Report Description of the Global Retail Pharmacy Market
Research Scope and Assumption
- The report provides the market value for the base year 2020 and a yearly forecast up to 2028 in terms of revenue (USD billion)
- The key industry dynamics, regulatory scenario, reimbursement scenario, major market trends, and drug markets are evaluated to understand their impacts on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis
- We have used the combination of top-down and bottom-up approach for market sizing, analyzing key regional markets, dynamics, and trends for various solutions, services, and end uses
- All market estimates and forecasts have been validated through primary interviews with the Key Industry Players (KIPs) and secondary analysis
- Inflation has not been accounted for in order to estimate and forecast the market
- Numbers may not add up due to rounding off
Reason to buy the report:
- Facilitate decision-making based on strong current and forecast data for Global Retail Pharmacy market
- Develop strategies based on the latest regulatory framework
- Strategically analyze micro-markets with respect to individual growth trends, future prospects, and their contribution to the market
- Analyze competitive developments such as expansions, investments, mergers & acquisitions, new product developments, and research & developments in the Global Retail Pharmacy market
- Analyze the opportunities in the market for stakeholders and draw a competitive landscape for market leaders
- To strategically profile key players and comprehensively analyze their market shares and core competencies
- We have technically sound team which do a deep dive research and also provide strategy based consulting analysis
Global Retail Pharmacy Market Executive Summary
The Pharmacies and dru4g stores market consist of establishments involved in sales of prescription and over-the-counter medications, health and beauty items, toiletries and consumable goods directly to consumers. Industry companies may also provide basic health and photo processing services. The pharmacies and drug stores consist of establishments that are concerned with branded prescription drugs, generic drugs, non-prescription medicines, and personal health supplies, groceries and food items, vitamins, minerals, and dietary supplements, cosmetics and other.
Market Size and Key Findings
The Global Retail Pharmacy Market size stood at around USD 971.51 billion in 2020 and is projected to reach USD XX billion by 2028, exhibiting a CAGR of 6.9% during the forecast period.
The global pharmacies and drug stores market is expected to grow from $971.51 billion in 2020 to $1038.6 billion in 2021 at a compound annual growth rate (CAGR) of 6.9%. The change in growth trend is mainly due to the companies stabilizing their output after catering to the demand that grew exponentially during the COVID-19 pandemic in 2020. The market is expected to reach $1299.8 billion in 2025 at a CAGR of 6%.
Market Growth Drivers Analysis
The growing aging population and increasing health consciousness among the global populace are likely to drive the pharmacies and drug stores market. The geriatric population is more vulnerable to acquire a number of diseases that increase the dependence on the pharmacies and drug stores indirectly affecting the market.
The growing incidence of chronic diseases like hypertension, diabetes, cardiovascular diseases, and cancer, which requires prolonged medication, is expected to further drive the growth of the pharmacy retail market during the forecast period. With the rise in public healthcare expenditure, pharmaceuticals have become more accessible, thereby fuelling the pharmacy retail market, especially in rural areas and tier-II cities.
Rapidly increasing cost pressures from regulatory agencies and payers will restrain the pharmacies and drug stores market. Government budgetary pressures are leading to lower pharmacy compensation for most countries with public health care. The consolidation of pharmacy benefit management firms in the U.S. has worked similarly, driving lower costs and margins and shifting prescription volumes to delivery of direct or mail order.
Governments would be the largest health-care payer in virtually every country. This, in turn, creates increased pressure on taxpayers and government spending, with consequent pharmaceutical effects. These factors are expected to have a negative impact on the pharmacies and drug stores market as increasing cost pressures from regulatory agencies and affecting the market’s growth.
COVID-19 impact on “Global Retail Pharmacy Market”
The COVID-19 pandemic has accelerated the growth in the traditional pharmacy retail outlets as well as the online pharmacy channels. Globally, medical retail outlets were categorized as essential services, but the online pharmacies emerged as the most dynamic channel for procuring drugs and devices because of the fear of the virus.
Driven by the different waves of COVID-19, the online pharmacy sector has witnessed surge in orders for medical devices, personal protective equipment, health supplements and common drugs.
Major players in the Pharmacies and Drug Stores market are Walgreens Boots (WBA), CVS Health (CVS), Rite Aid (RAD), MedPlus, Rexall, Shoppers Drug Mart, Grupo Casa Saba, China Nepstar, AS Watson and Matsumotokiyoshi.
As competition has increased from mass merchandisers and supermarkets, as well as from direct mail prescription services, drug stores have been adding value in the form of 24-hour operations and drive-through pharmacies. The US Pharmacy Study measures customer satisfaction with their pharmacy experience across major chain drug stores, mass merchandisers, supermarkets, and mail-order pharmacies. The study shows that retail pharmacy businesses continue to shine when it comes to engaging patient-centric services that drive satisfaction. These convenience factors anticipate the growth of pharmacies and the drugstore market.
Products in Pipeline
The launch of various patented drugs by international pharmaceutical companies resulted in an incremental increase in pharmaceutical sales.
There are several factors supporting the growth of global and North America pharmacy retailing market. Some of the prominent factors among them are the increasing availability of OTC drugs, growing prevalence of chronic diseases, rising health care spending of the consumers, increasing demand for e-commerce sites, growth in the annual income of the population, increasing number of geriatric population and the favourable government regulations.
In Asia Pacific, the market for Pharmacy Retail services is anticipated to grow at the fastest rate from 2021 to 2026. This high growth is owing to growing unmet medical needs.
Notable Recent Deals
On November 28, 2018, CVS Health completed acquisition of Aetna. By combining Aetna’s health care benefits expertise with its retail pharmacies, clinics, and integrated pharmacy capabilities, CVS Health is looking to improve the health care delivery experience for consumers by expanding offerings at Minute Clinics, offering preventative health screenings and delivering other services.
Healthcare Policies and Regulatory Landscape
Today, as part of the growing movement to help customers access and securely share their own health information, several of the Nation’s largest retail pharmacy chains and associations are pledging to support the Blue Button initiative—a public-private partnership between the health care industry and the Federal Government that aims to empower all Americans with access to their own electronic health information. These steps will help patients access their prescription information and further empower millions of Americans to better manage their healthcare.
The concept behind Blue Button is simple: consumers should be able to securely access their own health information and share it with health care providers, caregivers, and others they trust.
An increasingly important part of the Blue Button initiative is making patient information available in secure, simple, standard formats to help spur the development of innovative consumer applications and devices that can help patients better manage their own health care and facilitate the electronic sharing of data with trusted partners, such as medical specialists who might not otherwise have direct access to relevant records.