Vietnam Pharmacy Retail Market

Vietnam Pharmacy Retail Market Size:

Vietnam pharmacy retail market size is projected to exhibit a growth rate (CAGR) of 5.31% during 2024-2032. The market is primarily driven by the significant expansion in the population, growing healthcare expenditure, and the growing prevalence of chronic ailments such as diabetes, heart disease, and cancer across the region.

Vietnam Pharmacy Retail Market Analysis:

• Major Market Drivers: The growing knowledge of population regarding healthcare issues is driving up demand for drugs and other healthcare supplies. Also, the expansion of the middle class and growing disposable incomes have made it possible to spend more on prescription drugs and healthcare across the region.
• Key Market Trends: As per the Vietnam pharmacy retail market insights, the trend toward online pharmacy platforms due to their accessibility and ease of use, particularly in cities are contributing to the market growth. Moreover, the growing consumer demand due to health-consciousness, for natural and organic healthcare items.
• Competitive Landscape: The existence of domestic and foreign pharmacy chains that compete on the basis of service quality, product selection, and cost are augmenting market growth. While increasing competition is resulting in developments in services like home delivery and consultations via telemedicine.
• Challenges and Opportunities: According to the Vietnam pharmacy retail market forecast, regulatory challenges regarding licensing and compliance, present obstacles for new and established players. There are opportunities to grow into remote areas with limited access to healthcare services through creative distribution strategies and alliances with regional healthcare providers.

Vietnam Pharmacy Retail Market Trends:

Population Growth in Vietnam

The population in Vietnam is steadily growing, which has wider implications for several industries, including healthcare. Additionally, the increased demand for drugs and other medical products and services is largely due to this constant increase in population. For instance, according to the United Nations Population Fund report of 2023, Vietnam's population is projected to approach 100 million soon, positioning it as the 15th most populous nation globally. Additionally, Vietnam presently boasts the highest percentage of youth in its history, with 21.1% aged between 10 and 24 years. The World Bank projected that the middle and upper classes will experience fast population growth, accounting for 20% of the country’s total population by 2030. The majority of this expanding population is young, creating a vibrant market for health-related items. It also highlights the necessity of expanding healthcare experts and infrastructure to meet the growing demand. As a result, demographic shifts require a strong reaction from the public and commercial healthcare sectors to manage the growing population demand, thus contributing to the pharmacy retail demand in Vietnam.

Increasing Healthcare Expenditure

The population now with more disposable income due to the significant economic growth in Vietnam has raised healthcare costs, which is strongly impacting Vietnam pharmacy retail growth. Additionally, healthcare spending increased significantly in Vietnam as per the Economist Intelligence Unit (EIU) reports Vietnam allocated around USD18.5 billion toward healthcare expenditure in 2022, constituting approximately 4.6% of the nation's GDP. This increase in spending is a sign of the growing awareness among individuals regarding the importance of health. Besides this, people are more likely to invest in higher-quality health services and goods when their income levels improve, which increases the need for a wider selection of healthcare solutions, such as cutting-edge medications and treatment options. Thus, the government is also very important since better infrastructure and accessibility to healthcare are made possible by more public health spending, which helps the overall well-being of the population, thus influencing the market growth.

Prevalence of Chronic Diseases

A serious health concern in Vietnam is increasing chronic illnesses including diabetes, heart disease, and cancer. This trend is strongly related to aging populations and changing lifestyles. For example, the prevalence of cardiovascular diseases (CVDs) includes disorders including coronary heart disease, stroke, hypertension, and others that are caused by anomalies in the heart and blood arteries. Cardiovascular diseases (CVDs) continue to be the primary cause of mortality in Vietnam accounting for 31% of all deaths in 2016, surpassing 170,000 deaths across the region. The need for appropriate pharmaceutical medicines is increased by the long-term care and treatment that many chronic illnesses require. These diseases are more common in older populations, so managing them requires extensive healthcare techniques and resources. Besides this, urbanization and dietary and physical activity changes, among other lifestyle modifications, aggravate this condition and raise the risk of chronic illnesses. Thus, the healthcare industry addresses these health issues, highlighting the necessity of improved pharmaceutical provisions and healthcare services, which is creating a positive Vietnam pharmacy retail market outlook.

Vietnam Pharmacy Retail Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2024-2032. Our report has categorized the market based on market structure, product type, therapeutic area, drug type, and pharmacy location.

Breakup by Market Structure:

• Unorganized
• Organized
   

The report has provided a detailed breakup and analysis of the market based on the market structure. This includes unorganized and organized.

