German Pharmacies Face Economic Strain Despite Revenue Growth

Germany's pharmacies experienced higher revenues in 2024, reaching 70.4 billion euros net, up from 66.36 billion euros in 2023. This growth, attributed partly to demographic shifts and medical advancements, has not alleviated economic pressures for a significant portion of the sector. The 2025 Pharmacy Economic Report, released by the German Pharmacists Association (DAV), reveals that 26 percent of pharmacies ended 2024 with an operating result below 75,000 euros, and 7 percent operated at a loss.

Despite nominal increases, the real value of the average pharmacy's operating result has stagnated for two decades, failing to keep pace with inflation. Concurrently, the number of pharmacies in Germany continues to decline, falling from 17,041 at the end of 2024 to 16,908 by the close of the first quarter of 2025. This trend is linked to ongoing financial challenges and a lack of adjustment in pharmacy fees, which have remained unchanged for 12 years.

"The situation in pharmacies remains tense," stated DAV Chairman Dr. Hans-Peter Hubmann during the association's economic forum. He highlighted that the cost of goods sold constitutes 80 percent of revenue for an average pharmacy, with personnel and other costs adding another 16 percent. This leaves an owner's profit margin of approximately 4.4 percent, a historically low figure.

The DAV is urging the government to implement promised measures to stabilize local pharmacies. Hubmann emphasized that pharmacies are a crucial part of the solution for a stable and efficient healthcare system, not the problem. The report indicates that pharmacy remuneration represents a small fraction of statutory health insurance expenditures.