The taxable retail market comprises medical devices and pharmaceutical products available over the counter or prescribed by medical practitioners to treat both acute and chronic medical conditions. Prescription drugs and medical devices play a crucial role in disease treatment and management. They help alleviate pain, cure infections and other conditions and enhance the quality of life.
The global taxable retail market is estimated to be valued at US$ 19.15 BN in 2024 and is expected to exhibit a CAGR of 8.0% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the taxable retail market are Allergan, Novartis, Pfizer, Takeda Pharmaceutical Company, Cook Medical, Medtronic, Johnson & Johnson, AstraZeneca, GlaxoSmithKline, Sanofi, Merck, Abbott Laboratories, Bayer, Astellas Pharma, Aurobindo Pharma, Ferring Pharmaceuticals, Salix Pharmaceuticals, Eli Lilly, Bristol-Myers Squibb, Boehringer Ingelheim. Key players are focusing on developing novel drugs and medical devices to gain a competitive edge in the market. The rising prevalence of chronic diseases such as cancer, diabetes, cardiovascular diseases is driving the demand for prescription drugs and medical devices. Technological advancements are helping develop more effective drugs and minimally invasive medical devices resulting in better patient outcomes.
Market Trends
Increased adoption of digital healthcare solutions: Players are increasingly adopting digital technologies such as telemedicine and remote monitoring devices to improve access and outcomes. This trend is expected to grow further over the forecast period.
Adoption of personalized medicine: Advancements in genomics and associated diagnostics have enabled development of personalized medicines tailored to individual patient needs. This trend allows for more effective treatments.
Market Opportunities
High unmet needs in developing countries: There is immense potential for growth in developing nations due to huge unaddressed disease burden and improving access to healthcare. Players can tap into these emerging markets.
Untapped potential of combination therapies: Combining drugs/medical devices with other treatment modalities presents new opportunities. Investments in R&D of combination products are well-positioned to succeed.
Impact of COVID-19 on Taxable Retail Market Growth
The COVID-19 pandemic presented unprecedented challenges for the Taxable Retail Market Size. Strict lockdowns and restrictions caused huge supply chain disruptions. This led to a sharp decline in production and sales across sectors in 2020. However, with rapid digitalization and work from home culture gaining prominence, e-commerce witnessed strong growth. Consumers shifted to online platforms for meeting their regular needs. This provided some support to the overall taxable retail market during the difficult times.
As the restrictions are now being lifted gradually, the operations of retailers are showing signs of recovery. However, uncertainty still remains regarding future virus outbreaks. Retailers will have to focus on altering their business strategies to increase resilience against such crises. Adopting omnichannel models, prioritizing safety and hygiene norms, streamlining inventory and expanding fulfillment capabilities will be crucial for gaining back consumer confidence. The demand is projected to rise steadily in the coming years, supported by mass vaccination drives and economic rebounds globally.
Concentration of Taxable Retail Market in North America
In terms of value, North America holds the largest share of the global taxable retail market. The United States accounts for majority of the regional market size due to high per capita income levels and strong consumer spending power. Factors such as high penetration of organized retailing, availability of diversified retail formats and well-established supply chains support market growth. Retailers benefit from favorable regulatory environment and supportive technological infrastructure for expanding omnichannel operations. In recent years, e-commerce has boosted sales across categories like apparel, consumer electronics and food & beverages. These factors make North America the dominant market for taxable retail globally.
Fastest Growing Region for Taxable Retail – Asia Pacific
Asia Pacific region is poised to witness the fastest growth in the taxable retail market over the forecast period. The expanding middle class population, rapid urbanization, changing lifestyles and rising disposables incomes are major factors driving sales across countries like India, China, Indonesia and Vietnam. Organized retailing is gaining traction in the developing nations, aided by growing penetration of global brands. Ease of doing business is also spurring local and international investments. Asia Pacific offers immense opportunities for retailers to tap into the fast evolving modern retail ecosystem. If the region sustains its economic momentum, it will emerge as the new powerhouse for the global taxable retail industry in the long run.