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Pharmacy Market Trends in Mergers, Acquisitions,
and Strategic Alliances | 2032 Forecast
The pharmacy market comprises the retail and institutional sale of medications—including generic drugs,
branded pharmaceuticals, over-the-counter (OTC) products, and therapeutic services—through outlets such
as pharmacies, online platforms, and hospital dispensaries. Generics dominate much of this space, offering
chemically equivalent but more affordable alternatives to brand-name drugs, which helps reduce healthcare
costs and enhance patient access, especially for managing chronic conditions. Government policies,
regulatory frameworks like streamlined approval pathways, and the expiration of patents are vital in
expanding generic availability and fueling market growth.
According to Fortune Business Insights, the global pharmacy market was valued at USD 2,051.5 billion in
2023 and is projected to grow from USD 2,187.5 billion in 2024 to USD 3,886.3 billion by 2032, exhibiting a
compound annual growth rate (CAGR) of 7.4% during the forecast period. In 2023, North America
dominated the market with a 38.26% share.
Top Companies in the Market
• Walmart Inc. (U.S.)
• CVS Health (U.S.)
• Walgreens Boots Alliance, Inc. (U.S.)
• Kroger | The Kroger Co (U.S.)
• Kaiser Foundation Health Plan, Inc. (U.S.)
• Target Brands, Inc. (U.S.)
• Bellin Health Systems (U.S.)
• Geisinger Health (U.S.)
• Rite Aid Corp. (U.S.)
Key Industry Development
In June 2024, Infosys Limited entered into a strategic collaboration with Nihon Chouzai (TSE), one of
Japan’s leading dispensing pharmacy chains. This alliance enhanced healthcare access across Japan by
strengthening online medication services, marking a significant advancement in digital pharmacy capabilities
in the region.
Market Drivers & Restraints
Market Drivers
Several critical factors are propelling the global pharmacy market forward:
• Chronic disease prevalence and aging populations: Increased incidence of long-term health
conditions like diabetes, hypertension, cardiovascular and respiratory diseases, especially among
aging demographics, is fueling sustained demand for prescription medication and pharmacy
services. Pharmacists are increasingly involved in medication adherence and dosage management.
• Growing healthcare expenditure and pharmaceutical R&D: Investments in R&D have brought
new treatments to market, stimulating demand for pharmacies as key distribution channels.
• Unlimited expansion of e-pharmacies: Convenience, broader product selections, automatic
refills, medication reminders, personalized advice, competitive pricing, and delivery services have
made e-pharmacies a popular choice, a trend markedly accelerated during the COVID-19 pandemic.
Market Restraint
• Rising drug costs: Escalating prices of prescription drugs are placing financial strain on patients
and healthcare systems. Price-sensitive populations, especially in low- and middle-income regions,
may forgo essential treatments, reducing market growth. Government-imposed price controls and
reimbursement limitations can also curb profitability for pharmacy stakeholders.
Market Report Coverage
The Fortune Business Insights report provides a comprehensive breakdown of the pharmacy market’s size
and projected growth trajectory, the key driving and restraining factors at play, trends shaping the sector,
and detailed segmentation along multiple axes, including product type, setting, and geography.
Market Competitive Landscape
The pharmacy market is highly competitive, spanning prescription versus over-the-counter (OTC) segments,
and various settings such as retail, hospital, and online pharmacies. Established retail chains and emerging
digital platforms vie for consumer trust and loyalty, while technological innovation and enhanced healthcare
services remain pivotal differentiators.
Market Segments
By Type
https://www.fortunebusinessinsights.com/pharmacy-market-110942
• Prescription segment: Held the largest share in 2023 thanks to growing demand for long-term
medications and specialized drug therapies for chronic conditions, supported by pharmaceutical
innovation and aging populations.
• OTC segment: Also holds a significant portion of the market, driven by rising self-care awareness,
self-medication trends for minor ailments, and expanding distribution via retail and e-commerce
channels.
By Setting
• Retail pharmacies: Dominated the landscape in 2023 due to wide product assortments, loyalty
programs, standardized services, and offerings such as vaccinations and wellness products.
• Hospital pharmacies: Captured a substantial share as hospitals see rising patient admissions,
often prescribing and dispensing needed medications onsite in specialized environments.
• E-pharmacies: Experienced rapid growth—driven by convenience, accessibility, competitive
pricing, and tightly integrated telemedicine solutions—making them an increasingly influential
segment.
Explore the full research report with detailed insights and
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Market Regional Insights
Regionally, North America led with a commanding revenue of USD 785.0 billion in 2023, supported by
high healthcare spending, a high prevalence of chronic diseases, and advanced pharmaceutical R&D
infrastructure. Meanwhile, the Asia Pacific region is expected to exhibit the most dynamic growth through
2032, propelled by a rising burden of chronic diseases, improving healthcare infrastructure, and supportive
government initiatives in countries like China and India.
Future Market Scope
Looking ahead, the pharmacy industry is poised for sustained expansion, nearly doubling its scale from 2024
to 2032. Growth opportunities lie in e-pharmacy platforms, personalized healthcare offerings, broader
prevention-focused OTC products, and continued digital transformation across the sector. Retail chains may
increasingly adopt omnichannel and hybrid models to compete effectively with digital entrants, while
hospitals and specialty providers could deepen their clinical service integrations. Continued emphasis on cost
control and accessibility will be critical, especially in pricing-sensitive markets. Overall, the pharmacy market
stands at the crossroads of innovation and challenge. Stakeholders who adapt to evolving consumer
expectations, embrace digital solutions, and proactively address affordability barriers are best positioned to
thrive in the evolving landscape.
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