The US retail pharmacy market is on track for substantial growth over the next decade, according to a new report from Persistence Market Research.
Valued at $584.1 billion in 2024, the sector is projected to reach $784.4 billion by 2031, expanding at a compound annual growth rate (CAGR) of 4.3%, the report claims.
Driving this growth is a combination of demographic and technological shifts, including an aging population, rising chronic disease rates, and increasing consumer demand for convenient, tech-enabled healthcare solutions.
Retail pharmacies are playing a critical role in managing chronic conditions such as diabetes, hypertension, and heart disease. The report notes that prescription drugs are expected to dominate the sector in 2024, accounting for 54.2% of market share. Branded drugs will also take the lead, projected to hold 67.3% of the market this year.
Chain retailers such as CVS Health and Walgreens Boots Alliance continue to evolve their offerings to go beyond traditional prescription fulfilment.
Services like flu shots, blood pressure checks, immunisations, and telehealth consultations are becoming standard features across locations, aligning with shifting consumer preferences and public health needs.
Another major force behind market expansion is the rapid growth of ePharmacies and mail-order prescription services.
As digital adoption increases, consumers are seeking easier ways to access medications. Companies like Amazon Pharmacy, which launched 24-hour drug delivery in select cities in late 2024, are tapping into this demand.
The report also highlights the growing use of AI-driven tools in pharmacy operations—enhancing everything from prescription management to personalised medication plans. This digital transformation is improving efficiency and deepening engagement with patients.
While urban areas dominate the retail pharmacy landscape due to higher store density and internet access, demand is also growing in rural and underserved regions. Independent pharmacies remain vital in these communities, where they often serve as a frontline healthcare provider.
Geographically, the southern and western US are seeing particularly high market penetration. This is attributed to both the aging population and a higher prevalence of chronic illnesses in these areas.
Despite positive growth forecasts, the report points to several hurdles. High out-of-pocket healthcare costs continue to limit access for many consumers, and the rise of counterfeit drugs poses a safety risk.
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