eCommerce: Market Insights

Mexican Online Pharmacies: Key Insights

• Global Ascension: Fahorro.com has risen as Mexico's leading online pharmacy, ascending from 63rd place among global online pharmacies in 2019 to 8th place by 2022.

• Developing Countries Drive Growth: The pandemic and technological advancements have accelerated the expansion of online pharmacies, with countries like Mexico and India presenting fresh market opportunities driven by remote and low-income demographics.

• Factors for Success: Once considered an alien concept, Mexico's online pharmacy industry is now thriving thanks to competitive pricing, round-the-clock delivery services, and broad accessibility spanning various platforms and regions. The rising average age of the population further stimulates business growth.

Online pharmacies proliferated on a global scale during the pandemic and have persisted even after the lifting of restrictions. Interestingly, online pharmacies appear particularly robust in developing countries, including Mexico.

Learn about the leading Mexican online pharmacies and what factors contribute to their global success.

Fahorro: Mexico's No. 1 Online Pharmacy

Our ECDB store ranking allows users to customize their search by selecting countries and specific product categories, among other variables.

This functionality enables us to analyze the top five online pharmacies in Mexico based on their eCommerce net sales in 2023. Below are the results.

By a wide margin, fahorro.com is the online pharmacy with the highest online net sales, having generated US$333.5 million in 2023. Fahorro is also the pharmacy we mention in our insight on online pharmacy trends, where we report on the impressive leap the company has made in the global rankings, moving from 63rd place in 2019 to the top ten since 2021.

The second largest online pharmacy in Mexico is farmaciasanpablo.com.mx, with online net sales of US$110.8 million in 2023. Farmacia San Pablo is ranked among the top 20 global online pharmacies. Other specialists include prixz.com with net sales of US$50.4 million (global: 58), and farmalisto.com.mx in fourth place and eCommerce net sales of US$31 million. The fifth rank is benavides.com.mx with US$17.5 million in online revenues.

Staying with the leading store, Fahorro, how did this online pharmacy develop over the past few years?

Fahorro's Online Sales Stay Resilient

Fahorro, which stands for Farmacías Del Ahorro, is an established pharmacy with over 20 years of operating experience and a nationwide store presence. Fahorro's industry experience provides a significant competitive advantage, because the company can leverage its brand reputation and store network to provide customers with an online or hybrid experience, tailored to their individual pharmaceutical needs.

This strategy proved especially useful during the pandemic, when the need for online ordering and rapid delivery of pharmaceutical products became a pressing issue. The development of Fahorro's online net sales reflects this trend:

In 2020, Fahorro's online net sales grew by 289% to US$195.6 million. The following year, it grew by an additional 48%, reaching US$290 million in online net sales by 2021. After the most immediate effects of the pandemic, Fahorro's online revenues grew slowly, but steadily: From US$317.3 million in 2022, to US$333.5 million in 2023, reaching a forecast of US$338.3 million by 2024.

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Given the accelerating impact of the pandemic and Fahorro's continued growth, what makes the Mexican online pharmacy market so lucrative?

Drivers of Online Pharmacy Market Growth

While the pandemic certainly contributed to the growth of online pharmacies around the world, it was technological advances that made it possible in the first place. Looking specifically at the case of Mexico, which is comparable to other developing countries, here is what else played a role.

Market Potential of Developing Countries

Developed countries like those in North America and Europe have pioneered the online pharmacy model. Yet it is emerging markets, like India and Latin American countries, where this business model is most promising.

Traditional brick-and-mortar pharmacies have faced challenges in reaching remote or low-income areas, but online pharmacies could break down these barriers with last-mile delivery solutions and more affordable pricing models. Lower regulatory barriers in these countries further enhance the expansion of the online pharmacy model. 

Accessibility for Remote Populations

Latin America and India are similar in that their populations are largely connected to the internet through their mobile phones, and online pharmacies with user-friendly interfaces are also accessible to shoppers at the lower end of the income spectrum. Mexico’s leading online pharmacies offer affordable prices, 24/7 delivery, and multichannel access.

In addition, the low cost of products offered by Mexico's online pharmacies makes them attractive to consumers across borders. An aging population is expected to represent a significant customer base in the coming years, supported by increasing online penetration.

Mexican Online Pharmacies: Closing Remarks

The global rise of online pharmacies during the pandemic found its most notable case in Latin America, with Mexico a key focus. A mix of technological progress and market needs has propelled Mexico to the forefront of this industry, with the leading pharmacy fahorro.com, setting benchmarks for global competitors.

Online pharmacies are an example of an industry that has gained momentum during the pandemic, but has continued to prove its relevance in the years since. The recent rise of online pharmacies in developing countries can help improve living conditions and access to medicines for more people around the world, inviting companies in more regions to participate.

Sources: El Paso Matters – Market Data Forecast – Market Research - NCBI