Pharmacy Services for Long-Term Care Facilities Market Size and Share Analysis - Growth Trends and Forecasts (2025-2032)

Market Size and Trends

The Pharmacy Services for Long-Term Care Facilities market is estimated to be valued at USD 26.8 billion in 2025 and is expected to reach USD 42.4 billion by 2032, growing at a compound annual growth rate (CAGR) of 6.8% from 2025 to 2032. This growth reflects increasing demand driven by the aging population and a rising prevalence of chronic diseases that require continuous medication management in long-term care settings. The expanding healthcare infrastructure and advancements in pharmaceutical services also contribute to market expansion during this period.

Key trends shaping the Pharmacy Services for Long-Term Care Facilities market include the integration of digital health technologies such as electronic prescribing and medication management systems, which enhance accuracy and efficiency. There is also a growing emphasis on personalized medication regimens to improve patient outcomes. Furthermore, regulatory support and rising awareness about medication safety are encouraging the adoption of comprehensive pharmacy services. These factors combined are driving innovation and increasing the scope of pharmacy services in long-term care facilities globally.

Segmental Analysis:

By Service Type: Medication Dispensing as the Cornerstone of Pharmacy Services for Long-Term Care Facilities

In terms of By Service Type, Medication Dispensing contributes the highest share of the Pharmacy Services for Long-Term Care Facilities market owing to its fundamental role in ensuring timely and accurate delivery of prescribed medications to residents. This segment forms the backbone of pharmacy services in long-term care settings, addressing the complex medication regimens that residents typically require. The rising prevalence of chronic illnesses and the increasing average age of the long-term care population have significantly elevated the demand for precise medication dispensing. Facilities rely heavily on specialized pharmacy providers to manage intricate medication schedules that require high accuracy, minimizing the risk of errors, adverse drug interactions, and non-compliance.

Additionally, technological advancements such as automated dispensing systems and electronic medication administration records have enhanced the efficiency and safety of medication dispensing services. These innovations help in streamlining workflows, reducing manual errors, and maintaining real-time tracking of medication use. This is particularly critical in long-term care facilities, where multi-morbidity and polypharmacy are common. The growing regulatory focus on medication safety protocols further propels the significance of medication dispensing services as they ensure that facilities comply with stringent healthcare standards.

Besides dispensing, complementary services like medication consulting, therapy management, and telepharmacy are gaining importance but remain more supplementary compared to dispensing. The latter still demands the most considerable operational involvement, from managing inventories to delivering medications either on-site or through centralized channels. Hence, the indispensable need for controlled and accurate medication distribution consolidates the leading position of the Medication Dispensing segment within pharmacy services dedicated to long-term care facilities.

By End-User: Skilled Nursing Facilities Dominating Demand Due to Complex Care Requirements

In terms of By End-User, Skilled Nursing Facilities command the highest share of the Pharmacy Services for Long-Term Care Facilities market driven by the intensive medical and pharmaceutical care requirements characteristic of this setting. Skilled nursing facilities provide round-the-clock nursing care and rehabilitation services to individuals recovering from acute illnesses or managing severe chronic conditions. These patients often require intricate medication regimens, frequent medication changes, and close monitoring, which underscores the crucial role of pharmacy services.

The complexity of care in skilled nursing environments necessitates robust pharmacy support to manage administration schedules, evaluate potential drug interactions, and optimize therapy outcomes. Moreover, the higher acuity level of patients in skilled nursing facilities compared to assisted living or hospice settings translates to a larger volume and variety of pharmaceutical products and services required. This leads to increased dependence on pharmacy services that can provide comprehensive solutions including medication dispensing, therapy management, and consulting.

Additionally, the stringent regulatory oversight governing skilled nursing facilities, especially concerning medication management and safety, further incentivizes the integration of expert pharmacy services. Pharmacy providers tailor their offerings to meet compliance requirements and support infection control protocols and adverse event prevention, which are critical in these settings. The increasing emphasis on quality metrics linked to patient outcomes in skilled nursing drives facilities to partner with specialized pharmacies capable of delivering precise, safe, and timely pharmaceutical care.

By Delivery Mode: On-Site Pharmacy Increasingly Preferred for Immediate and Personalized Service

In terms of By Delivery Mode, On-Site Pharmacy holds the highest share in the Pharmacy Services for Long-Term Care Facilities market due to its ability to provide immediate, personalized, and integrated pharmaceutical care tailored to resident needs. On-site pharmacies operate within or adjacent to long-term care facilities, enabling rapid dispensing and direct interaction with healthcare providers and residents. This proximity enhances communication, facilitates real-time medication reconciliation, and allows pharmacists to deliver face-to-face consultation and quick intervention, which are vital in maintaining medication adherence and managing side effects or complications promptly.

The preference for on-site pharmacies is also supported by the desire to minimize delays in medication delivery, an important factor in acute or changing health circumstances typical among long-term care residents. Immediate access to medications can improve clinical outcomes, prevent hospitalization, and support emergency medication needs. Furthermore, on-site pharmacies are better positioned to integrate with the facility's medication administration processes, improving accuracy and reducing errors through direct oversight.

Another driving factor is the growing demand for personalized pharmacy services tailored to the long-term care resident's specific therapeutic needs. On-site pharmacies often provide customized dosage forms, compounding services, and specialized packaging solutions, supporting complex medication regimens typical in these settings. They also foster closer collaboration with healthcare teams, which is critical in developing holistic care plans and ensuring compliance with evolving treatment protocols. The operational control and enhanced service levels made possible by on-site pharmacies thus solidify their dominant position in delivery modes within this market segment.

