DRUG DISCOUNT CARD MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The Drug Discount Card Market size is expected to reach US$ 25.3 Million by 2030, from US$ 15.5 Million in 2023, at a CAGR of 7.2% during the forecast period. Drug discount cards provide discounts on prescription drugs for people who do not have prescription drug coverage. These cards are issued by private companies or non-profit organizations and can help users save 10-25% on medications. The key advantages of drug discount cards include significant savings, easy access, wide coverage of drugs and pharmacies.

The Drug Discount Card Market is segmented by type, distribution channel, and region. In terms of type, it is categorized into branded cards and generic cards. Branded cards held a significant market share in 2022, driven by the higher prices of branded drugs, which made the discounts more appealing.

Drug Discount Card Market Regional Insights:

North America is expected to be the largest market for Drug Discount Card Market during the forecast period, accounting for over 47.54% of the market share in 2022. The growth of the market in North America is attributed to the high medication costs and increasing adoption of discount cards by uninsured population.

The Europe market is expected to be the second-largest market for Drug Discount Card Market, accounting for over 24.59% of the market share in 2022. The growth of the market in is attributed to the rising prevalence of chronic diseases driving the demand for prescription medications.

The Asia Pacific market is expected to be the fastest-growing market for Drug Discount Card Market, with a CAGR of over 16.39% during the forecast period. The growth of the market in Asia Pacific is attributed to growing awareness and adoption of discount cards along with increasing healthcare spending.

Figure 1. Global Drug Discount Card Market Share (%), by Region, 2023 

Drug Discount Card Market Drivers:

• High Cost of Prescription Drugs: The high and continually rising cost of prescription medications is a major factor driving growth in the drug discount card market. The sticker prices of both generic and brand name drugs have increased substantially in recent years. A report from 2012 to 2017, the costs of oral and injectable generic drugs rose 37% and 15% respectively. The increasing prices of prescription drugs have made medications unaffordable for many uninsured and underinsured patients. Drug discount cards provide significant savings on prescription costs, with average discounts of 10-25% on brand name drugs and 55-60% on generic drugs through these cards. The high prescription drug prices are propelling uninsured and underinsured patients to utilize drug discount cards and programs to reduce their medication costs.
• Large Uninsured and Underinsured Population: A large population of uninsured and underinsured people in the US who have to pay high prices for their prescription drugs is a key driver for the drug discount card market. According to data over 31 million individuals in the US were uninsured in 2021. Additionally, millions are underinsured, having insurance plans with high deductibles and copays. Without adequate prescription drug coverage, the retail prices of medications can be prohibitively expensive. Drug discount cards serve the large uninsured and underinsured population by making their required prescription drugs more affordable through discounts. Discount cards can lower out-of-pocket costs by 60% for uninsured patients. The market is further driven by this large target demographic dependent on discount cards to reduce their prescription costs.
• Increasing Online Adoption: The increasing adoption of online platforms and m-health apps for managing healthcare is driving the uptake of digital drug discount cards. Online platforms offer free discount cards that can be downloaded digitally via web or mobile apps. The cards are easily accessible through online accounts. This provides convenience and saves time compared to using paper cards. Additionally, online platforms allow consumers to conveniently compare prescription costs between nearby pharmacies along with the discounts applicable. The adoption of e-prescriptions is also surging, which increases digital access to discount cards for medicines ordered online or delivered through mail. Such technological trends are boosting access and use of digital discount cards for prescription savings.
• Strategic Collaborations: Strategic collaborations between discount card platforms and pharma companies provide growth opportunities and are driving market expansion. In June 2022, pharmaceutical company partnered with prescription savings platform. The deal gave app users exclusive access to savings on two antidiabetic brand. Such partnerships provide discounts specifically on costly branded drugs, benefitting consumers. The collaborations are mutually beneficial for pharma companies and discount platforms. More such strategic collaborations will have a positive impact on the drug discount card market.

