Drug discount cards help lower the costs of prescription drugs for individuals by providing discounts at the pharmacy counter. These cards offer savings on both generic and brand name medications across all major therapeutic categories like diabetes, cardiovascular disease, pain management, mental health conditions and more.
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 key trends: Rising healthcare costs have propelled the growth of the drug discount card market over the recent years. The costs of branded and generic drugs in the US have witnessed a consistent rise. Moreover, the deductibles and co-pays on insurance plans have also increased significantly. This has forced individuals to look for affordable treatment options. Drug discount cards help lower the financial burden on individuals for prescription drugs by providing discounts. Hence, the increasing healthcare costs have emerged as a key driver boosting the demand for drug discount cards in the country.
SWOT Analysis
Strength: Drug discount cards provide affordable access to prescription drugs for those who are uninsured or underinsured. It offers savings of up to 80% on both generic and brand name medications.
Weakness: Drug discount cards only offer limited savings and do not provide comprehensive insurance coverage. They also have restrictions on the types of drugs that are covered.
Opportunity: With rising healthcare costs and increasing number of uninsured individuals, there is significant growth potential for drug discount cards in the US. The aging population also provides an opportunity to target senior citizens.
Threats: Stricter regulations can limit the savings offered by drug discount cards. Increasing insurance enrollment also poses a threat by reducing the target segment relying on such discount programs.
Key Takeaways
The global drug discount card market is expected to witness high growth over the forecast period of 2023 to 2030. The market size is projected to reach US$ 1,674.2 Mn by 2023, growing at a CAGR of 8.1% during the forecast period.
Regional analysis
North America currently dominates the drug discount card market, accounting for over 45% share. This can be attributed to the large uninsured population in the US relying on such programs for affordable access to medicines. The region is expected to maintain its leading position, driven by rising healthcare costs. Asia Pacific is projected to be the fastest growing market due to increasing medical insurance penetration and focus on expanding access to drugs in countries like India, China and Japan.
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 currently the market leader based on its wide network of participating pharmacies and significant consumer awareness of its platform. Other players are focusing on strategic partnerships and branding to gain market share.
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- Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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