Global Retail Pharmacy Market Size Likely to Reach at a CAGR of 7.1% By 2033

As per the current market research conducted by CMI Team, the global Retail Pharmacy Market size is expected to record a CAGR of 7.1% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 861.9 billion. By 2032, the valuation is anticipated to reach USD 1,215.4 billion.

Retail Pharmacy Market: Growth Factors and Dynamics

• The prevalence of chronic diseases, such as diabetes, cardiovascular conditions, and respiratory disorders, is on the rise, leading to a higher demand for medications and healthcare products. This trend significantly boosts the retail pharmacy market, as more individuals require long-term medication management and disease management solutions, relying on retail pharmacies to meet their needs efficiently.

• Efforts to improve healthcare access globally have yielded positive results, with better healthcare infrastructure, government initiatives, and health insurance programs making medications and healthcare services more accessible to a broader population. This increased accessibility to healthcare services plays a crucial role in driving the growth of the retail pharmacy sector, ensuring a larger customer base and a wider reach of pharmaceutical products.

• Technological advancements have revolutionized the retail pharmacy industry, fuelling its growth and enhancing customer experience. Pharmacy automation systems streamline prescription filling processes, online prescription services provide convenience to customers, and telemedicine services offer remote consultation and medication delivery. These technological innovations not only boost the efficiency of retail pharmacies but also attract more customers, contributing to the expansion of the market.

• Retail pharmacies are focusing on enhancing consumer convenience and accessibility to attract more customers. They are expanding their presence with more store locations, offering online ordering and prescription refill services, and providing home delivery options. This emphasis on convenience and accessibility has resulted in increased customer loyalty and retention.

• The continuous increase in global healthcare expenditure, driven by factors like advanced medical treatments and higher awareness of health and wellness, contributes to the growth of the retail pharmacy market. As healthcare spending rises, there is a proportional increase in the demand for medications and healthcare products, benefiting retail pharmacies.

• Retail pharmacies are taking on a more significant role in primary healthcare, offering various healthcare services beyond dispensing medications. They provide health screenings, vaccinations, health counselling, and medication therapy management, making them crucial players in improving public health. This expanded role in primary healthcare services further boosts their significance and growth in the healthcare industry.

Retail Pharmacy Market: Partnership and Acquisition

• Walgreens Boots Alliance Investment in VillageMD: Walgreens Boots Alliance (Nasdaq: WBA) and VillageMD announced that WBA has agreed to make an additional investment in VillageMD to advance its strategic position in the delivery of value-based primary care, a $1 trillion, fast-growing segment of the healthcare system. The $5.2 billion investment will accelerate the opening of at least 600 Village Medical at Walgreens primary care practices in more than 30 U.S. markets by 2025 and 1,000 by 2027, with more than half of those practices in medically underserved communities.

• CVS Health’s Acquisition of Aetna: In 2018, CVS Health, a leading retail pharmacy and healthcare company, acquired Aetna, a major health insurance provider. This merger aimed to create a vertically integrated company that could offer a wide range of healthcare services, including pharmacy benefits management and health insurance coverage.

Report Scope

Retail Pharmacy Market: COVID-19 Analysis

The COVID-19 pandemic has had a significant impact on the Retail Pharmacy Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Increased Demand for Medications and Health Products: The COVID-19 pandemic led to a surge in demand for medications, over-the-counter health products, and personal protective equipment (PPE). Retail pharmacies experienced unprecedented demand for antiviral medications, vitamins, hand sanitizers, and face masks, resulting in supply chain challenges and occasional shortages.

• Shift to Digital Services: To minimize in-person interactions and maintain social distancing, retail pharmacies rapidly adopted digital services. They expanded online ordering and prescription refill options, introduced tele pharmacy services for remote consultations, and implemented contactless payment methods, ensuring continued access to healthcare services during the pandemic.

• Vaccine Distribution and Administration: Retail pharmacies played a crucial role in the distribution and administration of COVID-19 vaccines. They partnered with governments and health agencies to offer vaccination services, contributing to the global vaccination drive and boosting customer trust in their ability to provide essential healthcare solutions.

• Emphasis on Tele pharmacy and E-Commerce: Retail pharmacies continue to prioritize tele pharmacy services and e-commerce platforms even after the pandemic. These digital services provide convenience to customers, streamline operations, and expand their reach, ensuring resilience against potential future disruptions.

• Collaboration with Healthcare Providers: Retail pharmacies are increasingly collaborating with healthcare providers and medical clinics to offer integrated healthcare services. These partnerships enable better coordination of patient care, seamless medication management, and improved patient outcomes.

• Continued Focus on Safety and Hygiene: Safety and hygiene protocols remain a top priority for retail pharmacies as they recover from the COVID impact. They maintain stringent cleaning measures, enforce social distancing guidelines, and encourage contactless transactions to ensure the safety of both customers and staff. These measures instil confidence in customers and contribute to the overall recovery of the retail pharmacy market.

In conclusion, the COVID-19 pandemic has had a mixed impact on the Retail Pharmacy Market, with some challenges and opportunities arising from the pandemic. Manufacturers and retailers need to remain agile and adapt to the changing market conditions to overcome these challenges and capitalize on new growth opportunities.

List of the prominent players in the Retail Pharmacy Market:

• Walgreens Boots Alliance Inc.
• CVS Health Corporation
• Rite Aid Corporation
• Walmart Inc. (operates Walmart Pharmacy)
• Wal-Mart de México, S.A.B. de C.V. (operates Walmart pharmacies in Mexico)
• Costco Wholesale Corporation (operates Costco Pharmacy)
• Kroger Co. (operates Kroger Pharmacy)
• McKesson Corporation
• Cardinal Health Inc.
• AmerisourceBergen Corporation
• Others

The Retail Pharmacy Market is segmented as follows:

By Type

• Generic Medications
• Over the Counter (OTC) Medications
• Patented or Brand-name Medications

By Application

• Drug Retail
• Health Products Retail
• Equipment Retail

By End Use

• Consumer/Patients
• Healthcare Facilities
• Traditional Medicine Practitioners

By Channel

• Online
• Offline

By Region

North America

• The U.S.
• Canada
• Mexico

Europe

• France
• The UK
• Spain
• Germany
• Italy
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America