Report Overview

UAE Pharmacy Retail Market - Industry Trends & Forecast Report, 2029

UAE pharmacy retail market size was estimated at USD 9.82 billion in 2022. During the forecast period between 2023 and 2029, the size of UAE pharmacy retail market is projected to grow at a CAGR of 11.22% reaching a value of USD 18.58 billion by 2029. Major growth drivers for the UAE pharmacy retail market include an increasing prevalence of chronic diseases and the government's supportive initiatives aimed at promoting the healthcare sector. Also, the strategic placement of retail pharmacies in high-traffic areas such as shopping malls and airports, along with the rapid adoption of effective marketing strategies by industry participants, is expected to fuel further growth in this market during the forecast period. The UAE government is actively committed to advancing the pharmaceutical industry, as evidenced by initiatives like the Dubai Industrial Strategy 2030 and the Abu Dhabi Vision 2030. These strategies aim to harness the pharmaceutical sector's future growth potential, export capabilities, and long-term economic advantages. While the UAE historically relied on imported pharmaceuticals, there is a concerted effort to reduce imports and boost local manufacturing through increased investments in pharmaceutical and therapeutic product research and development. In 2018, the country imported pharmaceutical products valued at over USD 14.9 billion, prompting collaborations with multinational market players to enhance local production. Notably, the market is expected to benefit from favorable schemes, distribution channel plans, and the strategic location with a sophisticated logistics infrastructure, further fortifying the UAE Pharmacy Retail Market's growth prospects during the period in analysis.

UAE Pharmacy Retail Market – Overview

The UAE pharmacy retail market refers to the sector within the United Arab Emirates (UAE) 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 medications, health supplements, personal care items, and medical devices. Pharmacy retail outlets in the UAE may include standalone pharmacies, those located within hospitals or healthcare centers, and those situated in high-traffic areas such as shopping malls and airports. The UAE pharmacy retail market is influenced by factors such as government regulations, consumer healthcare needs, the prevalence of chronic diseases, and marketing strategies employed by industry players. It plays a crucial role in ensuring the accessibility of essential healthcare products to the UAE population.

UAE Pharmacy Retail Market

Growth Drivers

Increasing Healthcare Expenditure

The growth of the UAE pharmacy retail market is strongly influenced by the increasing healthcare expenditure in the country. As consumers become more health-conscious, they are adopting preventive healthcare measures to reduce the risks and costs associated with hospital stays. This shift in consumer behavior has led to impressive growth in retail pharmacies over the past decade, driven by the rising demand for over-the-counter drugs and home healthcare devices. Moreover, the high incidence rate of chronic diseases has prompted patients to take safety measures, further boosting sales at retail pharmacy stores and positively impacting market demand. Additionally, the growing popularity of telemedicine and remote consultation services among consumers is expected to contribute to the continued growth of the UAE pharmacy retail market, as healthcare expenditure patterns evolve to include these services.

Restraints

Rising Operational Costs

The UAE pharmacy retail market faces constraints due to rising operational costs. The increasing expenses related to rent, labor, and compliance with stringent healthcare regulations are placing financial burdens on retail pharmacies. These operational challenges often result in higher prices for pharmaceutical products, impacting consumers' purchasing decisions. Additionally, the growing competition within the market exerts pressure on profit margins. Despite the increasing demand for healthcare products and services, retail pharmacies must navigate these escalating operational costs, limiting their ability to offer competitive pricing and potentially hindering market growth. Finding cost-effective strategies to maintain profitability while serving the healthcare needs of consumers remains a critical challenge in the UAE pharmacy retail market.

