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The organization of the OTC and Pharma sector in the Philippines reflects the current economic dynamics of the country: strong growth but very unevenly distributed over the territory. With a forecasted CAGR of 6,9% from 2022 to 2035, the sector is the third most dynamic in Southeast Asia. Thus, the total value of the market should reach approx. 5,2 billion dollars in 2035 according to Chameleon Pharma Consulting Group Experts.

The Retail Pharmacy Network in the Philippines

The retail pharmacy market in the Philippines is as varied as it is diluted. The market can be divided into 4 main segments(Unorganized independent stores, Organized chain stores, Hospital pharmacies, Botika ng Barangay) which have different repartitions.

Infographic 1: Philippines pharmaceutical retail market sector by category

The Consumer Health and Pharma retail pharmacy market in the Philippines has been deeply transformed in the past decade by the coming of two players. 

First, the Botika ng Barangay which are retail pharmacies managed by a community organization, an NGO, or directly representative of the states. They appeared in the 2010s as a result of a government initiative aimed at promoting health for all. These retailers sell the most basic drugs, both OTC and Rx products, at the most competitive prices on the market. The objective is to facilitate access to care for the poorest part of the population in the Philippines. 

Secondly, the retail pharmacies chains. They have grown massively thanks to the use of an easy franchise system. The former independent retail pharmacies could then easily transform their disorganized retail pharmacy into a real trusted point of sale thanks to the support of the brand to which they converted. There are six major companies belonging to these new entrants.

Infographic 2: Pharmacy retail chains in the Philippines

The Key growth parameters of the Retail Pharmacies Chains Market in the Philippines

The organized chain stores market will continue to develop with an average CAGR of 3-5% until 2025, according to Chameleon Pharma Consulting Group Experts. The growth is maintained through three main factors:

• The economic and demographic development of the country. Indeed, the Philippines has the 13th most important population (112 million in 2021), and a growing economy (+ 5% in GDP growth each year since 2010), meaning that the global purchasing power has increased, and so, more people are able to allocate a bigger part of their income for self-medication and Rx products.
• The many initiatives are undertaken by the government as the Botika ng Barangay, but also a recent overhaul of the Universal Health Coverage and an easing of the drugs registration process.
• Increase in public confidence in the Consumer Health and Pharma sector due to the disappearance of “Ghost Pharmacies” and the general health awareness due to the Covid-19 pandemic.

How Chameleon Pharma Consulting Group can support you expand your business internationally

We offer systematic country analysis and Local partner selection in the Philippines, as well as specific market analysis and partner identification services to help you identify the best fitting country and segment for your Focus portfolio and expansion goals. If you want to learn more about expanding your business in the Philippines, we are happy to support you.

Photo by Mikel | ᜋᜒᜃᜒᜎ᜔ on Unsplash

Photo by Melanie Lim on Unsplash