NAICS 456110 Quarterly Industry Report
Pharmacies and Drug Retailers
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 456110Sector: 45Updated: Q1 2026
About This Report
This NAICS 456110 industry report integrates data from the U.S. Census Bureau[4] Economic Census, the Bureau of Labor Statistics[5] pharmacy employment data, and Small Business Administration[6] size standards. Fair Market Value researchers supplement these federal sources with state pharmacy board licensing statistics and prescription volume data to produce quarterly updates. Each revision of the NAICS 456110 report captures changes in reimbursement patterns, regulatory requirements, and employment conditions across the retail pharmacy sector.
Industry Definition & Overview
Pharmacies and Drug Retailers (NAICS 456110) encompasses establishments primarily engaged in retailing prescription and nonprescription drugs and medicines. Community pharmacies, chain drugstores, and independent retail pharmacies all fall within this classification. These businesses serve as critical access points for prescription medication dispensing, immunization services, and general health product retailing.
The U.S. Census Bureau[4] distinguishes pharmacies from other health-related retailers by their core function: dispensing prescription drugs under licensed pharmacist supervision. Chain operators like CVS Health, Walgreens, and Rite Aid dominate market share, but independent pharmacies still number in the tens of thousands. Front-end retail operations supplement prescription revenue with over-the-counter medications, personal care products, and convenience items.
Pharmacy economics hinge on prescription volume, third-party reimbursement rates, and generic drug penetration. Pharmacies must comply with state pharmacy board regulations, DEA controlled substance requirements, and CMS billing standards for Medicare Part D. Mail-order pharmacy operations, specialty pharmacy services, and clinical pharmacy programs have expanded the scope of activities within this classification. Compounding pharmacies that prepare custom medications also belong here when retail dispensing is their primary activity. Workforce composition reflects the regulated nature of this sector, as each location requires at least one licensed pharmacist on duty, supported by pharmacy technicians who handle counting, labeling, and insurance processing tasks. Front-end retail staff manage checkout, stocking, and customer service outside the pharmacy counter area.
What's Included in This Industry
- Dispensing prescription medications through licensed retail pharmacies
- Selling over-the-counter drugs, vitamins, and health supplements at drugstores
- Operating chain drugstore locations with pharmacy and front-end retail sections
- Running independent community pharmacy operations
- Providing immunization and vaccination services through retail pharmacy settings
- Operating retail compounding pharmacies that prepare custom medications
- Managing pharmacy benefit processing and prescription fulfillment at retail locations
- Selling durable medical equipment and home health supplies through drugstores
- Retailing personal care products, cosmetics, and convenience items alongside pharmacy services
- Offering medication therapy management and patient counseling at retail pharmacies
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Health and Personal Care Retailers | 456 |
| Industry Group | Health and Personal Care Retailers | 4561 |
| NAICS Industry | Pharmacies and Drug Retailers | 45611 |
| National Industry | Pharmacies and Drug Retailers | 456110 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 456191 | Food (Health) Supplement Retailers | Food and health supplement retailers sell vitamins and nutrition products that pharmacies also carry but without prescription dispensing capabilities |
| 456199 | All Other Health and Personal Care Retailers | All other health and personal care retailers sell medical supplies and personal care items that overlap with drugstore front-end merchandise |
| 325411 | Medicinal and Botanical Manufacturing | Medicinal and botanical manufacturing produces the prescription and OTC pharmaceutical products that pharmacies purchase and dispense to consumers |
| 325412 | Pharmaceutical Preparation Manufacturing | Pharmaceutical preparation manufacturing creates finished dosage forms that flow through wholesale distribution channels to retail pharmacies |
| 424210 | Drugs and Druggists' Sundries Merchant Wholesalers | Drug and druggist sundries merchant wholesalers serve as primary distribution intermediaries between pharmaceutical manufacturers and retail pharmacies |
| 524292 | Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds | Third-party administration and pharmacy benefit management companies process prescription claims that determine pharmacy reimbursement rates and formulary access |
SBA Lending Summary
2,648
Total SBA Loans
$1.8B
Total Loan Volume
$684K
Average Loan Size
11 yrs
Average Loan Term
10.11%
Average Interest Rate
21,704
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[3]
Key Insight: The Small Business Administration[7] sets the size standard for NAICS 456110 at $37.5 million in average annual receipts. Independent community pharmacies and small chain operators below this threshold qualify as small businesses. The SBA 7(a) loan program[8] provides financing for pharmacy inventory, technology systems, and working capital. Owner-pharmacists acquiring or expanding pharmacy locations can access the SBA 504 program[9] for real estate and major equipment purchases.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | First Financial Bank | 264 | $327.8M | $1.2M |
| 2 | Byline Bank | 384 | $305.9M | $797K |
| 3 | Live Oak Banking Company | 176 | $264.2M | $1.5M |
| 4 | Newtek Bank, National Association | 80 | $62.1M | $776K |
| 5 | The Huntington National Bank | 112 | $53.5M | $478K |
Frequently Asked Questions
Common questions about this industry.
