Pharmacy Retail Statistics and Market Growth

This article was written by our expert who is surveying the industry and constantly updating the business plan for a drugstore.

Who wrote this content?

The Dojo Business Team

A team of financial experts, consultants, and writers

We're a team of finance experts, consultants, market analysts, and specialized writers dedicated to helping new entrepreneurs launch their businesses. We help you avoid costly mistakes by providing detailed business plans, accurate market studies, and reliable financial forecasts to maximize your chances of success from day one—especially in the drugstore market.

How big is pharmacy retail today, globally and by key regions?

Pharmacy retail in 2025 is between ~$0.83T and ~$2.0T globally depending on scope.

Asia–Pacific is the fastest-growing region by percentage, while North America is the largest by absolute revenue. Europe remains large and steady with broad omnichannel adoption.

Several broad-scope forecasts point to a path near ~$3.2T by the early 2030s if health & beauty and wellness are included.

As a new drugstore operator, position for local demand (aging, chronic care) and capture wellness and services early.

You’ll find detailed market insights in our drugstore business plan, updated every quarter.

What is the recent CAGR and the outlook for the next five years?

The sector grew ~3.7%–9.2% CAGR in 2020–2025 and is projected at ~5.8%–10.9% for 2025–2030.

Digital channels, hybrid models, and chronic-care services underpin the higher end of the range. Brick-and-mortar chains keep expanding footprints but rely on omnichannel for incremental growth.

Online pharmacy growth often exceeds 10% CAGR in digitally mature markets as e-prescriptions and logistics improve.

For a drugstore, plan for steady base growth and build optionality via delivery, click-and-collect, and telehealth tie-ins.

How much of total pharma sales go through retail pharmacies vs hospitals or online?

Retail pharmacies are the largest single channel globally but hospitals remain dominant in some countries.

Typical global mix is ~35–45% retail pharmacies, ~40–45% hospital pharmacies, ~10–12% online pharmacies, and <10% other (mail/DTC). Shares swing by country based on system design.

For example, hospital channels are very high in several Asian markets, while retail dominates in the U.S. and much of Europe.

Set your drugstore channel strategy to the local health system—partner with clinics and build last-mile logistics for defensibility.

Which regions are growing fastest, and why?

Asia–Pacific shows the highest CAGR, followed by steady growth in North America and Europe.

Drivers include healthcare infrastructure investment, rising incomes, urbanization, chain/franchise rollout, and favorable digital regulations. Incomes and insurance expansion translate to higher per-capita spend.

North America’s growth leans on chronic disease management and strong payer coverage; Europe benefits from wide OTC and wellness adoption.

New drugstores should map city-level demographics, insurer networks, and delivery density before choosing locations.

Get expert guidance and actionable steps inside our drugstore business plan.

What store formats are most common and how do their growth rates differ?

Chains and franchises are expanding fastest, while independents hold ground in underserved areas; hybrids scale rapidly from a low base.

Chains win on purchasing power, brand trust, and integrated digital tools. Franchises gain via playbooks and supplier terms.

Independent drugstores remain vital in rural and community settings and can outperform on service intensity and niche categories.

Hybrid (click-and-mortar) remains under 15% of sales in most markets but posts double-digit growth where e-prescriptions are mainstream.

How is consumer behavior changing for drugstores?

Customers still favor in-store for prescriptions and advice, but online usage has surged.

Roughly one in five U.S. consumers now purchase medicines online, with even higher uptake in large Asian cities. Convenience, price transparency, and fast delivery shape preferences.

Demand for supplements, wellness, and personalized care is rising, supporting higher basket sizes and margins.

Drugstores that combine quick service, clinical advice, and seamless delivery/collection earn higher loyalty and frequency.

This is one of the strategies explained in our drugstore business plan.

What is the revenue split: Rx vs OTC, supplements, and non-medical items?

Prescription drugs represent the majority of drugstore revenue globally.

Typical mix is Rx ~70–75%, OTC ~10–12%, and wellness/non-medical ~8–12% (and rising in diversified stores). Mix varies by regulation and payer incentives.

Higher-margin OTC/wellness/private label items help offset pressure on Rx reimbursement.

Design assortments to lift gross margin without compromising prescription service quality and compliance.

How have digitalization, e-pharmacies, and telehealth changed the market recently?

Digital adoption accelerated post-COVID and reshaped drugstore operations and patient experience.

