U.S. Retail Clinics Market Size, Share & Industry Analysis, By Service Type (Acute Respiratory Infections, Sore Throat, Conjunctivitis, Urinary Tract Infections, Immunization, Screening Services, and Others), By Ownership (Retailer-owned Operators, Independent Operators, and Hospital-owned Operators), By Channel (Retail Pharmacies, Groceries/Retail Stores, and Others), and Country Forecast, 2024-2032

The U.S. retail clinics market size was valued at USD 2.59 billion in 2023. The market is projected to grow from USD 2.85 billion in 2024 to USD 7.38 billion by 2032, exhibiting a CAGR of 12.6% during the forecast period.

Retail clinics are health centers that are located within retail stores, supermarkets, and pharmacies. These clinics provide preventative health care services and treat several minor illnesses. The quality of care provided by these clinics in the U.S. has been proven superior, addressing many concerns of individuals, which has increased the number of visits for treatment, thereby spurring market growth.

Over the past 20 years, the number of patient visits to clinics has significantly increased due to an extensive range of medical requirements. These requirements have considerably surged the demand for these health centers that can provide effective medical care and lead to better patient outcomes. This also enhanced the accessibility of healthcare services to a wider population.

Furthermore, the timely medical intervention in these clinics with better patient satisfaction at an affordable cost is anticipated to propel the U.S. retail clinics market growth over the forecast timeframe.

The COVID-19 pandemic surged the demand for retail clinics owing to convenient access to healthcare services for the COVID-19 testing. Benefits provided by these institutions, such as convenient locations, affordable healthcare, and increased awareness among the population, propelled the U.S. market growth during the pandemic.

Moreover, the increased popularity of these health centers across retail stores inspired prominent players, such as Walgreens, CVS, and Walmart, to expand their market presence, which propelled market growth in the U.S. during the pandemic. However, the significant growth in services offered by these clinics, including acute respiratory infections, conjunctivitis, and urinary tract infections, led the market to fall back to its pre-pandemic years.

U.S. Retail Clinics Market Trends

Enhanced Emphasis on Advancement of Telemedicine Services to Propel the Market Growth

Over the past few years, the focus on developing telemedicine has significantly increased in the walk-in clinic industry in the U.S. due to patient demand and convenience. Patient demand significantly increased as telemedicine offers several benefits, such as time-saving consultations due to reduced travel time, improved accessibility, fixing the gap between rural areas and healthcare institutions, and increased patient comfort.

• For instance, Amazon Clinic announced a nationwide expansion in August 2023 to provide video visits for a number of health conditions across all states of the U.S.

Moreover, telemedicine, due to its affordability in terms of medical care, leads to high-service adoption. As a result, companies are concentrating on offering telemedicine services in these clinics.

• For instance, in October 2023, Walgreen Co., a retail clinics provider, announced the launch of a virtual healthcare solution at the HLTH conference in Las Vegas to provide on-demand care for common healthcare needs via chat-based and video-based capabilities and prescription services.

U.S. Retail Clinics Market Growth Factors

Growing Inclusion of Diversified Healthcare Services to Fuel Market Growth

The rising awareness about preventive medical care has fueled the need for better and improved medical intervention across the country. A noteworthy proportion of individuals are opting for preventive and primary medical care for the treatment of their medical conditions before they become more severe or chronic. As a result, numerous retail clinic companies in the U.S. are currently focused on diversifying their service portfolio. In addition to physical health, several companies are offering retail clinic operations that are highly concentrated on providing services related to mental health as awareness regarding the benefits of well-functioning behavioral health is significantly rising among more individuals.

• For instance, in May 2021, CVS Health announced the launch of added mental health counseling and care services at 11 of the company’s MinuteClinic across South Jersey and Philadelphia due to the high demand for such services since the beginning of the COVID-19 pandemic.

Such an increase in service offerings by these institutions in the U.S. is anticipated to propel the market growth over the forecast timeframe.

