Big players reshaping Bangladesh's retail pharmacy landscape
Expert says large chains, foreign players help ensure safer medicines, professional services
Highlights:
- Bangladesh's pharmacy retail shifting from informal to organised chains
- Local conglomerates and foreign chains are aggressively entering sector
- Organised pharmacies drive standardisation, trained pharmacists, regulatory compliance
- Foreign investment signals strong confidence in pharmacy retail growth
- Large chains expanding beyond cities, improving medicine safety nationwide
- Market expected to become technology-driven within next decade
Bangladesh's retail medicine market was once dominated by small, independent neighbourhood pharmacies. Consumers largely depended on nearby drugstores where professional pharmacists were often absent, quality assurance was inconsistent, and technology use was minimal.
That long-standing structure is now changing rapidly, as large local conglomerates and international pharmacy chains move aggressively into the sector, signalling a shift towards organised, professional and technology-driven medicine retail.
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The entry of groups such as AKIJ Resource, AKS Khan Healthcare and BRAC, alongside international chain Aster Pharmacy, is reshaping medicine retail and basic healthcare delivery.
Foreign investment is also flowing into local chains, signalling rising confidence in the sector.
Entrepreneurs said pharmacy retail offers lower capital intensity and operational risk compared to heavy manufacturing, while creating scope for employment and improved healthcare outcomes.
Health economists said large chain pharmacies are no longer serving only urban middle- and upper-income consumers. They are also pushing the entire sector towards standardised operations, trained pharmacists, better cold-chain management and stronger regulatory compliance.
Professor Dr Shafiun Nahin Shimul, director of the Institute of Health Economics at the University of Dhaka, said the expansion of organised pharmacy chains marks a structural shift in the market.
"Over the next five to ten years, Bangladesh's pharmacy sector will become more organised, professional and technology-dependent," he said.
According to him, large chains and foreign players can help ensure safer medicines and professional services beyond major cities, while coordination with small pharmacies, price affordability and quality monitoring will remain critical.
"The presence of large institutions also makes regulatory oversight easier," he added.
According to IQVIA Health, Bangladesh's pharmaceutical market size is Tk32,000 crore. IQVIA is a global healthcare information, analytics, technology and clinical research company.
AKIJ's large-scale bet
Among the most ambitious 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 began operations in July with a flagship outlet in Banani, Dhaka, and expanded to 13 outlets by early December, all currently within the capital.
Sheikh Jasim Uddin, chairman and managing director of AKIJ Resource, said the initiative has both economic and public health objectives.
"Our first goal is employment generation. If each outlet employs five people, total employment will exceed 10,000," he said. "The second goal is to contribute to transforming the healthcare system."
Jasim Uddin said AKIJ pharmacies will prioritise medicine quality, cold-chain maintenance and fair pricing, while also offering basic healthcare advice. Outlets are already operating in Dhaka, Sylhet, Khulna, Pabna and Jashore, with plans to expand to every district.
AKS scaling up with foreign investment
AKS Pharmacy, operated by AKS Khan Healthcare, is one of the fastest-growing local chains. Launched in 2019, it now operates more than 60 outlets across the country, offering prescription medicines, OTC products, healthcare consultation and home delivery.
The chain received Tk152 crore in foreign investment from Denmark's IFU last year. Company officials said the funds will support further outlet expansion, digital services and diagnostic support.
Mostafa Kamal, chief business officer of AKS Khan Healthcare, said their goal is to deliver quality medicines and healthcare services at affordable prices.
"With international investment and rising demand, AKS aims to become a leading player in Bangladesh's organised pharmacy segment," he added.
Aster enters market
The first international pharmacy chain to enter Bangladesh is Aster Pharmacy, operated by UAE-based Aster DM Healthcare. Its first outlet opened in Banani in July 2023, in partnership with GD Assist Limited.
Aster currently operates at least five outlets in Dhaka, including Banani, Mirpur, Banasree, Uttara and the airport area. Each outlet involves investment exceeding Tk1 crore and offers medicines, medical devices, nutrition products and health supplies under international quality standards.
Company officials said the initial target is to open at least 25 outlets nationwide in the coming years, positioning Aster as a long-term player in Bangladesh's healthcare retail market.
BRAC's clinic-linked model
BRAC Healthcare has adopted a different approach by integrating pharmacies with healthcare centres. Known for its long-standing rural healthcare programmes, BRAC has recently launched model pharmacies in urban areas, directly linked to its clinics.
This year, BRAC Healthcare opened four outlets in Dhaka, with investment per outlet ranging between Tk1 crore to 1.5 crore.
Brig Gen (retd) Dr Taufiqul Hasan Siddiquee, director and head of BRAC Healthcare, said the organisation plans to open at least 20 outlets in the coming years.
"Our objective is to provide primary healthcare and medicines under one roof," he said. "For minor illnesses, hospital visits often require unnecessary time and cost. We provide initial treatment and then refer patients to specialists if needed."
At BRAC's Siddheswari outlet, patients first consult doctors, undergo basic tests such as blood pressure and blood sugar checks, and then purchase prescribed medicines from the same centre.
BRAC officials said the model focuses on trusted medicines, correct guidance and patient-friendly services, supported by digital record-keeping, online ordering and home delivery.
Lazz Pharma's expansion
Founded in 1974, Lazz Pharma is Bangladesh's oldest pharmacy chain. Its founder, Mohammad Lutfor Rahman, started the business after arriving in Dhaka penniless and working at a local pharmacy. He moved to Canada in 1992 but retained ownership of the brand.
Currently, he operates four company-owned outlets in Dhaka, while 94 franchise outlets operate nationwide under the Lazz Pharma brand. The chain has expanded to Chattogram, Sylhet, Rajshahi, Khulna, Barishal, Cumilla, Bogura and Rangpur.
Company officials said franchise outlets require investment ranging from Tk10 lakh to over Tk1 crore, depending on size and location. Although franchised, medicine procurement is centrally managed, sourcing directly from approved companies to ensure quality and proper storage.
Despite intensifying competition, industry insiders said Lazz Pharma's long presence and nationwide network continue to make it a trusted name in Bangladesh's pharmacy sector.
