In this article, we will be analyzing the global pharmacy industry and its dominant players, while covering the 15 largest pharmacy chains in the world. If you wish to skip our detailed analysis, you can move directly to the 5 Largest Pharmacy Chains in the World.
The Global Pharmaceutical Industry to Reach $1.8 Trillion
According to a report by Research and Markets, the global pharmaceutical drugs industry was valued at $1.13 trillion in 2022. The industry is expected to grow from $1.19 trillion in 2023 to $1.84 trillion in 2027, at a compound annual growth rate of 11.4% over the forecast period. North America was the most dominant region in the pharmaceutical drugs market in 2022. However, the Middle East is expected to be the fastest growing market for pharmaceutical drugs.
Evolving Trends in the Industry
The pharmaceutical industry has been subject to external factors such as supply chain pressures in addition to rising inflation which has introduced additional costs of labor, raw materials, and transportation. Ever since the pandemic hit the industry, workers have been expecting more work flexibility which adds to the burden of already existing technical labor shortages for pharmaceutical companies. Hence, pharmaceutical companies are finding ways to leverage their positions by innovating, enhancing digitization, and collaborating with strategic partners across the industry. In October 2022, McKinsey reported that one way to leverage market position in the industry has been to enter joint ventures and partnerships. More than 50% of pharmaceutical companies expect to increase collaborations across the industry.
On January 6, PwC reported the emerging trends in the pharmaceutical industry for 2023. Pharmaceutical companies are trying to be cost-effective by achieving economies of scale through centralized operations. Outsourcing non-core processes to third parties has also been noticed since these third parties are capable of providing innovative solutions. A new era of treatment options is emerging as automation and artificial intelligence are being integrated into the drug development process, thereby saving time and costs.
Industry Rivalry
The global pharmaceutical industry is competitive since the market is saturated with many players. The most dominant players include CVS Health Corporation (NYSE:CVS), McKesson Corporation (NYSE:MCK), and Cardinal Health, Inc. (NYSE:CAH). Let’s take a look at some of the competitive moves by these players. You can also view the best healthcare stocks to buy now.
CVS Health Corporation (NYSE:CVS) is one of the world’s biggest healthcare companies. The company strives to improve healthcare access across the US. On October 1, CVS Health Corporation (NYSE:CVS) reported that its brand ‘Aetna’ will be launching the company’s largest Medicare offering, in 2024. The company will be increasing the access of 2.2 million more Medicare-eligible beneficiaries to an Aetna medicare advantage plan. Dental, vision, and hearing benefits have also been added to these plans. Furthermore, freshly prepared meals will also be delivered to patients after they get discharged from a hospital or a skilled nursing facility. The plans have been made affordable across the US.
McKesson Corporation (NYSE:MCK) is a leading distributor of pharmaceutical products and supplies. The company has constantly innovated to remain competitive in the market. Ontada is the company’s oncology technology business which aims to fight cancer in the country through its experience in real-world data research. On October 11, McKesson Corporation (NYSE:MCK) reported that Ontada has entered into a contract with the U.S. Food and Drug Administration (FDA) to research how rare cancers in patients are treated in the US community oncology setting. Ontada has secured this research since the company has access to almost 2.4 million patient records from a diverse patient group. This research will enable life science companies to improve drug development for better cancer care.
Cardinal Health, Inc. (NYSE:CAH) offers pharmaceutical products and provides personalized solutions to healthcare systems, pharmacies, and patients. The company has operations in more than 30 countries including the US and Canada. Considering supply chain volatility issues in the industry as mentioned above, the company has been investing in innovative technology to improve its value chain. On October 4, Cardinal Health, Inc. (NYSE:CAH) reported that it launched the InteLogix Platform at the beginning of 2023 as an efficient supply chain solution for hospitals. This platform uses AI and machine learning to balance demand and supply for health systems. InteLogix Contract Optimizer enables hospitals to make decisions regarding drug purchases through an analysis of purchase savings and alternative products. For hospitals that have employed this supply chain solution, savings of $8.25 million have been made.
You can also take a look at the highest paying countries for pharmacists. Now that we have taken a look at the industry, let’s move to the biggest pharmacy chains in the world.
15 Largest Pharmacy Chains in the World
Our Methodology
In order to compile a list of the largest pharmacy chains in the world, we consulted multiple industry analysis reports published by acclaimed market research agencies and we also tallied and sourced a list of global pharmacy retailers from stock screeners from Yahoo and Finviz. We sifted through our resources and compiled a list of the 30 biggest pharmacy companies by market cap. All market capitalizations have been mentioned in USD, as of October 12, 2023.
For companies that have a diversified business but a well-established pharmacy network, we cited the annual revenues from their pharmacy businesses, as of their latest fiscal year.
Finally, we ranked the top 15 largest pharmacy chains in the world in ascending order of their market capitalization, or revenue from their pharmacy business.
15 Largest Pharmacy Chains in the World:
15. Tsuruha Holdings Inc. (OTC:TSUSF)
Market Capitalization: $3.51 billion
Tsuruha Holdings Inc. (OTC:TSUSF) is a dominant pharmacy chain in the world. As a major drugstore network in Japan, the company is one of the leaders in regional medical care. Tsuruha Holdings Inc. (OTC:TSUSF) sells pharmaceuticals, food, cosmetics and miscellaneous products in the country. As of October 12, the company is worth $3.51 billion.
