Pharmacy Market Size, Share & Trends Analysis Report By Product (Prescription, OTC), By Type (Hospital Pharmacy, Retail Pharmacy (Chain, Independent, Others), ePharmacy, Others), By Region, And Segment Forecasts
Pharmacy Market Size & Trends
The size of the global pharmacy market was USD 1.35 trillion in 2024 and is anticipated to grow at a CAGR of 7.3% during the period 2025-2030. The growth in this market is primarily influenced by the rise in the incidence of chronic diseases, which results in increased healthcare expenditure. The rising demand for specialty medicines globally and rising prescription drug spending in developed nations also are expected to create new opportunities. Furthermore, the rising prevalence of chronic diseases like cancer, diabetes, traumatic brain injuries, and cardiovascular diseases, primarily because of lack of exercise, is driving additional expansion.
The rise in the demand for prescription drugs is driving the growth of the industry. As the demand for prescription medicines is on the rise, pharmacies find themselves in greater business as the need to administer these drugs brings them more traffic. The cost of an NHS prescription in England for 2024-2025 is reported by the National Health Service at USD 12.65 per item, which is a hike of USD 0.51 from the past year. The prescription charges normally are reviewed yearly. The price has gone up gradually over the past few years, from USD 8.80 during 2015 - 2016 to USD 10.47 during 2024 - 2025.
Additionally, pharmacies are implementing digitalization schemes to meet the rising demand from customers and ensure better accessibility for patients. The establishment of end-to-end suites and software solutions by prominent market players in the healthcare IT market is anticipated to enable the growth of the pharmacy market during the forecast period. For example, in December 2024, Cencora, Inc., a provider of healthcare solutions, introduced Accelerate Pharmacy Solutions, mainly aimed at helping hospitals and health systems streamline operations and improve financial performance. This solution was created to make supply chain management easier, provide leading-edge technology, and allow users with enhanced capabilities.
Dramatic growth in the incidence of chronic diseases globally, growing incident rates of accidents and injuries in nations with lower incomes, and growing demand for effective treatments are anticipated to support growth patterns in this market. Cancer Facts & Figures 2025, released by the American Cancer Society, approximated that close to 2,041,910 new instances of cancer are expected to occur in the U.S. in 2025. Also, 1 in 8 adults, close to 853 million adults, are likely to be affected by diabetes by the year 2050. Exponential growth in the population of older adults, ongoing rise in road accidents and accidental injury cases, increasing need for portable medical equipment, and the formation of different alliances and associations that operate for pharmacy industry players in different countries are expected to drive growth.
Report Coverage & Deliverables
- Competitive benchmarking
- Historical data & forecasts
- Company revenue shares
- Regional opportunities
- Latest trends & dynamics
Market Concentration & Characteristics
The growth stage in the market is medium, with the growth being accelerating. With the presence of various businesses operating in the unorganized retail pharmacy market, specialty and multispecialty hospitals moving towards offering in-house pharmacy service, and extensions undertaken by top global players, a fragmented market situation has formed. Innovation level is high in this market as many healthcare IT solution providers offer software solutions, which are enabled with contemporary technologies like Internet of Things (IoT), connected devices and Artificial Intelligence (AI).
Mergers and acquisitions are fairly frequent in the worldwide pharmacy sector. Different industry players with core competencies in distinct segments like infusion, geriatric pharmacy, critical care, and psychiatry tend to be bought by international players to introduce new business segments. For example, in October 2024, Elevance Health, the parent company of Carelon, acquired Kroger Specialty Pharmacy. The acquisition was part of Elevance's overall plan to enhance its specialty pharmacy services capabilities.
There is a high regulation impact in the international pharmacy marketplace. Regulatory organizations of different states, including FDA, Health Canada's Pharmaceutical Drugs Directorate (PDD), European Medicines Agency (EMA), and Central Drugs Standard Control Organization (CDSCO), oversee the pharmacy sector. The organizations take close supervision in this market related to the required competence to set up retail drugstores and legitimacy of products dispensed through the pharmacies. Low threat of service substitutes exists for pharmacy market. End use concentration is moderate.
