Pharmacy Market Size, Share & Trends Analysis Report By Product Type (Prescription, OTC), By Pharmacy Type (Retail, ePharmacy), By Region (North America, APAC), And Segment- Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032

The global pharmacy market size was estimated at USD 1,169.80 billion in 2022 and is expected to surpass around USD 1,869.49 billion by 2032 and poised to grow at a compound annual growth rate (CAGR) of 4.8% during the forecast period 2023 to 2032.

Key Takeaways:

• In 2022, North America accounted for the highest revenue share of 53.2%.
• The prescription product type segment accounted for the largest revenue share of 84.6% in 2022.
• The retail pharmacy segment held the highest revenue share of 58.2% in 2022.

Pharmacy Market Report Scope

The increasing number of people suffering from diseases, increasing aging population, and growing number of prescriptions are the key parameter driving the market. According to the National Health Services, the cost of prescriptions in the financial year 2020 - 21 increased by 3.46% as compared to 2019-20 in England. According to the Centers for Disease Control and Prevention, 45.7% of the population in the U.S. consumed at least one prescription drug between 2015 and 2018, while 21.3% of the population consumed three or more prescription drugs during the same period.

Rapid expansion and upgradation of existing pharmacies to increase market penetration are positively impacting the market growth. For instance, in 2020, Rite Aid Corp. opened two new stores, relocated five stores, and completed store remodeling to get 1,826 remodeled stores in the fiscal year 2020. Retail and hospital pharmacies are rapidly adopting various automation devices to increase patient safety and provide rapid & accurate services to their patients. Automation systems are widely used in e-prescribing, point-of-sale programs, bar code verification, robotic dispensing, automated pill counting, interactive voice response systems, and automated prescription pick-up.

According to a survey conducted by Pharmacy Purchasing and Products on pharmacy automation devices in 2019, 84.0% of the hospital pharmacies have adopted or planned to adopt automated dispensing cabinets. Moreover, pharmacies are adopting various digitalization programs to cater to the growing consumer demand and form a profitable business model. For instance, CVS Health introduced a Digital Transformation program to personalize the healthcare experience using artificial intelligence, machine learning, data, and analytics. Moreover, in December 2021, the company announced a partnership with Microsoft to scale up retail personalization and loyalty programs using advanced machine learning by using Azure.

Such digitalization and automation strategies are estimated to drive the market during the forecast period. Pharmacies are providing various patient care services and introducing various initiatives to promote medication sales. According to an article published in National Community Pharmacy Association (NCPA) Digest in 2019, 77% of the pharmacies offered medication therapy management, 76% offered immunizations for flu, 69% offered immunization for non-flu conditions, 57% offered blood pressure monitoring, and 56% provided compounding services.

Moreover, collaborative drug therapy agreements were offered by 39% of pharmacies, diabetes training by 33%, ostomy supplies by 32%, smoking cessation by 23%, patient education classes by 16%, asthma management by 13%, and weight management by 11%. Moreover, the pharmacies also started offering COVID-19 testing and vaccination services. CVS Health acquired eight million new customers through COVID-19 testing in 2020. Pharmacies are adopting innovative strategies for different functions, such as fulfilling prescriptions. For instance, Walgreens Boots Alliance introduced micro-fulfillment centers for supporting prescription shipping demand.

The company plans to introduce twenty-two micro-fulfillment centers in the U.S. by the end of 2020. Moreover, key stakeholders are also adopting strategies, such as acquisitions, partnerships, and collaborations, for expanding its distribution channel and market share.  For instance, in June 2021, Medly Pharmacy, a digital pharmacy, announced its plans to acquire Pharmaca, a pharmacy chain to expand its presence in thirty different markets. In May 2021, PharmEasy, an online pharmacy, acquired Medlife, an ePharmacy, to gain a higher market share and expand its presence in the industry. With this acquisition, PharmEasy holds 60% to 70% of the ePharmacy market in India.

Product Type Insights

The prescription product type segment accounted for the largest revenue share of 84.6% in 2022. The increasing burden of chronic diseases and the growing aging population is driving the demand for prescription medications. According to the International Diabetes Association, 463 million adults were suffering from diabetes in 2019. The number of adults suffering from diabetes is estimated to increase to seven hundred million by 2045. According to the American Heart Association, 126.9 million Americans were suffering from cardiovascular disease between 2015 and 2018. Moreover, the global aging population is also increasing rapidly.