The unorganized sector is made up of numerous tiny, individual pharmacies that can be found in rural and urban areas. These pharmacies are recurrently run by families, have a strong local presence, and pride themselves on delivering personalized care. They usually stock a limited selection of necessary medications and healthcare supplies to meet neighborhood demands. Their familiarity and closeness to the community make them strong candidates for trusted neighborhood healthcare providers across the region.

Organized pharmacy chains and franchised stores follow set operating procedures included in the organized section. These businesses take advantage of economies of scale to deliver a wider range of goods and services. They draw in numerous customers with their more contemporary retail methods, such as customer loyalty programs and internet platforms. The organized healthcare sector appeals to urban consumers looking for one-stop shopping for all of their healthcare needs due to its ease and competence. These sectors are essential to the healthcare system of Vietnam to serve different customer needs and market conditions, which makes pharmaceutical goods and services certainly accessible and reasonably priced.

Breakup by Product Type:

• Over-the-Counter Products
• Prescribed Drugs
• Non-Pharmaceutical Products
• Medical Equipment
   

A detailed breakup and analysis of the market based on the product type have also been provided in the report. This includes over-the-counter products, prescribed drugs, non-pharmaceutical products, and medical equipment.

Over-the-counter (OTC) product comprises a significant portion of the market, which include drugs and other healthcare items that may be purchased without a prescription. These include over-the-counter painkillers, cold and flu medicines, vitamins, and skincare items. OTC products are widely used by consumers for preventative healthcare and self-treatment of mild illnesses. Additionally, pharmacies frequently provide a large assortment of over-the-counter (OTC) products to meet the varying requirements and tastes of their customers. Some pharmacies even specialize in particular areas, such as natural cures or pediatric healthcare.

Prescription drug sales reached USD3.9 billion in 2017, projected to increase to USD6.7 billion by 2022 and USD10.5 billion by 2027, indicating a compound annual growth rate of 10.3% in USD terms over ten years. With prescription drugs expected to claim a larger portion of the market, gradually increasing from the current 75% of total medicine sales, their growth will surpass that of OTC drugs, driven by the importation of costly patented products and rising demand for advanced medications.

Vietnam pharmacy retail growth also accounts for prescribed drug sales for a sizeable share of retail business. These medications are usually used to address particular medical issues and need a prescription from a qualified healthcare provider. Prescription pharmaceuticals for managing chronic illnesses, infections, and specialty treatments are all kept in stock by pharmacies. Pharmacies are vital healthcare providers in the community as they offer patients with access to prescription drugs, which is critical for managing chronic conditions or receiving medical treatment. The sales of prescription drugs reached USD 3.9 billion in 2017 and are expected to expand to USD 10.5 billion by 2027, meaning that over ten years, the compound annual growth rate in USD terms would be 10.3%.

Non-pharmaceutical products category includes several wellness and healthcare items that supplement prescription drugs. This covers products including herbal treatments, dietary supplements, medical equipment, and personal hygiene items. Consumers looking for complementary or alternative therapies for a range of health issues, such as chronic illnesses or maintaining general well-being, are drawn to non-pharmaceutical items. Non-pharmaceutical products may be carefully chosen by pharmacies, frequently in response to customer demand and new developments in the health industry. Furthermore, pharmacists are essential in advising and educating customers on how to utilize these drugs safely and effectively to achieve the best possible health results.

The medical equipment sector includes several tools and equipment for home healthcare, medical diagnosis, and treatment. For instance, nebulizers, glucose meters, blood pressure monitors, and mobility aids enable pharmacies to sell or rent out more specialized medical equipment, or they may stock basic equipment for purchase. According to the International Trade Administration, over 90% of medical equipment utilized in Vietnam is imported, with the medical device market estimated at USD 1.5 billion in 2022. Projections indicate a Compound Annual Growth Rate (CAGR) of 9.7% from 2021 to 2026, with the market anticipated to expand to USD 2.1 billion by 2026. Thus, the provision of medical equipment in pharmacies, especially for persons with restricted mobility or those in need of continuous medical supervision is contributing to the market growth.

Breakup by Therapeutic Area:

• Cardiovascular
• Pain Relief/Analgesics
• Vitamins/Minerals/Nutrients
• Anti-Infective
• Anti-Diabetic
• Others
   

The report has provided a detailed breakup and analysis of the market based on the therapeutic area. This includes cardiovascular, pain relief/analgesics, vitamins/minerals/nutrients, anti-infective, anti-diabetic, and others.

