The Japan pharmacy retail market was valued at USD 92.61 Billion in 2025 and is expected to grow at a CAGR of 8.80%, reaching USD 215.25 Billion by 2035. The market growth is driven by the rising demand for prescription medications, driven by an aging population and increasing prevalence of chronic diseases in Japan.
Base Year
Historical Period
Forecast Period
Amazon’s entry into Japan’s pharmacy sector signals a shift toward integrated telehealth and home delivery, enhancing convenience for elderly patients.
Strategic investments in major pharmacy chains reflect growing confidence in digital transformation and advanced healthcare retail models in Japan.
Continued dominance of offline channels, combined with digital integration, ensures hybrid pharmacy models will shape future growth and patient engagement.
Compound Annual Growth Rate
8.8%
Value in USD Billion
2026-2035
*this image is indicative*
The market is experiencing steady growth, driven by an aging population, increasing chronic disease prevalence, and rising demand for prescription medications. Digital health integration and e-pharmacy platforms are reshaping the retail landscape, offering convenience and improved access to medications. Government initiatives promoting generic drugs and price regulation further influence market dynamics. These factors collectively position the market for sustained expansion in the forecast period. The market is expected to grow at a CAGR of 8.80% during the forecast period of 2026-2035 and attain a market value of USD 215.25 Billion by 2035.
Affluent Conglomerates Collaborating with Local Drugstores to Boost Market Value
Japan’s market is undergoing a major shift as digital solutions take center stage. For instance, in July 2024, Amazon introduced its Pharmacy service in Japan, teaming up with 2,500 local drugstores to deliver prescription medicines directly to homes. This service also enables patients to consult pharmacists through the CLINICS app, reflecting the growing demand for convenience and telehealth integration. With an aging population and rising healthcare needs, such innovations are transforming how people access medications, signaling a broader move toward technology-driven, patient-focused pharmacy services in the country.
Major market trends include rising digitalization and strategic investments.
Digitalization and Strategic Investments to Reshape the Pharmacy Landscape in Japan
Japan’s pharmacy retail sector is rapidly evolving as digital adoption and aging demographics reshape service models. The rising demand for prescriptions and convenience has fueled innovation in online platforms and automated dispensing. For instance, in August 2025, Oasis Management increased its stake in Ain Holdings, Japan’s largest pharmacy chain operator, signaling strong investor confidence in technology-driven retail healthcare. Ain’s extensive network and focus on digital solutions exemplify how integrated care and operational efficiency are becoming key growth drivers. These trends underscore Japan’s move toward modernized pharmacy services, aligning with global efforts to enhance patient access and experience.
Offline Pharmacy to Lead the Market Share by Type
The offline pharmacy segment is likely to hold the largest market share in the market. Despite the rise of digital health platforms, ooffline pharmacies dominate due to Japan’s aging population and preference for in-person consultations, especially for chronic disease management. Offline channels also support prescription verification and personalized counseling, critical in elderly care. Japan accounted for 4.5% of the global pharmacy market in the historical period, reinforcing its strong retail presence. This dominance is expected to persist as physical stores integrate digital tools to enhance convenience without compromising trusted face-to-face interactions.
The key features of the market report comprise funding and investment analysis, and strategic initiatives by the leading players. The major companies in the market are as follows:
Founded in 1932 in Chiba Prefecture and incorporated in 1954, Matsumoto Kiyoshi is Japan’s largest drugstore chain, spanning three major urban regions: Kanto, Tokai, and Kansai. As the core of MatsukiyoCocokara & Co., the company operates over 3,400 domestic stores and an international footprint across Thailand, Taiwan, Singapore, Vietnam, Malaysia, and Hong Kong. They specialize in health and beauty products cosmetics, supplements, OTC meds, highlighting personalized services like beauty lounges and supplement bars.
Welcia is Japan’s second-largest drugstore chain, with around 1,700–2,000 stores nationwide as of early 2023. It offers an extensive product mix—including pharmaceuticals, cosmetics, health food, and daily goods—serving health-conscious families and communities. In FY2023, Welcia generated revenues in the hundreds of billions of yen, and has focused on expanding its online platform, customer loyalty programs, and optimizing supply chain operations.
Established in Osaka in 1957, Daikoku Drug has about 160 stores across Japan and is known for its competitive pricing and variety—from pharmaceuticals and beauty items to daily essentials and Japanese snacks. In August 2025, it began its international expansion by opening its first overseas location in Hong Kong, which also serves as its regional headquarters for Greater China and Southeast Asia.
Under SUGI Holdings (founded in 1976), Sugi Pharmacy operates a network of drugstores, over 1,600 across Japan, as well as dispensing pharmacies and healthcare services. The chain offers a “total healthcare strategy,” combining prescription filling, OTC product sales, health consultations, home-visit nursing support, and more, positioning itself as a local, family-oriented pharmacy provider. In FY2023 alone, SUGI Pharmacy opened 144 new stores, bringing the total to 1,718, with a high proportion of locations offering prescription services (~81.8%).
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other key players in the market include Sapporo Drug (Satsudora).
The market report offers a detailed analysis of the market based on the following segments:
Market Breakup by Type
Market Breakup by Product Type
Market Breakup by Mode of Purchase
Market Breakup by Category
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Type |
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| Breakup by Product Type |
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| Breakup by Mode of Purchase |
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| Breakup by Category |
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| Market Dynamics |
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| Supplier Landscape |
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| Companies Covered |
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