Today, the global online pharmacy business is a mammoth of an industry, expected to grow at a CAGR of 14.26 percent to reach $107.53 billion by 2025, according to Zion Market Research. Of all pharmacy industry sectors, the online pharmacy business is the one that’s driving rapid market growth almost exclusively. Across the pond, the UK pharmacy sector is estimated to be valued at $15.52 billion and is growing steadily at an annual rate of 2 percent. The US pharmacy market alone is worth a whopping $312.6 billion, with an uptick of roughly 3 percent from 2018. The Pharmacy Market: Why Amazon Wants to Dig In We’ve put together this explainer article to present a holistic view of how Amazon is planning to cause major disruptions in the pharmacy industry. ’ In this respect, PillPack is, in essence, being transformed into an Amazon Pharmacy brand, thus effectively becoming able to take on market leaders like CVS Health, Wal-Mart, and Walgreens Boots Alliance (WGA), amongst others. With the purchase of PillPack, Amazon not only set its eyes firmly on the retail pharmacy business, but it’s also slowly including branding.Īmazon’s branding strategy started with the online pharmacy’s name change to ‘PillPack by Amazon Pharmacy.

It all started in 2018 when it paid a steep price of nearly $1 billion to acquire the mail-order online pharmacy PillPack, outbidding its closest rival Wal-Mart. More recently, however, Amazon has made major inroads into the heart of the American healthcare industry, causing a seismic shift in the world of the drug prescription and supply chain. On its remarkable way to becoming one of the most valued brands in history, Amazon has made a vigorous foray into nearly every market, including logistics, apparel & clothing, electronics, cloud computing, government services, education … the list goes on and on. This Seattle-based retail giant is always at the forefront of technology and business innovation, with nifty projects like drone delivery service Prime Air and smart speaker assistant Alexa rocking the consumer and business worlds alike. Amazon’s pharmacy plans include rapid expansion into the trillion-dollar healthcare care and insurance sector, creating a buffet of healthcare-related acquisitions, rolling out expedited drug shipping, and drug discounting–and perhaps shaping the pharmacy of the future.Įstablished in 1994 by Jeff Bezos, Amazon has burgeoned from a little-known online bookstore to become the world’s largest e-retailer, with its product portfolio now including everything from diapers and baby food to healthcare and home cleaning services.

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