The Taiwan pharmaceutical market is projected to reach $4.6 Bn by 2025. Unlike neighbouring countries like Japan and China, the presence of pharmacy chains in Taiwan is comparatively lower.
STORY OUTLINE
- The pharmacy market in Taiwan has grown by ~2.5% in recent years, with an increasing emphasis on the utilization of Western medicine.
- In 2019, Taiwan had 8,129 pharmacy retailers, adopting various models to enhance convenience and expand product offerings.
- Competition in Taiwan’s pharmaceutical sector is intense, with organized chains contributing around 35% of revenue.
- According to Ken Research, the top three pharmacy chains in terms of revenue are Great Tree Pharmacy, Med first, and TinTin Drugstore, collectively holding a market share of around 13%.
- The pharmacy market in Taiwan has witnessed significant growth of ~2.5 % in recent years. The utilization of Western medicine is on the rise in Taiwan, with a growing emphasis on its usage. This is reflected in the expenditure on pharmaceutical products as a percentage of the GDP, which witnessed a slight increase from ~1.10% in 2014 to ~1.15% in 2018. Taiwan’s pharmacy market continues to evolve, meeting the diverse healthcare needs of its population.
- Taiwan’s pharmaceutical industry encompasses four distinct sub-sectors: Active Pharmaceutical Ingredients (APIs), Western medicine, Traditional Chinese Medicine (TCM), and biologics. Taiwanese biopharmaceutical companies have formed alliances with contract research organizations and multinational pharmaceutical companies in order to enhance clinical investments within Taiwan.
- In 2019, Taiwan was home to a remarkable count of 8,129 pharmacy retailers, each operating within the country’s borders. These pharmacies are actively embracing various models to enhance customer convenience, while also expanding their product offerings to cater to a wider range of consumer needs.
Explore Technological Integration
Taiwan’s population trends are changing as the fertility rate is shrinking (1.06 births per women as of 2018) and life expectancy is increasing. The population growth in 2019 was ~0.1% down from an average of ~1.5% during the 1980s. This has resulted with the population starting to decline as of 2020. Out of total population, 65 years and older people accounted for ~15% of the population in 2019. It is estimated this will exceed to more than 20% till 2025. As per the NHIA data the cost on healthcare increases with the increase in age. Thus, it will benefit the market in the future.
As the elderly population continues to grow, there will be an increasing demand for healthcare services and products in Taiwan. This trend presents opportunities for market growth and development in the healthcare sector, providing potential benefits for various stakeholders. Intense Competition in Taiwan’s Pharmaceutical Sector, in 2019, ~35% of the total revenue in the pharmaceutical sector came from Organized Chains, while the remaining ~65% was contributed by Unorganized Pharmacies.
To learn more about this report Download a Free Sample Report
Among the pharmacy chains, Great Tree Pharmacy, Med first, and TinTin Drugstore emerged as the top three in terms of revenue, collectively holding a market share of around 13%. On the other hand, based on the number of stores, Med first, Great Tree, and Your Chance took the lead, accounting for ~6% of the market share.
In conclusion, Taiwan’s pharmacy market has experienced significant growth, driven by the rising utilization of Western medicine and evolving healthcare needs. The industry encompasses diverse sub-sectors and has witnessed alliances with global players to boost investments. With a changing population demographic and intense competition, opportunities arise for healthcare services and products, paving the way for market development and stakeholder benefits.