Drug Discount Card Market Opportunities:

• Expansion in Emerging Markets: There are significant growth opportunities for drug discount card companies in emerging markets across the Asia Pacific, Latin America, and Africa. Many of these countries have large underinsured and uninsured populations due to lower healthcare spending and infrastructure compared to developed regions. The out-of-pocket expenditure on drugs is high in these markets. Local startups in emerging markets are introducing innovative discount card programs and e-health platforms tailored to their markets. For instance, In Africa, m-health app providing discounted prescriptions and telehealth services. In India, provides discounted lab tests and medicines. The opportunity exists for global discount card players to expand their services through partnerships with local players in these high potential emerging markets.
• Utilization for Pet Meds: There is a growing opportunity for utilizing drug discount cards to provide savings on veterinary prescription medications. Pet adoption rates have surged during the pandemic, resulting in higher spending on pet medications. However, retail prices for pet meds are high, presenting an opportunity to promote discount cards for these. Leading prescription savings platforms have begun including pet medications within their discount card programs. Partnerships with veterinary clinics and online pet pharmacies can also drive utilization. With the pet care industry booming, more opportunity exists for drug discount cards tailored to veterinary prescriptions.
• Discount Cards for OTC Drugs: Another opportunity is the untapped potential for discount cards targeted towards over-the-counter (OTC) medications. While discount cards traditionally provide savings on prescription drugs, they can also be applied to high-cost OTC medicines for chronic conditions. This can improve access and adherence to OTC drugs that are not covered by insurance. Partnerships with consumer healthcare companies can unlock discounts on leading OTC brands. Startups are entering this space with discount cards focused on non-prescription drugs. With consumers bearing 100% of OTC costs, discount cards in this space have high relevance and opportunity.
• Customized Services for Employers: Employers are emerging as a key opportunity area for drug discount card companies. Firms bear significant healthcare costs for employees, including prescription drug expenditures. This provides incentive for employers to seek prescription savings programs to lower benefits costs. Customized discount card options can be offered as voluntary employee benefits. Insurance providers now offer employer-focused prescription discount plans covering all employees. Strong opportunity exists for drug discount cards to tap the employer segment through benefit programs tailored to firms across industries and sizes.

Drug Discount Card Market Trends:

• Adoption of Data Analytics: The adoption of big data analytics is an important trend impacting the drug discount cards market. Companies are utilizing advanced data analytics to gain insights on prescription fill patterns, medications with highest spend and savings opportunities. This data enables development of targeted programs providing maximum savings on high cost therapy areas. Data analytics also allows measuring program ROI for pharma partners. For instance, discount platform uses real-world data and analytics on doctors' prescribing patterns to create personalized prescription savings programs. The trend of leveraging data and analytics will continue allowing value enhancements.
• Digital Therapeutics Integration: Integration with digital therapeutics solutions is a key trend in the market. Digital therapeutics use software to treat medical conditions through behavioral and lifestyle changes. Linking discount cards with apps providing digital therapy improves adherence to therapy and health outcomes. In 2021, chronic disease management platform partnered with leading discount card to integrate affordable medications into personalized digital care plans for users. Similar digital medication adherence solutions can be integrated with cards. Such partnerships provide holistic solutions combining digital therapeutics with prescription savings.
• Shift to Value-based Care: The shift from fee-for-service to value-based care models is an important trend. This transition places emphasis on improving outcomes and lowering treatment costs. As part of this, healthcare systems are integrating outpatient prescription drug benefits into bundled payments contracts. Prescription discount cards allow systems to reduce pharmacy benefit costs passed onto patients. Leading cards are being built into IT systems enabling use during point-of-care. Increased adoption by health systems to lower outpatient prescription costs for superior population health management is a key trend.
• Focus on Transparency: Increasing focus on transparency in prescription pricing and benefits is a trend supporting the discount cards market. Rules like the US Federal Transparency in Coverage Act mandate upfront disclosure of drug prices and out-of-pocket costs to patients. However, retail prescription pricing remains complex. Discount cards provide transparency on pharmacy-specific prices and applicable savings. Cards allow consumers to see personalized costs for drugs at different pharmacies along with discounts. As transparency initiatives increase, the role of cards in enabling eligible patients to estimate out-of-pocket costs will grow.

