Decline in medicine sales hits Kerala, drug stores struggle as online marketers thrive

A sharp decline in drug purchase and consumption habits among Malayalees has pushed numerous drug stores in Kerala to the verge of closure. According to All Kerala Chemists and Druggists Association (AKCDA) President AN Mohanan, between 80 and 100 drug stores in every district shut down due to dwindling business yearly.

Kerala, once a booming pharmaceutical market with an annual sales growth (CAGR) of 10-15 per cent, was ranked among India’s top five drug markets. However, the state is now grappling with a significant slump in sales, he told Manorama Online.

In 2021, the turnover of the pharmaceutical market in Kerala was Rs 11,100 crore. In 2022, it reached Rs 12,500 crore, and in 2023, it climbed to Rs 14,850 crore. This consistent growth represented an annual growth rate of more than 10 per cent. However, in 2024, the turnover is expected to reach only about Rs 15,000 crore, indicating a sharp decline in the rate of growth.

The state has about 29,000 authorised drug stores, of which 18,000 operate in the private sector. The rest include large pharmaceutical store chains, besides those in the government and cooperative sector such as Jan Aushadhi, Sevana, and Niti etc.

Malayalis no longer dependent on drugs
According to Mohanan, the government's ban on the sale of antibiotic drugs without a doctor's prescription under Operation Amrit has significantly impacted the revenue of medical shops. Operation Amrit, or the Antimicrobial Resistance Intervention for Total Health, aims to curb the sale of drugs without a prescription. Implementing this regulation has led to a drop in turnover by Rs 500-700 crore.

Mohanan said large pharmaceutical store chains selling at discounted rates and the online over-the-counter drug market are putting pressure on local medical stores. He also asserted that the availability of drugs online without a prescription could have a significant social impact, urging the government to intervene in this matter.

98% of drugs come from outside
The majority of the drugs consumed by Malayalis are for diseases like diabetes and heart conditions, primarily falling under the categories of diabetology, cardiology, neuropsychiatry, and vitamins.

The drug dealers of the state, in collaboration with prominent figures in the pharmaceutical industry, have launched a drug manufacturing startup called Kinopharm Ltd at Puthencruz in Ernakulam, with an initial investment of Rs 5 crore. The company produces and markets antibiotics, paracetamol under the brand name Kynopar, and medicines for fever and cold, all sold at competitive prices. Kerala ranks fifth in total drug consumption in India, holding a share of around 7 per cent, behind Uttar Pradesh, Madhya Pradesh, Maharashtra and West Bengal.