Online health product sales will reach $1.7 billion by 2003, according to a recent market research report by New York's Jupiter Communications. Other key predictions from the report:

• Online pharmacies will become key players in online health retail.
• Online sales of prescription drugs will increase dramatically, but an even greater proportion of nonprescription items (OTC drugs, vitamins, personal care products, etc.) will be ordered online.
• The continuing entry of high-profile new players into the online health marketplace will boost consumer awareness and use of online health resources.
• Alarmed by the launch of online pharmacies, brick-and-mortar pharmacies will rush to launch new online services.
• We will see many more mergers and acquisitions in the online health industry.
• More and more online health sites will combine health content with health commerce.

The report warns traditional health care providers and retailers that they must make it a top priority to offer online consumer services as soon as possible. Those that fail to do so will lose market share to Net-savvy competitors.

Published in The Ferguson Report, Number 4, June 1999

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