth factors for the South Africa Retail Pharmacy Market include the increasing geriatric population and rising prevalence of various chronic diseases, such as diabetes, hypertension, respiratory diseases, etc. Furthermore, rising healthcare costs and the emergence of e-commerce platforms and online pharmacies are anticipated to drive South Africa Retail Pharmacy Market growth over the forecast period.

Retail Pharmacy – Overview

Pharmacy retail refers to the sector dedicated to the retail sale of pharmaceutical and healthcare products directly to consumers. This market encompasses a wide range of products, including prescription and over the counter (OTC) medications, health supplements, personal care items, and medical devices. Pharmacy retail outlets may include standalone pharmacies, those located within hospitals or healthcare centers, and those situated in high-traffic areas such as shopping malls and airports.

South Africa Retail Pharmacy Market

Growth Drivers

Rising Prevalence of Chronic Diseases

The rising prevalence of various chronic diseases, such as diabetes, heart disease, stroke, lung cancer, and others, is emerging as a major driving factor for the South Africa retail pharmacy market. In South Africa, heart disease and stroke claim the lives of 215 individuals per day, according to the Heart & Stroke Foundation. South Africa has alarming obesity statistics: around 31% of males and 68% of females are obese. In South Africa, 10-15% of adults and more than 20% of children have asthma. The demand for prescription drugs is projected to surge with the rise in the prevalence of chronic diseases, which is anticipated to drive the South Africa retail pharmacy market during the forecast period.

Challenges

Stringent Regulatory Framework

With its strict licensing criteria and compliance requirements, the regulatory environment presents major restraints to the South Africa Retail Pharmacy Market. These are obstacles to market expansion since navigating these rules requires higher costs, drawn-out processes, and even legal concerns.

South Africa Retail Pharmacy Market

Segmental Coverage

South Africa Retail Pharmacy Market – By Drug Type

Based on drug type, the South Africa Retail Pharmacy Market is segmented into generic, Over The Counter (OTC), and patented. The generic segment holds the largest share in the South Africa retail pharmacy market. The price difference between generic name drugs and branded drugs is often 80% to 85%. This is because there is no need to repeat clinical studies or research for generic drugs. The branded, non-generic drug must pass the required tests to confirm its safety and effectiveness. In South Africa, generic drugs are gaining traction since they are more affordable without compromising quality.

South Africa Retail Pharmacy Market – By Channel

Based on channel, the South Africa Retail Pharmacy Market is segmented into organized sector, unorganized sector, and online retail. The organized sector segment accounts for the highest market share. The pharmacies in the organized sector have appropriate government licenses and authority and, therefore, enjoy a higher level of trust among consumers. However, the online retail segment is anticipated to register the highest growth rate during the forecast period. The increasing number of online pharmacies and the rising demand for the convenience they offer directly influence the growth of the online retail segment in the market.

South Africa Retail Pharmacy Market – By End User

Based on end users, the South Africa Retail Pharmacy Market is segmented into equipment retail, drug retail, health products retail, chemical medicine retail, medicinal materials retail, and others. The drug retail segment dominates the South Africa retail pharmacy market. Drug retail stores provide a wide range of prescription and non-prescription medicines and other miscellaneous items to their customers, which contributes to their market growth.

Competitive Landscape

Major players operating in the South Africa Retail Pharmacy Market include Clicks Group, Dis-Chem Pharmacies, Medipost Pharmacy, Alpha Pharm, Link Pharmacy, Health-Wise Pharmacy, Link Pharmacy, Pick n Pay Pharmacy, and Medicare Pharmacy.

To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Drug Type

• Generic

• Over The Counter (OTC)

• Patented

By Channel

• Organized Sector

• Unorganized Sector

• Online Retail

By End User

• Equipment Retail

• Drug Retail

• Health Products Retail

• Chemical Medicine Retail

• Medicinal Materials Retail

• Others