Lower Costs at Retail Clinics to Augment Market Growth

Retail clinics provide cost-effective services compared to other healthcare facilities. As a result, they have emerged as a cost-effective and convenient alternative for patients seeking basic medical services in the U.S. This lower cost factor has fueled the visit to these clinics for treatment, specifically for individuals lacking health insurance coverage.

• For instance, in March 2020, according to an article published by ALM Global, LLC., retail clinics in the U.S. can offer the same services as physician offices or emergency departments at considerably lower costs. This affordability has surged the number of patient visits to these clinics in the U.S.

The most common medical requirements and diseases, including refills of prescription medicines and vaccinations and cold & cough, have also led to an increase in patient visits to these clinics. Lower diagnostic procedures and treatment costs in these institutions considerably fuel these increasing patient visits. 

RESTRAINING FACTORS

Limited Provision for Management of Intricate Illnesses May Limit Market Expansion

The limited availability of advanced medical equipment to treat complex diseases in retail clinics may decrease their service adoption rates, decreasing the demand for these clinics. Moreover, the market growth is also expected to be hindered by the lack of resources and expertise to treat severe chronic conditions, which results in decreased patient visits.

Moreover, concerns regarding the treatment of aged individuals in these clinics in the U.S. also limit the number of patient visits to these clinics. Even small disease diagnoses, such as urinary tract infections (UTIs) in aged individuals, may require more personalized examinations with advanced equipment. In such cases, these institutions lacking advanced medical equipment are unsuited for complex medical interventions. Furthermore, longer waiting times for regular medical checkups in these clinics is another factor that hampers market growth in the U.S.

U.S. Retail Clinics Market Segmentation Analysis

By Service Type Analysis

Acute Respiratory Infections Segment Led Due to Increasing Cases Coupled with Demand for Effective Care

Based on service type, the market is segregated into sore throat, urinary tract infections, immunization, conjunctivitis, screening services, acute respiratory infections, and others. 

The acute respiratory infections segment dominated the market with the highest share in 2023 and is anticipated to grow at the highest CAGR in the coming years. The increasing number of cases of acute respiratory infections coupled with high-quality care in retail clinics to diagnose and treat these infections is expected to propel the segmental growth during the forecast period.

The immunization segment is estimated to expand at a significant growth rate over the forecast timeframe. This noteworthy growth is attributed to the increasing vaccination for infectious diseases. Walk-in clinics serve as a popular setting to obtain vaccination for infectious diseases, such as flu. As a result, it is expected to boost the market growth during the forecast period.

• For instance, CVS Health administered around 20 million non-COVID-19 vaccinations in 2020, a twofold increase in flu shots compared to 2019.

The sore throat segment accounted for a significant share of the U.S. market in 2023 and is projected to witness a moderate growth rate during the forecast period. The ease of attaining quick medical intervention at comparatively lower treatment costs leads to increased patient visits to these institutions, which drives the segment's market share.

The urinary tract infections segment is projected to expand at a considerable CAGR during the forecast timeframe due to rising demand for timely diagnosis and treatment of UTIs in the U.S. to prevent further complications. These clinics provide faster accessibility to care services compared to other primary care, which is expected to boost the market growth.

By Ownership Analysis

Retail-owned Operators to Hold Largest Market Share Owing to Strong Presence

By ownership, the market is segmented into retail-owned operators, hospital-owned retailers, and independent operators.

The retailer-owned operators segment accounted for the largest U.S. retail clinics market share in 2023 and is projected to expand at a significant CAGR during the projection period. This share is the impact of strong market expansion initiatives by retailer-owned operators. Moreover, the strong presence of these institutions in the U.S., operated by retailer-owned operators, is anticipated to boost the segment growth.

