L. Yltävä
Research expert
Pharma e-commerce in the United States – statistics & facts
The United States leads the global online pharmacy market, with annual revenues exceeding 20 billion U.S. dollars. The COVID-19 pandemic catapulted revenue growth in the digital health market’s online pharmacy sector. Although the growth slowed post-pandemic, it still propelled the industry towards greater digital adoption, with an estimated 68 million individuals expected to purchase their over-the counter (OTC) medicine online in 2024. This number is forecast to rise to around 79 million by 2029, indicating a steadily growing industry.
The online pharma industry in the United States is estimated to grow from 24 billion U.S. dollars in 2024 to over 37 billion by 2029. It remains to be seen whether traditional pharmacies can maintain their current market dominance in terms of revenue as more consumers opt for online services, or if digital marketplaces will capture an even larger share by expanding their pharmacy offerings.
Pharmacies versus online marketplaces
The online pharmacy industry in the U.S. is led by Walgreens and CVS. In 2023, Walgreens generated close to 1.9 billion U.S. dollars in e-commerce net sales, closely followed by CVS with approximately 1.6 billion. Both companies are omnichannel retailers, with e-commerce platforms and thousands of physical locations nationwide. However, traditional pharmacies and drugstore brands face significant competition from digital marketplaces. A recent consumer survey revealed that general merchandise marketplaces are becoming the preferred online destinations to complete OTC health purchases, with Walmart and Amazon leading the way at 33 percent and 30 percent usage, respectively, compared to just nine percent for drugstore brand’s websites or apps. These marketplaces provide dedicated pharmacy storefronts, such as Amazon Pharmacy and Walmart Pharmacy, which offer OTC products and even prescription services, simplifying the online purchasing process.Prescriptions delivered straight to consumers’ doorsteps
When looking at the reasons why pharma shoppers prefer online shopping, convenience stands out as an important factor. Shoppers particularly appreciate automated prescription refill reminders and the option for home and curbside pickup for these items. Additionally, U.S. consumers report saving significant time—between 11 minutes to an hour—and money, with 27 percent reporting savings of one to 20 dollars per trip by buying medicine via the internet instead of visiting traditional brick-and-mortar stores.The online pharma industry in the United States is estimated to grow from 24 billion U.S. dollars in 2024 to over 37 billion by 2029. It remains to be seen whether traditional pharmacies can maintain their current market dominance in terms of revenue as more consumers opt for online services, or if digital marketplaces will capture an even larger share by expanding their pharmacy offerings.
