USD 1.05 trillion
Pharmacy Market Size, Share, Growth Analysis, By Product Type(OTC and Prescription), By Pharmacy(Hospital Pharmacy, Retail Pharmacy (Chain, Independent, Others)), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG35I2105 |
Region:
Global |
Published Date: September, 2024
Pages:
219
|Tables:
61
|Figures:
75
Pharmacy Market Insights
Global Pharmacy Market size was valued at around USD 1.2 trillion in 2022 and is expected to rise from USD 1.25 trillion in 2023 to reach a value of USD 2.2 trillion by 2031, at a CAGR of 7.3% over the forecast period (2024–2031).
Pharmacy is a place that deals with medications and certain types of over-the-counter medical devices. The pharmacy market is a speedily changing and dynamic sector propelled by growing chronic illnesses, escalating healthcare needs, and improvements in pharmaceutical research and technology. The market is also driven by the growing demand for personalized medicines, growth of generic drugs, and rise on online pharmacies. However, despite constant progress, the market is hampered by strict regulatory challenges and compliance needs, significant R&D costs for expensive drug development, and pricing pressures. Nonetheless, the pharmacy market is projected to flourish backed by opportunities like the rise of digital health solutions and telehealth, growing demand for preventive care, and expansion in the developing regions.
US Pharmacy Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024–2031
Global Market Size
Largest Segment
Prescription
Fastest Growth
Prescription
Growth Rate
4.30% CAGR
Global Pharmacy Market ($ Bn)
Country Share for North America Region (%)
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Pharmacy Market Segmental Analysis
Global Pharmacy Market is segmented by Product Type and Pharmacy Type, and region. Based on Product Type, the market is segmented into OTC and prescription. Based on Pharmacy Type, the market is segmented into Hospital Pharmacy, Retail Pharmacy (Chain, Independent, Others), E-Pharmacy and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Pharmacy Market Analysis by Product Type
Based on product type, the pharmacy market is categorized into OTC and prescription. The prescription segment held a notable share of the market in the previous years and is expected to lead over the forecast period, owing to the availability of medications and products that offer better chronic disease management and access to innovative therapies. Prescription medicines usually have high cost points than the over-the-counter medicines or products. This majorly impacts the pharmacy market's growth and thus the overall revenue. Moreover, the growing cases of chronic diseases, which increases the demand for suitable medicines is significantly driving the demand. Advancements in pharmaceuticals, comprising specialty medicines and biologics provide dedicated treatments for complicated diseases that need prescriptions is also impacting the segment growth.
On the other hand, the OTC segment is projected to grow considerably over the forecast period owing to increasing awareness of self-care. Consumers today are shifting towards self-management of minor health conditions, which considerably impacts the demand for availing the OTC services and products. Over-the-counter medicines offer easy accessibility in pharmacies, online markets, and supermarkets, increasing convenience for consumers. Moreover, OTC services and products are more cost-effective than prescribed medicines, which makes them the preferred option for price-conscious users.
Pharmacy Market Analysis by Pharmacy
Based on pharmacy, the market is segmented into hospital pharmacy, retail pharmacy (chain, independent, others), e-pharmacy and others. The retail pharmacy segment held a notable market share in the previous years and is expected to continue dominance over the forecast period as well owing to accessibility and ample product offerings. Retail pharmacies are available widely are situated in places where consumers can easily access their products like shopping centers and neighborhood for better consumers’ convenience. Most pharmacies offer extra services, including immunizations, health screenings, and consultations that increase trust and loyalty by consumers, thus impacting the segment growth.
On the other hand, the e-pharmacy segment will hold a remarkable market share in the coming years owing to the convenience offered and competitive pricing. Consumers can order medicines and products from online pharmacies easily without needing to visit pharmacies and wait in queues. E-pharmacies also cater their services to a wider audience, comprising the ones with limited access and remote access to the actual pharmacies. E-pharmacies also offer products and medicines at lower prices and discounts that appeal to a large population. Online purchase of medications offers better privacy for consumers who need sensitive health medicines and products.
Global Pharmacy Market Size By Product Type
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Pharmacy Market Regional Insights
Geographically, North America dominated the market in the previous years and is expected to lead over the forecast period owing to the strong healthcare infrastructure and increased research and development investments. North America has high-tech healthcare systems with improved facilities and strong emphasis on pharmaceutical modernizations. Major investments are also seen in the region that directly impacts the exploration of novel medications and therapies, mainly in the United States. Further, robust regulatory framework ensures improved drug efficacy and safety that drives consumer confidence. The region also has an increased level of pharmaceutical spending, impacted by the growing cases of chronic illnesses. The key players profiled in the region include CVS Health, Walgreens Boots Alliance, Rite Aid Corporation, Humana, UnitedHealth Group (OptumRx), and more.
Europe is the fastest-growing region in the global pharmacy market due to innovative research and development. Europe is prominent for the presence of research institutes and a large number of leading pharmaceutical companies, which propels market growth. Moreover, the EMA in the region ensures firm drug approval procedures that improve efficacy standards and safety. Also, the presence of several healthcare systems in European nations enables a broader range of pharmaceutical services and products.
