IBISWorld Platform
Answer any industry question in minutes with our entire database at your fingertips.
Pharmacies & Drug Stores in Canada Industry Data and Analysis
Canadian pharmacies and drug stores play a crucial role in the nation’s healthcare system, providing first-point access to essential medications. Even amid recent volatility, drug stores have benefited from consistent health-related spending, mainly driven by prescriptions as chronic diseases become more common across the population. While higher pharmaceutical prices have helped boost overall revenues, provincial drug plans continue to enforce reference-based pricing and mandatory generic substitution, meaning pharmacies are often reimbursed at the lowest available generic price for medications. This approach caps earnings from dispensing drugs and limits profit growth. Pharmacies also face ongoing challenges from inflation and e-commerce disruption, which have led to lower sales of discretionary items like beauty and personal care products. Nonetheless, the essential nature of their services and steady demand for health products have underpinned resilient revenue growth. Revenue has been expanding at a CAGR of 2.0% to an estimated $91.7 billion over the past five years, including expected growth of 1.5% in 2026.
Access this data your way
The Pharmacies & Drug Stores in Canada Industry analysis is available in multiple formats to fit seamlessly into your workflow.
API Data Delivery
Feed trusted, human-driven industry intelligence straight into your platform.
Integrations
Streamline your workflow with IBISWorld’s intelligence built into your toolkit.
What's included in this industry analysis
IBISWorld's research coverage on the Pharmacies & Drug Stores industry in Canada includes market sizing, forecasting, data and analysis from 2016-2031. The most recent publication was released February 2026.
About this industry
What's this industry report about?
The Pharmacies & Drug Stores industry in Canada operates under the NAICS industry code 44611CA. Pharmacies and Drug Stores in Canada retail a range of prescription and over-the-counter drugs and medications, health and beauty items, toiletries and consumable goods directly to consumers on a walk-in basis. Stores may also provide basic health and photo-processing services. The industry includes retail stores with a pharmacy but excludes mail order and online retailers, hospitals and clinics. Related terms covered in the Pharmacies & Drug Stores industry in Canada include over-the-counter (otc) medications, prescription drug, front-end sales, blockbuster drug and workers' compensation board.
What's included in this industry?
Products and services covered in Pharmacies & Drug Stores industry in Canada include Prescription pharmaceuticals, Nonprescription pharmaceuticals and Infant care products, eyewear and eye care.
What companies are included in this industry?
Companies covered in the Pharmacies & Drug Stores industry in Canada include Shoppers Drug Mart Corporation, McKesson Canada and Metro Inc.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Pharmacies & Drug Stores industry in Canada.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Pharmacies & Drug Stores industry in Canada.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Pharmacies & Drug Stores industry in Canada.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Pharmacies & Drug Stores industry in Canada. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Pharmacies & Drug Stores industry in Canada. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Pharmacies & Drug Stores industry in Canada. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Pharmacies & Drug Stores industry in Canada. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Pharmacies & Drug Stores industry in Canada.
Trusted by industry professionals
More than 6,000 businesses use IBISWorld to shape local and global economies
We were able to supplement our reports with IBISWorld’s information from both a qualitative and quantitative standpoint. All of our reporting now features some level of IBISWorld integration.
IBISWorld delivers the crisp business knowledge we need to drive our business. Whether it be serving up our major clients, winning new business or educating on industry issues, IBISWorld brings real value.
IBISWorld has revolutionised business information — which has proved commercially invaluable to exporters, investors and public policy professionals in Australia and overseas.
When you’re able to speak to clients and be knowledgeable about what they do and the state that they operate in, they’re going to trust you a lot more.
Frequently Asked Questions
What is the market size of the Pharmacies & Drug Stores industry in Canada in 2026?
The market size of the Pharmacies & Drug Stores industry in Canada is $88.3bn in 2026.
How many businesses are there in the Pharmacies & Drug Stores industry in Canada in 2026?
There are 20,238 businesses in the Pharmacies & Drug Stores industry in Canada, which has grown at a CAGR of 3.9 % between 2021 and 2026.
How may import tariffs affect the Pharmacies & Drug Stores industry in Canada?
The Pharmacies & Drug Stores industry in Canada is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Pharmacies & Drug Stores industry in Canada?
The Pharmacies & Drug Stores industry in Canada is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Pharmacies & Drug Stores industry in Canada grown or declined over the past 5 years?
The market size of the Pharmacies & Drug Stores industry in Canada has been growing at a CAGR of 0.9 % between 2021 and 2026.
What is the forecast growth of the Pharmacies & Drug Stores industry in Canada over the next 5 years?
Over the next five years, the Pharmacies & Drug Stores industry in Canada is expected to grow.
What are the biggest companies in the Pharmacies & Drug Stores industry in Canada?
The biggest companies operating in the Pharmacies & Drug Stores industry in Canada are Shoppers Drug Mart Corporation, McKesson Canada and Metro Inc.
What does the Pharmacies & Drug Stores industry in Canada include?
Preparing and selling prescription pharmaceuticals and Selling nonprescription pharmaceuticals are part of the Pharmacies & Drug Stores industry in Canada.
Which companies have the highest market share in the Pharmacies & Drug Stores industry in Canada?
The company holding the most market share in the Pharmacies & Drug Stores industry in Canada is Shoppers Drug Mart Corporation.
How competitive is the Pharmacies & Drug Stores industry in Canada?
The level of competition is high and increasing in the Pharmacies & Drug Stores industry in Canada.
Cut through the noise with intelligence you can trust
