Pharmacy Market: Current Analysis and Forecast (2022-2028)

Pharmacy Market: Current Analysis and Forecast (2022-2028)

A pharmacy is a place where drugs, medicines, and other healthcare products are dispensed and sold to patients. It can provide advice and information on medication use, as well as other health-related products and services. In addition, the increasing prevalence of chronic diseases and the rising demand for generic medicines are expected to grow the pharmacy market. According to the U.S. Food & Drug Administration, in 2022, approx 90% of all prescriptions in the United States i.e. about 9 out of 10 are generics. Therefore, increasing access to healthcare can help more people access the services which are provided by pharmacies.

The Pharmacy Market is expected to grow at a strong CAGR of 4.5% during the forecast period owing to the growing technological advancements in the pharmacy sector such as telemedicine and online pharmacies. Moreover, the key players have rapidly adopted strategic alliances such as collaboration, product launches, and joint ventures, to maintain a competitive edge in the global market. For instance, in September 2022, RxDefine announced the introduction of RxTelehealth, its telehealth solution for life sciences brands.

• Based on product type, the pharmacy market is bifurcated into prescription, and over the counter (OTC). The prescription segment held a significant share of the market in 2021 with the highest market share. This is mainly attributed to the increasing demand for medical products and services, such as healthcare products, pharmaceuticals, and medical devices along with the rise in chronic diseases and an aging population that will drain pharmaceutical products high as more people need regular medications. The World Health Organization stated that around 41 million people die from non-communicable diseases (NCDs) each year, equivalent to 74% of all deaths globally in 2022.
• By pharmacy type, the market is segmented into hospital pharmacy, retail pharmacy, epharmacy, and others. Among these, hospital pharmacy is expected to grow with a significant CAGR during the forecast period. This is mainly due to the hospital pharmacies adopting technologies to improve patient safety and health outcomes by providing some patients access to the right medications, in the right amounts and at the right time.
• For a better understanding of the market adoption of the Pharmacy industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Italy, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, and Rest of Asia-Pacific), Rest of World. North America dominated the pharmacy market in 2021 due to the presence of a significant and diverse population in the region establishing a surge in demand for pharmaceutical products and services. In addition, the increasing geriatric population leads to an increased demand for medications and healthcare services. According to the U.S. Census Bureau, above 56 million adults ages 65 and older live in the United States, accounting for about 16.9% of the nation's population in 2021. Moreover, the region has a well-established healthcare system that includes a large number of hospitals and clinics, as well as a large number of pharmacies.
• Some of the major players operating in the market include Pfizer Inc.; Johnson & Johnson Services, Inc.; CVS Health; Novartis AG; Sanofi; GSK plc.; AstraZeneca; AbbVie Inc; F. Hoffmann-La Roche Ltd.