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.