Product Insights
The prescription segment controlled the worldwide pharmacy market with a revenue percentage of 81.3% in 2024. The demand for prescription drugs associated with the treatment of chronic diseases like diabetes, cardiovascular disease, respiratory diseases, and blood disorders is on the rise and is driving the prescription segment growth. Development in diagnostic technology has resulted in early detection of several patients, thus allowing for early interventions. Accessibility of advanced imaging technologies, point-of-care testing options, and simple accessibility of healthcare services is likely to drive the growth of this segment during the forecast period.
The OTC (over-the-counter) segment is likely to witness the highest CAGR during the forecast period. Economic savings are driving the rapid growth, whereas influences including greater information availability on handling of minor ailments, growing outlay on preventative health care, broadening the range of offerings, consumer literacy, and consciousness also drive the adoption to some extent. Penetration of increasing market achieved by the major industry players in the organized retail pharma market will probably sustain this market's expansion in the given forecast period.
Type Insights
Retail pharmacy had the largest revenue share of the global pharmacy industry in 2024. Expansion of this segment is primarily fueled by the drivers like enhancing presence of chain pharmacies & independent pharmacies, presence of medication in supermarkets & big retail stores in nations like the UK & the U.S. Major chains like Boots, Walgreens, CVS Health, Lloyd, Shoppers Drug Mart, and Well Pharmacy have a major presence in nations like Canada, the U.S., Australia, the UK, and Russia. This presence of large retailers is driving the development of the segment.
ePharmacy is expected to witness the highest CAGR between 2025 and 2030. This segment is driven mostly by the increasing prevalence of smartphones and connected services, rising use of technology-driven devices, ease provided by ePharmacy services, and increased adoption in urban regions. In recent years, numerous companies have joined this segment of the pharmacy market to meet patients' changing needs. The emphasis of major industry players on enhancing patient interaction via better services and utilization of advanced technology-based instruments is likely to give rise to profitable opportunities, such as in October 2024. Amazon Pharmacy revealed it is aiming to open 20 additional pharmacies in different cities of the U.S. by 2025, to increase the service territory of its same-day delivery operations.
Regional Insights
North America led the world pharmacy market with revenue share of 53.2% in 2024. The market is primarily driven by the presence of several key players, increasing adoption faced by retail pharmacy and e-pharmacy, and the high rise in demand for effective therapies associated with chronic diseases like cancer, diabetes, and cardiovascular diseases. The U.S. has several pharmaceutical and medical device firms, which will facilitate the continued expansion of this regional sector.
U.S. Pharmacy Market Trends
The U.S. pharmacy market accounted for the highest revenue share of the regional industry in 2024. Effective regulatory oversight, growing spending on preventive healthcare, growing incidence of chronic diseases in the U.S., and various organizations' emphasis on maximizing market share through the provision of more services are some of the most important growth-inducing drivers for this market. Over the past few years, the rising rate of cardiovascular diseases, traumatic brain injuries, and other complex health conditions has been on the rise in the U.S., which has a direct impact on the demand faced by the pharmacy sector.
Europe Pharmacy Market Trends
European pharmacy market was revealed as one of the most prominent regions of international pharmacy market in 2024. The rise in this market is primarily prompted by reasons such as the spread of diseases like diabetes, uncommon blood disorders, cancer, and cardiovascular diseases. Europe has a number of firms developing, making, selling, and distributing pharmaceuticals and healthcare equipment. This is also among the factors shaping the rise of this regional market.
Middle East And Africa Pharmacy Market Trends
Middle East and Africa pharmacy market is anticipated to witness highest CAGR of 10.7% during 2025-2030. The increased emphasis of governments on the accessibility of high-quality healthcare services and systems within the region, the expansion witnessed by the medical tourism sector, and rising healthcare spending are a few of the primary factors that support more growth. Collaborations and joint ventures between major industry players and the entry of multiple international players in the market also contribute to the growth.
Saudi Arabia pharmacy market held the largest revenue share of the regional market in 2024. The expansion of this market is driven mostly by increasing investments by major industry players in the country, increased healthcare spending, and a substantial rise in new entrants. For example, in September 2024, Aster DM Healthcare, one of the region's leading healthcare service providers, announced its foray into the Saudi Arabia market through a joint venture with Al Hokair Holding Group and intends to open over 240 pharmacies.