Regional Insights:

Dominating Region: North America

In North America, the pharmacy services market for long-term care (LTC) facilities holds a dominant position due to a well-established healthcare infrastructure and advanced regulatory framework. The presence of integrated healthcare networks, strong partnerships between pharmaceutical providers and LTC facilities, and widespread adoption of technology in medication management contribute to this lead. The U.S. government's robust policies, including Medicare and Medicaid reimbursement schemes, incentivize high standards of pharmaceutical care in LTC settings. Additionally, stringent regulatory oversight from agencies like the FDA and CMS ensures compliance and safety, driving demand for professional pharmacy services. Leading companies such as Omnicare (a Cardinal Health company), PharMerica, and CVS Health dominate the market by offering comprehensive medication management, consulting, and on-site pharmacy services, enhancing patient outcomes and facility efficiency. Their extensive distribution networks and commitment to innovation underpin market leadership in North America.

Fastest-Growing Region: Asia Pacific

Meanwhile, the Asia Pacific region exhibits the fastest growth, fueled by demographic shifts including rapidly aging populations and increasing prevalence of chronic diseases that heighten the need for long-term care solutions. Expanding government healthcare initiatives, such as Japan's long-term care insurance system and China's increasing investment in elderly care infrastructure, accelerate the uptake of pharmacy services. The evolving healthcare ecosystem in countries like South Korea and India is also creating demand for professional medication management to improve care quality. Trade liberalization and growing foreign investments facilitate technology transfer and partnerships with established global pharmaceutical service providers. Notable players like Zuellig Pharma, Medipal Holdings Corporation, and India's Apollo Pharmacy are expanding their presence, bringing expertise in pharmaceutical logistics and clinical services to LTC facilities. The combination of improving healthcare policies, rising industry competition, and demand for quality elder care propels the market growth in the Asia Pacific.

---

Pharmacy Services for Long-Term Care Facilities Market Outlook for Key Countries

United States

The United States maintains a pivotal role in this market, driven by its comprehensive healthcare infrastructure and extensive network of long-term care facilities. Major pharmacy service providers such as Omnicare and PharMerica deliver tailored medication management and consulting programs, integrating technology to reduce medication errors and improve adherence. U.S. regulatory frameworks like the CMS conditions of participation require stringent medication oversight, supporting service demand. Market dynamics are influenced by reimbursement policies and increasing focus on reducing hospital readmissions through improved pharmacy services.

Japan

Japan's market is distinguished by its advanced elder care system and government support via the Long-Term Care Insurance program. The country's rapidly aging population has led to expanding long-term care facilities increasingly reliant on pharmaceutical service providers like Medipal Holdings Corporation and Nichi-Iko Pharmaceutical Co. These companies focus on delivering specialized medication regimens aligned with elderly patients' complex needs, supported by government incentives and innovative dispensing technologies. Strong regulatory support and cultural acceptance of institutional elderly care further bolster market growth.

Germany

Germany's well-established healthcare system supports a mature LTC pharmacy services market with integrated care models emphasizing multidisciplinary collaboration. Prominent companies such as B.Braun and Pohl-Boskamp focus on clinical pharmacy services and medication safety programs within long-term care settings. Germany's statutory health insurance scheme incentivizes efficient medication management, thus fostering partnerships between pharmacies and care facilities. Ongoing healthcare reforms aimed at increasing outpatient care and reducing hospital stays further stimulate demand for pharmacy services.

China

China's rapidly developing healthcare infrastructure and government initiatives targeting elder care create a burgeoning market for pharmacy services in LTC facilities. Companies like Zuellig Pharma and Sinopharm play key roles in pharmaceutical distribution and clinical services, supporting a shift towards standardized medication management. Government encouragement of private sector participation and healthcare modernization policies enhance market growth prospects. Adoption of digital health technologies and enhanced supply chain logistics are critical market drivers amid rising chronic illness prevalence.

Canada

Canada's market benefits from a publicly funded healthcare system emphasizing quality and accessibility in long-term care. Major players such as Shoppers Drug Mart and Loblaw Companies Limited provide pharmacy services that include medication reconciliation, consulting, and on-site dispensing tailored to LTC facilities. Provincial government regulations and funding support programs that promote medication safety and adherence. Collaborative care models and technology adoption enhance service delivery, addressing the needs of a growing elderly population.

Market Report Scope

Market Segmentation

Service Type Insights (Revenue, USD, 2020 - 2032)

• Medication Dispensing
• Consulting Services
• Medication Therapy Management
• Telepharmacy Services
• Others

End-user Insights (Revenue, USD, 2020 - 2032)

• Skilled Nursing Facilities
• Assisted Living Facilities
• Hospice Care Centers
• Rehabilitation Centers
• Others

Delivery Mode Insights (Revenue, USD, 2020 - 2032)

• On-Site Pharmacy
• Centralized Pharmacy
• Mail Order Pharmacy
• Others

Regional Insights (Revenue, USD, 2020 - 2032)

• North America
• U.S.
• Canada
• Latin America
• Brazil
• Argentina
• Mexico
• Rest of Latin America
• Europe
• Germany
• U.K.
• Spain
• France
• Italy
• Russia
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East
• GCC Countries
• Israel
• Rest of Middle East
• Africa
• South Africa
• North Africa
• Central Africa

Key Players Insights

• Walgreens Boots Alliance
• CVS Health Corporation
• Omnicare, Inc.
• PharMerica Corporation
• Brooks Rehabilitation Pharmacy Services
• Kindred Healthcare Pharmacy Services
• Shellpoint Pharmacy Services
• HealthPRO Heritage
• BioScript Pharmacy Services
• Senior Care Pharmacy
• Lincare Holdings, Inc.
• Centene Corporation
• Diplomat Pharmacy, Inc.
• OptumRx
• Medline Industries
• Cardinal Health
• Patheon Pharmacy Services
• Humana Pharmacy