Report Overview

United States Retail Pharmacy Market – Industry Trends & Forecast Report, 2031

United States Retail Pharmacy Market size was estimated at USD 534.71 billion in 2024. During the forecast period between 2025 and 2031, United States Retail Pharmacy Market size is projected to grow at a CAGR of 4.70% reaching a value of USD 737.48 billion by 2031. Prominent drivers of the market include evolving consumer preferences, industry consolidation, and the expansion of pharmacy services beyond traditional prescription dispensing. The United States Retail Pharmacy Market has undergone significant transformation, categorized into retail chains, regional pharmacies, independent pharmacies, and mail-order/online pharmacies. Retail chains dominate, accounting for a third of prescription revenues, while independent pharmacies have declined due to competition and consolidation. Meanwhile, mail-order and online pharmacies are gaining traction, especially for specialty drugs. Consumer preferences continue to shape the market, with insurance coverage and proximity influencing pharmacy choices. While most consumers express satisfaction with their primary pharmacy, nearly a third have switched in recent years due to insurance or relocation changes. To remain competitive, retail pharmacies are focusing on omnichannel strategies, personalized services, and expanded healthcare offerings.

Retail Pharmacy – Overview

A retail pharmacy is a pharmacy that sells prescription and over the counter (OTC) medications directly to consumers. Retail pharmacies operate in various settings, including standalone stores, supermarkets, and hospitals, providing medication dispensing, health consultations, and wellness products. Retail pharmacies play a crucial role in healthcare by ensuring accessibility to medicines, offering patient counseling, and sometimes providing additional services like vaccinations and health screenings.

United States Retail Pharmacy Market

Growth Drivers

Increasing Prevalence of Chronic Diseases

The rising prevalence of chronic diseases, such as diabetes, cardiovascular disorders, and respiratory illnesses, is significantly driving United Retail Pharmacy Market. As the demand for long-term medication management increases, retail pharmacies are evolving beyond prescription dispensing to offer comprehensive patient care through medication adherence programs, personalized counseling, and chronic disease monitoring. With adherence rates for chronic conditions estimated to be as low as 50%, retail pharmacists are stepping in to optimize medication regimens, provide patient education, facilitate seamless transitions of care, and leverage digital tools to enhance engagement. Additionally, pharmacies are expanding their services to include health screenings, preventive care, vaccinations, and telehealth consultations, positioning themselves as essential players in the healthcare ecosystem. This growing reliance on retail pharmacies presents significant opportunities for market expansion, reinforcing their role in managing chronic diseases and improving patient outcomes.

Challenges

Intense Competition Affecting Profit Margins

United States Retail Pharmacy Market is facing mounting challenges, due to increasing competition on pricing. Major pharmacy chains, such as Walgreens and CVS, are struggling to maintain profitability amid falling prescription drug reimbursement rates. Pharmacy Benefit Managers (PBMs), which negotiate drug prices and reimbursements, have been setting lower reimbursement rates, forcing pharmacies to accept contracts that reduce their margins. Also, competition from e-commerce giants like Amazon and big-box retailers such as Walmart and Target has intensified pricing pressures. Consumers, now more cost-conscious, are shifting their purchases to these alternatives, further impacting sales at traditional pharmacies. In response, leading pharmacy chains are exploring new strategies, including cost-cutting measures and a focus on private-label products, to sustain their market position. However, without fundamental changes to the pricing and reimbursement model, retail pharmacies may continue to struggle with profitability.

Impact of Escalating Geopolitical Tensions on United States Retail Pharmacy Market

Escalating geopolitical tensions could significantly impact United States Retail Pharmacy Market by disrupting global pharmaceutical supply chains, leading to shortages of essential medicines and higher costs. For example, the proposed increasing tariff on pharmaceutical imports could escalate drug prices. Trade restrictions, tariffs, and strained diplomatic relations can affect the availability of raw materials and finished drugs, increasing operational challenges for pharmacies. Additionally, inflationary pressures and economic instability may reduce consumer spending on healthcare, impacting pharmacy revenues. To mitigate risks, retail pharmacies are focusing on diversifying supply sources, enhancing inventory management, and leveraging domestic production capabilities. Adapting to these geopolitical shifts is crucial for sustaining market stability and ensuring continuous patient care.Bottom of Form

United States Retail Pharmacy Market

Segmental Coverage

United States Retail Pharmacy Market – By Pharmacy Type

Based on pharmacy type, United States Retail Pharmacy Market is divided into Retail Pharmacy, ePharmacy, Hospital Pharmacy, and other segments.

United States Retail Pharmacy Market – By Product Type

United States Retail Pharmacy Market by product type is divided into Prescription Medications, Over the Counter (OTC), Health & Beauty Products, and Medical Devices segments. The OTC segment is expected to hold the highest share in United States Retail Pharmacy Market by product type during the forecast period. It is primarily driven by increasing consumer preference for self-medication, affordability, and widespread accessibility. With 750,000 retail outlets selling OTC products compared to 54,000 pharmacies, consumers rely on these medicines for minor ailments, reducing the need for doctor visits. The number of allergy sufferers using OTC medicines increased from 66% in 2009 to 75% in 2015, reflecting a broader shift toward OTC healthcare solutions. On average, U.S. households spend about USD 338 per year on OTC products, contributing to USD 146 billion in annual savings for the healthcare system—USD 94.8 billion in clinical cost savings and USD 51.6 billion in drug cost savings. Additionally, OTC medicines help prevent productivity losses, offering USD 34 billion in potential benefits by reducing work absences. Consumers make an average of 26 retail trips annually for OTC purchases, compared to just three doctor visits per year. Moreover, 86% of adults believe responsible OTC medicine use helps lower overall healthcare costs. Physicians also support this trend, with 92% believing OTC medicines are effective and 91% considering them safe. Leading retail pharmacy chains, including CVS, Walgreens, and Walmart, are capitalizing on this demand by expanding their OTC product ranges, including private-label brands. The rise of digital pharmacy platforms further enhances OTC accessibility, reinforcing their dominance in the United Retail Pharmacy Market.

