The taxable retail market deals in various drugs and medical devices prescribed for chronic diseases which require prolonged medical treatment. Drugs prescribed for chronic illnesses like diabetes, hypertension, cardiovascular diseases, respiratory diseases make substantial revenue in this market. The industry caters to a wide range of prescription medicines like insulin analogs for diabetes, anti-hypertensives, anti-lipidemics, respiratory inhalers, corticosteroids and bronchodilators. Key medical devices include insulin pens, inhalers and nebulizers, blood glucose monitors and pacemakers. These products offer patients better management of their condition and also improve their quality of life.

The Global Taxable Retail Market is estimated to be valued at US$ 15.55 Bn in 2024 and is expected to exhibit a CAGR of 5.3% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in The Taxable Retail Market are Allergan, Novartis, Pfizer, Takeda Pharmaceutical Company, Cook Medical, Medtronic, Johnson & Johnson, AstraZeneca, GlaxoSmithKline, Sanofi, Merck, Abbott Laboratories, Bayer, Astellas Pharma, Aurobindo Pharma, Ferring Pharmaceuticals, Salix Pharmaceuticals, Eli Lilly, Bristol-Myers Squibb, Boehringer Ingelheim. These leading players are investing heavily in R&D to develop new drug formulations and medical technologies to enhance treatment and focus on chronic diseases with high prevalence.

The growing incidence of chronic diseases like diabetes, cardiovascular diseases, respiratory diseases has significantly driven the demand for taxable retail products globally. According to WHO, cardiovascular diseases are the leading cause of deaths around the world. Moreover, increasing healthcare expenditure, medical insurance coverage and awareness about treatment of chronic illnesses have also propelled the growth of this market.

The taxable retail market has witnessed substantial expansion globally with companies aggressively expanding their footprint through acquisitions and partnerships to cater to the demand from emerging economies. These regions present lucrative opportunities due to the scale of population affected by chronic diseases and improving access to healthcare services. Key players are focusing their efforts in Asia Pacific and Latin American countries to leverage the potential growth avenues.

Market drivers
The major driver fuelling growth of the taxable retail market is rising geriatric population globally which is leading to the increasing prevalence of chronic diseases. People aged 65 and above are more prone to conditions like heart disease, diabetes, breathing problems increasing the need for prescription medicines. Moreover, increasing consumer health awareness and willingness to spend on healthcare is contributing to market demand. Better access to healthcare insurance in developed nations has encouraged people to seek prescription drugs and comply with prolonged treatment regimens for chronic diseases. Favourable regulations and industry friendly initiatives by governments have further supported market expansion of key players.

Geopolitical Impact on Taxable Retail Market Growth
The current geopolitical tensions across several regions are expected to impact the growth of the taxable retail market. Economic sanctions imposed by countries are limiting international trade and investment flows. This is hindering the easy availability of raw materials and impacting production levels. Additionally, rising security concerns and restrictions on travel are making it difficult to conduct business operations seamlessly across borders.

For the taxable retail market to sustain steady growth during these uncertain times, companies will need to focus on diversifying their supplier and distribution networks. Identifying new local partners can help create redundancies and reduce over-reliance on critical resources from sanction-hit countries. Firms should also explore opportunities in emerging markets not directly impacted by geopolitical issues. Adopting flexible manufacturing models and using multi-channel distribution will enable quicker response times to external disruptions. Overall, building strong risk management systems and scenario planning abilities are crucial for navigating the market successfully over the forecast period.

Geographical Concentration of Taxable Retail Market Value

The taxable retail market in terms of value is currently concentrated highly in North America and Western Europe. This is owing to the presence of several pharmaceutical industry giants and a high per capita healthcare expenditure in countries such as the United States, Canada, Germany, United Kingdom and France. Together, the markets in these regions account for over 50% of the global taxable retail market value as of 2024. However, growth rates in Asia Pacific excluding Japan are projected to outpace other geographical segments through 2030.

Rising Incomes and Growth in Fastest Region for Taxable Retail Market

The Asia Pacific region excluding Japan is expected to witness the fastest growth in the taxable retail market during the forecast period from 2024 to 2030. This can be attributed to rising incomes in populous nations such as China and India that are allowing more people to access branded pharmaceutical products. Also, governments in the region have been increasingly focusing on strengthening their healthcare systems. This is improving medical infrastructure and boosting healthcare spending, which is providing a fillip to the taxable retail sector. The growing geriatric population base susceptible to chronic diseases also works as a key driver for market expansion.

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