Pharmacies - Canada | Statista Market Forecast

In 2024, the Pharmacies market in Canada is forecasted to generate a revenue of US$56.48bn.
It is expected to experience a steady annual growth rate (CAGR 2024-2029) of 4.99%, resulting in a market volume of US$72.05bn by 2029.
When compared globally, United States is projected to generate the highest revenue in 2024, with a staggering US$387.30bn.
In terms of per person revenues, in Canada is estimated to generate US$1.44k per capita in 2024.
Canada's pharmacy market is growing rapidly, driven by an aging population and increased demand for prescription medications.

Definition:
Pharmacies are physical or digital places where mainly pharmaceuticals and medical products are sold. Additionally, they also sell other items that are generally found in a pharmacy, such as food supplements, cosmetic products, and other health-related goods. A large proportion of pharmaceuticals are only available on prescription; the rest of the product range of pharmacies is sold over the counter (OTC). Besides selling products, pharmacies also advise customers, inform them about undesirable effects of the products, and detect possible interactions with other medicines.

Structure:
The Pharmacies market consists of two markets: Prescriptions Drugs and OTC Products. The Prescription Drugs market covers all products – mainly pharmaceuticals – that are only available on prescription. The OTC Products market comprises all products that are sold over the counter (OTC), including pharmaceuticals, medical devices, and other items that are generally found in a pharmacy.

Additional information:
The KPIs shown include revenue, revenue growth, average revenue per pharmacy, average revenue per capita, number of pharmacies, pharmacy density, users, and the online sales share for the OTC Products market. Revenues are generated through offline and online spending by (B2C) consumers and include VAT. B2B and B2G sales as well as other pharmaceutical sales through hospitals or retail stores, such as supermarkets, are not included.
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Prescription pharmaceuticals
Prescription medical products
OTC pharmaceuticals
OTC medical products
Pharmacy-usual items

Services such as vaccinations
Sales through hospitals or retail stores

The Pharmacies market in Canada has been experiencing steady growth in recent years.

Customer preferences: Customers in Canada have shown a strong preference for convenience and accessibility when it comes to healthcare services. This has led to an increasing demand for pharmacies that offer extended operating hours and multiple locations. Additionally, customers are increasingly seeking out pharmacies that provide a wide range of services, such as medication counseling, health screenings, and immunizations. With the aging population in Canada, there is also a growing demand for pharmacies that specialize in geriatric care and offer personalized medication management services.

Trends in the market: One of the key trends in the Pharmacies market in Canada is the expansion of retail pharmacy chains. These chains have been opening new stores in both urban and rural areas, making it easier for customers to access their services. This trend is driven by the desire to capture a larger market share and increase profitability through economies of scale. Retail pharmacy chains are also investing in technology and digital platforms to enhance the customer experience and offer additional services, such as online prescription refills and home delivery. Another trend in the market is the increasing focus on preventive healthcare and wellness. Pharmacies in Canada are diversifying their product offerings to include a wide range of over-the-counter medications, vitamins, supplements, and natural health products. This is in response to the growing consumer interest in self-care and alternative medicine. Pharmacies are also partnering with healthcare providers and insurance companies to offer health and wellness programs, such as smoking cessation support, weight management, and chronic disease management.

Local special circumstances: One of the unique aspects of the Pharmacies market in Canada is the presence of provincial drug benefit programs. These programs provide coverage for prescription medications to eligible residents, which helps to increase access to healthcare and reduce out-of-pocket expenses. However, the reimbursement rates set by these programs can vary across provinces, which can impact the profitability of pharmacies. Pharmacies in Canada also face regulatory challenges, such as strict licensing requirements and restrictions on the ownership and operation of pharmacies.

Underlying macroeconomic factors: The growth of the Pharmacies market in Canada is supported by several macroeconomic factors. The country has a universal healthcare system, which ensures that all residents have access to basic healthcare services, including prescription medications. The aging population in Canada is also driving demand for healthcare services, including pharmacy services. Additionally, the increasing prevalence of chronic diseases, such as diabetes and cardiovascular disease, is leading to a higher demand for medications and pharmacy services. The stable and growing economy in Canada provides a favorable environment for investment in the healthcare sector, including pharmacies.

Data coverage:

The data encompasses B2C enterprises. Figures are based on offline and online spending by consumers, including VAT. Not included are B2B and B2G sales, or other pharmaceutical sales through hospitals or retail stores such as supermarkets.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market market. As a basis for evaluating markets, we use industry associations, third-party studies and reports and survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as healthcare expenditure per country, consumer healthcare spending, GDP and internet penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, forecasts are based on historical developments, current trends, and key market indicators, using advanced statistical methods. For forecasting digital trends such as the online-pharmacy sales share we use exponential trend smoothing and the s-curve method. The main drivers are healthcare expenditure per country and consumer healthcare spending.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. GCS data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Health market, in a PDF format.

The global online pharmacy sector was estimated at 32 billion U.S. dollars by the end of 2023. In the United States, forecasts indicate that this figure would reach approximately 5.7 billion, solidifying its position as one of the largest online pharmacy markets. However, China dominates the pharma e-commerce industry worldwide, generating nearly 8.5 billion dollars in revenue. With China at the forefront, it is no wonder digital pharmacies make up the fastest-growing segment in the Asian digital health market.