Japan $140+ Bn Drugstore Market Trends Analysis and Forecasts 2023-2024 & 2029: Established Domestic Chains like Matsumoto Kiyoshi, Tsuruha, and Welcia Dominate the Industry - ResearchAndMarkets.com

The "Japan Drugstore Market: Analysis By Product Category (Food, Household Utensils, Beauty Care, OTC Drugs, Dispensing, Health Care and Others), By Area of Operation, By Number of Stores, Size, Trends and Forecast to 2029" report has been added to ResearchAndMarkets.com's offering.

The Japanese drugstore market was valued at US$103.65 billion in 2023, and is expected to be worth US$140.82 billion in 2029. Japan's drugstore market is forecasted to grow at a CAGR of 5.24% over the projected period of 2024-2029.

The market is projected to grow at a fast pace during the forecast period, due to trend towards shakeout and restructuring, digitalization and mechanization, growing number of large drugstores, e-commerce expansion and medication therapy management (MTM).

Japan's drugstore market is highly fragmented with a diverse array of players vying for consumer attention and market share. Established domestic chains like Matsumoto Kiyoshi, Tsuruha Holdings, and Welcia Holdings dominate the market with extensive store networks and strong brand recognition. These chains often offer a wide range of products, including pharmaceuticals, cosmetics, and health-related goods. Many drugstore chains are expanding their footprint through organic growth and acquisitions.

Global drugstore chains like Watsons, operated by AS Watson Group, have also entered the Japanese market. These players bring international brands and expertise, intensifying competition and driving innovation in product offerings and marketing strategies.

Upcoming trends in the Japanese drugstore market include digitalization and e-commerce, the expansion of in-store health services, a focus on preventive healthcare, eco-friendly and sustainable products, and the integration of AI and technology. The integration of digital technologies in the drugstore market is on the rise, with online shopping platforms and delivery services becoming more prevalent, offering consumers the convenience of purchasing health products from home.

Medication Therapy Management (MTM) emerges as a significant trend driving the growth of Japan's drugstore market. MTM involves pharmacists collaborating with patients and other healthcare professionals to optimize medication use and improve therapeutic outcomes. In Japan, where the aging population is substantial, there's a growing need for comprehensive medication management, especially among elderly individuals with multiple chronic conditions.

Drugstores, with their accessibility and frequent interactions with patients, are ideally positioned to provide MTM services. By offering personalized medication reviews, adherence counseling, and medication synchronization programs, drugstores can enhance patient understanding of their medications, reduce adverse drug reactions, and improve treatment adherence.

Drugstores are increasingly offering more in-store health services such as vaccinations, health screenings, and consultations, enhancing their role in the healthcare system. There is a growing emphasis on preventive healthcare, with drugstores expanding their range of health supplements, functional foods, and wellness products.

Market Segmentation Analysis:

By Product Category: The Japanese drugstore market by product category can broadly be divided into seven segments namely, Food, Household Utensils, Beauty Care, OTC Drugs, Dispensing, Health Care and Others. Food segment dominated the market in 2023. The food segment in Japan's drugstores encompasses a wide variety of consumables including snacks, beverages, health foods, and dietary supplements.

Factors driving growth in this segment include the increasing consumer demand for convenience foods and the rising awareness of health and wellness. OTC segment is foreseen to grow at the fastest CAGR during the forecasted period. With rising healthcare costs and a preference for convenience, consumers often opt for OTC medications for quick relief from common ailments like cold, allergies, and pain.

By Area of Operation: The Japan drugstore market by area of operations can broadly be divided into two segments namely, Stores with Floor Area of 300m2 or Above and Stores with Floor Area of Less Than 300m2. Stores with floor area of 300m2 or Above segment dominated the market in 2023 and is also foreseen to grow at the fastest CAGR during the forecasted period.

As the sector moves toward being increasingly dominated by major companies, the standard format of drugstores has shifted toward suburban stores with comparatively large floors. The increased acceptance of self-medication combined with the aging population has widened the range of products sold in drugstores to include nursing care goods, health foods, and functional foods. It is foreseen that that comparatively large stores that can efficiently handle a wide range of products, including food and daily necessities, would continue to gain market share.

Key Attributes:

Market Dynamics

Growth Drivers

• Aging Population
• Increasing Burden of Diseases
• Favorable Government Initiatives
• Growing Prescription Drugs Market
• Convenience and Accessibility
• Increasing Health Awareness
• Expanding Product Offerings

Challenges

• Shortage of Pharmacists
• Increasing Number Of On-site Pharmacies
• Intense Competition from Various Retail Formats

Market Trends

• E-commerce Expansion
• Trend Towards Shakeout and Restructuring
• Digitalization and Mechanization
• Medication Therapy Management (MTM)
• Growing Number of Large Drugstores

Competitive Landscape

• Japan Drugstore Players: Competitive Landscape
• Japan Drugstore Players by Market Share
• Japan Drugstore Market Players: Major M&A Activity
• Japan Drugstore Market Players: Major Regions Store Count
• Japan Drugstore Market Players: Sales Share by Product Category

Company Profiles

• Welcia Holdings Co., Ltd.
• Tsuruha Holdings Inc.
• MatsukiyoCocokara & Co
• Sundrug Co., Ltd.
• Cawachi Ltd.
• Sumitomo Corporation
• Cosmos Pharmaceutical Corporation
• Sugi Holdings Co., Ltd.
• Genky DrugStores Co., Ltd.
• Yakuodo Holdings Co., Ltd.
• Satudora Holdings Co., Ltd.

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