Industry Statistics and Trends
Market size and recent performance (2015-2030)
Industry revenue has declined at a CAGR of 0.5 % over the past five years, to reach an estimated £15.0bn in 2025.
Trends and Insights
Medicine supply issues prove a daily problem, but high tariffs might help
- The Pharmacy Pressures Survey 2024 revealed in May 2024 that issues with medicines supply, drug shortages and market instability were at the worst that pharmacies had ever seen. Responses revealed that 99% of pharmacy staff were encountering a problem weekly and 72% faced multiple daily issues. As a result, nearly 80% of pharmacy staff believed that patient health is being put at risk due to medicine supply issues. Medicine supply issues and drug shortages have significantly undermined dispensing chemists' performance, limiting sales, putting pressure on revenue and increasing operating costs. This has not only put patient health at risk but also threatened the financial sustainability of many businesses.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2025-2030)
Market size is projected to grow over the next five years.
Trends and Insights
The NHS Long Term Workforce Plan will help tackle workforce shortages
- With pharmacists in the UK assuming a more significant role in primary care, including contraception, blood pressure checks, minor ailments, and flu vaccinations, the strain on staff within the industry is expected to continue increasing, despite already facing workforce pressures. According to the Company Chemists' Association's 2025 Community Pharmacy Workforce Review, the number of pharmacists working in community pharmacies increased by just 81 between 2021 and 2023.
Biggest companies in the Dispensing Chemists in the UK
| Company | Market Share (%)
2026 | Revenue (£m)
2026 |
|---|---|---|
Boots UK Ltd | 2,385.2 | |
Bestway National Chemists Ltd | 801.7 | |
Rowlands Pharmacy | 648.6 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Prescription-only, Pharmacy-only and General sales listed. Prescription-only is the largest segment of the Dispensing Chemists in the UK.
Trends and Insights
An ageing population raises sales of prescription-only drugs
- Prescription-only products include antibiotics, anxiety and antidepressant medication, specific high-blood pressure medication and controlled drugs like codeine. A qualified health professional like a GP must prescribe these medicines.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
Companies in the industry dispense and sell pharmaceutical goods via community pharmacies and chemists. Pharmacies also provide other NHS services and sell over-the-counter medications and health-related products. This industry doesn't include non-health-related products, in-store supermarket pharmacies and online-only chemists.
What's included in this industry?
Products and services covered in the Dispensing Chemists industry in the United Kingdom include Prescription-only, Pharmacy-only, General sales list and Teleconsultations and delivery services.Companies
Companies covered in the Dispensing Chemists industry in the United Kingdom include Boots UK Ltd, Bestway National Chemists Ltd and Rowlands Pharmacy.Purchase this report to view all 4 major companies in this industry.
Related Terms
Related terms covered in the Dispensing Chemists industry in the United Kingdom include prescription medicines, pharmacy-only medicines, general sales list (gsl) medicines, over-the-counter (otc) medicines, community pharmacies, reimbursement payment and health inflation.Industry Code
SIC 47.73 - Dispensing Chemists in the UK
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Pharmacies are growing in importance. As part of the government's 10-year health plan, pharmacies are playing a more significant role in primary care, including contraception...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2015-2024) and forecast (2025-2030)
- Employees, including historical (2015-2024) and forecast (2025-2030)
- Businesses, including historical (2015-2024) and forecast (2025-2030)
- Profit, including historical (2015-2025)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Cheaper alternatives threaten prescription-only drugs. People are increasingly opting for cheap, generic alternatives to prescription-only drugs like antibiotics and painkill...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2025
- Product innovation level
Charts
- Products & services segmentation in 2025
- Major market segmentation in 2025
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
London is home to the largest share of medical practices. That’s why it’s the leading region for chemists, along with its dense and fast-growing population. Additionally, wit...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2025
Tables
- Number and share of establishments in each region in 2025
- Number and share of revenue each region accounts for in 2025
- Number and share of wages each region accounts for in 2025
