Datanomics: Digital vs traditional in the race for e-pharmacy growth

Traditional pharmacists protest as online pharmacy firms dominate India's drug retail market, outpacing brick-and-mortar players in growth and funding

A section of traditional pharmacists went on a nationwide strike on May 20 to protest alleged weak regulatory norms for e-pharmacies and the online sale of medicines in India. As many as 2,162 pharmacy firms were founded in India during 1991-2025, with nearly 91 per cent operating as online pharmacies. Globally, 10,175 online pharmacy firms were founded between 2001 and 2025, of which 18.9 per cent are based in India. Worldwide, online pharmacies raised about $11.3 billion during the period, with Indian players accounting for 23.9 per cent.

 

Pharmacy firms founded in India, dominated by online players, mushroomed even before Covid but declined post-pandemic. However, India's share in global online pharmacies continued to rise broadly even after the pandemic. 

 

The US and India ranked at the top with the highest share of online pharmacy firms and funds raised during 2001-2025.

 

 

The total revenue of India's top five traditional pharmacy firms increased at a compound annual growth rate (CAGR) of 11.36 per cent from ₹4,619 crore in 2019-20 (FY20) to ₹8,808 crore in FY25. In comparison, the top five online pharmacy firms recorded a CAGR of 27.67 per cent in revenues, growing from ₹2,262 crore in FY20 to ₹9,797 crore in FY25.