US Mail Order Pharmacy Market Developments and Forecast by 2030

The US mail order pharmacy market size is expected to grow from US$ 43.728.62 million in 2022 to US$ 1,71,883.03 million by 2030; it is estimated to register a CAGR of 18.66% from 2022 to 2030.

Analyst’s ViewPoint

The US mail order pharmacy market analysis sheds light on the key factors enabling its growth; these include the increasing incidences of chronic diseases and surging adoption of mail order pharmacy services for different healthcare needs. Further, the integration of artificial intelligence (AI) in retail pharmacies is expected to emerge as a new trends in the market during 2022–2030. Based on drug type, the US mail order pharmacy market is bifurcated into non-prescription drugs and prescription drugs. The prescription drugs segment held a larger market share in 2022, and the same segment is anticipated to register a higher CAGR during 2022–2030. The US mail order pharmacy market, by product, is segmented into dermal care products, anti-diabetic medicines, cardiovascular medicines, blood pressure medicines, asthma management products, cold & flu medicines, painkillers, antacids, and others. The dermal care products segment held the largest market share in 2022, and the cardiovascular medicines segment is anticipated to register the highest CAGR during 2022–2030. Based on the mode of order, the US mail order pharmacy market is categorized into online stores and pharmacy apps. The online store segment is expected to account for a maximum share of the market during 2022–2030.

Mail-order pharmacy makes it easy to manage medication ordering and refill using a computer or a smartphone. Medications are ordered by mail order pharmacy less expensive and can be covered in a health plan. The insurer can buy medications in large quantities directly from drug manufacturers at lower costs.

Market Insights

Increasing Incidences of Chronic Diseases Drive US Mail Order Pharmacy Market Growth

Chronic diseases such as diabetes, cardiovascular disorders, autoimmune disorders, and various cancer types are the leading causes of mortality worldwide. According to the National Association of Chronic Disease Directors 2022 report, nearly 40% of American adults have multiple chronic conditions (MCC). Additionally, the National Health Council report reveals that chronic conditions account for more than 75% of the total healthcare costs in the US. Heart disease, cancer, mental disorders, and pulmonary conditions rank among the 5 most expensive health conditions, based on total annual healthcare spending in the US. Similarly, diabetes is one of the life-threatening chronic diseases with no functional cure. All types of diabetes may lead to complications in different body parts and trigger the overall risk of premature death. According to a report published by the Centers for Disease Control and Prevention (CDC), a total of 37.3 million people in the US (i.e., 11.3% of the US population) suffer from diabetes every year, including 8.5 million (23.0% of adults) undiagnosed cases and 28.7 million (28.5 million adults) diagnosed cases. Medication adherence among chronic disease patients can offer better health outcomes, with a reduction in hospitalizations and costs. Non-adherence to inhaled corticosteroids is responsible for ~24% of asthma exacerbations. There have been many attempts to increase medication adherence and improve patient care in the US. Various insurance companies provide financial incentives to encourage customers to fill prescriptions via mail-order pharmacies, which proves less expensive for patients. Mail-order pharmacy services are typically offered for buying drugs prescribed for chronic conditions such as high cholesterol, asthma, high blood pressure, diabetes, and depression. Through this pharmacy model, customers can receive medicines for 90 days rather than getting prescriptions refilled every month. Therefore, in addition to the increasing incidences of chronic diseases—medication nonadherence, population aging, and convenience over traditional methods drive growth of the US mail order pharmacy market.

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US Mail Order Pharmacy Market: Strategic Insights

US Mail Order Pharmacy Market

• Market Size 2022
  US$ 43.728.62 Million
• Market Size 2030
  US$ 1,71,883.03 Million

Market Dynamics

GROWTH DRIVERS

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FUTURE TRENDS

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OPPORTUNITIES

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Regional Overview

• United State

Market Segmentation

Drug Type

• Prescription Drugs and Non-Prescription Drugs

Product

• Dermal Care Products
• Antidiabetic Medicines
• Cardiovascular Medicines
• Blood Pressure Medicines
• Asthma Management Products
• Cold & Flu Medicines
• Painkillers
• Antacids

Mode of Order

• Online Stores and Pharmacy Apps

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Future Trend

Integration of Artificial Intelligence (AI) in Retail Pharmacies

As consumers continue to prioritize their health and wellness, retail pharmacies are keen to adopt new technologies to streamline the process and enhance consumer convenience. They focus on improving their services, reducing costs, and optimizing stock availability through the integration of AI tools into their operations. AI integration provides a competitive advantage and can guide patients through the specialty prescription filling process, thereby aiding in the convenience of buying. In April 2019, Amazon launched the upgraded line of Amazon Alexa enabled to execute HIPAA-compliant healthcare services such as storing blood sugar measurements and providing prescription delivery updates.

