Pharmacy & Drug Store Franchises in the US - Industry Market Research Report

Pharmacy & Drug Store Franchises

Several franchisees have joined the Pharmacy and Drug Store Franchises industry in an attempt to capitalize on positive upstream trends that are driving demand for pharmacies and drug stores nationwide. These trends include the effects of healthcare reform, which has increased the number of Americans with private health insurance. Additionally, the number of adults aged 65 and older, one of the industry's largest customer segments, has grown considerably over the past five years. Over the five years to 2023, the underlying positive trends that have driven industry growth over the past five years will continue to benefit industry operators. However, the leading franchisors are expected to reach a point of relative saturation. At this juncture, it becomes increasingly difficult to compete amid rising costs from PBMs and price-based competition from both big-box retailers and national pharmacy chains.

Franchises in this industry retail a range of prescription and over-the-counter medications, beauty items, toiletries and consumable goods directly to consumers. Reports in IBISWorld’s Business Franchise collection focus solely on the operation of franchised outlets. They show the total number of franchise outlets, total franchise revenue and the average profit margin earned by franchisees. These reports also highlight the largest franchisors by market share.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

  • About this Industry
  • Industry at a Glance
    • Table Key Statistics Snapshot
    • Table Revenue vs. employment growth
    • Table Products and services segmentation (2019)
    • Table Industry Structure
  • Industry Performance
    • Table Per capita disposable income
    • Table Industry revenue
    • Table Life Cycle Stage
  • Products & Markets
    • Table Products and services segmentation (2019)
    • Table Major market segmentation (2019)
    • Table Business Locations 2019
    • Table Distribution of establishments vs. population
  • Competitive Landscape
    • Table Sector vs. Industry Costs
    • Table Barriers to Entry checklist
  • Major Companies
    • Table Major Players
    • Table McKesson Corporation (US industry-specific segment) - financial performance*
    • Table Cardinal Health Inc. (US industry-specific segment) - financial performance*
  • Operating Conditions
    • Table Capital Intensity
    • Table Tools of the Trade: Growth Strategies for Success
    • Table Volatility vs. growth
  • Key Statistics
    • Table Industry Data
    • Table Annual Change
    • Table Key Ratios
  • Jargon & Glossary

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