Pharmacies & Drug Stores in Canada - Market Size, Industry Analysis, Trends and Forecasts (2024-2029)

Another dose: A rising research and development expenditure will likely benefit the industry

Over the five years to 2023, the Pharmacies and Drug Stores industry in Canada has benefited from the fact that pharmaceuticals currently comprise one of the largest health expenditure categories in Canada. Although increasing pharmaceutical prices have bolstered industry revenue, many provincial drug programs have restricted their prescription prices to cut healthcare costs to consumers, hindering industry operators in the process. For example, many territories have required generic drugs to be marked down by a percentage of the patent drug equivalent, limiting revenue growth and hindering more robust industry profit growth. British Columbia's reference-based pricing model in particular, which includes generic substitution reimbursement rates within particular product categories, has further constrained operators' ability to markup prescription prices for individuals with public health insurance.

The Pharmacies and Drug Stores industry in Canada retails a range of prescription and over-the-counter medications, health and beauty items, toiletries and consumable goods directly to consumers on a walk-in basis. Industry operators may also provide basic health and photo-processing services. The industry includes retail stores with a pharmacy, but excludes mail order and online retailers, hospitals and clinics.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.