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Drug discount cards aim to help consumers save money on their prescription medications. They provide discounted pricing on a wide range of prescription drugs from multiple retail pharmacies. Some key benefits offered by drug discount cards are no income or age limits to qualify, eligibility for the entire household, significant discounts on both brand name and generic drugs, and portability allowing usage at any pharmacy that accepts the discount card program. The global drug discount card market is relatively fragmented in nature due to the presence of numerous regional and global players. Drug discount cards enable access to prescription medication at a lower cost by leveraging the bulk purchasing power of the card issuing company or organization. The global drug discount card market is estimated to be valued at US$ 1,674.2 Mn in 2023 and is expected to exhibit a CAGR of 8.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics: One of the major drivers for the growth of the drug discount card market is the continued rise in healthcare costs globally. As per the International Federation of Health Plans’ 2020 Comparative Price Report, prescription drug prices in the United States are significantly higher than other developed nations. For instance, brand-name drug prices are over three times higher in the U.S. compared to other nations like the UK, France, and Canada. The high cost of prescription medications coupled with increasing rates of chronic illnesses is fueling demand for low-cost alternatives like drug discount cards, which offer significant savings to cash-paying customers. Additionally, increased collaboration and expanding networks of pharmacies that accept drug discount cards are also contributing to market growth.
Segment Analysis
The global drug discount card market is segmented into types and applications. Based on type, the market is divided into branded drug and generic drug. The generic drug segment currently dominates the market as generic prescriptions are cheaper compared to branded drugs. Generic drugs accounts for around 90% of the total prescriptions in the U.S.
PEST Analysis
Political: The U.S. government has passed several bills to lower prescription drug costs such as allowing the importation of drugs from Canada. This is expected to increase the demand for discount cards.
Economic: Rising healthcare costs have burdened many individuals leading to increasing adoption of discount cards to save on prescription drug costs. Higher inflation is also driving more people to use these cards.
Social: With growing chronic diseases and aging population, more people are relying on long-term medication which increases the need for affordable drugs. Discount cards fulfill this need.
Technological: Several players are offering discount cards through online platforms and mobile apps for easy accessibility. This has boosted the convenience of users.
Key Takeaways
The global drug discount card market is expected to witness high growth during the forecast period due to the rising healthcare costs worldwide.
Regional analysis: North America region currently dominates the global market due to the presence of major players in the US. However, Asia Pacific region is projected to witness the fastest growth due to improving healthcare infrastructure and increasing healthcare spending in countries like India and China.
Key players: 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 the leading player in this market owing to its large network of participating pharmacies and variety of discount plans offered.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
