Taiwan’s pharmacy market has experienced remarkable growth in recent years, boasting an impressive network of 8,129 pharmacies. As of December 31, 2019, Taiwan had a total of 250+ Western medicine manufacturers and 9,800+ Western medicine dealers operating in the market.
STORY OUTLINE
- Healthcare expenditure per household in Taiwan has increased, reflecting the country’s commitment to improving healthcare infrastructure and accessibility.
- The pharmacy market in Taiwan has seen significant growth, fueled by factors such as increased expenditure on pharmaceuticals.
- The aging population in Taiwan has increased the demand for healthcare services, including prescription medications, as the elderly population requires greater healthcare support.
- Taiwan’s medical tourism sector has experienced substantial growth, driven by cost advantages and attracting visitors primarily from South Asian countries.
- Changing lifestyle patterns in Taiwan have contributed to a rise in non-communicable diseases.
- According to Ken Research, Pharmacies in Taiwan begins with the need of customers and ends with the satisfaction of customers. Focus on service retail Industry will lead to usage of data analytics and other tech. will increase the role of pharmacists. Pharmacies will Witness a CAGR of 1.1% During 2019-2025.
The pharmacy market in Taiwan displays a notable prevalence of unorganized pharmacies, and its growth is facilitated by the comprehensive coverage of the National Health Insurance, which ensures universal access to healthcare services. The annual healthcare expenditure per household in Taiwan witnessed an increase from NTD ~110,000 in 2014 to NTD ~132,000 in 2019. The pharmacy market in Taiwan has been propelled to new heights due to the influence of various factors. Presented below are five key factors that have contributed to this upward trajectory in the market:
1. Growth in Expenditure on Pharmaceuticals
Penetration of Healthcare Professionals
Taiwan has been allocating a significant portion of its budget to healthcare, leading to increased healthcare expenditure. This investment has resulted in improved healthcare infrastructure, accessibility, and quality of healthcare services. 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.
2. Increase in Aging Population
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Taiwan, like many other developed countries, is experiencing an aging population. The elderly tends to have a higher demand for healthcare services, including prescription medications and over-the-counter drugs. In 2015, 12% of Taiwan’s population was aged 65 and above, a figure that has risen to ~15% as of 2020. Projections indicate that by 2030, over 20% of the population will fall into the aging population category. Additionally, Taiwan boasts one of the world’s lowest fertility rates, ranking third globally.
3. The Rising Share of NHI-covered Medications in Taiwan
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The expanding coverage of Taiwan’s National Health Insurance (NHI) has proven to be a boon for the country’s healthcare system. In 1997, the National Health Insurance of Taiwan had a total drug expenditure of approximately ~$2,100 million, experiencing an annual increase of around ~$170 million. The number of pharmacies operating under the National Health Insurance (NHI) in Taiwan witnessed a growth from ~5,700 in 2014 to ~6,500 in 2019, resulting in enhanced convenience for accessing medications. Furthermore, the reimbursable prescribed pharmaceuticals of the NHI included over 17,000 listed items as of 2019.
4. Taiwan’s Medical Tourism Boom: Cost Advantages Drive Surge in Visitors from South Asian Countries
Taiwan has witnessed a remarkable increase in medical tourism due to its cost advantages. The number of medical tourists visiting the country has surged from 68,545 in 2008 to 414,369 in 2018, with a significant majority coming from South Asian countries. The total output value of the medical tourism industry reached NTD 17 billion in 2018.
5. Lifestyle Shifts and Health Challenges: Taiwan Confronts Rising Non-Communicable Diseases
Concurrently, Taiwan has experienced a rise in non-communicable diseases attributed to changing lifestyles. In 2016, over 10% of the adult population suffered from type 2 diabetes, highlighting the prevalence of this condition. Furthermore, cancer, cardiovascular disease, and stroke were the leading causes of death in the previous year, indicating the health challenges posed by these non-communicable diseases.
Taiwan’s pharmacy market has experienced remarkable growth driven by factors such as increased pharmaceutical expenditure, the expansion of NHI coverage, and the rise of medical tourism. The aging population and the prevalence of non-communicable diseases further contribute to the market’s development. With a commitment to healthcare accessibility and quality, Taiwan’s pharmacy market continues to evolve, meeting the diverse healthcare needs of its population.
For More Insights On Market Intelligence, Refer To The Link Below: –
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