The number of pharmacies is growing rapidly in Ukraine – experts say the market is oversaturated
19 June 11:16
The Ukrainian pharmacy market is in a state of oversaturation, with new pharmacy outlets opening almost every day despite a decline in population and drug consumption. This was stated by analysts of Proxima Research International during the specialized forum “Pharmexpert 2025”, "Komersant Ukrainian" reports with reference to the specialized publication Thepharmamedia.
“There are too many pharmacies in Ukraine. In terms of population, we have a much higher rate than most European countries,” said Sergiy Ishchenko, CPO of the company.
Pharmacies are growing despite the war
According to Ishchenko, some chains have even exceeded the pre-war level of activity, especially in the western regions, where the number of internally displaced persons has increased.
For example, the Podorozhnyk pharmacy chain alone opened 297 new pharmacies last year, demonstrating record expansion rates.
“While we are sitting here, Podorozhnyk is opening another pharmacy. And so it goes every day,” commented Ishchenko.
Despite the war and a population decline to 29 million, the pharmacy network in Ukraine has not only recovered, but continues to grow. As of 2025, there are more than 18,400 pharmacies in the country, which is 88% of the pre-war level.
At the same time, the opening of new outlets is faster than the closure of old ones: in just one month, the top 5 chains open more than 60 pharmacies.
Market concentration and risks to service quality
Analysts also note a trend towards market consolidation. The five largest pharmacy players already control 64% of sales and own 41% of pharmacies in Ukraine. According to forecasts, their share may increase to 80% within three years.
Experts point out the potential consequences of such growth: market oversaturation may negatively affect the quality of pharmaceutical services, especially if chains reduce the cost of qualified personnel or open outlets in close proximity to each other.
The need for new regulation of the pharmacy space
Given the war, demographic changes, and new logistical challenges, experts insist on revising the principles of pharmacy network regulation in Ukraine. A quantitative approach without taking into account the real needs of communities loses its effectiveness and can lead to an imbalance in the market.
