The State of the Pharmacy Market
Over the last ten years (2015-2025), the number of independent retail pharmacies nationwide increased by 321 stores or 1.4%. In contrast, the number of retail chain pharmacies decreased by 5,742 stores or 14.1%
Research finds that independent pharmacies are both opening and closing across the country, representing a “churn” in the pharmacy market. Using data from the National Council for Prescription Drug Programs (NCPDP), we measure the net number of independent pharmacies annually. In both of the previous 2 years, there was an increase in the number of independent pharmacies; however, in 2025, there has been a small decrease over the previous year, representing normal churn in the independent pharmacy market. In contrast, the number of chains has steadily declined for the last 10 years. This year, the number of chains declined by 3.3% (1,204 stores) from the previous year.
RESEARCH SHOWS US
The Number of Retail Pharmacies in 2025
The number of retail pharmacies varies across states and changes almost every year. The map below shows a snapshot of the number of each state's independent, chain, and total pharmacies in 2025.
Definitions
- Retail Chain Pharmacy - A group of pharmacies with four or more pharmacy locations under common ownership.
- Retail Independent Pharmacy - A pharmacy that is part of a group of three or less pharmacies under common ownership.
Annual Number of Independent and Chain Retail Pharmacies
Retail pharmacies have opened and closed stores throughout the years, with chain pharmacies driving the total number of closures. This type of churn at the business level can represent normal dynamics with new businesses opening or existing businesses expanding, while others may sell or close their businesses. New research suggests that the retail independent pharmacy market shows normal churn, and is in line with other industries, such as grocery stores. The net number of retail chain and independent pharmacies represents the market as a whole. The graph below demonstrates the net number of pharmacies over the 10-year period 2015 through 2025.
Other Research on Pharmacies
Community Pharmacy Turnover and Context of Openings and Closings by Ownership Type
Independent Pharmacies in the U.S. are More on the Rise than on the Decline (Hatemi and Zorn)
Five Things to Know About the State of Independent Pharmacy Economics (Drug Channels)
Data We Don’t Know if We Can Believe in? NCPA’s Data Differs Greatly from the Number of Pharmacies Reported by NCPDP (Hatemi)
There are More Independent Pharmacies, Just Look at Real, Accurate Data
The Resurgence of Independent Pharmacy (Marwood Group)
Nationwide, More Independent Pharmacies Opened in 2020
