The drug discount card market provides discounts on prescription drugs to customers through partnering pharmacies. Drug discount cards help bring down medication costs by offering savings on both branded and generic drugs. They help customers save on prescription medications by providing discounts via network pharmacies. Usage of prescription drugs has been rising owing to growing elderly population suffering from chronic diseases globally. This has driven up healthcare costs. At the same time, many people are uninsured or face increasing health insurance deductibles. This has led to growing demand for affordable options like drug discount cards to reduce spending on medications.
The global drug discount card market is estimated to be valued at US$ 1,674.2 Mn in 2024 and is expected to exhibit a CAGR of 8.1% over the forecast period 2023 to 2030.
Key Takeaways
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, NeedyMeds, and Humana. GoodRx is one of the largest players with largest number of discounts on prescription drugs. The company has witnessed significant growth in recent years.
Rising healthcare costs globally have been driving increasing demand for affordable options for prescription drugs. Drug discount cards help reduce medication costs substantially. This has contributed to their rising popularity. Growing elderly population susceptible to chronic diseases in countries has further augmented demand.
Market Trends
Personalized discount cards - Players are focusing on offering more customized and tailored offerings to consumers based on their individual prescription drug requirements. This is expected to provide improved savings.
Increased digitization - Drug discount card companies are investing more in developing robust digital platforms and mobile apps. This is helping expand their reach as well as allow easier price comparisons and discounts.
Market Opportunities
Emerging markets - With rising incomes and growing medical needs, emerging countries like India, Brazil and key African markets present major opportunities for drug discount card players for expansion.
Bundling with other services - There is potential to bundle drug discount cards with other healthcare offerings like telemedicine consultations or generic drug delivery services to provide enhanced value. This could boost customer loyalty and retention.
Impact of COVID-19 on Drug Discount Card Market Growth
The COVID-19 pandemic adversely impacted the growth of the drug discount card market initially. During the peak of the pandemic in 2020, people avoided visiting hospitals and delaying non-essential medical checkups due to the fear of virus infection. This led to a decline in prescription volumes being processed through drug discount cards. However, as the pandemic lingered, demand for discount cards increased as job losses mounted and insurance became unaffordable for many.
Geographical Regions with High Concentration in Drug Discount Card Market
North America represents the largest regional market for drug discount cards in terms of value. This can be attributed to factors such as the availability of numerous discount card programs, large patient pool, high healthcare expenditure, and rising incidence of chronic disorders. The USA accounts for the major share within the North American drug discount card market owing to a sizeable uninsured population and escalating prescription drug prices.
Fastest Growing Region in Drug Discount Card Market
The Asia Pacific drug discount card market is poised to exhibit the fastest growth during the forecast period propelled by improvements in healthcare infrastructure, increasing medical insurance penetration, and expanding base of nuclear families and elderly population. Rapid economic development of countries such as China and India is elevating disposable incomes and boosting discretionary healthcare spending in the region. In addition, growing awareness about the cost-saving benefits of drug discount cards is supporting market expansion across Asia Pacific.
