Industry Statistics and Trends
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 0.4 % over the past five years, to reach an estimated £14.1bn in 2024.
Trends and Insights
Regulatory changes intensify price competition
- According to the NHS prescriptions Dispensing Data report, the cost of proprietary or branded drugs is typically four to 6.5 times higher than generic unbranded medication.
- 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
Brexit adds fuel to qualified staff shortages within pharmacies
- Since Brexit, pharmacists from the EEA wanting to practice in the UK must apply for their qualifications to be recognised before registering with the General Pharmaceutical Council (GPhC).
Biggest companies in the Dispensing Chemists in the UK
| Company | Market Share (%)
2025 | Revenue (£m)
2025 |
|---|---|---|
Boots UK Ltd | 2,283.7 | |
LloydsPharmacy | 1,104.7 | |
Bestway (Holdings) Limited | 955.4 |
To view the market share and analysis for all 5 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-only, Pharmacy-only and General sales listed. Prescription-only is the largest segment of the Dispensing Chemists in the UK.
Trends and Insights
Prescription-only drugs suffer due to low-cost generic alternatives
- Prescription-only products include antibiotics, anxiety and antidepressant medication, specific high-blood pressure medication and controlled drugs like codeine. A qualified health professional like a GP must administer these medicines.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
Companies in the industry dispense and sell pharmaceutical goods via community pharmacies and chemists. Pharmacies also provide other NHS services and sell over-the-counter medications and health-related products. This industry does not include non-health-related products, in-store supermarket pharmacies and online-only chemists.
What's included in this industry?
Prescription-onlyPharmacy-onlyGeneral sales listTeleconsultations and delivery servicesCompanies
Boots UK LtdLloydsPharmacyBestway (Holdings) LimitedPurchase this report to view all 5 major companies in this industry.
Related Terms
PRESCRIPTION MEDICINESPHARMACY-ONLY MEDICINESGENERAL SALES LIST (GSL) MEDICINESOVER-THE-COUNTER (OTC) MEDICINESCOMMUNITY PHARMACIESREIMBURSEMENT PAYMENTHEALTH INFLATIONIndustry Code
SIC 47.73 - Dispensing Chemists in the UK
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
Revenue growth has been squeezed by pricing pressure. Regulatory amendments and the loss of patent protection have offset this intense pricing pressure. Insufficient governme...
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
Cheaper alternatives to prescription-only drugs are a threat. People are increasingly opting for cheap, generic alternatives to prescription-only drugs like antibiotics and p...
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
London is home to the largest share of medical practices. That’s why it’s the leading region for the industry, with its dense and fast-growing population. Consumers with high...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Europe, 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
Lots of pharmacies have recently closed. LloydsPharmacy closed 237 stores in January 2023 because of insufficient government funding.
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
Boots’ omnichannel offering helps the company to thrive. The company offers over 100 healthcare services online or in-store. They can access these services with ease both onl...
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 Boots UK Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of LloydsPharmacy's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Bestway (Holdings) Limited's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for Boots UK Ltd, and factors influencing its performance in the industry
- Description and key data for LloydsPharmacy, and factors influencing its performance in the industry
- Description and key data for Bestway (Holdings) Limited, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The size of the UK’s ageing population influences demand. When it’s higher, demand for dispensing chemists is higher because the elderly population tend to require more medic...
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
Staff shortages push up wage costs. This is down to Brexit, which has squeezed the number of EEA pharmacists entering the UK, and substantial government funding cuts.
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 (2018-2022)
- Coverage Ratios (2018-2022)
- Leverage Ratios (2018-2022)
- Operating Ratios (2018-2022)
- Assets (2018-2022)
- Liabilities (2018-2022)
- 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)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Dispensing Chemists in the UK industry in United Kingdom in 2024?
The market size of the Dispensing Chemists in the UK industry in United Kingdom is £14.1bn in 2024.
How many businesses are there in the Dispensing Chemists in the UK industry in 2024?
There are 5,655 businesses in the Dispensing Chemists in the UK industry in United Kingdom, which has grown at a CAGR of 2.0 % between 2019 and 2024.
Has the Dispensing Chemists in the UK industry in United Kingdom grown or declined over the past 5 years?
The market size of the Dispensing Chemists in the UK industry in United Kingdom has been declining at a CAGR of 0.4 % between 2019 and 2024.
What is the forecast growth of the Dispensing Chemists in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the Dispensing Chemists in the UK industry in United Kingdom is expected to grow.
What are the biggest companies in the Dispensing Chemists in the UK market in United Kingdom?
The biggest companies operating in the Dispensing Chemists market in United Kingdom are Boots UK Ltd, LloydsPharmacy and Bestway (Holdings) Limited
What does the Dispensing Chemists in the UK in United Kingdom include?
Prescription-only and Pharmacy-only are part of the Dispensing Chemists in the UK industry.
Which companies have the highest market share in the Dispensing Chemists in the UK in United Kingdom?
The company holding the most market share in United Kingdom is Boots UK Ltd.
How competitive is the Dispensing Chemists in the UK industry in United Kingdom?
The level of competition is low and decreasing in the Dispensing Chemists in the UK industry in United Kingdom.
Related Industries
Widen you competitive advantage with related industries
Competitors
- Cosmetics & Toiletries Retailers in the UK
Complementors
- Pharmaceutical Preparations Manufacturing in the UK
- Pharmaceutical Wholesaling in the UK
- Medical & Orthopaedic Supplies Retailers in the UK
International industries
- Pharmacies & Drug Stores in the US
- Compounding Pharmacies in the US
- Institutional Pharmacies in the US
- Pharmacies & Drug Stores in Canada
- Pharmacies in Australia
View all industries in United Kingdom
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 the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
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.
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