Pharmacies and Drug Stores Market Report 2025

The pharmacies and drug stores market size has grown strongly in recent years. It will grow from $1.33 trillion in 2024 to $1.43 trillion in 2025 at a compound annual growth rate (CAGR) of 7.2%. The growth in the historic period can be attributed to population aging and healthcare needs, health insurance coverage expansion, preventive healthcare awareness, chronic disease prevalence, retail pharmacy convenience.

The pharmacies and drug stores market size is expected to see strong growth in the next few years. It will grow to $1.8 trillion in 2029 at a compound annual growth rate (CAGR) of 6%. The growth in the forecast period can be attributed to growing telehealth and remote consultations, health and wellness services expansion, consumer focus on self-care, pharmacy integration in healthcare networks, pandemic-induced changes in healthcare behavior. Major trends in the forecast period include focus on preventive care, supply chain resilience, health data security, collaboration and partnerships, 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 million deaths from diabetes. The increasing incidence of chronic diseases is a significant driver for the growth of the pharmacies and drugstore market.

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.

Leading companies in the pharmacies and drug stores market are launching AI-powered pharmacy dispensing platforms, such as the Fred Dispense Plus platform, to enhance efficiency and support clinical decision-making. The Fred Dispense Plus is an AI-driven platform designed to improve the efficiency and accuracy of pharmacy dispensing operations. For instance, in October 2024, Alto Pharmacy, a US-based full-service digital pharmacy company offering a seamless pharmacy experience through advanced technology, launched Alto Technologies, which provides a suite of pharmacy solutions aimed at improving medication management efficiency and accessibility. The Alto Complete™ platform integrates hub and dispensing services, utilizing automation and artificial intelligence to streamline operations. This platform enables faster prescription processing, cost savings, and an improved patient experience, while also offering real-time data insights beneficial to healthcare stakeholders. Alto Technologies delivers customizable solutions for partners, empowering healthcare providers to enhance services while maintaining patient care, with a mission to transform the pharmacy landscape.

In September 2022, Walgreens Boots Alliance (WBA), a US-based provider of retail pharmacy, healthcare services, specialty pharmacy, and health and wellness products, acquired full ownership of Shields Health Solutions, purchasing the remaining 30% stake for $1.37 billion, based on the exit multiple established during WBA's 2021 investment in Shields. This acquisition aims to advance WBA’s consumer-focused healthcare strategy, targeting sustainable, long-term growth. Shields Health Solutions, a US-based company, specializes in integrated specialty pharmacy services focused on complex medications for chronic conditions, partnering with health systems to improve patient care and outcomes.

Major companies operating in the pharmacies and drug stores market include CVS Health Corporation, Walgreens Boots Alliance Inc., Alliance Boots GmbH & Co. KG, Rite Aid Corporation, AS Watson Group, Shoppers Drug Mart Corporation, Matsumotokiyoshi Holdings Co. Ltd., 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., 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 2024. 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. 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.

A pharmacy is a facility where individuals can acquire prescription medications, and it might be situated within a grocery store, drugstore, chemist, or other establishments. A drug store is an establishment primarily engaged in the sale of pharmaceuticals, medicines, and pharmaceutical preparations. These stores typically have a dedicated prescription department and employ a registered pharmacist available at all times.

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 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.

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