Retail Pharmacy Market Size & Share Analysis - Growth, Trends & Forecasts (2024 - 2029)

Global Retail Pharmacy Market Analysis

The Global Retail Pharmacy Market size is estimated at USD 0.76 trillion in 2024, and is expected to reach USD 1.30 trillion by 2029, growing at a CAGR of 9.20% during the forecast period (2024-2029).

Retail pharmacies can meet the needs of people with both complex and basic medical illnesses, and some can even provide bespoke and highly customized care to patients with chronic medical conditions. Various factors contribute to the market growth of retail pharmacies, such as the rising prevalence of chronic diseases, the increasing geriatric population, government initiatives, and the expansion of health insurance coverage.

The increasing number of geriatric patients increases the prevalence of age-related illnesses such as congestive heart disease, cardiovascular problems, rheumatoid arthritis, and immunological deficiencies. For instance, according to the United Nations World Population Ageing 2023, in developed countries such as the United States and Germany, the proportion of older persons is expected to rise from 20% in 2023 to 28% in 2050. For other developing countries such as South Africa, China, and others, this proportion also increases from 9 to 17%. In contrast, for least developed countries such as Niger and Afghanistan, it is expected to rise from 4% to over 6% by 2050. Additionally, an article published by the National Council on Aging Organization in May 2024 mentioned that approximately 95% of adults aged 60 years or above have at least one chronic health condition. Nearly 80% of adults aged 60 years or above have multiple chronic health conditions (two or more), which include hypertension, arthritis, and coronary heart disease. Thus, the increasing geriatric population and the rising prevalence of chronic diseases among older adults fuel the need for medications and drive the market's growth.

Government initiatives to promote retail pharmacy are expected to drive the market's growth. For instance, in April 2024, government initiatives such as production-linked incentive (PLI) schemes increased the number of Micro, Small, and Medium Enterprises (MSMEs) in India, with a comprehensive distribution network of around 108,000 retail drug sale licenses. This is attributed to the significant investments made by the government to improve innovation and infrastructure development in the country, which is anticipated to boost the adoption of retail pharmacies, which, in turn, increases the market's growth.

Furthermore, expanding retail pharmacies is expected to drive the market's growth during the forecast period. For instance, in November 2023, Terrebonne General Health System and ProxsysRX opened a new retail pharmacy in Louisiana that offers various services, such as the "Meds to Beds" prescription delivery program, facilitating seamless discharge with essential medications for patients. Moreover, in February 2023, Pharmacy Bazar proclaimed to open 300 omnichannel digital franchisees and 200 offline omnichannel retail pharmacy stores in India by the end of FY 2024-2025. The rise in demand for better quality healthcare products and focus on wellness is driving the growth of the Indian organized retail pharmacy sector. Thus, establishing new retail pharmacies is expected to contribute to the market's growth during the forecast period.

Therefore, the above-mentioned factors, such as the increasing geriatric population, rising prevalence of chronic diseases, government initiatives, and rising establishments of retail pharmacies, are expected to drive the market's growth of retail pharmacies during the forecast period. However, regulatory and compliance issues and increasing competition from online pharmacies are expected to hamper the market's growth of retail pharmacies during the forecast period.

Global Retail Pharmacy Market Trends

The Prescription Segment is Expected to Hold a Significant Share in the Market

Global Retail Pharmacy Industry Segmentation

As per the scope of the report, a retail pharmacy is an individual or chain pharmacy licensed by the state that dispenses drugs at retail pricing to the general public.

The retail pharmacy market is segmented by product, distribution channel, and geography. By product, the market is segmented into prescription drugs, over-the-counter (OTC) products, health and wellness products, medical devices and equipment, personal care products, and other products (home healthcare products and nutrition supplements). By distribution channel, the market is segmented into chain pharmacy, independent pharmacy, and other distribution channels (hospital pharmacy, supermarket pharmacy, mass merchandiser pharmacy, and mail-order pharmacy). By geography, the market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa, and South America. The market size is provided for each segment in terms of value (USD).