Pharmacy Benefit Management Market Size, Share, Growth Analysis, By Services(Speciality pharmacy services, Benefit plan design & administration, Pharmacy claims processing, Formulary management), By Services Provider(Insurance companies, Retail pharmacies, Standalone PBMs), By Business Model(Government Health Programs, Employer-Sponsored Programs, Health Insurance Management), By Application(Mail-Order Pharmacy Services, Non-Mail Pharmacy Services), By Type(Commercial Health Plans, Self-Insured Employer Plans, Medicare Part D Plans, Federal Employees Health Benefits Program), By Region - Industry Forecast 2024-2031

Pharmacy Benefit Management Market size was valued at USD 60.75 billion in 2019 and is poised to grow from USD 66.87 billion in 2023 to USD 144.6 billion by 2031, growing at a CAGR of 10.12% in the forecast period (2024-2031).

PBM refers to a system in which a third-party administrator oversees prescription drug programmes on behalf of health insurers, pharmacies, drug makers, and so on. This system performs critical tasks at many levels of the pharmaceutical supply chain, from financing to determining dispensing policies. PBM firms also handle generic drug replacement, negotiate drug rebates with manufacturers and pharmacies, and work on drug formulary formulation and management. As a result, they offer a variety of services, such as specialised pharmacy services, retail pharmacy services, prescription formulary management, disease management services, benefit plan design and advice, and so on.

Due to factors such as an increase in the requirement to reduce medication errors, fast regionalization of pharmacies, an increase in the geriatric population, and an increase in labour expenses, the pharmacy benefit management market is predicted to grow significantly during the forecast period. However, a lack of willingness to implement pharmacy automation technologies, as well as tight legal procedures governing client confidentiality, are impeding the expansion of the pharmacy benefit management business. On the contrary, increased awareness among pharmacists and healthcare providers about cost-cutting strategies and Pharmacy benefit management services is likely to give attractive chances for market expansion throughout the projection period.

US Pharmacy Benefit Management Market  is poised to grow at a sustainable CAGR for the next forecast year.