Enjoy complimentary customisation on priority with our Enterprise License!
The US pharmacy market size is estimated to grow by USD 90.8 billion, at a CAGR of 3.14% between 2023 and 2028. There are three significant factors that are shaping the industry's trajectory. Firstly, the aging population is on the rise, leading to an increased demand for healthcare services and medications. Secondly, technological advancements are revolutionizing the way pharmacies operate, from telepharmacy and e-prescriptions to automated dispensing systems. Lastly, there is a growing awareness among consumers regarding their health and wellness, leading to a surge in demand for personalized healthcare solutions and preventative medicines. These trends are transforming the pharmacy market, making it more dynamic, customer-centric, and technology-driven.
As the population ages, the need for prescription drugs to treat chronic diseases, including diabetes, hypertension, and arthritis, will increase. As a result, pharmacies are becoming an increasingly important part of the healthcare system, serving as the primary access point for many older patients requiring medication management and medical advice. In addition, the growing number of elderly patients opens up opportunities for pharmacies to diversify their services, such as home delivery services and Telep pharmacy services to meet the needs of these people with limited mobility or those who prefer remote consultations. Hence, such factors will drive the growth of the US pharmacy market during the forecast period.
To learn more about this report, Request Free Sample
The market share growth by the prescription segment will be significant during the forecast period. One of the essential components of prescription-based market segmentation is the ability to segment customers based on the treatment areas for which they require medication. These areas can vary from cardiovascular health to mental health, respiratory disease, chronic pain management, and more. By segmenting the market, pharmacies can ensure they have a wide selection of prescription medications within each category, allowing them to provide personalized treatment options to their customers.
Get a glance at the market contribution of various segments View a PDF Sample
The prescription segment was valued at USD 425.20 billion in 2018. Additionally, prescription drug market segmentation can be based on drug type or category. For example, some patients may need to take medications from a certain class, such as beta-blockers, statins, or selective serotonin reuptake inhibitors (SSRIs). Knowing these segments allows pharmacies to tailor inventory and marketing activities accordingly, ensuring that customers have access and are informed about the right medication at the right time. Hence, these factors related to the prescription drug market segmentation will drive the growth of the market during the forecast period.
The pharmacy chain is one of the largest players in the US - pharmacy market, providing essential healthcare services and access to medications to millions of people. The pharmacy chain is made up of several locations that are part of a larger organization. These chains can range from small regional players to large national chains with well-known brands and extensive distribution networks. Furthermore, independent pharmacies contribute greatly to diversity and competition in the market, encouraging innovation and customer-oriented strategies. Factors related to this pharmacy chain segment will positively impact the growth of the market during the forecast period.
Buy Now Full Report and Discover More
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market. The report also includes detailed analyses of the competitive landscape of the market and information about 11 market companies, including:
Albertsons Companies Inc.: The company offers pharmacy services such as specialty care pharmacy, flu shots, and vaccines.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
PharmEasy, along with Pharmaca, offers convenient access to OTC medications, contributing to the pharmaceutical sector's growth, as indicated by GDP reports and assessments from rating agencies like CRISIL and ICRA. The controversy surrounding hydroxychloroquine persisted from April to January, influencing public health policies and pharmaceutical practices. Additionally, partnerships with API producers and collaborations with organizations like EY FICCI contribute to sustainable growth, ensuring the availability of generic medicines and fostering technological innovation in the sector. Our researchers analyzed the data with 2023 as the base year, along with the key trends, and challenges.
The increasing use of telepharmacy services is the primary trend shaping the growth of the market. Telepharmacy is a growing trend in the market, revolutionizing the delivery of healthcare services. One of the main reasons for the growth of telepharmacy is the growing demand for convenient healthcare services, especially in rural and underserved areas. By allowing patients to consult with pharmacists remotely, telepharmacies eliminate the need to travel long distances to get prescriptions and advice.
Moreover, telepharmacy also improves medication administration and compliance. Virtual consultations allow pharmacists to provide patients with comprehensive information about their medications, potential side effects, and appropriate use, making it easier to adhere to their treatment plan. Hence, these factors will drive the growth of the market during the forecast period.
Rising pricing in pharmaceuticals and reimbursement pressures is a challenge that affects the growth of the market. Rising drug prices have recently become a controversial topic. Patients often cannot afford life-saving medications, which can lead to delayed or incomplete treatment. High prescription drug prices negatively impact the financial stability of individuals, as well as the health care system and insurance companies.
Additionally, the pharmaceutical industry faces repayment pressure from a variety of sources, including government programs and private insurers. These entities seek cost-cutting measures, which often include stricter regulations on drug coverage and lower reimbursement rates for pharmacies, making it increasingly difficult for pharmacies to maintain profits while providing essential health services. As a result, these factors will impede the growth of the market during the forecast period.
Buy Now Full Report and Discover More
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
Pharmacy Automation Systems Market Analysis North America, Europe, Asia, Rest of World (ROW) - US, Germany, UK, China, Japan - Size and Forecast
Central Fill Pharmacy Automation Market by Application, Type, and Geography - Forecast and Analysis
Compounding Pharmacy Market by Product, Therapeutic Area and Geography, Industry Forecast and Analysis
The market is evolving rapidly with the advent of digital solutions and ePharmacy platforms, offering a wide range of healthcare products, including over-the-counter drugs and health supplements, as well as providing access to medications online. Key players such as Microsoft and Medly Pharmacy are revolutionizing the industry through innovative electronic health records systems and streamlined distribution channels. With the support of National Health Services and retail and hospital pharmacies, these advancements aim to improve patient care and accessibility to essential medications and medical goods.
Furthermore, the market is undergoing a significant transformation driven by advancements in technology and data analytics. With a growing focus on preventive healthcare and the rising demand for vitamins and health monitoring devices, pharmacies play a crucial role in providing health screenings and administering vaccinations. Particularly in rural areas and underserved communities, pharmacies serve as vital healthcare access points, adapting to local special circumstances and changing demographics. Licensing and quality control measures ensure the integrity of pharmaceutical products across hospitals, retail stores, and B2C enterprises. Industry associations and survey results guide decision-making, while macroeconomic factors and exchange rates influence pharmaceutical exports and pharmaceutical production in the market.
Market Scope |
|
Report Coverage |
Details |
Page number |
138 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.14% |
Market growth 2024-2028 |
USD 90.8 billion |
Market structure |
Concentrated |
YoY growth 2023-2024(%) |
2.87 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Albertsons Companies Inc., Cardinal Health Inc., CVS Health Corp., Humana Inc., McKesson Corp., Rite Aid Corp., The Cigna Group, The Kroger Co., United Health Group Inc., Walgreens Boots Alliance Inc., and Walmart Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our market forecasting report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
View Sample PDF at your Fingertips
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Ownership
8 Market Segmentation by Type
9 Customer Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.