Drugs & Updates

Healthcare Market Distribution- Trends and COVID-19 Impact

Introduction

The healthcare supply market is expected to register a CAGR of 6.5% over the forecast period, 2022-2027. COVID-19 pandemic has had a positive impact on the healthcare market distribution. The strict lockdowns and government regulations were intended to slow down the spread of COVID-19. However, the sales of this market observed a significant increase during the pandemic. This was the only market that showed an increase in sales number.

The COVID-19 outbreak affected the other market’s growth adversely in its preliminary phase. Healthcare distribution market was expected to gain traction due to the significant increase in the supply of various healthcare products. Further, the rise in the availability of various other healthcare products increases awareness among people. Currently, people are extremely concerned about their health and the expenditure on these products are also increasing with the rise in viral infections and chronic diseases. Such factors are likely to boost the healthcare supply market, thereby contributing to the studied market growth.

Scope of the Study

As per the scope of the report, the healthcare distribution market is segmented. The healthcare market distribution is segmented by

  1. Product Type (Pharmaceutical product Distribution Services, OTC Drugs, Generic Drugs, Brand Name, Biopharmaceutical product Division service, Monoclonal Antibodies, Vaccines, Recombinant Proteins, Medical devices, and Other Products),
  2. End-User (Retail Pharmacies, Other Pharmacies, and Other End-Users),
  3. Geography (North America, Europe, Asia-Pacific, Middle East, and Africa, and South America).

The market report also covers the estimated market sizes and trends for 17 different countries across major regions, globally. The report offers the value (in USD million) for the above segments. 

Segmentation Trends: Retail Pharmacy is Expected to Witness Growth Over the Forecast Period

The Retail pharmacy shares account for the largest share in the market. These pharmacies daily deals with a large number of detailed prescription. In developed countries, some affordable healthcare schemes and programs led to a significant increase in the number of prescriptions.

Geography Trends: North America is Expected to Dominate the Healthcare Distribution Market

North America is expected to dominate the market owing to factors such as the easy availability of technologically advanced products, and high awareness among consumers about physical grooming and aesthetic appearance in the region. An increase in the usage of energy-based devices for rapid and effective results in the United States is among the key factors which contribute to the growth of the studied market.

Developed countries like the US have raised the number of prescriptions by bringing the programs which guarantee people an easily approachable healthcare system. The health distribution was dominated by North America in 2018. An increase in demand for medical care range in Asia and other countries led to an increase in supply and distribution. Also, due to increase in pharma and biotech industries has facilitated the distribution in that area. It is estimated that the Asia Pacific industry is growing due to its largest CAGR.

Therefore, owing to the aforesaid factors the growth of the studied market is most anticipated in the North America Region.

Competitive Landscape

The healthcare distribution market is fragmented in nature due to the presence of several companies operating globally as well as regionally. The competitive landscape includes an analysis of a few international and local companies which hold the market shares. These companies include McKesson Corporation, Cardinal Health, Morris and Dickson Company, Smith Drug Company, Owens and Minor Inc., Patterson Companies, PHOENIX Group, Shanghai Pharmaceutical Group, Medline Industries etc.

Recent Developments

  • In April 2019, Cardinal Health partnered with PANTHERx Specialty Pharmacy (US) to protect its cell and gene therapy product range with a coordinated collection of specialty distribution, third-party logistics (3PL) services, and specialty pharmacy dispensing services.
  • In April 2019, McKesson joined hands with Google Cloud (US) to improve new restructured applications and solutions for product manufacturing, specialty pharmaceutical distribution, and retail operations for pharmacies.

Conclusion

During COVID-19, 5% of the reported cases were serious and those patients required the ventilators for proper breathing. This led to an increase in the supply of ventilators to meet the need of patients. The companies extended their production, to sum up, the requirement. The capacity was increased up to 60% as compared to the previous production capacity.

Philips also has doubled its ventilator production capacity, and GE Healthcare collaboration with Ford to prevent a supply crisis for the ongoing demand. Also, the high incidence of chronic disease is driving the growth of this market, leading to high investment in the R&D sector resulting in the launch of new drug molecules. Many groups such as Mahindra, Ford, and Maruti Suzuki are stepping into the healthcare sector after this scenario.

The rise in demand and shortage in the supply is one of the biggest challenges in the healthcare supply chain. All these obstacles can be prevented however, sourcing problems are something that can’t be ignored. Also, Malaysia’s shutdown led to a decrease in production from top companies. Encouragingly now after the things come back to normal the gap in the supply chain is coming back to normal.

Therefore, owing to the above-mentioned factors are studied market is anticipated to witness growth over the analysis period. However, the disruption in healthcare product supply is likely to impede the market growth.

Author: 

Ritika Gupta

Ritika Gupta is an MPharm. graduate who is keen on spreading awareness about various unexplored medical fields through her writings.

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