Growing Per Capita Drug Expenditure: The per capita spending on medicines in Vietnam is consistently rising each year. The average drug expenditure per capita was USD 9.8 in 2005 & rose to USD 22.25 in 2010. It further grew from USD 34.48 in 2014 to USD 59.32 in 2019, witnessing a CAGR of ~11.5% over the period. In the recent years, organized pharmacy stores have come up in many major urban regions in the country. This has further contributed to rising expenditure.
Rising Incidents of Non-Communicable Diseases: The country is experiencing a shift from communicable diseases to non-communicable diseases. NCDs such as cardiovascular diseases, cancers, maternal & pre-natal conditions, chronic respiratory diseases and diabetes are becoming increasingly common. The contribution of NCDs to total deaths in Vietnam was ~80% in 2018, while 71.4% of the total cases were attributed to NCDs in the same year. This has led to the increase in demand for drugs from various therapeutic classes at pharmacies across Vietnam.
Aging Population: Vietnam is one of the countries with the fastest aging population in South East Asia. The country’s proportion of population aged above 65 years increased from 7% in 2015 to 7.9% in 2018 whereas the proportion of population above 60 years of age reached ~11.9% in 2018. The proportion of population above 80 yrs of age (2.16% in 2018) in the country is expected to triple to almost 6% of the population by 2050, leading to higher demand for maintenance medicines.
Impact of COVID-19 on Retail Pharmacy Sales: The outbreak of Covid-19 pandemic in the country in the beginning of 2020impacted the pharmaceutical industry in Vietnam with supply chain disruptions. Imports of medicines & raw materials from China & India declined due to factory closures in these countries. On the retail side, a shift of consumers towards buying OTC products was observed. There was stockpiling demand for non-prescription drugs such as analgesics, antipyretics, pain relievers, cough & fever, eye drops, nasal solutions among others. Pharmacies also started stocking up and supplying essentials such as face masks, sanitizers, immunity boosters, vitamins, etc. Most pharmacies witnessed an increase in customer footfall as well as spending.
Analysts at Ken Research in their latest publication “Vietnam Pharmacy Retail Market Outlook to 2025-By Market Structure (Organized & Unorganized); By Region (North, South & Central); By Hospital-based & Street/Mall-based; By Product Categories (Prescribed, OTC, Non-Pharmaceutical Products & Medical Equipment); By Therapeutic Areas; and By Product Type (Patented & Generic Drugs)” observed that there has been a surge in the number of pharmacy retail chains in Vietnam in the recent years with electronic giants such as FPT & Mobile World Group entering the pharmaceutical retail industry. Rapid store expansion by these players and rising drug spending has contributed to the growth of the market. The Pharmacy Retail Industry in Vietnam is expected to grow at a CAGR of 8.1% on the basis of revenue and4.6%on the basis of number of pharmacies over the forecast period 2019-2025.
Vietnam Pharmacy Retail Market (Basis Revenue and Number of Pharmacies):-
Vietnam Pharmacy Retail Market Segmentations (On the basis of Sales Volume)
By Market Structure (On the basis of Revenue and Number of Pharmacies)
Organized Market
Unorganized Market
By Product Category (On the basis of Revenue)
Prescribed Drugs
Over-the-Counter Products
Non-Pharmaceutical Products
Medical Equipment
By Region (On the basis of Revenue & Number of Pharmacies)
North
Central
South
By Therapeutic Areas (On the basis of Revenue)
Cardiovascular
Anti-Diabetic
Pain Relief/Analgesics
Vitamins/Minerals/Nutrients
Anti-Infective
Respiratory
Gastrointestinal
Neuro
Gynecology
Others
By Drug Type (On the basis of Revenue)
Generics
Patented
By Location (On the basis of Number of Pharmacies)
Street/Mall Based
Hospital Based
Pharmacy Retail Chains Covered:-
Pharmacity
Long Chau
Guardian
Medicare
Phano Pharmacy
An Khang
Trung Son
VinFa
Eco Pharmacy
My Chau
SK Plus Pharmacy
Key Target Audience:-
Pharmaceutical Manufacturing Companies
Pharmacy Retail Companies
Independent Pharmacies
Industry Associations
Government and Regulatory Bodies
Telemedicine Companies
Pharmaceutical Distributors & Wholesalers
Time Period Captured in the Report:-
Historical Period: 2014-2019
Forecast Period: 2020-2025
For More Information on the research report, refer to below link:-
Vietnam Pharmacy Retail Market
Related Reports:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
