Pharmacy Benefit Management Market Size

Pharmacy Benefit Management Market size was valued at USD 562.18 billion in 2024 and is likely to exceed USD 1.16 trillion by the end of 2037, expanding at over 5.9% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of pharmacy benefit management is evaluated at USD 588.27 billion.. Rising healthcare expenditure and a radical upsurge in the prevalence of various types of chronic diseases are estimated to boost market growth during the forecast period. The national healthcare expenditure of the U.S. raised to 9.7%, i.e., to 4.1 trillion in 2020. Chronic diseases include diabetes, hypertension, stroke, heart disease, cancer, arthritis, obesity, oral disorders, and respiratory diseases. All these last more than one year and may lead to hospitalization and death eventually. Chronic diseases usually occur in the aged population, as they are immune compromised. These types of diseases affect the quality of life and require continuous medication intake as the only remedy, and it is anticipated to increase the growth of the market.

Pharmacy benefit management aids to provide medical services and drugs at the cheapest price to employers through insurance companies. More customers are attracted to PBM services to increase their access to many pharmaceuticals and retail pharmacies. Further, the availability of many drugs with the same composition of APIs in the pharmacy benefit management market makes it difficult for the manufacturers and consumers owing to the slightest difference in prices of these drugs. Besides this, the adoption of ML (machine learning) and AI (artificial intelligence) in dispensing pharmacies to reduce manual errors is expected to fuel the growth of the market. For instance, as per observations, out of 100,000 prescriptions, a hospital pharmacist makes an overall average of 5 errors.