Cardiovascular refers to drugs and dietary supplements used to treat heart-related disorders such as high blood pressure, heart failure, and high cholesterol. Additionally, pharmacies provide prescription medications such as beta-blockers, ACE inhibitors, and statins, with some over-the-counter (OTC) products such as omega-3 fatty acids and vitamin E supplements. With cardiovascular disorders becoming more common in Vietnam, pharmacies are vital for giving customers access to necessary drugs and raising their awareness of heart health issues.

Pain relief and analgesics include numerous over-the-counter drugs that are intended to reduce pain, from minor to severe. Popular analgesics such as aspirin, ibuprofen, and paracetamol are available in pharmacies, along with topical lotions and patches for localized pain relief. Pharmacies play a critical role in giving patients access to safe and effective pain relief medications while also providing advice on proper usage and potential adverse effects, as awareness of the significance of pain management is growing.

The vitamins, minerals, and nutrients are driven by the increased consumer interest in wellness and preventive healthcare in Vietnam's pharmacy retail industry. It provides a wide selection of dietary supplements, such as probiotics, calcium, iron, and multivitamins, to meet a range of dietary needs and preferences. Customers are turning to pharmacies more frequently for guidance on supplement selection and dose due to changing dietary habits and growing health consciousness. As a result, this market sector significantly contributes to total pharmacy sales and revenue in Vietnam.

The anti-infective is critical in the country's continuous fight against infectious disorders such as respiratory infections, gastrointestinal ailments, and sexually transmitted infections. Additionally, pharmacies carry a large variety of prescription and over-the-counter antibiotics, antivirals, and antifungals to effectively treat bacterial, viral, and fungal infections. Pharmacy access to key anti-infective drugs is crucial, as is their promotion of responsible antibiotic usage and infection prevention practices in light of the advent of antimicrobial resistance and periodic outbreaks of infectious illnesses.

Anti-diabetic addresses for the needs of individuals with diabetes, a chronic illness that affects millions of people in the US. A wide variety of diabetic treatments, such as insulin analogs, blood glucose monitors, and oral hypoglycemic drugs, are available from pharmacies to help patients manage their blood sugar levels and avoid complications. Pharmacies are vital to the management of diabetes as they offer information, assistance, and easy access to necessary drugs and supplies. Nowadays, diabetes is becoming more common due to the aging population and changing lifestyles of individuals across the region.

Breakup by Drug Type:

• Generic
• Patented
   

A detailed breakup and analysis of the market based on the drug type have also been provided in the report. This includes generic and patented.

The generic medications market is prominent, as generic medications are bioequivalent to their branded equivalents but usually less expensive and serve a large patient population looking for low-cost medical options. It covers a broad spectrum of necessary drugs, such as painkillers, antibiotics, and therapies for chronic illnesses. Nowadays, generic medications are preferred by patients and healthcare professionals, making them a vital component of the pharmacy industry of Vietnam and the backbone of the healthcare system across the nation. Hence key players are introducing advanced product variants to meet these needs. Besides this, on 14 April 2024, Traphaco, a leading pharmaceutical company in Vietnam announced that the company is prioritizing modern medication and committing to investing in EU-GMP-certified factories. It also reported strong business performance for 2023, overcoming global challenges, as announced during the company's Annual General Meeting on April 12th.

The patented drugs consist of innovative pharmaceutical drugs that are shielded by patents and make up the majority of the patented pharmaceuticals category. These medications frequently offer distinctive therapeutic advantages for numerous medical diseases, reflecting state-of-the-art developments in medical research and technology. Patented medications may have a competitive advantage over generic equivalents, even though they are usually more costly because of exclusive rights, marketing campaigns, and brand awareness. Customers in this market sector are looking for the newest therapies and individualized healthcare solutions, which are frequently recommended by medical specialists for particular medical requirements. Patented medications are more expensive, yet they are essential to improving healthcare outcomes and stimulating innovation in Vietnam's pharmaceutical industry.

Breakup by Pharmacy Location:

• Street/Mall Based
• Hospital Based
   

The report has provided a detailed breakup and analysis of the market based on the pharmacy location. This includes street/mall-based and hospital-based.

Streets and mall-based pharmacies make up a substantial portion of the pharmacy retail industry. These pharmacies are conveniently situated in busy business districts and retail centers to provide convenience for their patrons. They usually keep a large assortment of over-the-counter (OTC) medications, health supplements, and personal hygiene items in store to meet the varied needs of their customers. These pharmacies frequently concentrate on creating eye-catching displays and promotional offers to attract walk-in clients and increase brand visibility in fiercely competitive metropolitan marketplaces.

