Competition in the pharmacy market: why Ukrainians get more than foreigners

In recent years, Ukrainians have rediscovered the service market, realizing that the level of service is not only not inferior, but often surpasses the European one. This applies to the banking sector, the beauty services market, and, for example, the pharmacy market. The Ukrainian pharmacy market is an example of how, even in the most difficult conditions of war, a business focused on the patient can develop and provide services at the highest level. Service in Ukrainian pharmacies often surpasses the experience of European countries. After all, at a time when in many EU countries people face a shortage of pharmacies and a lack of alternatives, in Ukraine, even in the most difficult war years, pharmacies remain close to the buyer, offering a wide choice, flexible prices and the best service. UNN investigated the secret of such a model and why Ukrainians get more than foreigners.

Ukrainian pharmacies today are not just a place where you buy headache pills, they are the first link in patient care, which is nearby and works for people. Ukrainians do not spend hours searching for the necessary drug, do not postpone treatment “for later” and do not agree to any price just because there is no alternative.

According to Proxima Research, which was presented at the “PHARMBudget 2026: Sustainability Strategy for Pharma Business” event, as of July 2025, there are 18,280 pharmacy points operating in Ukraine, which is 88% of the pre-war level. This means that the market not only survived, but is also on the way to full recovery. 

The positive dynamics of market recovery are “in the hands” of the Ukrainian buyer, because this strengthens competition, which works simply: if pharmacies compete for the buyer, they are more attentive to prices and service. And this means that the Ukrainian patient can compare the cost of the same drug in different pharmacies and buy where it is cheaper. Or where loyalty programs are in effect, such as seasonal promotional offers or special support programs for people with chronic diseases. After all, when there is a high level of competition in the market, there is an incentive to keep a wider assortment, to have not only original drugs, but also more affordable generics, to implement programs and services that promote drug accessibility. 

Not the least important advantage of the Ukrainian pharmacy market is the geographical distribution of medical institutions – “at every step”. Some people find it convenient to run to a pharmacy near their home, some – near their work, others choose a pharmacy near a hospital or metro. And if one is temporarily not working due to shelling or power outages, there will always be another one nearby. This creates a sense of stability even in times of war.

However, the level of development of pharmacy services is not as high everywhere as in Ukraine. In a number of European countries, the situation is the opposite: due to excessive regulation, citizens are practically deprived of choice and quick access to medicines. In addition, in EU countries, pharmacies often work on a reduced schedule, are closed on weekends, and they are not always interested in introducing promotions and discounts – because the client, deprived of choice, will still be forced to buy from them. 

GermanyIn Germany, the pharmacy business is strictly regulated at the state level. According to German rules, only a certified pharmacist can own a pharmacy. In addition, one person can own one main pharmacy and no more than three of its branches. Pharmacy chains are generally prohibited. As for drug prices, the cost of prescription drugs is regulated by the state.

Due to such restrictions, the pharmacy market is shrinking: in 2023 alone, 559 pharmacies closed in Germany, which was the largest annual decline since 1949. During the same period, only 62 new pharmacies opened, so the total number decreased to 17,571 – the lowest level in the country’s history. 

As a result, residents of rural areas are forced to travel tens of kilometers to buy even basic drugs. This limits patients’ access to treatment and reduces the level of competition in the market.

FranceThe French model is similar to the German one: only a certified pharmacist can open a pharmacy, and the number of establishments is limited by the population – one pharmacy per 2,500 inhabitants. Pharmacy chains are prohibited at the state level.

As a result, there are many pharmacies in large cities, but there may be none at all in small settlements. At the same time, according to the French National Council of Pharmacists, about 5% of communes (more than 1,700) remain without pharmacies, despite a sufficient population. This creates serious problems for residents of villages and towns, as they are forced to spend more time and resources to get even basic medicines.

As a result, drug prices are practically independent of competition, as they are regulated by the state, and patients lose the opportunity to choose more favorable conditions.

ItalyIn Italy, the situation is similar – only a certified pharmacist can open a pharmacy. The legislation establishes a quota: one pharmacy for every 3,300 inhabitants (according to the norms adopted in 2012 as part of the law).

At the same time, according to data, from 1975 to 2024, the number of pharmacies in the country increased by 33.5%, while the population increased by only 4.2%. This imbalance confirms that pharmacies remain an important element of access to medical services: every day, Italians make about 4 million visits to pharmacies.

Despite this, the strict licensing system still creates a barrier to entry for new players.

SpainIn Spain, the restrictions are even stricter. Licenses are issued by quota: one pharmacy per 2,800 inhabitants and no closer than 250 meters to another. The owner can only be a pharmacist who personally works in his pharmacy.

Because of this, the number of pharmacies is growing slowly, and competition is minimal. Licenses are inherited or sold for millions of euros, which effectively closes the entry for new players. For Spaniards, this means limited choice and a lack of favorable conditions.

ConclusionThe difference is obvious – Ukrainians daily enjoy the benefits of competition between pharmacies: a wide choice, accessibility, and flexible pricing policy. In contrast, residents of Germany, France, Italy, and Spain face a shortage of pharmacies, high drug prices, and a lack of alternatives.

The Ukrainian model proves that even in the most difficult times, the market can remain diverse, competitive, and patient-oriented. And preserving the market in its modern form is a guarantee of freedom of choice, accessibility of treatment, and high quality of service.