LONDON--(BUSINESS WIRE)--The global pharmacy benefit management (PBM) market is expected to grow at a CAGR of over 6% during the period 2017-2021, according to a new market research study by Technavio.
The report categorizes the global pharmacy benefit management market by type of service, which includes retail/mail-order pharmacy, specialty pharmacy, and preferred network pharmacy. The report also determines the geographic breakdown of the market in terms of detailed analysis and impact, which includes key geographies such as APAC, the Americas, and EMEA.
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Market driver: growing geriatric population
A growing concern worldwide is the increasing geriatric population in major countries such as Japan, South Korea, China, Germany, and the US. However, this increases the chances of people being affected by a wide range of chronic diseases such as cancer. With the increase in age, a gradual change in their general health occurs, which limits their ability to take care of themselves and their daily needs.
According to Tasneem Ali, a lead analyst at Technavio for health and wellness research, “Vendors are focusing on the growing needs of this population group, and this is leading to the development of products aimed at the geriatric population. For example, Express Scripts, a leading vendor in the market, has a variety of products aimed at reducing drug costs and effectively managing the healthcare of the geriatric population.”
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Market trend: growing focus on promotional activities
To increase customer engagement and awareness levels among consumers regarding the importance of PBMs, vendors are utilizing various digital and social media. They are utilizing these platforms to interact with patients and consumers, build long-lasting relationships, and expand their business. Promotional activities on these platforms are cost-effective when compared with other means of marketing and public relations. PBMs can engage consumers and form chat forums on online social media pages, which users can use to share their feedback and can help the pharmacy benefit management companies to enhance their services or fix any shortcomings in existing ones.
Market challenge: increasing use of single-payer healthcare system
A single-payer healthcare system refers to a system where a single public organization covers or finances the cost of healthcare for individuals. The single-payer system gives maximum, and at times, unfair authority to a single organization as only one central entity decides what classes of medications will be reimbursed or what plans would be legal or illegal. Such a system could cause high disruption to the market as pricing control would be under one authority. The authority may not be aware of local health problems and only give importance to some classes of drugs.
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Key vendors in the market
- Aetna
- Cigna
- CVS Health
- Express Scripts
- UnitedHealth
The global pharmacy benefit management market is a highly competitive market as the three key vendors occupy close to 80% of the market share. These companies have a wide pharmacy network and offer a range of pharmacy benefit management services, offering health benefit plans for individuals, groups, or employers.
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