Impact of COVID-19 on UAE Pharmacy Retail Market

COVID-19 pandemic had a mixed impact on the UAE pharmacy retail market. Initially, there was a surge in demand for essential healthcare products and medications, leading to increased sales. Retail pharmacies played a crucial role in providing access to medicines and hygiene products during lockdowns. However, the pandemic also brought operational challenges. Pharmacies had to implement safety measures, such as social distancing and sanitization, leading to increased operational costs. Supply chain disruptions affected the availability of certain medications and products. Moreover, the shift toward telehealth services during the pandemic altered patient behavior, affecting footfall in physical pharmacies. Despite these challenges, the UAE pharmacy retail market adapted by expanding e-commerce and delivery services. The long-term impact includes a greater emphasis on digital health solutions and preparedness for future healthcare crises.

UAE Pharmacy Retail Market

Segmental Coverage

UAE Pharmacy Retail Market – By Type

By type, the UAE pharmacy retail market is bifurcated into Online and Offline segments. The online segment is expected to hold a higher share in the UAE pharmacy retail market by type during the forecast period. It can primarily be due to changing consumer preferences and the convenience offered by online platforms. Consumers increasingly favor the ease of ordering medications and healthcare products from the comfort of their homes. Additionally, the COVID-19 pandemic accelerated the adoption of online services, including telemedicine and e-pharmacies, further boosting the online segment. The availability of a wide range of products, home delivery options, and digital payment facilities make online pharmacies an attractive choice for consumers, contributing to their dominance in the market.

UAE Pharmacy Retail Market – By Drug Type

Based on drug type, the UAE pharmacy retail market is divided into Generic, Over the Counter (OTC), and Patented segments. The generic segment holds the highest share in the UAE pharmacy retail market by drug type. Generic drugs are cost-effective alternatives to brand-name medications, making them attractive to price-conscious consumers. The UAE government's push for affordable healthcare and regulations favoring generic substitution further promotes their use. Also, healthcare providers often prescribe generics, reinforcing their prevalence. The trust in the safety and efficacy of generic drugs, along with their lower prices, has made them the preferred choice among consumers, resulting in their dominant position in the pharmacy retail market.

UAE Pharmacy Retail Market – By End User

On the basis of end user, the UAE pharmacy retail market is divided into Equipment Retail, Drug Retail, Health Products Retail, Chemical Medicine Retail, Medicinal Materials Retail, and Proprietary Chinese Medicine Retail segments.

Competitive Landscape

Major players operating in the UAE pharmacy retail market include CVS Health, Walgreens Boots Alliance, Inc., Albertsons Companies, Dirk Rossmann GmbH, Rite Aid Corp., The Jean Coutu Group (PJC) Inc., Loblaws Inc., and Ahold Delhaize. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In September 2023 - NMN Bio and Aster Pharmacy formed a partnership, making them the first to offer the antiaging supplement NMN in UAE retail stores. This collaboration brings NMN Bio's registered NMN product to Dubai and other key UAE locations. Aster Pharmacy, the leading pharmacy chain in the Gulf Cooperation Council (GCC), operates over 250 pharmacies, including the UAE's first online pharmacy, providing curative, nutritive, and wellness products. NMN Bio's supplements are optimized for bioavailability and have shown potential in addressing various aging-related factors and enhancing overall health. As NMN Bio expands in the Middle East, it plans to introduce new products and a proprietary offering in 2023, despite recent FDA rulings on NMN's classification in the US market.

• In August 2023 - Life Healthcare Group, a prominent healthcare company in the UAE, inaugurated its 400th pharmacy outlet. Life Pharmacy also aims to expand its reach beyond UAE borders, with plans to open 100 pharmacies and 15 pharmacy hypermarkets in India by 2024.

• In June 2023 - Qaadu, an Indian Ayurvedic beauty and wellness brand, officially entered the UAE market, forging partnerships with various pharmacies and hypermarkets. Their products are now available in Lulu Hypermarkets, DOCIB Group, Med7, and Aster Group pharmacy stores. The brand also plans to open 25 exclusive stores in the UAE, aiming to double its business volume in the coming year, expand in Gulf countries, and achieve substantial annual returns in the future.