The hospital-owned retailers segment is estimated to account for a substantial share of the U.S. market owing to the recent developments, comprising outsourcing of operations of these institutions by retail chains to hospital-based operators. These outsourcing initiatives fuel the demand for hospital-owned retailers, contributing to the segment growth.

The independent operators accounted for a considerable market share in 2023 and are expected to continue their growth during the forecast period. Independent operators have flexible locations and hours compared to large chains, which aid in providing more personalized care to patients, driving the market growth.  

By Channel Analysis

Retail Pharmacies Segment Dominated the Market Due to Significant Number of Patient Visits

By channel, the market is fragmented into retail pharmacies, groceries/retail stores, and others.

The retail pharmacies segment accounted for the largest market share in 2023. This dominant share is primarily attributed to the substantial number of patient visits to retail clinics in the retail pharmacies established by companies, such as Walgreens Boots Alliance, Inc. and CVS Health. In addition, the expansion of services offered by these institutions due to telemedicine is also anticipated to fuel the segment growth in the coming years.

The groceries/retail stores segment held the second dominant share in the U.S. market and is anticipated to expand at a considerable growth rate over the forecast period. In several major states of the U.S., including Kentucky, Ohio, and Texas, a significant number of these clinics are being operated by chains, such as Walmart Care Clinic and Kroger’s The Little Clinic, which is estimated to propel the segment growth.

List of Key Companies in U.S. Retail Clinics Market

CVS Health, Walgreens Boots Alliance, Inc., and Kroger | The Kroger Co. Lead the U.S. Market Due to Substantial Number of Locations with Provision of Diversified Services

The U.S. market is highly consolidated. Key market players operating in the U.S. included Walgreens Boots Alliance, Inc., CVS Health, and Kroger.  CVS Health leads the market in the U.S. due to the wide range of services in the portfolio of the company’s clinics and the number of locations operated in the U.S. The company has a broad services portfolio for women’s health, diagnostics, and common illnesses. CVS Health owns 1,000 MinuteClinics, and its adoption and extension of new trends contribute to its market dominance.

Walgreens Boots Alliance, Inc. is another major player with a robust services portfolio across the U.S. market. The company has strong collaborations with a number of insurance companies. Further, Kroger | The Kroger Co. has a robust network of retail stores and grocery across several locations in the U.S. Hence, it accounts as a prominent player in the U.S. market

LIST OF KEY COMPANIES PROFILED

• Walmart Inc. (U.S.)


• CVS Health (U.S.)


• Walgreens Boots Alliance, Inc. (U.S.)


• Kroger | The Kroger Co (U.S.)


• Kaiser Foundation Health Plan, Inc. (U.S.)


• Target Brands, Inc. (U.S.)


• Bellin Health Systems (U.S.)


• Geisinger Health (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• June 2023 - CVS Health's MinuteClinic was awarded its sixth consecutive Ambulatory Health Care Accreditation from the Joint Commission.


• July 2022- Amazon announced a strategy to shift toward a retail clinic business by launching walk-in clinics near fulfilment centers. The company would complete this initiative under its Neighborhood Health Center Pilot Program. Further, Amazon plans to open the first clinic in Dallas, Texas, near its fulfilment center.


• May 2022- CVS Health announced the launch of a novel virtual care solution, CVS Health Virtual Primary Care, available via a single digital platform. This offering connects CVS data, health services, and clinical expertise for a more synchronized and consumer-focused healthcare experience.


• March 2022- Walmart Inc. opened five new Walmart Health centers across North and Central Florida. This expansion in Florida increased Walmart Health's accessibility to the public.

REPORT COVERAGE

The U.S. retail clinics market report covers a detailed analysis of segments, including service type, ownership type, channel, and others. It focuses on key aspects such as the competitive landscape and major companies. In addition, the U.S. retail clinics market analysis report provides the impact of the COVID-19 pandemic on industry growth and insights into the market trends. Further, the report includes several factors that have supported the market growth in recent years.

Report Scope & Segmentation