Market Dynamics
The Israeli pharmacy market is expected to continue to grow steadily over the next decade. This is primarily because of the continuing demand for pharmaceuticals, both generic and branded, for both private and public healthcare systems. The ageing population is also expected to be an important driver of demand for prescription drugs and OTC products. The increasing prevalence of chronic conditions, such as diabetes and cardiovascular disease, is likely to drive up demand for prescription medicines in Israel. In 2017, diabetes accounted for 15% of all prescriptions. This is expected to continue to rise, particularly as the ageing population is more likely to suffer from chronic diseases. The growing availability of generic medicines is also expected to help reduce healthcare costs and provide more options for patients. The Israeli government’s continued investment in healthcare has also been a factor in driving up demand for pharmaceutical products. The country is currently spending about 8.4% of its GDP on healthcare, which is among the highest in the world. The government has invested heavily in health IT infrastructure, medical research and development and medical personnel, which all contribute to a robust pharmaceutical market.
The introduction of e-prescribing and digitalized healthcare records is also expected to positively impact the Israeli pharmacy market in the coming years. This is due to better access to medical information and quicker order processing times. The increasing convenience of ordering prescription drugs is also likely to contribute to the growth of the market. The increasing demand for personalized and precision medicines is also expected to be a major factor in driving up demand for specialized medicines and diagnostics in Israel. This is due to the increasing focus on patient care, the promise of precision medicine and the potential for better outcomes for some diseases. Overall, the Israeli pharmacy market looks set to continue its steady growth over the coming decade. While there may be challenges ahead, the continued prevalence of chronic conditions, rising government investment in healthcare, and the introduction of e-prescribing and digital healthcare records are expected to ensure that the pharmacy market remains attractive for investors and manufacturers alike.
