The State of the Pharmacy Market
Over the last ten years (2014-2024), the number of independent retail pharmacies nationwide increased by 1,287 stores or 5.8%. In contrast, the number of retail chain pharmacies decreased by 4,149 stores or 10.3%
New 2024 data from National Council for Prescription Drug Programs (NCPDP) finds a continuing pattern of stability in the independent market and a steady decline in the chain market. Between January 2023 and January 2024, the number of independent pharmacies increased by 0.1% (31 stores), and the number of chains decreased by 2.7% (1,002 stores).
RESEARCH SHOWS US
The Number of Retail Pharmacies in 2024
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 2024.
Definitions
- Retail Pharmacy - A location that is licensed as a pharmacy by a state and that dispenses medications directly to the general public at retail prices. Such term does not include a pharmacy that dispenses prescription medications to patients primarily through the mail, nursing home pharmacies, long-term care facility pharmacies, hospital pharmacies, clinics, charitable or not-for-profit pharmacies, government pharmacies, or pharmacy benefit managers.
- 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
Over the last ten years (2014-2024), the total number of chain pharmacies decreased by 10.3% and by 7.4% over the last five years (2019-2024). In comparison, the total number of independent pharmacies increased by 5.8% over the last ten years and 1.4% in the previous five years. Nationally, the total number of pharmacies (chain plus independent) declined between 2014 to 2024. These declining numbers are solely due to the decline in chain stores in most years studied.
Other Research on Pharmacies
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