Key Pharmacy Company Insights
Some of the key companies in the global pharmacy market are CVS Health, Walmart Inc., The Kroger Co, Amazon and others. Major players have been adopting strategies such as launch of new services, service area expansions, and collaborations.
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CVS Health is a healthcare solutions company that operates in the pharmacy market through CVS Pharmacy. It provides its services through a vast network of stores located across the U.S. in multiple states. Its pharmacy services include mail-order pharmacy, neighborhood pharmacy, prescription delivery, prescription savings, and specialty pharmacy.
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Walmart Inc. is a global retail organization offering many products and services through its stores and a strong international network. It provides same-day pharmacy delivery services across 49 states in the U.S. It leverages its supply network capabilities through integrating grocery, pharmacy, and general merchandise product lines under a single online order.
Key Pharmacy Companies
The following are the leading companies in the pharmacy market. These companies collectively hold the largest market share and dictate industry trends.
- Boots Walgreens
- Walmart Inc.
- The Kroger Co.
- Rite Aid Corp.
- MCKESSON CORPORATION
- Well Pharmacy
- Humana
- Matsumotokiyoshi Co., Ltd.
- Apollo Pharmacy
- MedPlusMart.com
- Amazon
Recent Developments
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In January 2025, Walmart Inc. made same-day pharmacy delivery service available in 49 U.S. states. With this strategic move, the company has connected pharmacy, grocery and general merchandise services.
In September 2024, CVS Health initiated hormonal contraceptive prescribing services via its CVS Pharmacy in Massachusetts. The expansion of its service offerings was one of its efforts to keep up with the evolving dynamics of healthcare services and access to birth control methods.
In January 2024, Kroger renewed its agreement with Centene Corporation's pharmacy network—this renewal was intended to offer patients more opportunities to save on necessary prescriptions. The deal guaranteed ongoing Kroger Family of Pharmacies access for about 700,000 Centene members in 2024.
In April of 2023, Rite Aid Corp opened three new Rite Aid Pharmacies in Craigsville, Greenville, and Scottsville, Virginia. The endeavor was part of a pilot effort to increase service access in "pharmacy deserts" as well as under-resourced areas.
Pharmacy Market Report Scope
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Report Attribute |
Details |
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Market size value in 2025 |
USD 1.45 trillion |
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Revenue forecast in 2030 |
USD 2.06 trillion |
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Growth rate |
CAGR of 7.3% from 2025 to 2030 |
|
Base year for estimation |
2024 |
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Historical data |
2018 - 2023 |
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Forecast period |
2025 - 2030 |
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Quantitative units |
Revenue in USD trillion and CAGR from 2025 to 2030 |
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Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, trends |
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Segments covered |
Product, type, region. |
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Country scope |
U.S., Canada, Mexico, UK, Germany, France, Italy, Spain, Denmark, Sweden, Norway, China, Japan, India, Australia, South Korea, Thailand, Brazil, Argentina, Colombia, South Africa, Saudi Arabia, UAE, and Kuwait |
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Key companies profiled |
CVS Health; Boots Walgreens; Walmart Inc.; The Kroger Co.; Rite Aid Corp.; MCKESSON CORPORATION; Well Pharmacy; Humana; Matsumotokiyoshi Co., Ltd.; Apollo Pharmacy; MedPlusMart.com; Amazon |
|
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
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Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
Global Pharmacy Market Report Segmentation
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Product Outlook (Revenue, USD Million, 2018 - 2030)
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Prescription
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OTC
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Type Outlook (Revenue, USD Million, 2018 - 2030)
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Hospital Pharmacy
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Retail Pharmacy
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Chain
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Independent
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Others
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ePharmacy
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Others
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Regional Outlook (Revenue, USD Million, 2018 - 2030)
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North America
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U.S.
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Canada
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Mexico
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Europe
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UK
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Germany
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France
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Spain
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Italy
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Denmark
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Sweden
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Norway
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Asia Pacific
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China
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Japan
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India
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Australia
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South Korea
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Thailand
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Latin America
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Brazil
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Argentina
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Middle East & Africa
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South Africa
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Saudi Arabia
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UAE
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Kuwait
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