Sales of medicines are growing, but Ukrainians are buying fewer of them - the pharmacy market is in a situation where nominal growth hides a deep crisis and loss-making operations.
Nominal growth without real demand
In 2025, the Ukrainian pharmacy market showed a 12% increase in sales. However, this figure does not reflect the real state of the industry. The main reason for this growth was inflation, not increased consumption.
In fact, sales volumes in physical terms declined: sales of medicines in packs decreased by 4-5%. This indicates a decline in the purchasing power of the population and a change in consumer behaviour - Ukrainians are forced to save even on basic medicines.
Negative profitability and regulatory pressure
The pharmacy business in Ukraine operates in a financially imbalanced environment. The average profitability of the industry is -4.9%, which means it is actually unprofitable.
Key reasons:
- State regulation of prices for medicines
- restrictions on back margin for pharmacy chains
- Increase in operating costs in times of war
In such conditions, large pharmacy chains are forced to subsidise some of their outlets, especially in socially important or unprofitable regions.
Pharmacy geography: shrinking and uneven
As of 2025, there are about 18.1 thousand pharmacies in Ukraine, which is only 87% from the pre-war level.
The largest losses were recorded in the frontline regions:
- The number of pharmacies has decreased by about a third
- Logistical risks complicate the supply of medicines
- personnel work in conditions of increased danger
This creates risks for the availability of medicines to the population, especially in remote and frontline communities.
The social role of pharmacy retail
Despite financial difficulties, the pharmacy sector remains a critical element of social infrastructure.
Main areas of activity:
- ensuring the operation of the state programme «Affordable Medicines»
- Supporting small communities by preserving pharmacies
- Development of mobile pharmacies for remote locations
- Participation in charitable and humanitarian initiatives
- Assistance to military and medical institutions
In fact, pharmacy retail acts as a stabiliser in the face of the healthcare crisis.
Market on the brink: what's next
The current situation is indicative of a systemic imbalance: the industry is growing in terms of money, but is declining in real consumption and is operating at a loss.
If the trends continue, the market may face new challenges:
- Further closure of pharmacies in unprofitable regions
- Deterioration in the availability of medicines
- Increased burden on government programmes
- market concentration in large players
At the same time, without pharmacy infrastructure, the country risks facing a humanitarian crisis in terms of access to basic medicines.
Conclusion.
The Ukrainian pharmacy market in 2025 demonstrates a paradox: nominal growth conceals a deep structural crisis. The industry is actually on the verge of survival, performing not only a commercial but also a critical social function.
Further development of the market will depend on the balance between government regulation, economic feasibility and the needs of the population for affordable medicines.
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