Global Pharmacy Market Size By Geography
- Largest
- Fastest
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Pharmacy Market Dynamics
Pharmacy Market Drivers
Improvements in Pharmaceutical R&D
- Improvements in biotechnology are resulting in greater number of drug developments, mainly biosimilars and biologics that are more reliable and effective for specific health conditions. Moreover, customized and personalized genetic data is growing prominence, which is again impacting the demand for tailored medicines and products. These factors are propelling the growth of the pharmacy market.
Improvements in Technologies and Emphasis on Preventive Care
- The growth of digital health technologies and wearables are fueling improved adherence to medications and effective monitoring. This ultimately boosts pharmaceutical sales, thus the market growth. Moreover, artificial intelligence is improving market analysis and drug delivery, resulting in highly effective pharmaceutical operations. Also, inclination towards wellness programs and preventive healthcare is fueling the demand for preventive medicines and vaccines.
Restraints
Significant R&D Costs to Hamper Market Growth
- The cost of producing and introducing a novel drug to the market may cost millions and billions of dollars which may impede the smaller companies from producing and marketing their products. This could possibly restrain the growth of the market. Furthermore, most drug candidates are not successful during trials, leading to major financial losses.
Growing Competition from Biosimilars and Genomics
- The growth of biosimilars and generic drugs intensifies the competition, which decreases profit margins and boosts price downs for premium medicines or branded medications. Short product lifecycle also hampers the market growth since speedy launch of generics succeeding patent expirations may result in less sales for the original medications or products.
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Pharmacy Market Competitive Landscape
The global pharmacy market is a highly competitive global market driven by many international competitors. Prominent corporations with cutting-edge AI and ML technology are Google, IBM, Microsoft, and NVIDIA. To support a wide range of applications across industries, these industry experts concentrate on creating cutting-edge algorithms, scalable platforms, and reliable infrastructure. Rapid advances in technology, strategic alliances, and large expenditures on research and development define the competitive environment.
Pharmacy Market Top Player's Company Profiles
- CVS Health Corporation
- Walgreens Boots Alliance, Inc.
- AmerisourceBergen Corporation
- CVS Health Corporation
- Walgreens Boots Alliance, Inc.
- AmerisourceBergen Corporation
- McKesson Corporation
- Cardinal Health, Inc.
- Rite Aid Corporation
- OptumRx, Inc.
- Humana Inc.
- Groupe Pharmagest S.A.
- MedImpact Healthcare Systems, Inc.
- Maxor National Pharmacy Services, LLC
- AllianceRx Walgreens Prime
- Benzer Pharmacy
- Kroger Health
- HealthWarehouse.com, Inc.
Pharmacy Market Recent Developments
- In April 2024, Cardinal Health declared that it started building its novel distribution center in Columbus. This 3,50,000 square feet center will be the centralized replacement hub for supplying the OTC healthcare products to aid the company’s pharma department.
- In May 2024, Optum Rx will introduce a novel drug pricing prototype by 2025. This novel model will be specifically for payers capitalizing on pharmaceuticals more liable.
- In July 2024, Humana Inc. announced a fresh agreement with Google Cloud to improve Humana’s cloud architecture and use superior artificial intelligence competencies to speed up innovations.
Pharmacy Key Market Trends
- Growing Demand for Personalized Medicines: Genomics testing, and targeted therapies are the leading trends witnessed in the pharmacy market. The increasing use of personalized therapies and treatments is gaining wide popularity, especially in chronic disease management and in oncology. Moreover, the development of biosimilars and biologics provides more efficient and customized treatment options, especially for complex health conditions.
- Technology Integration and Pharmacy Automation: Automation and robotics is another trend seen in the pharmacy market. Several pharmacies are deploying automation for reducing mistakes, enhancing efficiency and dispensing medicines. Also, increasing use of data analytics is aiding pharmacies for better inventory management, personalized marketing strategies, and optimization of patient care. These trends are projected to fuel market growth.
Pharmacy Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the pharmacy market is considerably progressing due to the growing healthcare needs, the rise of online and mail-order pharmacies, and increasing healthcare expenditure. However, the market is hampered by disturbances in the supply chain and market access obstacles. North America is anticipated to lead the market owing to innovation and biotechnology hubs, rising demand for better healthcare services, and strong healthcare infrastructure. Nonetheless, a few opportunities for the growth of the pharmacy market include an emphasis on chronic disease management, sustainability initiatives, and growing education and awareness of recent pharmacy trends.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 1.2 trillion |
| Market size value in 2031 | USD 2.2 trillion |
| Growth Rate | 7.3% |
| Base year | 2023 |
| Forecast period | 2024–2031 |
| Forecast Unit (Value) | USD Trillion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
Pharmacy Market Recent Developments
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Pharmacy Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Pharmacy Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Pharmacy Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Pharmacy Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Pharmacy Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Pharmacy Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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