Many retail pharmacy giants are partnering with AI companies to improve patient care. The trend of AI integration is picking pace among pharmacy chains. In April 2023, Express Scripts launched its new "ClearCareRx" model, which has been designed to increase access to affordable medicines, and drive transparency and predictability. Additionally, Express Scripts is working closely with healthcare providers and health plan clients to offer consultative options to bring affordable medicines to consumers. Also, Express Scripts provides a broader list of preventive prescribed drugs that are fully covered at discounts, lower premiums, and deductibles by increasing Health Savings Account contributions. Thus, collaborations between mail-order pharmacies and AI companies are likely to benefit the US mail order pharmacy market in the coming years.

Report Segmentation and Scope

Drug Type-Based Insights

Based on drug type, the US mail order pharmacy market is bifurcated into non-prescription drugs and prescription drugs. The prescription medicine segment held a larger market share in 2022, and the same segment is anticipated to register a higher CAGR of 19.11% 2020-2030. Mail order pharmacies dispense drugs based on genuine outpatient prescriptions provided by medical professionals. They require prescriptions for dispensing drugs such as cancer medication, cardiovascular drugs, and diabetes drugs. The increasing prevalence of chronic diseases such as cancer, cardiovascular diseases, and diabetes, and the rising cases of orphan diseases are likely to benefit the US mail order pharmacy market for the prescription drugs segment. Moreover, flourishing R&D activities and high healthcare expenditure contribute notably to the market growth of this segment. Prominent prescription drugs required in the US are oncology drugs, followed by respiratory agents such as anti-inflammatory drugs, lung fluid replacement drugs, decongestants, biologics, and inhaled corticosteroids. Lipid regulators occupy the third place among the major prescription drugs.

Many online pharmacy platforms are offering prescription drug delivery services. The demand for mail order medicines is on the rise due to the increasing reach of e-commerce platforms and Internet services. Many online pharmacies across the US offer doorstep deliveries and are also involved in the dispensing of prescription medicines. In July 2023, CVS Caremark and GoodRx launched Caremark Cost Saver, a prescription drug discount solution to help lower costs and improve the experience for a vast number of CVS Caremark members.

Product-Based Insights

Based on product, the US mail order pharmacy market is segmented into dermal care products, anti-diabetic medicines, cardiovascular medicines, blood pressure medicines, asthma management products, cold & flu medicines, painkillers, antacids, and others. The dermal care product segment held the largest market share in 2022, and the cardiovascular medicines segment is anticipated to register the highest CAGR of 22.89% during 2020-2030. Increasing demand for face creams, sunscreens, and body lotions, and the growing adoption of e-commerce platforms are expected to favor the US mail order pharmacy market progress during the forecast period. These pharmacies offer dermal care products with better pricing than local pharmacy stores. Moreover, a large range of dermal care products, including sunscreens, anti-aging creams, body lotions, and skin-brightening creams, are made available via these platforms. Skincare products are available with better access, lower transaction and product costs, greater convenience, and optimum anonymity. According to an article published by McKinsey & Company in May 2023, the e-commerce business in the beauty segment nearly quadrupled from 2015 to 2022, with its share exceeding 20%. Rising awareness about the benefits of dermal care products has increased their demand over the last few years. Moreover, natural and organic skincare products have gained significant popularity in recent times, making it a leading segment of the cosmetics and wellness industry. Thus, the progressive cosmetics and wellness industry in the US favors the growth of the mail order pharmacy market for the dermal care segment.

In the US, the prevalence of chronic heart diseases due to sedentary lifestyles has been rising steadily, resulting in a high incidence of cardiovascular disorders. Moreover, the growing geriatric population diagnosed with cardiovascular disorders is fueling the demand for medications for treating these diseases across the US. According to the Heart Failure Society of America, in 2020, the US reported an increased number of heart failure patients admitted twice or multiple times due to the lack of care coordination. This upsurge is attributed to the unavailability of consistent care providers, lack of follow-up care, and the availability of means to track blood pressure and weight at home. The Heart Failure Society of America (AHA) also revealed that medications were the leading cause of readmissions. Hence, the considerable target population is positively impacting the growth of the mail order pharmacy market for the cardiovascular medicines segment. Medications such as anti-ischemic, anti-anginal, and cardiac glycosides are widely distributed through online prescription pharmacy services. Ordering prescription drugs for cardiovascular conditions through mail order pharmacies is convenient, and it contributes to better drug adherence. Studies show that cardiac patients using mail order medication services show adherence rates of 84.7%, compared to local pharmacy users at 76.9%. Such a high adherence rate can be attributed to 90-day prescription refills offered by mail order pharmacies, home delivery services, and 24/7 pharmacist support. For instance, Kaiser Permanente patients on cholesterol control therapy achieved better control and obtained their statin prescription through mail order pharmacies for the first 3–15 months.

