by The Drug Discount Card Market is estimated to be valued at US$ 15.5 Mn in 2023 and is expected to exhibit a CAGR of 7.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Drug discount cards provide discounts on prescription drugs from pharmacies. They aim to help consumers save money on their prescription drugs by providing discounts at the pharmacy counter. Drug discount cards are available for free or for a small monthly or yearly fee. They do not require income qualification and are accepted at most pharmacies nationwide.
Market key trends:
Drug discount cards have gained significant traction in recent years owing to rising healthcare costs and prescription drug prices. According to a survey by GoodRx, around 75% of Americans skipped or postponed healthcare in 2021 due to high costs. High and rising out-of-pocket costs are encouraging consumers to seek alternative cost-saving options like drug discount cards. In addition, an aging population base that require regular medical care and medicines is also fueling demand for discount cards. Generic drugs are also widely available via discount cards, increasing their accessibility. Growing availability of discount cards online and through mobile apps is also propelling the market growth.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low as the drug discount card market requires high initial investment for R&D, marketing and building partnerships with pharmacies and insurance providers.
Bargaining power of buyers: The bargaining power of buyers is moderate as buyers have option of choosing from various drug discount cards in the market providing varying discounts and benefits.
Bargaining power of suppliers: The bargaining power of suppliers which are mainly pharmaceutical manufacturers is high as supply of drugs play a crucial role in success of drug discount cards.
Threat of new substitutes: Threat of substitutes is low as there are limited substitutes available for drug discount cards.
Competitive rivalry: Competitive rivalry in the market is high due to presence of many players.
SWOT Analysis
Strength: Drug discount cards offer significant cost savings on prescription drugs by providing discounts to users. They also enable access to affordable medications.
Weakness: Discounts offered through drug discount cards may vary frequently and are not applicable on select drugs. Maintaining partnership with pharmacies and insurance companies is also challenging.
Opportunity: Increasing healthcare costs and need for affordable medicines present an opportunity for growth of drug discount cards market. Rising geriatric population suffering from chronic diseases will further drive the demand.
Threats: stringent regulations related to discounts and lack of awareness about such programs limit the growth of drug discount cards market.
Key Takeaways
The Global Drug Discount Card Market Growth is expected to witness high, exhibiting CAGR of 7.2% over the forecast period, due to increasing healthcare costs and need for affordable medicines.
Regional analysis North America dominates the global drug discount card market and is expected to continue its dominance over the forecast period. This is attributed to continuously rising healthcare expenditure and high adoption of discount cards in the region. Asia Pacific is expected to exhibit fastest growth owing to increasing incomes, growing medical tourism and rising healthcare awareness in the region.
Key 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. GoodRx has emerged as the largest player due to its wide network of pharmacies and doctors. SingleCare is also a prominent player with its offerings of discount cards for higher savings on medicines along with wellness programs.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
