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Drug discount cards provide discounts on medications at pharmacies for individuals who lack insurance or have high copays and deductibles. These cards aim to make prescription drugs more affordable by offering savings between 10-80% on both generic and brand drugs. They are especially useful for people with chronic conditions requiring long-term medications. The rising cost of prescription drugs has made these cards an important means of financial relief for many. With nearly one-third of Americans reporting difficulty affording their medicines, drug discount cards play a vital role in improving access to treatments.
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:
Due to increasing uninsurance and underinsurance rates, the number of Americans utilizing prescription drug discount programs continues rising. The affordability crisis has spurred greater collaboration between discount card providers and pharmacies, expanding card acceptance nationwide. Major players are deepening their networks of participating pharmacies while offering more competitive savings. Digital technologies are also streamlining the enrollment process, with mobile apps providing on-the-go access to discounts. This increasing ease of use and availability is sustaining strong demand growth in the drug discount card market.
Porter’s Analysis
Threat of new entrants: The threat of new entrants to the drug discount card market is moderate due to high capital requirements for establishing business such as building infrastructure and partnering with pharmacies and pharmaceutical companies. However, ease of internet-based business models enables new players to enter the market easily.
Bargaining power of buyers: The bargaining power of buyers in the drug discount card market is high owing to availability of a variety of options available from players providing comparative prices. Buyers can switch between multiple players offering better deals on medications.
Bargaining power of suppliers: The bargaining power of suppliers in the drug discount card market is moderate as major suppliers in the market are pharmaceutical companies and pharmacies. Suppliers have moderate control over pricing and output levels but need buyers for selling their products and services.
Threat of new substitutes: The threat of new substitutes for drug discount cards is moderate as there are limited substitutes available that provide overall savings on prescriptions over longer term such as generic drug programs and manufacturer coupon programs.
Competitive rivalry: The competitive rivalry in the drug discount card market is high owing to presence of multiple regional and global players offering comparable services and pricing strategies trying to increase their market share.
Key Takeaways
The global Drug Discount Card market is expected to witness high growth over the forecast period owing to rising healthcare costs and increasing pressures to reduce prescription drug expenses. 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.
Regional analysis: North America is expected to dominate the global Drug Discount Card market during the forecast period attributed to increasing aged population suffering from chronic diseases driving demand for affordable medical treatments in the region. Europe and Asia Pacific are anticipated to exhibit lucrative growth owing to growing medical insurance and discount pharmacy programs in countries like Germany, France, China and India.
Key players: Key players operating in the Drug Discount Card market include GoodRx, SingleCare, WellCard Savings, RxSaver, Optum Perks, Kroger Prescription Savings Club, ScriptSave, Walmart Rx Savings Program, Prescription Hope, FamilyWize, NeedyMeds, and Humana. These players are focusing on strategies like expanding their geographic footprint and enhancing their service offerings to gain higher market share.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
