Bangladesh’s retail pharmacy sector is undergoing a major transformation as large local conglomerates and international chains enter a market that was once dominated by small neighborhood drugstores. Traditionally, medicine retail relied heavily on informal outlets where trained pharmacists were often absent, quality checks were inconsistent, and technology use was limited. That structure is now rapidly changing as organized pharmacy chains expand across the country.
Industry experts say this shift is improving medicine safety, professional service standards, and regulatory compliance. According to IQVIA Health, Bangladesh’s pharmaceutical market is currently valued at Tk32,000 crore, making it an attractive destination for both domestic and foreign investors. Health economists believe organised pharmacies are pushing the sector towards trained pharmacists, better cold chain management, transparent pricing, and stronger oversight.
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Professor Dr Shafiun Nahin Shimul, director of the Institute of Health Economics at the University of Dhaka, described the rise of organized pharmacy chains as a structural change. He said that over the next five to ten years, the sector is expected to become more professional and technology dependent, while also extending safer medicine access beyond major cities. He added that the presence of large institutions makes regulatory monitoring easier, though coordination with small pharmacies and affordability will remain important.
Among the largest investors is AKIJ Resource, which has committed at least Tk2,000 crore to pharmacy retail. The group plans to open 2,000 outlets nationwide within five years. AKIJ Pharmacy started operations in July with a flagship outlet in Banani and expanded to 13 outlets by early December. According to chairman and managing director Sheikh Jasim Uddin, the initiative aims to generate employment and contribute to healthcare reform, with each outlet expected to employ around five people, potentially creating more than 10,000 jobs.
Another fast growing local chain is AKS Pharmacy, operated by AKS Khan Healthcare. Launched in 2019, AKS Pharmacy now operates more than 60 outlets nationwide. The chain received Tk152 crore in foreign investment from Denmark’s IFU last year, which will be used to expand outlets, digital services, and diagnostic support. Company officials say their focus remains on affordable pricing, quality medicines, and integrated healthcare services.
International participation has also increased with the entry of Aster Pharmacy, operated by UAE based Aster DM Healthcare. Aster opened its first outlet in Banani in July 2023 and now runs at least five outlets in Dhaka. Each outlet involves investment of more than Tk1 crore and follows international quality standards. The company plans to open at least 25 outlets nationwide in the coming years.
BRAC Healthcare has adopted a clinic linked pharmacy model. Known for its rural healthcare programmes, BRAC has recently launched model pharmacies connected to its clinics in urban areas. This year, it opened four outlets in Dhaka, each requiring investment between Tk1 crore and Tk1.5 crore. The model allows patients to consult doctors, receive basic tests, and purchase prescribed medicines at the same location, supported by digital records and home delivery services.
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Meanwhile, Lazz Pharma, the country’s oldest pharmacy chain founded in 1974, continues to expand through a franchise model. It currently operates four company owned outlets in Dhaka and 94 franchise outlets nationwide. Franchise investments range from Tk10 lakh to over Tk1 crore, while medicine procurement remains centrally managed to ensure quality and proper storage.
Despite growing competition, industry insiders say the entry of large chains and foreign players is strengthening consumer trust and improving healthcare outcomes. While challenges around pricing, coordination with small pharmacies, and nationwide coverage remain, the organized pharmacy movement is widely seen as a positive step towards safer, more professional, and technology driven medicine retail in Bangladesh.