United States Retail Pharmacy Market – By Ownership

On the basis of ownership, United States Retail Pharmacy Market is bifurcated into Chain Pharmacies and Independent Pharmacies segments. The independent pharmacies segment holds a higher share in United States Retail Pharmacy Market by ownership. It is driven by its strong customer relationships and personalized healthcare services. Known for offering tailored wellness and medication advice, independent pharmacy owners often develop close connections with their clients, enhancing trust and delivering more personalized health management solutions.

Competitive Landscape

Major players operating in United States Retail Pharmacy Market include CVS Health, Walgreens Boots Alliance, Walmart Pharmacy, Rite Aid Corporation, Kroger Health, Albertsons Companies, Costco Pharmacy, Amazon Pharmacy, Cigna (Express Scripts Pharmacy), and GoodRx Holdings, Inc. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Pharmacy Type

• Retail Pharmacy

• ePharmacy

• Hospital Pharmacy

• Others

By Product Type

• Prescription Medications

• Over the Counter (OTC)

• Health & Beauty Products

• Medical Devices

By Ownership

• Chain Pharmacies

• Independent Pharmacies

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. United States Retail Pharmacy Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Drivers
         1. Growing Aging Population
         2. Increasing Prevalence of Chronic Diseases
         3. Rising Access to Healthcare
      2. Restraints
         1. Price Competition
         2. Supply Chain Issues
      3. Opportunities
         1. Growth of ePharmacy
         2. Increasing Demand for Specialty Drugs
      4. Challenges
         1. Reimbursement Pressures
         2. Regulatory Changes
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. United States Retail Pharmacy Market: Marketing Strategies
5. United States Retail Pharmacy Market: Pricing Analysis
6. United States Retail Pharmacy Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Pharmacy Type
         1. Retail Pharmacy
         2. ePharmacy
         3. Hospital Pharmacy
         4. Others
      2. By Product Type
         1. Prescription Medications
         2. Over the Counter (OTC)
         3. Health & Beauty Products
         4. Medical Devices
      3. By Ownership
         1. Chain Pharmacies
         2. Independent Pharmacies
7. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. United States Retail Pharmacy Market Share Analysis, 2024
      1. Competitive Benchmarking, By Operating Parameters
   3. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
8. Impact of Escalating Geopolitical Tensions on United States Retail Pharmacy Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. CVS Health
   2. Walgreens Boots Alliance
   3. Rite Aid Corporation
   4. Kroger Health
   5. Albertsons Companies
   6. Costco Pharmacy
   7. Amazon Pharmacy
   8. Cigna (Express Scripts Pharmacy)
   9. GoodRx Holdings, Inc.
   10. Other Prominent Players
10. Key Strategic Recommendations
11. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Region
    5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       United States Retail Pharmacy Segmentation                   

Figure 2       United States Retail Pharmacy Market Value Chain Analysis                 

Figure 3       Company Market Share Analysis, 2024                  

Figure 4       United States Retail Pharmacy Market Size, By Value (USD Billion), 2019–2031                       

Figure 5       United States Retail Pharmacy Market Share, By Pharmacy Type, By Value, 2019–2031                    

Figure 6       United States Retail Pharmacy Market Share, By Product Type, By Value, 2019–2031                                       

Figure 7       United States Retail Pharmacy Market Share, By Ownership, By Value, 2019–2031

List of Tables

Table 1         United States Retail Pharmacy Market Size, By Value (USD Billion), 2019–2031

Table 2         United States Retail Pharmacy Market Share, By Pharmacy Type, By Value, 2019–2031                    

Table 3         United States Retail Pharmacy Market Share, By Product Type, By Value, 2019–2031                                       

Table 4         United States Retail Pharmacy Market Share, By Ownership, By Value, 2019–2031

Table 7         CVS Health Company Overview

Table 8         CVS Health Financial Overview

Table 9         Walgreens Boots Alliance Company Overview

Table 10       Walgreens Boots Alliance Financial Overview

Table 11       Walmart Pharmacy Company Overview

Table 12       Walmart Pharmacy Financial Overview

Table 13       Rite Aid Corporation Company Overview

Table 14       Rite Aid Corporation Financial Overview

Table 15       Kroger Health Company Overview

Table 16       Kroger Health Financial Overview

Table 17       Albertsons Companies Company Overview

Table 18       Albertsons Companies Financial Overview

Table 19       Costco Pharmacy Company Overview

Table 20       Costco Pharmacy Financial Overview

Table 21       Amazon Pharmacy Company Overview

Table 22       Amazon Pharmacy Financial Overview

Table 23       Cigna (Express Scripts Pharmacy) Company Overview

Table 24       Cigna (Express Scripts Pharmacy) Financial Overview

Table 25       GoodRx Holdings, Inc. Company Overview

Table 26       GoodRx Holdings, Inc. Financial Overview