The global 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 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The drug discount card market comprises prescription drug discount cards and prescription services that offer discounted prices for prescription drugs. These cards provide savings on both generic and branded medications at the pharmacy counter. They are accepted at all major pharmacy chains across the U.S. The cards do not require income qualification and are available to all residents regardless of insurance coverage or Medicare eligibility. The use of these discount cards helps expand access to affordable medications for those without insurance or with high deductible plans.
Market key trends:
One of the major trends in the drug discount card market is the rapid growth of the aging population globally. As per the United Nations Population Fund (UNFPA), the number of people aged 65 and above is projected to grow from 703 million in 2019 to 1.5 billion in 2050. With age, the risk of chronic diseases increases significantly. The growing burden of chronic conditions has been driving up the demand for prescription drugs. However, out-of-pocket costs for medications remain a challenge for many elderly people living on fixed incomes. This is encouraging more seniors to utilize drug discount cards for more affordable medication access.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the drug discount card market is moderate. Existing players have strong brand recognition and established customer base which create barriers for new players.
Bargaining power of buyers: The bargaining power of buyers in the drug discount card market is high. Buyers can easily switch between various discount card providers based on the discounts offered and range of drugs covered.
Bargaining power of suppliers: The bargaining power of suppliers in the drug discount card market is moderate. Major drug manufacturers engage with large discount card providers for partnership deals.
Threat of new substitutes: The threat of new substitutes in the drug discount card market is low as there are limited substitutes for prescription drug discounts.
Competitive rivalry: The competitive rivalry in the drug discount card market is high owing to the presence of numerous providers competing on the basis of discounts offered, range of drugs covered and additional benefits.
Key Takeaways
The Global Drug Discount Card Market Demand is expected to witness high growth, exhibiting CAGR of 7.2% over the forecast period, due to increasing healthcare costs. The average annual deductible for single coverage reached $1,350 in 2023.
Regional analysis: North America dominated the drug discount card market in 2023 with a share of over 35%, followed by Europe. Asia Pacific is expected to witness fastest growth during the forecast period owing to rising incidence of chronic diseases and increasing focus of key players in developing countries.
Key players: Key players operating in the drug discount card market include GoodRx, SingleCare, WellCard Savings, RxSaver, Optum Perks, Kroger Prescription Savings Club, ScriptSave, Walmart Rx Savings Program, Prescription Hope, and FamilyWize. GoodRX leads the market with over 50 million downloads of its mobile app and offers discounts on both branded and generic drugs.