Mode of Order-Based Insights

In terms of mode of order, the US mail order pharmacy market is categorized into online stores and pharmacy apps. The online store segment held a larger market share in 2022, and the same segment is anticipated to register a higher CAGR of 19.08% during 2020-2030. Many pharmaceutical companies in the US are adopting online pharmacy models to grow their businesses in the healthcare sector. Pharmacies such as Lloyads Pharmacy and HeathWareHouse.com provide home delivery services through their online stores in the US. Online pharmacy stores allow consumers to purchase medicines without visiting brick-and-mortar pharmacies, ensuring greater convenience for consumers, which has resulted in a rising demand for this store model across the country. Medical practitioners across the country now prefer e-prescriptions to provide patients with easy access to medicines. One can easily upload their e-prescriptions on e-pharmacy websites, order medicine online, and get medications delivered at the desired location.

Highly developed IT infrastructure, an increase in smartphone adoption, and penetration of high-speed internet in urban and rural areas bolster the market for the online pharmacy store segment. Increasing initiatives taken by various nations to make prescription medicines readily available at affordable prices also drive the demand for online pharmacy stores.

US Mail Order Pharmacy Market, by Drug Type – 2022 and 2030

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Country Analysis

The US mail order pharmacy market is expected to reach US$ 1,71,883.03 million in 2030 from US$ 43,728.62 million in 2022. The market is estimated to grow at a CAGR of 18.66% from 2022 to 2030. Mail-order pharmacies dispense medicines referring to outpatient prescriptions. These types of pharmacies focus on distributing maintenance prescriptions leading to the majority of outpatient prescription sales in the US. These types of pharmacies provide patients with online ordering services for refills with the convenience of home delivery and an extensive supply chain, compared to community pharmacies. Mail-order pharmacies often cost less for patients, but they prove expensive for health plan providers. According to an article published in the American Journal of Preventive Medicine in 2021, the share of mail-order pharmacies in the outpatient prescription market in the US surged from 6% in 1989 to 15.2% in 2013. However, the adoption of mail-order pharmacies has reduced in recent years; the share dropped to 9.5% of the outpatient prescriptions dispensed in 2019.

The growing competition among community pharmacies and favorable policies related to mail-order pharmacies are anticipated to boost the growth of the US mail order pharmacy market in the coming years. Companies such as Amazon, which provide mail-order services, represent a rising threat to retail pharmacies. Mail-order pharmacy in the US has taken hold and grown over the last decade, currently mailing products based on billions of prescriptions every year.

According to data obtained from the CDC, ~3.8 billion prescriptions are written annually. Among those filled prescriptions, approximately 50% are misinterpreted in terms of timing, dosage, frequency, and duration. The US Department of Veteran Affairs (VA) runs programs benefiting veterans and members of their families. It offers Pharmacy Benefit Management Services that account for approximately ~80% of outpatient prescriptions filled via VA and sent by mail order using the Centralized Mail Order Pharmacy (CMOP) network of highly automated pharmacies in the country. Companies such as Walgreens, CVS, and Amazon are transforming their e-commerce operations into digital delivery platforms by launching new services. For instance, in November 2020, Amazon launched Amazon Pharmacy, an online and mobile prescription medication ordering and fulfillment service. On this platform, customers can add their insurance details, choose payment options, and manage prescriptions.

The report profiles leading players operating in the US mail order pharmacy market. These include CVS Health Corp, Walmart Inc, Envirotainer AB, Able Freight Services LLC, Deutsche Post AG, GeniusRx, Geisinger Health, Cornerstone Health Solutions LLC, Humana Inc, Ridgeway Pharmacy LLC, and The Cigna Group.

• In July 2023, CVS Caremark and GoodRx launched Caremark Cost Saver to assist CVS Caremark clients in lowering out-of-pocket prescription costs. CVS Caremark qualified members receive automatic access to GoodRx prescription pricing, allowing them to pay lower costs on generic pharmaceuticals.
• In October 2021, GeniusRx launched GeniusClinic and GeniusIQ to provide consumers with access to prescription drugs in a transparent and affordable manner. The GeniusIQ is a machine learning platform for refill and new medications prescribed for non-acute and lifestyle conditions.

Company Profiles

• CVS Health Corp     
• Walmart Inc           
• Envirotainer AB       
• Able Freight Services LLC    
• Deutsche Post AG    
• GeniusRx     
• Geisinger Health      
• Cornerstone Health Solutions LLC            
• Humana Inc           
• Ridgeway Pharmacy LLC     
• The Cigna Group

US Mail Order Pharmacy Report Scope