India is a vast market for pharmaceuticals. According to the Indian Brand Equity Foundation, India is the largest producer of generic drugs globally. The domestic industry has around 3000 manufacturers and approximately 10, 500 manufacturing units.
The Indian pharmaceutical market is expected to grow three times as rapidly in the next decade, according to the Indian economic survey. The market is currently valued at forty-two billion dollars, and it is estimated to reach over 100 billion dollars by 2030.
There are many driving factors for the booming pharmaceutical market in India. Low research and development costs mean that prices offered by Indian manufacturers are the best around the world.
The economy is one of the fastest-growing globally, and increasing health insurance penetration is improving the healthcare and medicine expenditure in the country. Government policies and the ongoing pandemic have further contributed to the increasing demand for medicines in India and, for that matter, globally.
Considering these drivers for the demand for pharmaceuticals in India, it is safe to assume that the business of medicine supply is highly profitable in India, owing to vast untapped market potential.
With the pandemic, there has been an emphasis on eCommerce, which has also penetrated the medicine supply market. Internet users are projected to grow by 8.9 percent from 2020 to 2025. Increased access to the Internet will directly boost e-commerce business in the country.
Ecommerce transactions increased 71.3 percent between April and September 2020, according to Razorpay. Additionally, in 2020, Tier III markets recorded 53 percent annual growth in e-commerce adoption.
India is rapidly adapting to e-commerce by studying the behavior of mobile users and improving the digital payment infrastructure. Online wholesale pharmacies, one of the areas of eCommerce, are starting to gain momentum, especially in the B2B sector.
Despite the precipitating factors mentioned above, India’s online pharmacy supply market is still in its infancy and offers significant growth potential. There are only a few online wholesale medicine suppliers, such as MEDIMNY, where pharmacies, chemists, stockists, and distributors can interact and engage in selling and purchasing medicines.
Such marketplaces are significant for the B2B eCommerce in the pharmaceutical industry in India. Business clients buy in bulk, and online marketplaces can offer incredible offers and discounts. Also, since the products offered are from different suppliers, clients have all the choices in the world to choose medicines from a supplier they prefer.
Although most online marketplaces offer voice customer support, technology is expected to play a critical role in overcoming challenges to provide convenient user interfaces.
As India is a multilingual society, companies will have to offer local language capabilities to their clients for deeper access through applications, customer support, and payment systems.
Online wholesale medicine will slowly capture the market share of traditional brick-and-mortar competitors. With growth potential and opportunities, the industry will continue to attract investment from new and established players.