Ageing population to drive APAC retail pharma market to $524.8b by 2032

This demographic shift is expecto to increase prescription volumes.

The Asia Pacific retail pharmacy market is projected to reach $524.8b by 2032, with a compound annual growth rate of 5.39%, driven by healthcare demand and the expansion of pharmacy networks, according to Credence Research Inc.

Demographic shifts—including ageing populations in Japan, South Korea, and China—are driving prescription volumes. Chronic conditions, such as diabetes and cardiovascular disorders, require long-term medication management.

East Asia holds the largest regional market share due to established healthcare systems and large elderly populations, whilst Southeast Asian markets—including Indonesia, Thailand, and Malaysia—are expanding alongside urbanisation and infrastructure development.

South Asia, led by India, is recording growth driven by population size and demand for generic medications, whilst Australia and New Zealand maintain stable growth supported by structured healthcare systems and organised pharmacy chains.

The report notes that e-pharmacy platforms in China, India, and Australia offer home delivery, prescription refills, and telemedicine, utilising smartphone adoption and internet penetration to reach consumers beyond physical store locations.

Government policies also influence market dynamics, as reforms promoting generic drugs and expanded insurance coverage increase pharmacy visit frequency, Credence Research Inc. said.

Retailers are diversifying services to include health screenings, vaccinations, and chronic disease consultations to improve patient engagement.

The report cited key participants, including Watsons, Apollo Pharmacy, MedPlus, CK Life Sciences, and 7-Eleven.

Recent industry consolidation includes the February 2025 completion of the merger between Sigma Healthcare and Chemist Warehouse. Aeon, Tsuruha, and Welcia also announced plans in February 2024 to merge their drugstore operations by 2027.

Challenges to market expansion include varied regulatory frameworks across countries, whilst compliance requirements for pharmaceutical sales and online operations increase costs for multi-country chains.

Price sensitivity in certain markets also intensifies competition between traditional retailers and e-pharmacy platforms offering discount pricing, the report added.

Prescription drugs remain a primary revenue source, whilst the over-the-counter segment continues to grow as consumers seek accessible solutions for minor ailments and preventive care.

Chain pharmacies maintain dominance in urban centres, whilst independent pharmacies provide services in rural regions, the report said.