What businesses fall under NAICS 456110?
NAICS 456110 includes retail pharmacies, chain drugstores, independent community pharmacies, and compounding pharmacies that dispense prescription medications. These establishments also sell over-the-counter drugs, health products, and personal care items. The U.S. Census Bureau[4] provides the complete definition.
How is NAICS 456110 structured within the retail trade sector?
NAICS 456110 sits within Subsector 456, Health and Personal Care Retailers, under the broader Retail Trade sector. It is distinct from food supplement retailers (456191) and cosmetics retailers (456120), which handle non-prescription health and beauty products. The Census NAICS hierarchy[10] details the full subsector structure.
What is the SBA size standard for pharmacies?
The SBA classifies pharmacy businesses as small if average annual receipts do not exceed $37.5 million. Most independent pharmacies fall well below this threshold. The current size standard is available in the SBA table of size standards[6].
Which NAICS codes are most related to 456110?
Closely related codes include 456191 for health supplement retailers, 456199 for other health and personal care retailers, 424210 for drug wholesalers, and 325412 for pharmaceutical manufacturers. Each represents a different link in the pharmaceutical supply chain from production through distribution to retail.
What industries interact most with retail pharmacies?
Drug wholesalers (424210) supply inventory, pharmaceutical manufacturers (325412) produce medications, physician offices (621111) generate prescriptions, and pharmacy benefit managers (524292) control reimbursement. These interdependencies shape pharmacy economics and operational requirements.
What activities are included in the pharmacy retail classification?
Included activities cover prescription dispensing, OTC drug retailing, immunization services, medication therapy management, compounding, and front-end retail sales of health and personal care products. Mail-order pharmacy operations with a retail presence also qualify. The Census definition[4] lists full activity scope.
Can independent pharmacies qualify for SBA loans?
Independent pharmacies with receipts below $37.5 million qualify for SBA 7(a) loans covering inventory, equipment, and working capital. The SBA 504 program supports real estate purchases for pharmacy locations. Details on eligibility and application procedures are on the SBA loans page[11].
Where are retail pharmacies concentrated in the United States?
Retail pharmacies cluster in population centers across all 50 states, with the highest establishment counts in California, Texas, Florida, New York, and Pennsylvania. Rural areas face pharmacy access challenges, with the USDA Economic Research Service[12] documenting pharmacy deserts in remote counties where residents must travel significant distances for prescription services.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [4]U.S. Census Bureau census.gov
- [5]Bureau of Labor Statistics bls.gov
- [6]Small Business Administration sba.gov
- [7]Small Business Administration sba.gov
- [8]SBA 7(a) loan program sba.gov
- [9]SBA 504 program sba.gov
- [10]Census NAICS hierarchy census.gov
- [11]SBA loans page sba.gov
- [12]USDA Economic Research Service ers.usda.gov
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