Photo by Mike Enerio on Unsplash
By 2035, the total healthcare market of 11 South-East Asian countries is expected to reach USD 45.85 billion, with a big patient base of almost 678 million people. Among them, Indonesia, Vietnam, Thailand, the Philippines, and Malaysia are the frontiers of the region’s growth.
Common Market Trends in South-East Asia Rx & OTC Markets:
- Self-medication and traditional medicines are strongly preferred in the region. In some countries and rural areas, the pharmacies are the first place the patients visit when they have mild symptoms.
- Some Southeast Asian countries participate in cross-border healthcare/medical tourism initiatives, allowing patients to seek medical treatment in neighboring countries.
- Telemedicine and online consultations are becoming more prevalent. E-commerce and online pharmacies are also adapting to consumers purchasing habits.
- All the Southeast Asian countries belong to zone IVa and IVb with hot and humid/very humid weather. Thus, it requires a stringent control of both temperature and humidity to maintain drug stability.
- The region is witnessing a rise in disposable income and the middle class, along with an aging population.
Figure 1: Overview of pharma & OTC sales distribution in SEA in 2035
While Indonesia, Thailand, and Vietnam are projected to be the leading players in the region in terms of market size, Malaysia and the Philippines are demonstrating high growth rates with a lot of opportunities.
- Indonesian Prescription & Non-prescription Market
Indonesia’s pharma market is experiencing significant growth, driven by its large population of 275 million people, increasing healthcare awareness, and expanding healthcare infrastructure. The market is dominated by local pharma companies such as Kalbe Farma, Kimia Farma, and Dexa Medica. However, imported products, particularly from the EU, USA, and Canada, tend to command higher willing-to-pay prices, driven by consumers’ perceived quality. Nevertheless, entering the Indonesian market can be challenging for foreign players without a strong local network or in-depth knowledge due to its complex market structure and regulatory environment.
Learn more about Indonesian OTC & Rx Market here
- Thai Rx and Consumer Health Market
Currently, 70% of Thailand’s medicines are imported, and Western medicines are often sold at significantly higher prices compared to local alternatives. Despite the widespread use of modern healthcare products, traditional Thai medicine and herbal remedies continue to play an important role in healthcare. Additionally, about 99% of the population is now covered by health insurance (UCS), ensuring broad access to healthcare services. Thailand’s healthcare system is also a major draw for medical tourism, offering high-quality and affordable care compared to neighboring countries, attracting a large number of foreign patients annually.
Gain more insight into the Thai Pharma Market here
- Vietnamese Prescription and OTC Market
A notable trend in Vietnam is the widespread practice of self-prescribing among consumers. Products from regions such as Europe, the USA, Canada, and Japan are often favored for their perceived quality. The country’s growing upper-middle class is influencing purchasing behaviors, with a preference for Phyto drugs and natural APIs. Vietnam is also making strides toward expanding Universal Health Coverage (UHC), aiming to achieve a 95% national coverage ratio by 2025.
Learn more about Vietnamese Rx & OTC Market here
- Malaysian Pharma and OTC Market
Malaysia is a very import-friendly market, with a streamlined and transparent regulatory landscape. Notably, some products registered in Malaysia can also be sold in Singapore through a shortcut registration process. In the Malaysian retail pharma market, 60% of sales occur in private clinics, where people typically seek treatment for minor health issues. The remaining 40% of sales are attributed to pharmacies. For more serious conditions, people usually turn to either private or government hospitals. Additionally, Western imported products tend to be sold at higher prices, reflecting their perceived value and quality.
Explore Malaysian OTC & Rx Market here
- The Philippine prescription and non-prescription market
The Philippines’ pharma and OTC market is highly price-sensitive, with consumers showing a strong preference for smaller packaging to manage costs. The market features a mix of local companies, such as Unilab and Pascual, alongside multinational corporations like Pfizer, GSK, and Novartis. Partnerships between local companies for distribution and commercialization are common, creating a collaborative market environment. Government health campaigns and public health initiatives play a crucial role in shaping healthcare access and awareness. While certain segments remain underdeveloped, the market is open to differentiation and innovation, offering opportunities for growth and expansion.
Get more insight into The Philippine Pharma Market here
Figure 2: Top 5 promising Rx & OTC markets in Southeast Asia in 2035
Mapping your successful market entry strategy in Southest Asian healthcare markets requires in-depth analysis and local network/expertise, taking into account the important needs and characteristics of each local market. Chameleon Pharma Consulting Group (CPC) with extensive experience and network in Asia would be delighted to assist you to enter the Southeast Asia pharma market with our services, including:
- Systematic Country and Product analysis (portfolio analysis),
- Systematic Local Partner Identification,
- Registration and Regulatory Affairs,
- Digital Transformation Services (strategy consulting, e-learning, social media analysis, SEO optimization and other).
Figure 3: CPC Systematic Product Potential & Country Analysis
We are also looking forward to your requests regarding Latin America, Europe, US/Canada, Middle East and CEE/CIS. For your individual questions please contact us by e-mail at service@chameleon-pharma.com.
