Some 94% of community pharmacies in Ireland have seen operational costs increase over the last year, a report by the Irish Pharmacy Union (IPU) and accounting firm Fitzgerald Power has revealed.
According to the IPU’s quarterly Pharmacy Pulse report, published on May 28, energy costs and wage growth are the areas where pharmacy owners said operating expenses had risen the most.
The survey conducted by IPU as part of the report also revealed that 37% of pharmacy owners and managers felt “less optimistic” about their business prospects compared to a year ago, while 25% said they were “more optimistic”.
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When asked how they currently view the business environment, 44% of respondents said it was “getting worse”, compared to just 23% who said it was “getting better”.
Despite this, 43% of respondents said the level of footfall in their pharmacies had increased” in the last 12 months, while 22% said it had decreased.
And the survey found that pharmacy owners’ main business concerns were economic uncertainty (26%), the level of State fees (20%) and business costs (18%).
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The report also said that prescription-class medicines increased by 9.5% in value and 5% in volume in March 2026, compared to the same month last year, according to data from healthcare intelligence company IQVIA.
Prescription dermatology drugs had the highest growth at 26%, while oncology medicines and immunomodulators had the highest value at 39.2%, it added.
Meanwhile, over-the-counter medications (OTCs) were up 1.5% in value and down 1% in volume compared to the same period last year, it said.
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The highest growth seen among the OTC class was for digestive remedies at 9.4%, and the highest value was for pain relief at 26.4%.
Data from the Pharmaceutical Society of Ireland (PSI) also showed that there were “no net openings or closings” of community pharmacies in the first three months of this year, leaving the country’s total count at 1,916.
“Key concerns”
IPU director of public affairs and communications Jim Curran said the report “plays an important role in providing the IPU with a deeper understanding of both sector performance and the key concerns facing pharmacy owners and managers”.
He added that it “highlights the continued impact of rising operational costs, alongside broader economic pressures, and the resulting challenges for the sustainability and profitability of community pharmacies”.
And the “insights” gained from the report are “critical in informing the IPU’s advocacy and support efforts on behalf of the sector”, he said.
“Resilience”
Fitzgerald Power corporate finance partner Noel Winters said the report “highlights a sector that continues to demonstrate resilience despite economic uncertainty”.
“Rising operational costs remain a key challenge for pharmacy owners, reinforcing the need for careful planning and efficiency,” he added.
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It comes after the Irish government in April expanded dispensing fees for vulnerable patients “following negotiations between the IPU and the Health Services Executive”.
And it follows the Irish government announcing tax relief on some pharmacy services in March.
