Drug and Druggists' Sundries Wholesalers NAICS 424210

Unlock access to the full platform with more than 900 industry reports and local economic insights.
Get access to this Industry Profile including 18+ chapters and more than 50 pages of industry research.
Industry Summary
The 7,200 drug and druggists’ sundries wholesalers in the US distribute biological and medical products; botanical drugs and herbs; pharmaceutical products; and related goods. Prescription drugs account for over 80% of industry sales. Other product categories include cosmetics and beauty supplies; vitamins and nutritional supplements; non-prescription drugs; and personal care items.
Regulated Environment
The distribution, compounding, purchase, and storage of pharmaceuticals is highly regulated by the Drug Enforcement Administration (DEA), FDA, and US Department of Health and Human Services (HHS).
Reimbursement Rates and Coverage
The drug wholesale industry is affected by changes to medical reimbursement rates, which continue to fall as the healthcare industry looks for ways to cut costs.
Recent Developments
May 2, 2025 - Manufacturers That Bring Operations Back To US may Get Tariff Exemption
- President Trump said at a late-April meeting with pharmaceutical and technology industry executives that companies which move their operations to plants in the US would face no tariffs, according to The Guardian. He also suggested that companies would have the time needed to repatriate some manufacturing with new or expanded operations in the US before they would face a “tariff wall”. President Trump paused his “reciprocal” tariffs for 90 days after they prompted a sell-off of US government bonds in April but he has repeatedly threatened to carry through with sectoral tariffs on the pharmaceutical industry.
- Annual out-of-pocket costs for the Medicare Part D drug benefit will be capped at $2,000 in 2025, according to the Centers for Medicare & Medicaid Services (CMS). Many insurers are increasing premiums for their stand-alone drug plan offerings, however, according to health policy research firm KFF. Some major plan sponsors, including Aetna and UnitedHealthcare, are also reducing their stand-alone prescription drug plan offerings, and overall, there will be fewer prescription drug plans in 2025 than in 2024 – 524 plans nationwide, down from 709 in 2024.
- The Biden administration reached an agreement with drugmakers in 2024 to lower prices on the 10 costliest prescription drugs under Medicare beginning in 2026. The agreement with drugmakers is projected to save older adults $1.5 billion in out-of-pocket costs when the new prices go into effect in 2026. The drugs are purchased through Medicare Part D, a prescription drug coverage program for Americans who are 65 and older. The 10 medications were used by 9 million patients with Medicare coverage in 2023 and accounted for $56.2 billion in total Medicare spending. The government estimates that, had the negotiated prices been in place that year, Medicare would have saved about $6 billion. Total annual spending on prescription drugs in the US exceeds $405 billion, and Part D alone accounts for more than $215 billion.
- Drug and druggist’s sundries wholesaler industry employment decreased slightly during the first month of 2025, according to the US Bureau of Labor Statistics (BLS). Drug and druggist’s sundries wholesalers slightly decreased their prices during 2024, according to the BLS.
Industry Revenue
Drug and Druggists' Sundries Wholesalers

Industry Structure
Industry size & Structure
The average drug wholesaler operates out of a single location, employs 36 workers, and generates about $107 million annually.
- The drug and druggists' sundries wholesale industry consists of about 7,200 firms that employ about 260,000 workers and generate $770 billion annually.
- The industry is concentrated; the top 50 companies account for 86% of industry revenue.
- Large companies include McKesson, Amerisource Bergen, Cardinal Health, and JM Smith. Large firms may have international or pharmacy retail operations.
Industry Forecast
Industry Forecast
Drug and Druggists' Sundries Wholesalers Industry Growth

Vertical IQ Industry Report
For anyone actively digging deeper into a specific industry.
50+ pages of timely industry insights
18+ chapters
PDF delivered to your inbox