According to the United Nations, there were more than 703 million adults above 65 years of age, globally. This is estimated to increase to 1.6 billion by 2050. Increasing demand for prescription drugs for therapies, such as diabetes, cardiovascular disease, respiratory diseases, antibiotics, blood disorders, and oncology, is driving the growth of the prescription segment. The OTC segment is estimated to witness the fastest CAGR during the forecast period. An increase in demand for OTC medications for diseases, such as upper respiratory medications, oral analgesics, and heartburn medications, is driving the segment growth.

Increasing instances of cough, cold & flu are supporting the segment growth. Moreover, increasing demand for private-label OTC products, increasing availability of OTC products through online channels, growing cost of prescriptions, increasing trend of self-medication, and conversion of prescription medications to OTC medications is bolstering the segment growth. For example, in February 2020, the U.S. FDA converted prescription medications Voltaren Arthritis Pain, a diclofenac sodium topical gel; Pataday Twice Daily Relief by Alcon and Once Daily Relief by Alcon for OTC.

Pharmacy Type Insights

The retail pharmacy segment held the highest revenue share of 58.2% in 2022. The growing number of independent pharmacies and chains along with the availability of medications in supermarkets & mass retailers in countries, such as the U.S. and U.K., is driving the retail pharmacy segment. The presence of large chains, such as CVS Health, Boots Walgreens, Shoppers Drug Mart, Lloyd, and Well pharmacy, in a few countries, such as the U.S., Canada, the U.K., Australia, and Russia, is supporting the segment growth. Moreover, the rapid adoption of automation technologies, such as pharmacy robots, dispensing, and packaging systems, is driving the segment growth.

Apart from dispensing a prescription, retail pharmacies are also offering vaccination services, health management services, and thereby fueling the market growth. For instance, CVS Health offers various health management programs, such as a diabetes program for its 1.4 million customers, Chronic Kidney Disease(CKD) care management to more than 7.5 million eligible members, and an oncology care program to more than 125 provider systems in 2020. ePharmacy is estimated to be the fastest-growing segment during the forecast period. Retail sales increased rapidly during the COVID-19 pandemic.

Many ePharmacies witnessed an increase in revenue growth in 2020 during the pandemic. For instance, online sales of Boots U.K. increased by 105% during the lockdown. CVS Health reported a 50% increase in digital refills in the specialty product category through apps. E-pharmacies have benefits, such as privacy & confidentiality, free shipping, discounts, reduction in purchase time, and a wide range of offers. Moreover, the high adoption of digital technologies by the healthcare industry, increasing penetration of smartphones, and agrowing number of retailers introducing online channels are estimated to drive the segment growth.

Regional Insights

In 2022, North America accounted for the highest revenue share of 53.2%. It is attributed to the presence of large-scale multinational chains, such as CVS Health, Boots Walgreens, Cigna, UnitedHealth Group, Walmart, Kroger, and Rite Aid Corp. These players are adopting various initiatives and automation technologies to increase market share. For instance, Rite Aid Corp. introduced its Wellness + rewards program, which offers significant discounts and rewards to its customers. Moreover, the rapidly growing aging population is supporting market growth.

According to the report published by the U.S. Census Bureau in June 2020, the geriatric population (aged above 65 years) increased by 34.6% from 2010 to 2019. Moreover, the rapidly growing demand for OTC and prescription drugs is driving market growth potential. However, Asia Pacific is anticipated to be the fastest-growing regional market during the forecast period. Rapid growth in the pharmaceutical industry in China, and India along with growing demand for generic medications is driving pharmacies demand in the region.

Moreover, rapid expansion plans undertaken by key pharmacies are supporting market growth. For instance, in March 2021, Generic Aadhar, a pharmacy retail chain in India, launched an app to get generic medications and sell them in its outlet. In March 2020, Chemist Warehouse, Australian Pharmacy, opened its new store in Christchurch, Australia. Growing disease burden and increasing healthcare spending are also supporting the market growth. Moreover, the increasing geriatric population in Asian countries, such as Japan, is further augmenting the market growth.

Some of the prominent players in the Pharmacy Market include:

• CVS Health
• Boots Walgreens
• Cigna
• Walmart
• Kroger
• Rite Aid Corp.
• Lloyd Pharmacy
• Well Pharmacy
• Humana Pharmacy Solutions
• Matsumoto Kiyoshi

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the Pharmacy market.

By Product Type 

• Prescription
• OTC

By Pharmacy Type 

• Hospital Pharmacy
• Retail Pharmacy
  • Chain
  • Independent
  • Others
• ePharmacy
• Others

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)