E-prescriptions, telepharmacy counseling, and integrated CRM improved adherence and basket expansion. Inventory systems tied to online demand reduced stockouts and carrying costs.

Telehealth links now funnel new prescriptions and chronic disease check-ins directly to partner drugstores.

Build a light but robust stack: e-Rx intake, secure messaging, delivery routing, and subscription refills.

How do regulation, reimbursement, and pricing controls affect growth?

Regulatory frameworks directly shape revenue, margin, and format viability for drugstores.

Europe and parts of Asia use price controls and generic substitution rules; the U.S. relies more on payer caps and PBM negotiations. National insurance policies influence dispensing fees and service reimbursements.

Stricter controls cap margins but stabilize volumes; looser rules enable broader service menus.

Model reimbursement scenarios before signing leases or franchise agreements to avoid margin shocks.

We cover this exact topic in the drugstore business plan.

Who are the major players and how concentrated is the market?

Global leaders include CVS Health, Walgreens Boots Alliance, Walmart, and Amazon Pharmacy, alongside regional champions.

Asia hosts China Resources, Apollo Pharmacy (India), Watsons, and Japan’s Matsumotokiyoshi; Europe features large chains and grocers with pharmacy arms. Western markets are typically concentrated; many Asian, African, and LATAM markets remain fragmented.

Franchises and chains are gaining share as independents consolidate or specialize.

Map local share dynamics to decide between independent, franchise, or group purchasing models for your drugstore.

What margins and profitability trends should a drugstore expect?

Gross margins in mature markets for independents are often ~19–20%, with pressure from reimbursements and generics.

OTC, wellness, and non-medical categories usually carry higher margins than Rx, improving blended profitability. Chains and hybrids benefit from scale and lower overhead per script.

Services (vaccinations, point-of-care tests, med management) add incremental margin and frequency.

Engineer your P&L with private label, service fees, and delivery subscriptions to stabilize cash flow.

What share comes through each channel (retail, hospital, online, other)?

Channel mix varies by country; here is a practical 2025 benchmark for drugstores.

What are the most pressing challenges and opportunities for sustainable growth?

• Margin pressure from reimbursement cuts and generic price competition—offset with category mix, services, and private label.
• Regulatory complexity—plan for substitution rules, controlled drugs, and data privacy obligations.
• Digital disruption—embrace e-Rx, delivery, subscriptions, and omnichannel marketing to retain scripts.
• Workforce and counseling capacity—invest in training and workflow tools to scale patient services.
• Supply chain resilience—multi-sourcing and demand sensing help avoid stockouts and lost sales.

It’s a key part of what we outline in the drugstore business plan.

Which formats grow fastest (independent, chain, franchise, hybrid)?

Growth leadership shifts toward chain, franchise, and hybrid formats in most urban markets.

Can you summarize margin levers and pitfalls for a drugstore?

Margins hinge on mix, services, purchasing power, and operating model discipline.

Boost gross margin with private label, curated OTC and wellness, and immunizations/POCT services. Control shrink and optimize inventory turns with demand-driven replenishment.

Beware reimbursement cuts and PBM clawbacks in some markets; negotiate and track payer performance.

Codify a quarterly pricing and assortment review to keep contribution margin on target.

This is one of the many elements we break down in the drugstore business plan.

What practical steps should a new drugstore take in year one?

Start with a compact, compliant, service-oriented model and scale digital from day one.

Pick a location near prescribers, add delivery within 3–5 km, and launch a membership/refill program. Hire for counseling and streamline workflows to increase scripts per labor hour.

Build 3–4 anchor services (vaccines, med sync, POCT, basic telepharmacy) to differentiate and raise frequency.

Track five KPIs weekly: scripts/day, average basket, service uptake, on-time delivery, and inventory turns.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.

Sources

1. Mordor Intelligence – Retail Pharmacy Market
2. Custom Market Insights – Retail Pharmacy Market
3. Expert Market Research – Pharmacy Retail Market
4. Grand View Research – Pharmaceutical Market
5. Fortune Business Insights – Pharmacy Market
6. YouGov – How do US consumers purchase medicines?
7. NIH/PMC – E-pharmacy and Digital Health Trends
8. OECD – Pharmaceutical Pricing Policies
9. McKinsey – US Retail Pharmacy of the Future
10. Statista – OTC Pharmaceuticals Worldwide