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 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Drug discount card refers to discount programs offered by pharmaceutical benefit management companies or other organizations to help consumers save money on prescription drugs. These cards provide discounts at the pharmacy counter for prescription drugs that are not covered by insurance. They can be used for brand name and generic drugs. This has increased their adoption rate among consumers to reduce out-of-pocket drug costs.
Market Dynamics:
Rising healthcare costs across the globe have compelled people to look for affordable medical services. Prescription drug costs in particular have witnessed a steep rise over the past few years. According to a report by KFF, U.S. retail prescription drug spending increased from $280 billion in 2014 to $335 billion in 2018, an increase of 20%. This is one of the key factors driving demand for drug discount cards as they help lower the financial burden on consumers. Also, an increasing elderly population which requires regular medication is augmenting market growth. Moreover, proliferation of e-commerce has made drug discount cards easily accessible to customers online, thus favoring the market.
SWOT Analysis
Strength: Drug discount cards provide significant cost savings for patients on prescription drugs. They offer affordable access to medications for those without insurance or with high deductible plans. Many cards are free to obtain and use, giving customers easy access to discounts.
Weakness: Not all pharmacies accept drug discount cards, limiting where cardholders can fill their prescriptions. The discounts vary significantly depending on the medication and pharmacy chosen.
Opportunity: An aging population and rising healthcare costs create growing demand for more affordable medical services. Partnerships between card companies and drug manufacturers could further increase the number of discounted medications available.
Threats: Increased regulations may impose restrictions on drug discount card companies. Growing pressure on pharmaceutical companies to lower drug prices could reduce the incentives for offering discounts to cardholders.
Key Takeaways:
The Global Drug Discount Card Market Size is expected to witness high growth, exhibiting a CAGR of 7.2% over the forecast period, due to increasing healthcare costs. Rising drug prices have made medications unaffordable for many without insurance. Drug discount cards help bridge this affordability gap by providing savings on prescription lists.
Regional analysis: The drug discount card market in North America is the largest, driven by the United States. High health care expenditures and out-of-pocket costs for medications in the US fuel demand for affordable access to treatments. Europe and Asia Pacific also present lucrative opportunities for market players, with senior populations in both regions projected to grow substantially.
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. These companies utilize different business strategies like partnership with pharmacies and drug manufacturers to offer competitive pricing and provide customers convenient access to discounts.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
