"Beyond dispensing prescriptions, pharmacies in Bangladesh are evolving into vital community hubs. From offering essential healthcare products to providing consultations, they're shaping the landscape of accessible healthcare, especially in underserved areas."
Bangladesh's pharmaceutical landscape is typified by a wide range of pharmacies, each of which runs under a distinct business model designed to conveniently cater to a variety of target market groups and consumer needs. By offering basic consultations and advice on medication usage, pharmacists play a critical role in building trust and encouraging client loyalty. Costs are incurred in order to comply with licensing, medication storage, and dispensing regulations. The Directorate General of Drug Administration (DGDA) is responsible for licensing retail pharmacies in Bangladesh; according to their 2023 website, there are 227375 licensed pharmacies in the country.
Different types of pharmacies are stand-alone businesses that are typically run by families or individuals, located in nearby markets or communities. Chain pharmacies with numerous locations across the country, like Lazz Pharma and WellLife Pharma, function on a larger scale, provide a wider selection of products, and enjoy the advantages of well-known brands. Hospital pharmacies are essential to healthcare facilities because they provide prescription pharmaceuticals to both inpatients and outpatients.
Online pharmacies have grown significantly in Bangladesh, particularly since the Covid-19 outbreak started. These businesses offer digital platforms for ordering and receiving prescription drugs. According to Statista, the online pharmacy market in Bangladesh is expected to bring in US$59 million in revenue in 2022 and increase at a projected annual growth rate (CAGR 2022-2027) of 23.99% to reach US$172.90 million by 2027. The internet pharmacy market is still quite tiny, despite the enormous retail pharmacy industry as a whole. In contrast, Bangladesh is anticipated to attain a comparable market share in the upcoming years, with online pharmacies in India accounting for 5% of the retail pharmaceutical market. Among the well-known ones are MedEasy, Arogga, BanglaMeds (which Chaldal recently purchased), etc.
The primary source of income for pharmacies is the selling of over-the-counter and prescription medications. Pharmacy profit margins differ according to product categories and pricing tactics; pharmaceutical companies normally pay pharmacies a commission for each product sold. Building strong partnerships with pharmaceutical firms is essential since these organizations push their tactics on pharmacies, which are immune to Above the Line (ATL) advertising and frequently use credit facilitations. Through these places of sale, pharmaceutical companies obtain a significant amount of their prescription market.
Drugstore models are changing significantly; more and more pharmacies are switching from conventional ideas to Drug Store models, which are similar to those that are common in Western areas. In order to undergo this change, the Stock Keeping Units (SKUs) will be diversified to include snacks, cosmetics, fresheners, and other pharmaceuticals including Ayurvedic medications. In addition to increasing revenue streams, this strategic diversification offers clients the convenience of a full one-stop shop for a range of items.
Future developments in the pharmaceutical industry could include the rapid expansion of internet pharmacies, which could upend established business models due to their increased convenience and possible price reductions. Partnerships with healthcare systems for data sharing and medication adherence programs are expected, as well as an increased emphasis on specialty services, which include customized medicine, chronic illness management, and specialty market sectors. The future of the sector is anticipated to be shaped by technological developments such as AI-powered consultations, automated dispensing systems, and data analytics for consumer insights.
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