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.
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