Indonesia Retail Pharmacy Market

Indonesia Retail Pharmacy Market Size Report – In a Glance

As per the survey report on Indonesia retail pharmacy market, the market is expected to foresee a CAGR value of xx% during 2025-2035, and further generate a market size of USD xx billion by the end of 2035. In 2024, the market size was value at USD xx billion revenue.

• The Indonesia retail pharmacy market’s growth is driven by expansion of pharmacy chains and franchises.
• KDMI analyst’s growth analysis foresees regulatory and compliance challenges as restraint for Indonesia retail pharmacy market.

Indonesia Retail Pharmacy Market Analysis

A retail pharmacy is also known as community pharmacy or chemist shop, where shopkeeper sells medicine and has supportive facility for both prescribed medicines as well as for over-the-counter. These pharmacies are easily accessible to public and serve as a primary healthcare resource, which provides health advice and offer health related products consumers. Retail pharmacies can be privately owned or a franchise of government to offer medicines at affordable prices. According to reports, in 2019, the Indonesian Ministry of Health stated that Indonesia had 26,658 community pharmacies, out of which 60% were located on Java Island. The growing numbers of community pharmacies in the region, ensure efficient delivery and accessibility to wide range of products to patients and help them to maintain their overall wellbeing. Major companies who drive retail pharmacy in Indonesian market are Apotek K-24, Century, Viva Apotek, Watsons, and others.

Indonesia Retail Pharmacy Market Growth Drivers and Restraints

Growth Drivers

• Rising healthcare expenditure and awareness – Indonesia’s retail pharmacy market growth is driven by healthcare sector undergoing significant transformation, which is boosted by middle-class population and rising disposable income of consumers. Government supportive policies and initiatives that encourage people to invest more in their health and wellbeing, which drives retail pharmacies expansion into the region. As the country’s healthcare expenditure is rising, with consumers prioritizing their health and preventive care, the demand for healthcare products like vitamins, supplements, and wellness product is experiencing growth. Adoption of advancement in healthcare sector help to overcome constraints faced in traditional systems. Moreover, rising awareness about lifestyle-related diseases such as hypertension, cardiovascular disorders, and obesity is encouraging individuals to adopt advanced healthcare services including medicines and other products.
• Expansion of Pharmacy chains and franchises – Another major driver for Indonesian retail pharmacy market is rapid expansion of pharmacy chains and franchises by private sectors and individuals. Leading pharmacy chains include Kimia Farma, Guardian, and Century, which are driving the pharmacy chains in cities like Jakarta. These chains are expanding into tier-2 cities, offering standardized services, and wider range of products by integrating innovation in healthcare sector. Moreover, expansion of retail pharmacy industry and logistical advancement is supporting growth of pharmacy chains and adoption of franchises into the region, which offers reliability, accuracy, and timely delivery of healthcare products. These factors result in expansion of pharmacy chains and retail stores.

Restraints

• Regulatory and compliance challenges for pharmacies – The Indonesia retail pharmacy market faces restraint due to stringent regulations imposed by regulating body and compliance challenges, which require pharmacies to adhere to strict licensing policies. Government imposed rules and regulations for distribution channels being approved by authority, which might require higher investment. The initial investments pose as a challenge for small and medium operators. Moreover, tightening security over borders for export and import of healthcare products, leads to operational complexity and higher costs for operators. These factors limit market expansion and reach for Indonesian market.

Indonesia Retail Pharmacy Market Segmentation

Our experts at KD Market Insights have segmented the Indonesia retail pharmacy market research report as:

Indonesia Retail Pharmacy Market Competitive Landscape

Some of the significant participants in the Indonesia retail pharmacy market share:

• Century
• Kimia Farma
• Guardian
• Watsons
• Viva
• Apotek
• Griya Farma
• DKSH
• BSP
• DNR
• Zuellig Pharma