Drug Discount Card Market Trends: Shaping the Future of Prescription Savings
Posted by Roger on June 19th, 2024
The drug discount card market allows patients to purchase prescription drugs at discounted prices. Drug discount cards provide savings on both brand name and generic medications at participating pharmacies. They help offset prescription costs and make medications more affordable for uninsured and underinsured individuals. The use of digital drug discount cards that can be accessed via mobile apps is rising as more patients prefer contactless options amid the ongoing pandemic.
The global drug discount card market is estimated to be valued at US$ 1,674.2 million in 2024 and is expected to exhibit a CAGR of 8.1% over the forecast period of 2023 to 2030. The increasing number of uninsured and underinsured patients and rising out-of-pocket healthcare costs are driving the demand for more affordable drug options like discount cards.
Key Takeaways
Key players: The major players operating in the drug discount card market are GoodRx, SingleCare, WellCard Savings, RxSaver, Optum Perks, Kroger Prescription Savings Club, ScriptSave, Walmart Rx Savings Program, Prescription Hope, FamilyWize, NeedyMeds, and Humana.
Key opportunities: Recent years have seen a rise in online pharmacies and digital drug discount cards that can be accessed directly via mobile apps. This provides an opportunity for more players to offer contactless discount card options and reach wider customer segments.
Technological advancements: The growing adoption of digital technology in healthcare has enabled the development of digital drug discount cards. Mobile apps allow users to access and manage their discount cards on the go. Some apps also provide price comparisons between drugs and offer home delivery options.
Market Drivers
Increasing healthcare costs: Prescription drug prices in the US have been rising faster than general inflation rates over the past few years. Drug discount cards help cut expenses for patients and make treatment more affordable. This rising financial burden is a key driver for the growing popularity of discount cards.
Rising rate of uninsured: According to statistics, around 28 million Americans did not have health insurance in 2021. This sets a sizable customer segment that turns to discount cards to reduce their prescription medicine costs.
Current Challenges in Drug Discount Card Market
The drug discount card market is facing several challenges currently. Innovation in existing drugs is slow and there is high cost of development of new drugs. This hampers the growth of market size. Also, patent expiries of blockbuster drugs is affecting company's revenue. This induces companies to increase drug prices to maintain profits which in turn increases the healthcare expenditure. Moreover, rise in healthcare costs and higher cost of prescriptions is making it difficult for people to afford medicines. This is a major challenge where drug discount cards can help reduce cost.
SWOT Analysis
Strength: Drug discount cards provide significant savings on prescription drugs which helps reduce healthcare expenditure. They offer discounts without any eligibility requirements or insurance enrollment.
Weakness: The discounts and savings provided vary by pharmacy and may not always be deep. Most cards do not offer discounts on all medications.
Opportunity: With rising healthcare costs and increasing need to reduce costs, drug discount cards present a huge market opportunity. Growing elderly population who need multiple medications regularly also presents an opportunity.
Threats: Pharmaceutical companies lobbying against such programs and discount variations by pharmacies are threats. New government regulations can also impact the market.
Geographical Regions
North America region currently accounts for the largest share in terms of value in the global drug discount card market. This is attributed to high healthcare costs and existing programs in the U.S. that help people save on medicines. Europe follows North America in terms of market share due to universal healthcare and favourable regulations supporting such programs.
Fastest Growing Region
Asia Pacific region is expected to witness the fastest growth during the forecast period in the global drug discount card market. This is due to growing healthcare expenditures, increasing incomes, rising aging population and growing focus of companies in emerging nations in the region. China and India will be the major revenue generators due to large population base and rapid economic growth.
About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