Hospital-based pharmacies can be found in a variety of healthcare settings, such as private clinics, public hospitals, and specialty medical institutes. They mainly assist patients receiving care or consultation on hospital grounds by giving them access to medical supplies, prescription drugs, and other associated services. Hospital pharmacies are an integral aspect of the healthcare delivery ecosystem in Vietnam, providing easy access to pharmaceutical items and vital medications, hence facilitating continuity of care.

Breakup by Region:

• Northern Vietnam
• Central Vietnam
• Southern Vietnam
   

The report has also provided a comprehensive analysis of all the major markets in the region, which include Northern Vietnam, Central Vietnam, and Southern Vietnam.

The retail pharmacy market in Northern Vietnam is distinguished by a combination of conventional and contemporary businesses. Cities such as Hanoi have a mix of independent pharmacies and larger, more established drugstore chains. These establishments serve a varied clientele by providing an extensive assortment of medical services and prescription goods. Furthermore, the rural sections of the region frequently depend on neighborhood pharmacies to supply residents with healthcare advice and necessary medications. Pharmacies in Northern Vietnam, with an emphasis on price and accessibility, are vital to the region's capacity to obtain healthcare.

The Central Vietnam retail pharmacy market is a reflection of the distinct economic and demographic environment of the area. A variety of big pharmacy chains, neighborhood pharmacies, and specialty healthcare facilities can be found in cities like Da Nang and Hue. These businesses provide a wide range of pharmaceutical items and medical services to both urban and rural people. Pharmacies serve as primary healthcare providers in rural areas by providing underprivileged people with health education and vital medications. Pharmacies in Central Vietnam operate in a dynamic market, changing to satisfy the changing healthcare demands of the local populace.

The retail pharmacy market in Southern Vietnam is a vibrant and competitive environment, especially in major cities like Ho Chi Minh City. Additionally, big pharmacy chains, foreign merchants, and individual pharmacies compete for market share in this area offering a broad range of pharmaceutical items and healthcare services with a modest ratio of 17.3 pharmacists per 100,000 people, the country features a robust abundance of drug outlets, with 30.2 per 100,000 population, nearly matching the European Region's figure of 30.6, as per the National Library of Medicine. Thus, pharmacies in Southern Vietnam are vibrant and adaptable to the various needs of its urban and rural populace.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have been provided with some of the major market players in the Vietnam pharmacy retail industry.
• At present, leading players in the market are implementing various strategies to expand their Vietnam pharmacy retail market share. Moreover, large pharmacy chains are increasing their footprint and enhancing customer accessibility by building new sites in key areas throughout the nation. They are also investing in digital platforms and technology, providing services like home delivery, telemedicine consultations, and online ordering to improve client satisfaction and expedite operations. These firms are also concentrating on product diversification and providing a wider choice of healthcare and wellness items to satisfy changing consumer demands and tastes across the region. The industry is further strengthened by partnerships with healthcare providers and government programs that raise accessibility and knowledge of healthcare. For instance, the Corporation for Financing and Promoting Technology (FPT) Digital Retail Joint Stock Company (FRT) announced plans for more expansion in April 2024, intending to add 400 new pharmacies, bringing the total number of outlets to over 1,900 by the end of 2024. Furthermore, FRT plans to open 100 new vaccination centers in the same year.

Vietnam Pharmacy Retail Market News:

• April 2024: FPT Retail, a retail chain owned by Vietnamese tech giant FPT, aims to open 400 more pharmacies this year, capitalizing on the favorable conditions in the pharmacy segment amidst challenges in the phone and laptop market.

Vietnam Pharmacy Retail Market Report Scope:

Key Questions Answered in This Report:

• How has the Vietnam pharmacy retail market performed so far, and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Vietnam pharmacy retail market?
• What is the breakup of the Vietnam pharmacy retail market on the basis of market structure?
• What is the breakup of the Vietnam pharmacy retail market on the basis of product type?
• What is the breakup of the Vietnam pharmacy retail market on the basis of the therapeutic area?
• What is the breakup of the Vietnam pharmacy retail market on the basis of drug type?
• What is the breakup of the Vietnam pharmacy retail market on the basis of pharmacy location?
• What are the various stages in the value chain of the Vietnam pharmacy retail market?
• What are the key driving factors and challenges in the Vietnam pharmacy retail market?
• What is the structure of the Vietnam pharmacy retail market, and who are the key players?
• What is the degree of competition in the Vietnam pharmacy retail market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Vietnam pharmacy retail market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Vietnam pharmacy retail market.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Vietnam pharmacy retail industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.