What is the sentiment in the UK pharmacy market?

We recently published our Pharmacy Market Review 2025 report, which analyses a range of topics relating to the UK pharmacy business market.

Keen to hear directly from professionals within sector, for this year’s report, we included an extensive sentiment survey, whereby we reached out to over 7,000 pharmacy professionals to capture their perspectives, experiences, and plans in the sector.

With over 75% of responses from single pharmacy owners and small group owners (two to 10 pharmacies), the survey provides a comprehensive snapshot of the profession’s views.

Here are some of our key findings.

Q. HOW ARE YOU FEELING ABOUT THE SECTOR IN 2025/2026?

48% of respondents reported a negative outlook, while 52% expressed either positive or neutral sentiment. While the earlier funding announcement was welcomed by the sector, 78% of our respondents viewed it as insufficient to ease the pressures felt in the sector, and this explains why optimism hasn’t surged and there’s still uncertainty about execution and long-term impact.

Q. WHAT ARE THE MAIN BUSINESS CHALLENGES YOU’RE CURRENTLY FACING, AND EXPECT TO FACE OVER THE NEXT 12 MONTHS?

The main challenges identified for the next 12 months are cash flow pressures (45%) and energy and staff costs (41%). Pharmacies may respond by limiting expansion or delaying investments in technology and infrastructure. In some cases, this could even lead to workforce challenges if staffing costs cannot be absorbed.

These figures strongly indicate a need for additional funding as, without it, the sector risks compromising patient access and service quality. Funding could help offset inflationary pressures and stabilise cash flow, ensuring pharmacies can maintain essential services while adapting to broader healthcare demands.

Q. IN THE COMING 12 MONTHS, WHERE DO YOU ANTICIPATE GROWTH?

This question, which was multiple choice, showed that the top anticipated growth areas in the next 12 months are other private services (63%), weight loss medication (59%) and Pharmacy First (52%).

Q. WHAT BUSINESS GROWTH OPPORTUNITIES ARE YOU MOST LIKELY TO CONSIDER?

The answers here highlight a clear focus on growth and innovation within the sector. Notably, the most popular strategies for expansion include investing in automation and new equipment, as well as enhancing clinical service offerings by adding consultation rooms. These approaches reflect a broader industry shift towards improving operational efficiency and expanding patient care capabilities.

Q. IN THE COMING THREE YEARS, DO YOU HAVE PLANS TO…

81% of respondents plan to either buy a pharmacy, sell a pharmacy or both in the coming three years. This indicates a highly active and transitional market where there is consolidation and restructuring with larger groups acquiring smaller independents, while some owners exit due to financial or operational pressures.

Despite current challenges, there is still a belief in the sector’s potential, as buying activity signals investment interest. Many pharmacy owners may be repositioning themselves strategically, either scaling up to achieve efficiencies or divesting to reduce risk, and overall, this points to a transactional environment where ownership changes are expected to play a significant role in shaping the future landscape.

TAKEAWAYS

The sentiment and activity levels that we’ve seen over the last year suggest that the pharmacy market continues to be in a state of transition. While nearly half of respondents report a negative outlook (48%), the fact that 81% plan to buy or sell pharmacies indicates confidence in the sector’s long-term potential. While it is clear that pressures remain – these are mainly driven by cash flow challenges and rising costs - a large number of operators see huge opportunities for growth through consolidation and strategic repositioning. This tells us that the market as a whole is robust and that there is continued belief in the viability of pharmacy businesses, despite short-term uncertainty.

Sentiment could improve over the next year if the sector receives meaningful financial relief. However, if cost pressures persist without adequate support, we may see continued consolidation. Going forward, we expect the market to remain active, but the tone of that activity, growth-driven or survival-driven, will depend on external interventions.

To find out more about the UK pharmacy market, read our ‘Pharmacy Market Review 2025’ report, here.