14. COSMOS Pharmaceutical Corporation (OTC:CSMYF)
Market Capitalization: $3.8 billion
COSMOS Pharmaceutical Corporation (OTC:CSMYF) is a pharmacy chain that operates drug stores in Japan and provides self-medication products, oral care products, diet supplements, and nursing care products. Other than healthcare products, COSMOS Pharmaceutical Corporation (OTC:CSMYF) also sells products related to hair care, cosmetics, and toiletries. The company has a market capitalization of $3.8 billion, as of October 12, and is one of the largest pharmacy networks in the world.
13. Jointown Pharmaceutical Group Co., Ltd (SHA:600998)
Market Capitalization: $4.04 billion
Jointown Pharmaceutical Group Co., Ltd (SHA:600998) is a Chinese retailer of medical and pharmaceutical products. Apart from having one of the largest medical warehouse networks in China, the company serves worldwide. Jointown Pharmaceutical Group Co., Ltd (SHA:600998) also produces medical supplies such as gloves, medical equipment, and surgical masks. As of October 12, the company is a major global pharmacy chain in the world and is worth $4.04 billion.
12. YSB Inc. (HKG:9885)
Market Capitalization: $4.3 billion
YSB Inc. (HKG:9885) is involved in the wholesale and retail of pharmaceutical and healthcare products. The company operates a digital platform for pharmaceutical retailers, vendors, and distributors to sell their products in China. YSB Inc. (HKG:9885) also offers a 24-hour service, wePharmacy, which helps connect consumers with pharmacist services. As of October 12, the company is valued at $4.3 billion and is one of the top pharmacy chains in the world.
11. Nahdi Medical Company (TADAWUL:4164)
Market Capitalization: $4.73 billion
Nahdi Medical Company (TADAWUL:4164) is another large pharmacy chain in the world and has a market capitalization of $4.73 billion, as of October 12. The company is a dominant pharmaceutical retailer operating in the UAE and Saudi Arabia. Nahdi Medical Company’s (TADAWUL:4164) product portfolio includes wellness products, medicines, beauty products, and other FMCG products. E-Pharmacist is an online service by the company that enables access to the company’s pharmacists.
CVS Health Corporation (NYSE:CVS), McKesson Corporation (NYSE:MCK), and Cardinal Health, Inc. (NYSE:CAH) are global leaders in the pharmaceutical retail space which continue to fulfill medical requirements around the world.
10. Yifeng Pharmacy Chain Co., Ltd. (SHA:603939)
Market Capitalization: $4.81 billion
Yifeng Pharmacy Chain Co., Ltd. (SHA:603939) is a Chinese retailer of herbal medicines, western patent medicines, gynecological medicines, pediatric medicines, medical equipment and health-related convenience products. The company operates a chain of pharmaceutical stores in Jiangsu, Shanghai, Zhejiang, Guangdong, and Beijing. As of October 12, Yifeng Pharmacy Chain Co., Ltd. (SHA:603939) is worth $4.81 billion on the open market and is one of the largest global pharmacy chains.
9. MatsukiyoCocokara & Co (TYO:3088)
Market Capitalization: $7.64 billion
MatsukiyoCocokara & Co (TYO:3088) is another major player in the global pharmaceutical industry. The company operates a chain of drugstores and pharmacies. The product portfolio offered by the company is diversified and includes medical products, beauty products, cosmetics, and food products. The company’s stores operate across Japan, Thailand, Taiwan, Hong Kong, and Vietnam. As of October 12, MatsukiyoCocokara & Co (TYO:3088) is worth $7.64 billion on the open market.
8. Alibaba Health Information Technology Limited (OTC:ALBHF)
Market Capitalization: $8.68 billion
Alibaba Health Information Technology Limited (OTC:ALBHF) is the digital health and pharmaceutical business of the Alibaba Group Holding Limited (NYSE:BABA). The company operates an e-commerce pharmaceutical and consumer healthcare services platform. Alibaba Health Information Technology Limited (OTC:ALBHF) is worth $8.68 billion as of October 12, 2023.
Companies dominating the global pharmaceutical industry include CVS Health Corporation (NYSE:CVS), McKesson Corporation (NYSE:MCK), and Cardinal Health, Inc. (NYSE:CAH).
7. Raia Drogasil S.A. (OTC:RADLY)
Market Capitalization: $9.53 billion
Raia Drogasil S.A. (OTC:RADLY) is one of the biggest drugstore companies in Latin America. The company operates Raia Drogasil as its pharmaceutical brand selling over-the-counter medications, infant milk, vitamins and food supplements. Other company brands offer hygiene, nutrition, and beauty products. As of October 12, Raia Drogasil S.A. (OTC:RADLY) is valued at $9.53 billion.
6. Welcia Holdings Co., Ltd. (TYO:3141)
Market Capitalization: $17.96 billion
Welcia Holdings Co., Ltd. (TYO:3141) is one of the world’s largest pharmacy chains, which operates a large drugstore network with dispensing pharmacies. It is a subsidiary of Aeon Co., Ltd. and is headquartered in Tokyo. Welcia Holdings Co., Ltd. (TYO:3141) retails daily household products, food, and cosmetics. Nursing care support services and housing services for the elderly are also offered by the company. As of October 12, the company is valued at $17.96 billion.
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Disclosure: None. 15 Largest Pharmacy Chains in the World is originally published on Insider Monkey.