Implementation of JKN (National Health Insurance System) by the government, growing foreign investment in pharmacy retail sector, expansion of product portfolio by major pharmacy retail chains were the key factors driving growth in Indonesia pharmacy retail Market.
Indonesia healthcare market has shown a positive incline during 2012-2017 but with respect to the expanding population of Indonesia, the market is still underserved especially in the underdeveloped and rural areas as of 2017. The report titled “Indonesia Pharmacy Retail Market Outlook to 2022 – By Pharmacies & Drugstores and By Region (Central Java, East Java, West Java, North Sumatra, Jakarta and Others)” by Ken Research suggested a growth at a CAGR of 8.9% in revenue in Indonesia pharmacy retail Market by 2022
Indonesia pharmacy retail sector is in the mid to late growth stage with the presence of over 35,000 drugstores and pharmacies. Both private as well as public pharmacy retail companies have entered the market over the past five years to tap the potential in this sector. Furthermore, already established players such Guardian Pharmacy, Kimia Farma, Apotek K-24 have increased their number of pharmacy retail outlets over the period 2012-2017. The number of pharmacies operated by Guardian pharmacy reached over 300 in 2016 whereas for Kimia Farma, the number of pharmacies increased from over 500 in 2013 to over 800 stores in 2016. Over 2012-2017, the number of pharmacies & drugstores has inclined at a positive CAGR. Major organized chains have invested in expanding their capabilities by focusing on value added services such as home delivery, prescription records, and medicine consumption reminder services in order to become a one stop solution for all pharmacy needs of the customer.
The implementation JKN scheme has led to an increased demand for generic drugs as the government has mandated the use of generic medicines due to lower cost of drugs.
The market is expected to witness an increase in demand for nutritional products and dietary supplements due to sedentary lifestyle and expansion of online retail sales channel to increase accessibility in the market.
For more information on the research report, refer to below link:-
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Ankur Gupta, Head Marketing & Communications