The U.S. pharmacy market size was exhibited at USD 528.9 billion in 2022 and is projected to hit around USD 759.14 billion by 2032, growing at a CAGR of 3.68% during the forecast period 2023 to 2032.
Key Takeaways:
U.S. Pharmacy Market Report Scope
Report Coverage | Details |
Market Size in 2023 | USD 548.36 Billion |
Market Size by 2032 | USD 759.14 Billion |
Growth Rate From 2023 to 2032 | CAGR of 3.68% |
Base Year | 2022 |
Forecast Period | 2023 to 2032 |
Segments Covered | Ownership, product type, pharmacy type |
Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Key Companies Profiled | CVS Health; Walgreens Boots Alliance, Inc.; Walmart Stores, Inc; Cigna Healthcare; Rite Aid Corp; The Kroger Company; Albertsons Companies, Inc; UnitedHealth Group (OptumRx); Cardinal Health, Inc; Humana pharmacy solution |
This growth can be attributed to several factors, including the increasing prevalence of chronic diseases, the aging population, and expanding healthcare coverage, which leads to a higher demand for healthcare services and medications. This expansion of healthcare coverage is expected to provide more people with access to necessary medications.
In addition to these factors, the market players are introducing improved services and transitioning towards e-pharmacy, which is expected to contribute to market growth in the U.S. For instance, in February 2022, Medicure Inc. launched its Marley drug pharmacy, which is a direct-to-consumer e-commerce pharmacy platform. The platform offers over 100 chronic care medications and free delivery to any location in the U.S. and some territories. These developments are anticipated to have a positive impact on market growth.
Furthermore, the number of pharmacies in the country for drug distribution is increasing due to the rapid growth in the number of prescriptions, which is expected to have a positive impact on market growth. The National Council for Prescription Drug Programs (NCPDP) reported that the number of independent pharmacies in the U.S. increased by 12.9% from 2010 to 2019. In 2010, there were 20,427 independent pharmacies in the U.S., while in 2019, there were 23,061. This increase in the number of independent pharmacies is expected to contribute to the growth of the U.S. pharmacy industry.
Pharmacy Type Insights
Retail pharmacy held the largest market share in 2022. The growing number of independent pharmacies and chains, along with the availability of medications in supermarkets & mass retailers in the country, is driving the retail pharmacy segment. Additionally, the presence of large chains such as CVS Health, Walgreens Boots Alliance, Inc., Walmart Stores, Inc, and Rite Aid Corp is supporting the segment's growth.
Moreover, the rapid adoption of automation technologies, such as robots, automated dispensing cabinets, and packaging systems, is driving the segment’s growth. For instance, in March 2022, Walgreens Boots Alliance reported opening its robotic micro-fulfillment centers in its 22 facilities across the United States, to fill customers’ prescriptions.
In August 2021, Innovation Associates unveiled its SmartPod, a robot that provides innovative scale within a centralized pharmacy setting. These advancements in automation technologies are expected to improve the efficiency and accuracy of pharmacy operations. ePharmacy is estimated to be the fastest-growing segment during the forecast period.
Ownership Insights
Pharmacy chains held the largest market share in 2022 and is expected to witness the fastest growth during the forecast period. The growth of this segment is expected to be driven primarily by the emergence of large hospital and corporation chains that offer convenient and cost-effective services, including specialty drugs, mail-order prescriptions, and other services.
In addition, hospital and corporation chains are also providing quality care while implementing innovative technologies such as automated medication dispensing systems, electronic health records, and digital pharmacies. These technologies are expected to further drive the growth of the segment by improving efficiency and accuracy while reducing costs.
For instance, in October 2022, Rite Aid, a full-service pharmacy corporation, reported a technology partnership with Google Cloud to transform its pharmacy operations digitally. This partnership is expected to facilitate Rite Aid's migration to Google Cloud's Anthos for key applications, including a vaccine scheduling tool, a digital engagement platform, and customer messaging infrastructure. This move is expected to accelerate the adoption of modernized pharmacy operations and drive the growth of the hospital and corporation segment.
Product Insights
The prescription segment held the largest market share in 2022 and is expected to witness the fastest growth during the forecast period. This is attributed to the increasing burden of chronic diseases and the growing aging population, driving the demand for prescription drugs. According to the CDC's National Diabetes Statistics Report for 2020, 26.9 million people are living with diabetes, indicating a significant need for prescription medications to manage and treat chronic diseases, thereby contributing to growing demand.
The growth of the prescription segment has a significant impact on the overall U.S. pharmacy industry. As the demand for prescription drugs continues to rise, it is likely to create new opportunities for pharmacies to expand their offerings and cater to the needs of patients with chronic illnesses. This growth is expected to benefit the industry in the long term by increasing revenue streams and improving healthcare outcomes for patients.
The OTC products segment is projected to witness the fastest growth during the forecast period owing to high demand for OTC medications such as painkillers, cold & flu medicines, dietary supplements, skincare, and anti-diarrheal, among others. In 2019, 262 million Americans used OTC medications and made around 3 billion purchase visits. Easy accessibility and low cost of medications are expected to aid market growth.
Key Companies & Market Share Insights
The market is highly competitive. Some of the major players are CVS Pharmacy, Walgreens, Health Mart, and Rite Aid. There are more than 29,882 pharmacies across 8 pharmacy chains in the US. Market players adopt this strategy to expand the outreach of their service in the market and increase the availability of their service in diverse geographical areas.
For instance, in December 2021, CVS Health collaborated with Microsoft on its Omni channel pharmacy capabilities and provide personalized, customized care recommendations for consumers. As part of this strategy, CVS is expected to utilize Microsoft's Azure cloud platform and data science. Some prominent players in the U.S. pharmacy market include:
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 U.S. Pharmacy market.
By Pharmacy Type
By Product Type
By Ownership