German Pharmacies Face Historic Decline Amid Policy Challenges

The number of operating pharmacies across Germany has continued to drop, reaching a level not seen since 1977. Recent data from the Federal Union of German Associations of Pharmacists (ABDA) highlights a significant contraction in the sector, with the total number of pharmacies falling to 16,732 by the end of the third quarter of 2025. This marks a decrease of 309 pharmacies since the end of the previous year, when there were 17,041 active establishments nationwide.

Within just the third quarter of 2025, 71 pharmacy locations ceased operations. Over the first nine months of the year, a total of 355 pharmacies closed, while only 46 new ones opened, resulting in a notable net loss. This downward trend is expected to intensify in the final quarter of the year, as historical patterns indicate a rise in closures toward year-end.

The ABDA attributes these closures primarily to longstanding policy decisions. Sector representatives have pointed to stagnation in pharmacy remuneration, which has remained unchanged for over a decade, despite ongoing inflation and rising labor costs. This static compensation structure is placing increasing financial pressure on pharmacy operators, making it difficult for many to sustain their businesses.

Concerns are mounting that the ongoing decline in pharmacy numbers could significantly impact public access to medicines. As more pharmacies close, patients may face increased travel distances and reduced convenience when seeking essential medications and healthcare advice. The ABDA warns that diminished local pharmacy availability could erode the quality of healthcare services for communities, particularly in rural and underserved areas.

Adding to sector uncertainty, the Federal Ministry of Health is currently proposing a pharmacy reform bill. Stakeholders argue that, instead of reversing the trend, the proposed legislation could accelerate the reduction of pharmacy locations. The reform includes elements of deregulation, which some experts fear may weaken Germany's comprehensive pharmacy network and disadvantage the public by limiting access to pharmaceutical care.

Another significant challenge is the ongoing shortage of skilled pharmacy staff. The economic difficulties resulting from stagnant remuneration and increased operational costs are making it harder for pharmacies to attract and retain qualified professionals. This staffing shortage threatens to further strain remaining pharmacies and jeopardize the consistency of service delivery.

Sector organizations are urging the federal government to honor commitments outlined in the coalition agreement, particularly the promise to increase the fixed remuneration for pharmacies. They believe that implementing such measures could help stabilize the sector and provide the foundation for future growth and sustainability. The ABDA has already presented a position paper, suggesting comprehensive strategies to secure the long-term viability of pharmacies and maintain high standards of patient care across Germany.

As the year draws to a close, all eyes remain on policymakers and their willingness to address the economic and structural pressures affecting pharmacies nationwide. The outcome of ongoing reforms and potential policy adjustments will play a decisive role in shaping the future landscape of pharmaceutical care in Germany.