Key Summary
- Corporate and multiple operators account for 71.3 percent of all sales instructions year to date
- First-time buyers dominate demand, accounting for 76 percent of all new registrations
- Despite ongoing financial pressures, pharmacy ownership continues to be viewed as a sound long-term investment
The 2025 Hutchings Consultants England Pharmacy Market Report has stated that in the past year, corporate and multiple operators have divested their assets rather than expand, thereby opening new opportunities for prospective buyers.
The specialist pharmacy broker noted that seller instructions rose by 91 percent compared with the previous year.
Corporate and multiple operators accounted for 71.3 percent of all sales instructions year to date, a clear reversal of the 2024 landscape, when independent sellers held a comparable majority share.
Currently, independent pharmacy owners account for 19.2 percent of instructions, while groups focused on divesting outlier branches comprise the remaining 9.5 percent.
Geographically, sale activity has been most prominent in London, the South East, and the Midlands, with the North West also experiencing notable levels of market movement.
New Buyer registrations have remained broadly consistent with 2024.
First-time buyers continue to dominate demand, accounting for 76 percent of all new registrations, followed by independent owners (12 percent), investors (8 percent), and a smaller share from group owners, previous owners (seeking to re-enter the sector), and multiple operators.
Group owners have continued to reshape their portfolios in line with evolving strategic priorities, selling off non-core or underperforming branches, while acquiring businesses that strengthen their market position.
In contrast, independent sellers have been less active, though this has been balanced by a growing wave of independent contractors eager to buy, taking advantage of the increased number of pharmacies coming to market as a result of corporate disposals.
Pharmacy goodwill
Hutchings said there is a 'modest downward trend' in average pharmacy goodwill values achieved year to date, compared with previous years.
This reflects a shift in market dynamics, as an increase in multiple and corporate disposal instructions has expanded the pool of available opportunities, in turn diluting buyer competition.
Ongoing concerns surrounding business profitability and financial performance have also contributed to a cautious approach among buyers.
However, these concerns have been partially alleviated by the recent stabilisation and, more notably, the reduction of the Bank of England base rate.
Investment opportunity
Despite ongoing financial and operational pressures, pharmacy ownership continues to be viewed as a sound long-term investment opportunity, and acquisition activity has remained resilient through 2025.
The government has reaffirmed its commitment to developing a sustainable funding and operational model for community pharmacy, signalling a more supportive policy environment.
Buyer demand remains strong, particularly in larger towns and urban centres, where competition is most intense.
While dispensing item numbers continue to be the key measure of value, buyers are placing increasing importance on the potential for future growth through NHS and private service delivery.
Transaction timelines have remained broadly stable, though regulatory changes introduced on 1 October 2024 have simplified approval processes, modestly reducing completion times and adding further momentum to an already active market.
2026 outlook
The outlook for the community pharmacy market in 2026 is one of cautious stability.
Average goodwill values are expected to remain broadly steady, reflecting sustained demand from qualified buyers and a more balanced market environment.
Corporate and multiple operators are likely to continue streamlining and realigning portfolios, with further divestments expected as part of broader strategic goals.
At the same time, independent and medium-sized operators are expected to consolidate their positions and expand selectively, capitalising on opportunities created by the ongoing shift toward service-led care models.
