Key Summary
- The prescription volumes in England increased by 3 per cent to around 1.3 billion items between 2024/25 and 2025/26.
- However, 886 pharmacies have closed since 2022, and there has been a continued decline in 100-hour pharmacies.
- Despite these pressures, pharmacies continue to improve efficiency and expand their clinical and private healthcare services.
The UK pharmacy market may be showing some early signs of stabilisation, but many of the sector’s underlying challenges remain, according to Christie & Co's ‘Pharmacy Market Review 2026’ report.
The report highlights improved pharmacy performance following recent funding uplifts, rising prescription levels, and the growing adoption of Pharmacy First.
The total number of pharmacies remained relatively static at 13,779 in the year ending 31 March 2026, and independent ownership rose 6 per cent from 2024.
The number of distance-selling pharmacies increased significantly by 8.8 per cent.
However, the report said these gains were modest when viewed against the backdrop of significant structural change, including 886 pharmacy closures since 2022.
There has been a continued decline in 100-hour pharmacies, reflecting ongoing operational pressures, and sustained cost challenges across the sector.
The analysis found that the recent funding uplifts have supported improved financial performance across the sector, with average gross profit margins increased to 34.6 per cent in H1 2026, while EBITDA margins rose from 9.2 per cent to 11.5 per cent.
However, 56 per cent of pharmacy operators claimed that recruitment has become more difficult over the past 12 months and 91 per cent indicating rising staff costs as a key business concern.
However, despite these pressures, pharmacies continue to improve efficiency and expand their clinical and private healthcare services.
Service delivery
Community pharmacies continue to play an increasingly important role in meeting the rising healthcare demand.
The report found that prescription volumes in England increased by 3 per cent to around 1.3 billion items between 2024/25 and 2025/26, with pharmacies continuing to expand their range of NHS and private services.
Pharmacy First remains a key factor in the sector's growth. More than 98 per cent of community pharmacies participated in the scheme.
As part of this year's review, Christie & Co surveyed more than 7,000 pharmacy professionals across the UK, and found that community pharmacies are moving towards a more clinical and service-led model.
During the survey, 69 per cent of respondents reported changes in demand for NHS services and 68 per cent reported changes in demand for private services.
Investment appetite
The demand for pharmacy assets remains healthy, with increasing interest from investors, family offices, and healthcare-focused buyers, particularly for integrated primary care assets.
The survey findings also show heightened confidence in the sector's prospects.
Three-quarters (75 per cent) of respondents said they plan to buy and/or sell a pharmacy within the next three years, highlighting continued ambition for progress and expansion across the market.
In addition, 39 per cent identified acquiring a pharmacy as a key growth opportunity.
This rising confidence is also reflected in the transactional market, where the average time from agreeing a sale to completion fell from 36 weeks to 34 weeks in H1 2026.
Buyer demand remains broad-based, with first-time buyers accounting for 29 per cent of completed transactions and small existing operators accounting for a further 33 per cent, indicating the continued appetite for pharmacy acquisitions across the market.
Growing confidence
Jonathan Board, Head of Pharmacy, said: “This year’s report paints the picture of a sector that is becoming more resilient, more clinical, and increasingly attractive to investors. We have seen improved financial performance, strong transaction activity and growing confidence across the market. While challenges remain, particularly around recruitment and operating costs, the sector has continued to adapt and evolve.
“Looking ahead, I expect community pharmacy to continue building on the momentum seen in this report. Demand for accessible healthcare services continues to rise, and pharmacies are well placed to play a greater role in supporting patients in their local communities.
"As the sector becomes increasingly clinical and service-led, there will be significant opportunities for operators to expand and evolve their businesses. While challenges remain, the direction of travel is positive, and I believe the sector is entering a period of sustained long-term growth.”
Christie & Co advised on, agreed or sold 900 pharmacies with a combined worth of £600 million in 2025.