Drug Discount Card Market Restraints:

• Dominance of Few Players: The drug discount card market is highly competitive but consolidated with a few dominant players. New entrants face high barriers to gain market share and build scale. The established players have first-mover advantage, with widespread brand recognition and pharmacy networks powered by strong distribution infrastructure. Small discount card startups struggle with customer acquisition costs. The existing top players leverage aggressive pricing of subscription plans and marketing spends. Their stronghold can restrain smaller competitors from expanding their market share, limiting industry growth.
• Lack of Awareness Among Key Demographics: While adoption is high among the elderly, awareness and use of discount cards remains low among certain demographics like the uninsured young population who can highly benefit from these. According to survey, only 31% of millennials were aware of prescription discount programs. Young adults with inadequate insurance struggle with medication costs. Limited awareness among such key target groups that can unlock high growth impacts the market potential. This highlights the need for focused educational and promotional efforts.
• Discount Programs by Pharma Companies: The drug discount card market growth can be limited by prescription assistance and co-pay support programs directly offered by pharmaceutical manufacturers. Most pharma companies provide free medication coupons or co-pay cards to assist patients in affording costly branded drugs. Pfizer, AbbVie, Eli Lilly are among those offering such programs helping patients with out-of-pocket costs on their brands. While beneficial, the discount offerings by drug makers reduce the value proposition of third-party discount cards for competing on branded drug savings. This can restrain patients from paying for discount card memberships.

Recent Developments:

New product launches:

• In September 2022, GoodRx launched a new Gold subscription plan providing access to lower prescription prices, free delivery and 24/7 doctor visits for a monthly fee. This expanded GoodRx's monetization strategies beyond discounted prescriptions.
• In January 2021, Kroger launched a new prescription savings card called Kroger Rx Savings Club providing discounts on medications with annual membership fees as low as $36 per year. This strengthened Kroger's position in the prescription market.
• In November 2020, Walmart launched the Walmart Plus Rx for Delivery prescription savings program allowing deliveries of medications nationwide for $35 per year. This improved access and convenience.

Acquisition and partnerships:

• In March 2022, Capsule and SingleCare partnered to integrate Capsule’s delivery services into SingleCare’s platform, improving access to discounted prescriptions.
• In January 2021, RxSaver acquired FamilyWize to expand reach across the U.S. with FamilyWize's network of affinity partners providing prescription savings.
• In September 2020, GoodRx acquired RxSaver to expand its prescription savings offerings and consumer reach.

Figure 2. Global Drug Discount Card Market Share (%), by Applications, 2023

Top companies in Drug Discount Card Market:

• GoodRx
• SingleCare
• WellCard Savings
• RxSaver
• Optum Perks
• Kroger Prescription Savings Club
• ScriptSave
• Walmart Rx Savings Program
• Prescription Hope
• FamilyWize

*Definition: The drug discount card market refers to the industry providing discounted prescription medications through the use of membership cards or coupons. Drug discount cards help uninsured or underinsured patients save money on their prescription drugs by providing discounts that range from 10-25% on brand name and generic medications. These cards are provided by private companies, nonprofit organizations, or government programs and can be used at most major pharmacies across the United States. The discounts enable patients to purchase their required prescription medications at reduced prices, making them more affordable. The market is driven by rising drug prices and the high cost of health insurance coverage. Drug discount cards are easy to obtain and use, requiring no eligibility verification or enrollment process in most cases. They provide significant savings for patients with chronic medical conditions requiring long-term prescriptions.

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