- Number and share of employees in each region in 2025
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Lots of pharmacies have recently closed. According to NHS Business Services Authority data published in February 2025, the total number of “large” pharmacy branches dropped b...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2020-2025
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Boots’ omnichannel offering helps the company thrive. Boots offers over 100 healthcare services online or in-store, supporting different consumer preferences, and setting the...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2021 through 2025
- Major companies in the industry, including market share, revenue, profit and profit margin in 2025
- Overview of Boots UK Ltd's performance by revenue, market share and profit margin from 2019 through 2025
- Overview of Bestway National Chemists Ltd's performance by revenue, market share and profit margin from 2019 through 2025
- Overview of Rowlands Pharmacy's performance by revenue, market share and profit margin from 2019 through 2025
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Boots UK Ltd, and factors influencing its performance in the industry
- Description and key data for Bestway National Chemists Ltd, and factors influencing its performance in the industry
- Description and key data for Rowlands Pharmacy, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The number of people aged 65+ heavily influences demand. When the population expands, demand for dispensing chemists is higher because more people means a greater need for me...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2015-2030)
- Assistance historical data and forecast (2015-2030)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit picks up. A rise in funding in 2025-26 as part of the core funding package for England’s community pharmacies, which increased to £3.1 billion, has supported the indus...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2019-2023)
- Coverage Ratios (2019-2023)
- Leverage Ratios (2019-2023)
- Operating Ratios (2019-2023)
- Assets (2019-2023)
- Liabilities (2019-2023)
- Cash Flow & Debt Service Ratios (2015-2030)
- Revenue per Employee (2015-2030)
- Revenue per Enterprise (2015-2030)
- Employees per Establishment (2015-2030)
- Employees per Enterprise (2015-2030)
- Average Wage (2015-2030)
- Wages/Revenue (2015-2030)
- Establishments per Enterprise (2015-2030)
- IVA/Revenue (2015-2030)
- Imports/Demand (2015-2030)
- Exports/Revenue (2015-2030)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2015-2030)
- IVA (2015-2030)
- Establishments (2015-2030)
- Enterprises (2015-2030)
- Employment (2015-2030)
- Exports (2015-2030)
- Imports (2015-2030)
- Wages (2015-2030)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Dispensing Chemists industry in the United Kingdom in 2025?
The market size of the Dispensing Chemists industry in the United Kingdom is £15.0bn in 2025.
How many businesses are there in the Dispensing Chemists industry in the United Kingdom in 2025?
There are 6,037 businesses in the Dispensing Chemists industry in the United Kingdom, which has grown at a CAGR of 3.1 % between 2020 and 2025.
How may import tariffs affect the Dispensing Chemists industry in the United Kingdom?
The Dispensing Chemists industry in the United Kingdom 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 Dispensing Chemists industry in the United Kingdom?
The Dispensing Chemists industry in the United Kingdom is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Dispensing Chemists industry in the United Kingdom grown or declined over the past 5 years?
The market size of the Dispensing Chemists industry in the United Kingdom has been declining at a CAGR of 0.5 % between 2020 and 2025.
What is the forecast growth of the Dispensing Chemists industry in the United Kingdom over the next 5 years?
Over the next five years, the Dispensing Chemists industry in the United Kingdom is expected to grow.
What are the biggest companies in the Dispensing Chemists industry in the United Kingdom?
The biggest companies operating in the Dispensing Chemists industry in the United Kingdom are Boots UK Ltd, Bestway National Chemists Ltd and Rowlands Pharmacy
What does the Dispensing Chemists industry in the United Kingdom include?
Prescription-only and Pharmacy-only are part of the Dispensing Chemists industry in the United Kingdom.
Which companies have the highest market share in the Dispensing Chemists industry in the United Kingdom?
The company holding the most market share in the Dispensing Chemists industry in the United Kingdom is Boots UK Ltd.
How competitive is the Dispensing Chemists industry in the United Kingdom?
The level of competition is low and decreasing in the Dispensing Chemists industry in the United Kingdom.
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
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