Introduction:

• India is a critical player in the global pharmaceutical industry. It is the world’s largest supplier of generic medications, accounting for 20% of the worldwide supply by volume and supplying about 60% of the global vaccination demand. The Indian pharmaceutical sector is worth USD 42 billion and ranks 3rd in terms of volume and 13th in terms of value worldwide.
• Major segments of the Indian Pharmaceutical Industry include generic drugs, over-the-counter medicines, bulk drugs, vaccines, contract research & manufacturing, biosimilars, and biologics. factors that have led to recent improvements in growth rate include expansion to new geographies, widening the coverage of pharma and over-the-counter products sold by the company, improved delivery times, etc.
• Indian pharmaceutical sector supplies over 50 of the global demand for various vaccines, 40 of the generic demand in the US, and 25 of all medicine in the UK The domestic pharmaceutical industry includes a network of 3 000 drug companies and 10 500 manufacturing units.
• The healthcare sector consists of businesses that provide medical services, manufacture medical equipment or drugs, provide medical insurance, or otherwise facilitate the provision of healthcare and pharmaceuticals to patients.
• Apart from over-the-counter sales, a new trend that has been seen in the pharmaceutical industry is the online sale of pharmaceuticals. The online pharmacy market in India has been growing rapidly and the prevalent pandemic conditions acting as a catalyst for its growth. 
• The online pharmacy market has grown because of factors like increased smartphone penetration, another major factor increasing the growth of the entire pharmaceutical industry, both online and offline, was the huge surge in the Covid-19 pandemic witnessed by the country. 
• The regulations in the industry include the Draft Drugs and Cosmetics rule of 2018, the Drugs and Cosmetics act of 1940, the Drugs and Cosmetics Rules of 1945, the Pharmacy Act of 1948, and The Drugs and Magic Remedies (Objectionable Advertisement) Act, 1954.

Market Overview:

• The global e-pharmacy market was valued at USD 60.9 billion in 2021. It is anticipated to reach USD 219.8 billion by 2028, at a CAGR of 20.1% from 2022-2028.
• The online pharmacy market is currently valued at USD 360 million in 2021. It is expected to reach USD 1.09 billion by 2025, expanding a CARG of 22.2% from 2022 to 2027.
• E-pharmacy market is categorized into two segments - Chronic and acute therapy. The chronic therapy segment accounted for 61.8% of the overall revenue in 2021 and is expected to continue to reign during the forecast period. However, its market share is estimated to decline from 61.8% in 2021 to 52.3% in 2027.
• The acute therapy segment is anticipated to witness growth from 2022 to 2027e period. Its market share is expected to increase from 38.2% in 2021 to 46.7% in 2027.
• About 12% of the Indian population is above 54 years of age and are major chronic patients, which is expected to grow,  thus E pharmacy sector is estimated to serve 210 million chronic patients by the end of 2022.

Key Drivers:

• Unorganized nature of traditional pharma retail - Traditional pharma retail sector is highly unorganized as there are multiple retailers at multiple locations leading to challenges such as the sale of sub-standard and counterfeit drugs, price wars amongst various retailers, and limited availability of drugs. The proliferation of e-pharmacies helps to curb this menace, as it will allow consumers to purchase drugs from a highly organized online platform.
• Government Support - During covid times, the central and state governments understood the necessity of e-pharmacies and classified them as essential services and also promoted them on the Aarogya Setu App. PMBJP, Digital India, Ayushman Bharat, Startup India, and National Digital Health Mission (NDHM) are some of the initiatives undertaken by the government to boost growth and enhance the ease of doing business in the online pharmacy segment.
• Value and convenience offered - E-pharmacies can help ensure a supply of genuine and authorized drugs and a wide variety of drugs at affordable prices by eliminating middlemen and offering discounts, with easier accessibility such as online platforms, home delivery & improved digital payment infrastructure. Therefore, e-pharmacies are expected to be widely accepted in our country, due to the convenience and value it offers.
• Untapped in tier II and tier III cities - E-pharmacies still have a lot of scope for expansion in tier II and III cities, which can be achieved by making huge investments in the improvement of logistics channels in these cities.

Key Trends:

• Artificial Intelligence AI can fundamentally assist with analytics by providing a more data-driven approach toward patient classification to provide solutions that use automated technology that uses automation features to acknowledge prescriptions and administer drugs, with minimal contribution from a pharmacist.
• The application of machine learning tools provides an opportunity to increase drug discovery and development and provide new medicines to patients more quickly.
• Deep learning changes the e-pharmacy industry by analyzing data at excellent speed with high accuracy rates as it utilizes a layered algorithm of a database to abstract data at an amazing rate. Deep learning utilizes mathematical representation which helps in easing data interpretation for consumers through e-pharmacy apps, which can significantly improve healthcare.
• Internet of Things made health-monitoring technology accessible and affordable. IoT gives e-pharmacies new opportunities, including better control of drug manufacturing, maintenance of equipment and development supply chain.

Competitive Landscape:

• Pharmeasy is the largest player in the e-pharmacy segment in India. It serves 50% of the total e-pharmacy in India. It is followed by Tata 1mg with a market share of 18%. Netmeds has acquired 15% of the e-pharmacies market in India as of 2022.