Pharmacies & Drug Stores in Canada - Market Research Report (2014-2029)
New York, United States
Last Updated: July 2024
NAICS 44611CARevenue
$55.7bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
213k
Businesses
11,802
Wages
$X.Xbn
Pharmacies & Drug Stores in Canada industry analysis
In recent years, pharmacies and drug stores have benefitted from growing health-related expenditures. Prescription medications have persisted in their popularity, keeping demand high. Although increasing pharmaceutical prices have bolstered revenue, many provincial drug programs have restricted prescription prices to cut healthcare costs. For example, many territories have required generic drugs to be marked down by a percentage of the patented drug equivalent, limiting revenue growth and hindering more robust profit growth. Still, many pharmacies and drug stores have been able to generate revenue from generic drugs, which have become more popular because of the soaring costs of branded medications. Overall, revenue for Canadian Pharmacies and Drug Stores is expected to climb at a CAGR of 0.9% to $55.7 billion through the end of 2024, including forecast growth of 1.6% in 2024 alone.
Trends and Insights
- Pharmacies were deemed essential during the pandemic, preventing sizeable revenue declines. As pharmacies have begun offering a wider array of products, they have benefited from a growing number of health-conscious consumers and an increasing emphasis on convenience.
- Generic drugs dominate the industry in terms of sales volume. Although they make up the vast majority of total sales volume, their prominence slightly cuts into profitability. Branded drugs account for the largest share of revenue.
- Ontario and Quebec contain the majority of establishments and account for more than 60.0% of the Canadian population. Alberta and British Columbia are the only provinces representing more than 10.0% of establishments.
- The industry is highly price competitive because of low product differentiation. Many pharmacies and drug stores have consolidated in response to high competition.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.9 % over the past five years, to reach an estimated $55.7bn in 2024.
Trends and Insights
Favourable trends promote growth despite intense competition
- Pharmacies and drug stores have filled more prescription medications because the number of consumers with private health insurance has proliferated. Growth in the number of consumers aged 65 or older boosted growth since members of this consumer segment often require medication to address chronic ailments, resulting in consistent revenue. Younger consumers are less likely to visit pharmacies and drug stores regularly.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Improving macroeconomic conditions and demographic shifts benefit pharmacies
- While pharmacies and drug stores benefited from revenue growth amid the pandemic, improving macroeconomic conditions will boost sales in the coming years. Many drug stores and pharmacies will continue to expand their stores' services to gain additional revenue. Preventive care products and services will become more popular and stores will continue to provide additional front-end offerings.
Biggest companies in the Pharmacies & Drug Stores in Canada
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Shoppers Drug Mart Corporation | 16,344.0 | 989.1 | 6.1 | |
Metro Inc. | 8,072.1 | 594.4 | 7.4 | |
Familiprix Inc. | 1,797.8 | N/A | N/A |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Prescription pharmaceuticals, Nonprescription pharmaceuticals and Infant care products, eyewear and eye care. Prescription pharmaceuticals is the largest segment of the Pharmacies & Drug Stores in Canada.
Trends and Insights
Prescription pharmaceuticals
- Prescription pharmaceuticals, as a segment, include brand-name and generic drugs that require a doctor’s prescription. These medications are expected to account for over one-third of industry revenue in 2024.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Health Stores in Canada
Complementors
- Brand-Name Pharmaceutical Manufacturing in Canada
- Generic Pharmaceutical Manufacturing in Canada
- Primary Care Doctors in Canada
International industries
- Global Pharmaceuticals & Medicine Manufacturing
- Pharmacies & Drug Stores in the US
- Compounding Pharmacies in the US
- Institutional Pharmacies in the US
- Pharmacies in Australia
Table of Contents
About this industry
Industry definition
Pharmacies and Drug Stores in Canada retail a range of prescription and over-the-counter drugs and medications, health and beauty items, toiletries and consumable goods directly to consumers on a walk-in basis. Stores may also provide basic health and photo-processing services. The industry includes retail stores with a pharmacy but excludes mail order and online retailers, hospitals and clinics.
What's included in this industry?
Preparing and selling prescription pharmaceuticalsSelling nonprescription pharmaceuticalsRetailing personal and beauty productsRetailing infant care productsRetailing eyewear and eye care productsCompanies
Shoppers Drug Mart CorporationMetro Inc.Familiprix Inc.Purchase this report to view all 4 major companies in this industry.
Related Terms
OVER-THE-COUNTER (OTC) MEDICATIONSPRESCRIPTION DRUGFRONT-END SALESBLOCKBUSTER DRUGWORKERS' COMPENSATION BOARDIndustry Code
NAICS 446110 - Pharmacies & Drug Stores in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Pharmacies were deemed essential during the pandemic, preventing sizeable revenue declines. As pharmacies have begun offering a wider array of products, they have benefited f...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Generic drugs dominate the industry in terms of sales volume. Although they make up the vast majority of total sales volume, their prominence slightly cuts into profitability...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Ontario and Quebec contain the majority of establishments and account for more than 60.0% of the Canadian population. Alberta and British Columbia are the only provinces repr...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each province in 2024
- Number and share of revenue each province accounts for in 2024
- Number and share of wages each province accounts for in 2024
- Number and share of employees in each province in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The industry is highly price competitive because of low product differentiation. Many pharmacies and drug stores have consolidated in response to high competition.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The variety of products sold by this industry limits concentration. It also prevents any one company from obtaining a sizeable share of revenue.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Shoppers Drug Mart Corporation's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Metro Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Familiprix Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Shoppers Drug Mart Corporation, and factors influencing its performance in the industry
- Description and key data for Metro Inc., and factors influencing its performance in the industry
- Description and key data for Familiprix Inc., and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
A growing number of individuals aged 65 and over in the population has benefitted the industry. Older adults are a more integral market to this industry than individuals 17 a...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
The prevalence of low-priced generic drugs has constrained profit growth. However, climbing sales volumes at pharmacies and drug stores have offset this to facilitate profit ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Assets (2017-2022)
- Liabilities (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Pharmacies & Drug Stores industry in Canada in 2024?
The market size of the Pharmacies & Drug Stores industry in Canada is $55.7bn in 2024.
How many businesses are there in the Pharmacies & Drug Stores in Canada industry in 2024?
There are 11,802 businesses in the Pharmacies & Drug Stores industry in Canada, which has grown at a CAGR of 2.3 % between 2019 and 2024.
Has the Pharmacies & Drug Stores industry in Canada grown or declined over the past 5 years?
The market size of the Pharmacies & Drug Stores industry in Canada has been growing at a CAGR of 0.9 % between 2019 and 2024.
What is the forecast growth of the Pharmacies & Drug Stores industry in Canada over the next 5 years?
Over the next five years, the Pharmacies & Drug Stores industry in Canada is expected to grow.
What are the biggest companies in the Pharmacies & Drug Stores market in Canada?
The biggest companies operating in the Pharmacies & Drug Stores market in Canada are Shoppers Drug Mart Corporation, Metro Inc. and Familiprix Inc.
What does the Pharmacies & Drug Stores in Canada include?
Preparing and selling prescription pharmaceuticals and Selling nonprescription pharmaceuticals are part of the Pharmacies & Drug Stores industry.
Which companies have the highest market share in the Pharmacies & Drug Stores in Canada?
The company holding the most market share in Canada is Shoppers Drug Mart Corporation.
How competitive is the Pharmacies & Drug Stores industry in Canada?
The level of competition is high and increasing in the Pharmacies & Drug Stores industry in Canada.
