Pharmacies & Drug Stores in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: June 2024
NAICS 44611Revenue
$629.7bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
1m
Businesses
46,230
Wages
$XX.Xbn
Pharmacies & Drug Stores in the US industry analysis
The Pharmacies and Drug Stores industry consists of stores that retail a range of prescription and over-the-counter (OTC) medications, health and beauty items, toiletries and consumable goods. Stores exhibited revenue growth in recent years, as the number of people with private health insurance remained high, filling more prescription medications. The burgeoning elderly population boosted performance, as this consumer bracket requires medication to address chronic ailments, resulting in higher volumes of foot traffic. Revenue for pharmacies and drug stores is expected to swell at a CAGR of 4.5% to $629.7 billion through the end of 2024, including growth of 1.9% in 2024 alone. Growing access to insurance has also boosted profit, which benefits sales of highly profitable prescription drugs.
Trends and Insights
- Pharmacies were deemed essential businesses, which fueled revenue growth for stores during the height of the pandemic. Many drug stores and pharmacies bulked up their grocery items and consumer products offerings to take advantage of the influx of customers.
- Generic drugs constitute the bulk of all sales. Their prominence cuts into industry profitability, as they're significantly less profitable than branded drugs.
- Pharmacies take advantage of proximity to key downstream healthcare-related businesses. Stores benefit from being near hospitals, nursing homes or healthcare complexes because it reduces customer travel times.
- Due to low product differentiation, the industry is highly price-competitive. Many pharmacies and drug stores have consolidated in response to this high competition.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 4.5 % over the past five years, to reach an estimated $629.7bn in 2024.
Trends and Insights
Industry growth is durable despite intense competition
- The industry has exhibited steady revenue growth, as the number of consumers with private health insurance has continued to climb, resulting in more prescription medications being filled.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Improving macroeconomic conditions and demographic shifts benefit pharmacies
- Many pharmacies and drug stores will continue to expand their services to include preventive care options and additional front-end offerings. Consumers appreciate the added convenience and some are willing to pay a higher price for the ability to buy medications, consumer care goods and grocery items in the same location.
Biggest companies in the Pharmacies & Drug Stores in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Walgreens Boots Alliance, Inc. | 119,220.0 | 4,537.4 | 3.8 | |
Cvs Health Corporation | 104,661.5 | 7,053.3 | 6.7 | |
Rite Aid Corp | 17,110.2 | 292.6 | 1.7 |
To view the market share and analysis for all 16 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 Branded prescription drugs , Generic drugs and Nonprescription medicines . Branded prescription drugs is the largest segment of the Pharmacies & Drug Stores in the US.
Trends and Insights
Generic drugs account for the largest share of sales by volume
- A prescription drug is a licensed medicine that requires a prescription from a physician or other medical practitioner before a consumer can purchase it. Sales of prescription drugs as a percentage of revenue have expanded as drug stores have responded to competition from mass merchants by strengthening their core product areas.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Health Stores in the US
- E-Commerce & Online Auctions in the US
- Mail Order in the US
Complementors
- Brand Name Pharmaceutical Manufacturing in the US
- Generic Pharmaceutical Manufacturing in the US
- Hospitals in the US
International industries
- Pharmacies & Drug Stores in Canada
- Pharmacies in Australia
- Pharmaceutical, Cosmetic and Toiletry Goods Retailing in New Zealand
- Dispensing Chemists in the UK
- Dispensing Chemists in Ireland
Table of Contents
About this industry
Industry definition
Pharmacies and drug stores retail a range of prescription and over-the-counter medications, health and beauty items, toiletries and consumable goods directly to consumers on a walk-in basis. Industry companies may also provide basic health and photo-processing services. The industry excludes mail-order retailers, hospitals and clinics.
What's included in this industry?
Branded prescription drugsGeneric drugsNonprescription medicinesPersonal health suppliesGroceries and food itemsVitamins, minerals and dietary supplementsCosmeticsCompanies
Walgreens Boots Alliance, Inc.Cvs Health CorporationRite Aid CorpPurchase this report to view all 16 major companies in this industry.
Related Terms
OVER-THE-COUNTER (OTC) MEDICATIONSPRESCRIPTION DRUGBLOCKBUSTER DRUGFORMULARYFRONT-END SALESPHARMACY BENEFIT MANAGER (PBM)Industry Code
NAICS 44611 - Pharmacies & Drug Stores in the US
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 were deemed essential businesses, which fueled revenue growth for stores during the height of the pandemic. Many drug stores and pharmacies bulked up their grocery...
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 (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- 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
Generic drugs constitute the bulk of all sales. Their prominence cuts into industry profitability, as they're significantly less profitable than branded drugs.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
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
Pharmacies take advantage of proximity to key downstream healthcare-related businesses. Stores benefit from being near hospitals, nursing homes or healthcare complexes becaus...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, 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
Due to low product differentiation, the industry is highly price-competitive. Many pharmacies and drug stores have consolidated in response to this high competition.
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 2019-2024
- 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
Walgreens agreed to acquire 30.0% of McKesson Corporation’s stake in GEHE Pharma Handel and Alliance Healthcare Deutschland joint venture. This helped expand Walgreens's over...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Walgreens Boots Alliance, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Cvs Health Corporation's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Rite Aid Corp's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 13 additional companies
Detailed analysis
- Description and key data for Walgreens Boots Alliance, Inc., and factors influencing its performance in the industry
- Description and key data for Cvs Health Corporation, and factors influencing its performance in the industry
- Description and key data for Rite Aid Corp, and factors influencing its performance in the industry
- Description, key data and performance trends for 13 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
A growing number of individuals aged 65 and over represents a consistent and steady stream of demand. Older adults are more likely to require medication.
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 (2014-2029)
- Assistance historical data and forecast (2014-2029)
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
The prevalence of low-priced generic drugs has cut into industry profitability. Consumers recognize the benefits of using generic drugs to keep costs low while granting them ...
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 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
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 (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
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 US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
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.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Pharmacies & Drug Stores in the US industry in United States in 2024?
The market size of the Pharmacies & Drug Stores in the US industry in United States is $629.7bn in 2024.
How many businesses are there in the Pharmacies & Drug Stores in the US industry in 2024?
There are 46,230 businesses in the Pharmacies & Drug Stores in the US industry in United States, which has grown at a CAGR of 2.9 % between 2019 and 2024.
Has the Pharmacies & Drug Stores in the US industry in United States grown or declined over the past 5 years?
The market size of the Pharmacies & Drug Stores in the US industry in United States has been growing at a CAGR of 4.5 % between 2019 and 2024.
What is the forecast growth of the Pharmacies & Drug Stores in the US industry in United States over the next 5 years?
Over the next five years, the Pharmacies & Drug Stores in the US industry in United States is expected to grow.
What are the biggest companies in the Pharmacies & Drug Stores in the US market in United States?
The biggest companies operating in the Pharmacies & Drug Stores market in United States are Walgreens Boots Alliance, Inc., Cvs Health Corporation and Rite Aid Corp
What does the Pharmacies & Drug Stores in the US in United States include?
Branded prescription drugs and Generic drugs are part of the Pharmacies & Drug Stores in the US industry.
Which companies have the highest market share in the Pharmacies & Drug Stores in the US in United States?
The company holding the most market share in United States is Walgreens Boots Alliance, Inc..
How competitive is the Pharmacies & Drug Stores in the US industry in United States?
The level of competition is high and increasing in the Pharmacies & Drug Stores in the US industry in United States.