• In February 2023 - Aster Pharmacy, a division of Aster DM Healthcare, and Dr. Reddy’s Laboratories India, a global pharmaceutical company, formed a partnership to enhance access to affordable, high-quality medications in the UAE and GCC. Dr. Reddy's will manufacture and supply specific medications in therapeutic areas like gastroenterology, pain management, cardiovascular disease, and antihistamines to Alfa One, Aster Pharmacy's marketing and distribution arm.

Scope of the Report

By Type

• Online

• Offline

By Drug Type

• Over the counter (OTC) drugs

• Generic

• Patented

By End User

• Equipment Retail

• Drug Retail

• Health Products Retail

• Chemical Medicine Retail

• Medicinal Materials Retail

• Proprietary Chinese Medicine Retail

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. UAE Pharmacy Retail Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Increasing healthcare expenditure
         2. E-commerce growth
      2. Restraints
         1. Rising operational costs
      3.  Opportunities
         1. Expanding OTC market
      4. Challenges
         1. Stringent regulations and compliance
   3. Technology Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. UAE Pharmacy Retail Market Overview
   1. Market Size & Forecast, 2019-2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
         1. Online
         2. Offline
      2. By Drug Type
         1. Generic
         2. Over the counter (OTC)
         3. Patented
      3. By End User
         1. Equipment Retail
         2. Drug Retail
         3. Health Products Retail
         4. Chemical Medicine Retail
         5. Medicinal Materials Retail
         6. Proprietary Chinese Medicine Retail
         7. Others
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. UAE Pharmacy Retail Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid-19 on UAE Pharmacy Retail Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. CVS Health
   2. Walgreens Boots Alliance, Inc.
   3. Albertsons Companies
   4. Dirk Rossmann GmbH
   5. Rite Aid Corp.
   6. The Jean Coutu Group (PJC) Inc.
   7. Loblaws Inc.
   8. Ahold Delhaize
   9. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1.       Qualitative Research
      1.   Primary & Secondary Research
   2.       Quantitative Research
   3.       Market Breakdown & Data Triangulation
      1.   Secondary Research
      2.   Primary Research
   4.       Breakdown of Primary Research Respondents, By Country
   5.       Assumptions & Limitations

*Financial information of case of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       UAE Pharmacy Retail  Segmentation            

Figure 2       UAE Pharmacy Retail  Market Value Chain Analysis          

Figure 3       Company Market Share Analysis, 2022         

Figure 4       UAE Pharmacy Retail Market Size, By Value (USD Million), 2019-2029           

Figure 5       UAE Pharmacy Retail Market Share, By Type, By Value, 2019-2029               

Figure 6       UAE Pharmacy Retail Market Share, By Drug Type, By Value, 2019-2029                

Figure 7       UAE Pharmacy Retail Market Share, By End User, By Value, 2019-2029         

List of Tables

Table 1        UAE Pharmacy Retail Market Size, By Value (USD Million), 2019-2029 

Table 2        UAE Pharmacy Retail Market Size, By Type, By Value, 2019-2029       

Table 3        UAE Pharmacy Retail Market Size, By Drug Type, By Value, 2019-2029

Table 4        UAE Pharmacy Retail Market Size, By End User, By Value, 2019-2029

Table 5        CVS Health  Financial Overview

Table 6        Walgreens Boots Alliance, Inc.  Company Overview

Table 7        Walgreens Boots Alliance, Inc.  Financial Overview

Table 8        Albertsons Companies  Company Overview

Table 9        Albertsons Companies  Financial Overview

Table 10      Dirk Rossmann GmbH  Company Overview

Table 11      Dirk Rossmann GmbH  Financial Overview

Table 12      Rite Aid Corp.  Company Overview

Table 13      Rite Aid Corp.  Financial Overview

Table 14      The Jean Coutu Group (PJC) Inc.  Company Overview

Table 15      The Jean Coutu Group (PJC) Inc.  Financial Overview

Table 16      Loblaws Inc.  Company Overview

Table 17      Loblaws Inc.  Financial Overview

Table 18      Ahold Delhaize Company Overview

Table 19      Ahold Delhaize Financial Overview