Canada’s pharmacy sector generated an estimated $22.9 billion in gross domestic product and supported more than 273,000 jobs across the country in 2024, according to a report released by Signal49 Research.
The report, The Economic Footprint of Canada’s Pharmacy Sector: Fuelling Health and Local Economies, found the sector also generated $14 billion in labour income and contributed $6.3 billion in tax revenues to governments based on 2024 economic data.
The findings quantify the sector’s economic contribution alongside its role in delivering healthcare services, as governments continue to focus on economic growth and healthcare access.
Canada has 12,558 pharmacy locations, the report said, with nearly two-thirds operating as independently owned or banner-affiliated community locations. Those locations serve communities in every province and territory.
“We know that Canadians see their local pharmacy as a trusted healthcare destination, but this research demonstrates that pharmacies are also critical economic infrastructure,” said Sandra Hanna, CEO, Neighbourhood Pharmacy Association of Canada. “Pharmacies support hundreds of thousands of jobs, strengthen local economies, generate billions in government revenues, and improve access to care in communities of every size. As governments focus on growing Canada’s economy and strengthening healthcare access, pharmacies are uniquely positioned to advance both priorities.”
Among the report’s findings:
- Canada’s pharmacy sector generated $22.9 billion in annual GDP.
- The sector supported more than 273,000 jobs across the Canadian economy.
- It generated $14 billion in labour income and $6.3 billion in annual tax revenues.
- Every dollar of direct pharmacy output created an additional 20 cents in economic activity elsewhere in the economy.
- Each pharmacy job supported about 0.4 additional jobs in other sectors.
- Rural locations employed more than one in every 100 rural residents and helped address healthcare access gaps in underserved communities.
- The sector accounted for $8.4 billion in GDP and 96,000 jobs in Ontario, and $6.1 billion in GDP and 79,000 jobs in Quebec.
The report says the economic activity generated by pharmacies extends beyond the sector itself through employment and business activity across other industries.
“The research highlights pharmacy’s uniquely dichotomous contribution to Canada,” said Eddy Nason, Director, Health, Signal49 Research. ” It’s a business, a significant economic driver, and a frontline healthcare service operating at a time of major upheaval in primary care,” he said. “That means pharmacy isn’t just an economic engine–it’s an economic engine with purpose.”
The report says the sector is present in virtually every community across Canada and contributes to both healthcare delivery and local economic activity.
It concludes that the sector can contribute to government priorities related to economic growth, productivity, healthcare access and community resilience through its nationwide network of pharmacy locations.
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