Pharmacies and Drug Stores Global Market Report 2024

The pharmacies and drug stores market size has grown strongly in recent years. It will grow from $1224.73 billion in 2023 to $1304.99 billion in 2024 at a compound annual growth rate (CAGR) of 6.6%. The growth in the historical period can be attributed to factors such as the aging population and increased healthcare requirements, expanded health insurance coverage, growing awareness of preventive healthcare, the prevalence of chronic diseases, and the convenience offered by retail pharmacies.

The pharmacies and drug stores market size is expected to see strong growth in the next few years. It will grow to $1662.63 billion in 2028 at a compound annual growth rate (CAGR) of 6.2%. The anticipated growth in the forecast period can be attributed to the increasing adoption of telehealth and remote consultations, the expansion of health and wellness services, a consumer focus on self-care, the integration of pharmacies into healthcare networks, and changes in healthcare behavior induced by the pandemic. Major trends in the forecast period include an emphasis on preventive care, enhancing supply chain resilience, ensuring health data security, fostering collaboration and partnerships, and promoting sustainability initiatives.

The growth of the pharmacy and drugstore market is likely to be driven by the increasing aging population and the growing health consciousness among the global populace. The vulnerability of the geriatric population to various diseases increases their reliance on pharmacies and drug stores, indirectly influencing the market. The Global Health and Aging report project that the number of people aged 65 or older will reach nearly 1.5 billion by 2050, with a significant increase in developing countries. Conditions such as cancer, dementia, increased falls, obesity, and diabetes are expected to pose challenges to the healthcare system due to the growing aging population. As the number of cases rises, there is a expanding customer base supporting the growth of the pharmacies and drug stores market.

The growth of the pharmacies and drugstore market is expected to be propelled by the increasing incidence of chronic diseases. Chronic diseases, lasting for three months or more, often persist throughout a person's life. Pharmacies and drug stores play a crucial role in managing chronic diseases by dispensing necessary medications and providing patient counseling. Serving as accessible healthcare touchpoints, they contribute to consistent medication adherence and offer health advice for the management of chronic ailments. For instance, according to the World Health Organization, 74% of the 41 million deaths annually worldwide are caused by non-communicable diseases (NCDs) or chronic diseases, including 17.9 million deaths from cardiovascular diseases, 9.3 million deaths from cancer, 4.1 million deaths from chronic respiratory diseases, and 2.0 million deaths from diabetes. The increasing incidence of chronic diseases is a significant driver for the growth of the pharmacies and drugstore market.

The pharmacies and drug stores market faces challenges due to rapidly increasing cost pressures from regulatory agencies and payers. Government budget constraints are leading to reduced pharmacy compensation in countries with public healthcare systems. The consolidation of pharmacy benefit management firms in the U.S. has also contributed to lower costs and margins, redirecting prescription volumes to direct or mail orders. Governments, being the major healthcare payers globally, are under increased pressure from taxpayers and government spending, impacting pharmaceutical effects. These factors are anticipated to negatively impact the pharmacies and drug stores market by intensifying cost pressures from regulatory agencies and impeding market growth.

Increasing the pharmacy and drugstore market growth is primarily attributed to factors such as working long hours and the prevalence of drive-through locations. Faced with rising competition from mass merchandisers, supermarkets, and direct mail prescription services, drug stores are enhancing their value proposition by offering services such as 24-hour operations and drive-through pharmacies. The US Pharmacy Study assesses customer satisfaction across major chain drug stores, mass merchandisers, supermarkets, and mail-order pharmacies, revealing that retail pharmacy businesses excel in providing patient-centric services that drive satisfaction. These convenience factors are expected to contribute to the growth of the pharmacies and drugstore market.

Key players in the pharmacies and drug stores market are introducing advanced AI-powered pharmacy dispensing platforms to enhance efficiency and clinical decision-making. An example is the Fred Dispense Plus platform, which employs artificial intelligence to optimize pharmacy dispensing processes. Launched by Fred IT Group Pty Ltd., an Australia-based Pharmacy IT solutions provider, the Fred Dispense Plus platform features the Fred AID (Artificial Intelligence Directions) tool. This tool leverages AI and big data to support clinical and business decision-making by predicting medication directions. It enables pharmacists to efficiently input dispensing labels, reducing manual typing through the use of shortcuts. Additionally, the platform includes a tool for price comparisons, ensures secure dispensing via a Microsoft SQL local database, and integrates MIMS drug interactions.

In January 2021, AmerisourceBergen Corporation, a US-based drug wholesale company, completed the acquisition of Walgreens Boots Alliance, Inc. for $6.275 billion in cash and 2 million shares of AmerisourceBergen common stock. This acquisition aimed to provide robust support for pharmacies and pharmacists globally, integrating solutions for pharmaceutical manufacturers. Walgreens Boots Alliance, Inc. is a US-based holding company with ownership of retail pharmacy chains and involvement in pharmaceutical manufacturing and distribution.

Major companies operating in the pharmacies and drug stores market report are CVS Health Corporation, McKesson Corporation, AmerisourceBergen Corporation, Cardinal Health Inc., Walgreens Boots Alliance Inc., Alliance Boots GmbH & Co. KG, Rite Aid Corporation, AS Watson Group, Shoppers Drug Mart Corporation, Matsumotokiyoshi Holdings Co. Ltd., Phoenix Group Holdings Limited, MedPlus Health Services Inc., Diplomat Pharmacy Inc., Rexall Sundown Inc., PharMerica Corporation, Kinney Drugs Inc., Bartell Drugs Inc., China Nepstar Holding Company Limited, Progressive Care Inc., Lewis Drug Stores Inc., Grupo Casa Saba Sab De Cv, Omnicare Inc., Dougherty's Pharmacy Inc., Medzone Incorporated, Medicap Pharma, Apollo Pharmacy Limited, Discount Drug Stores Inc., Good Neighbor Pharmacy, Fred's Pharmacy Inc., Navarro Discount Pharmacies LLC, Discount Drug Mart Inc., Kerr Drug Inc. Asia-Pacific was the largest region in the pharmacies and drug stores market in 2023. North America was the second-largest region in the global pharmacies and drug stores market share. The regions covered in the pharmacies and drug stores market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Pharmacies and drug stores primarily deal with two main types of drugs prescription drugs and over-the-counter drugs. Prescription drugs are medications that can only be obtained with a prescription from a physician. Various types of pharmacies include community pharmacy, hospital pharmacy, clinical pharmacy, industrial pharmacy, compounding pharmacy, consulting pharmacy, ambulatory care pharmacy, regulatory pharmacy, and homecare pharmacy. Different product types available at these establishments include skincare products, cold and flu remedies, dental products, weight loss aids, vitamins, and various other product types.

The pharmacies and drug stores market research report is one of a series of new reports that provides pharmacies and drug stores market statistics, including pharmacies and drug stores industry global market size, regional shares, competitors with a pharmacies and drug stores market share, detailed pharmacies and drug stores market segments, market trends and opportunities, and any further data you may need to thrive in the pharmacies and drug stores industry. This pharmacies and drug stores market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The countries covered in the pharmacies and drug stores market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The pharmacies and drug stores market includes revenues earned by entities by branded prescription drugs, generic drugs, non-prescription medicines, personal health supplies, and dietary supplements, cosmetics. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.