Pharmacies in Australia - Market Research Report

Pharmacies industry trends (2014-2019)

poll Average industry growth 2014–2019: 2.7%

The Pharmacies industry plays an important role in community primary health care. Retail pharmacies are the primary distribution points for prescription and scheduled over-the-counter medicines. Intensifying retail competition from new internal and external operators, such as discount pharmacies and supermarkets, has gradually changed the industry's operating landscape over the past decade. These new competitive forces have increasingly polarised the industry into small, high-service pharmacies that offer allied preventative and primary healthcare services and large, high-volume, low-margin pharmacies that compete on price. The recent entry of Ramsay Health Care, Australia's largest private hospital operator, into the community pharmacy sector also h...
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Pharmacies industry outlook (2019-2024)

poll Average industry growth 2019-2024: x.xlockPurchase this report or a membership to unlock the average company profit margin for this industry.

Long-term economic, demographic and social trends are forecast to support the Pharmacies industry over the next five years. The industry will also likely benefit from Australia's ageing population and increasing health consciousness. However, ongoing PBS reforms and the loss of market share to external competitors, such as supermarkets, are projected to limit revenue growth over the period. Operators are likely to respond to these trends by diversifying their revenue streams, as they continue to move away from the traditional pharmacy business model and towards new service-based models that offer more holistic health solutions. Industry revenue is therefore projected to grow at an annualised X.X% over the five years through XXX-XX, to $XX.X billion....
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Pharmacies industry statistics

  • attach_money Market Size: $19bn
  • business Number of Businesses: 5,780
  • poll Average Industry Profit Margin: x.x%
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  • supervisor_account Industry Employment: 71,277

Biggest companies in the Pharmacies industry

The companies holding the largest market share in the Pharmacies in Australia industry include My Chemist Retail Group, Sigma Healthcare Limited, EBOS Group Limited and Australian Pharmaceutical Industries Limited.

  • pie_chart My Chemist Retail Group Market Share: x.x%
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  • pie_chart Sigma Healthcare Limited Market Share: x.x%
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  • pie_chart EBOS Group Limited Market Share: x.x%
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  • pie_chart Australian Pharmaceutical Industries Limited Market Share: x.x%
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What is Pharmacies industry?

Industry Definition

The industry includes all community or retail pharmacies that sell prescription drugs and patent medicines to general consumers. Industry firms source medicines either from pharmaceutical wholesalers or directly from upstream pharmaceutical manufacturers. Key pharmacy groups include independent community pharmacies, banner groups, friendly societies, buying groups and discount pharmacies. Hospital pharmacies and online-only pharmacies are not included in the industry.

Industry Products and Services

  • Prescription medicines
  • Scheduled non-prescription medicines
  • General retail
  • All Others

Industry Activities

  • Drug retailing
  • Patent medicine retailing
  • Pharmacy retailing and operation
  • Prescription and non-prescription medicine dispensing

Market research report - table of contents

Industry Definition

The industry includes all community or retail pharmacies that sell prescription drugs and patent medicines to general consumers. Industry firms source medicines either from pharmaceutical wholesalers or directly from upstream pharmaceutical manufacturers. Key pharmacy groups include independent community pharmacies, banner groups, friendly societies, buying groups and discount pharmacies. Hospital pharmacies and online-only pharmacies are not included in the industry.

Main Activities

  • Drug retailing
  • Patent medicine retailing
  • Pharmacy retailing and operation
  • Prescription and non-prescription medicine dispensing

Similar Industries

Additional Resources

Industry Statistics Snapshot

Industry Structure

Executive Summary

Key External Drivers

The PBS is a government scheme that subsidises the cost of pharmaceuticals for the Australian community. The scheme currently covers approximately 5,300 b...
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Federal funding for the Pharmaceutical Benefits Scheme
Demand from supermarket and grocery stores
Population aged 50 and older
Real household disposable income

Current Performance

Government reviews
Profit pressures
Intensifying competition
Industry consolidation pressures
 Chart: Revenue Growth

Industry Outlook

Continued profit pressures
New service offerings
 Table: Pharmacies in Australia - Market Research Report Industry Revenue Outlook

Industry Life Cycle

Life Cycle Reasons
 Chart: Benchmarking - Pharmacies in Australia - Market Research Report Industry Lifecycle vs The Economy

Supply Chain

Key Buying Industries

Consumers in Australia
Aged Care Residential Services in Australia





Key Selling Industries

Pharmaceutical Product Manufacturing in Australia
Cosmetics, Perfume and Toiletries Manufacturing in Australia
Pharmaceuticals Wholesaling in Australia
Cosmetics and Toiletry Wholesaling in Australia



Products & Services

Two streams of pharmacy practices exist in Australia: section 94 clinical (or hospital) pharmacies and section 90 community pharmacies. Section 94 pharmac...
All other consumers
Consumers aged 65 and over




Demand Determinants

Australia's ageing population significantly influences demand for industry products. An ageing population generally increases demand for pharmaceutical an...
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Major Markets

All other consumers
Consumers aged 65 and over





 Chart: Major Market Segmentation for the Pharmacies in Australia - Market Research Report Industry

International Trade

Business Locations

Chart: Business Locations by State Chart: Business Locations by State

Market Share Concentration

The Pharmacies industry appears to exhibit moderate market share concentration, with the four largest players accounting for over 60.0% of industry revenu...
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Key Success Factors

Cost Structure Benchmarks

Profit, Purchases, Wages, Other Costs
 Chart: Cost Structure Benchmarking – Sector vs Pharmacies in Australia - Market Research Report

Basis of Competition

Internal competition
External competition

Barriers to Entry

 Table: Barriers to Entry Checklist for the Pharmacies in Australia - Market Research Report Industry

Industry Globalization

Victoria-based My Chemist Retail Group has grown to become one of Australia's largest pharmacy groups. The group consists of partnerships and alliances am...
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My Chemist Retail Group

 Table: My Chemist Retail Group - financial performance

Sigma Healthcare

 Table: Sigma Healthcare - financial performance

EBOS Group

 Table: EBOS Group - financial performance

API

 Table: API - financial performance

Capital Intensity

The Pharmacies industry displays low capital intensity. For every dollar spent on capital in 2019-20, industry operators are expected to spend $12.71 on w...
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 Chart: Level of Capital Intensity for the Pharmacies in Australia - Market Research Report Industry
 Chart: Tools of the Trade: Growth Strategies for Success

Technology & Systems

Revenue Volatility

Chart: Volatility vs Industry Growth Chart: Volatility vs Industry Growth

Regulation & Policy

Industry Assistance

Table: Industry data Table: Industry Data for the Pharmacies in Australia Industry

Industry Revenue (2007-2026)
Industry Gross Product (2007-2026)
Establishments (2007-2026)
Businesses (2007-2026)
Employment (2007-2026)
Exports (2007-2026)
Imports (2007-2026)
Wages (2007-2026)
Domestic Demand (2007-2026)

Table: Annual Percentage Change for Key Industry Data Table: Annual Percentage Change for Key Industry Data

Table: Key Ratios for Industry Key Dat Table: Key Ratios for Industry Key Data

Table: Industry Financial Ratios Table: Industry Financial Ratios

Liquidity Ratios
Coverage Ratios
Leverage Ratios
Operating Ratios
Cash Flow & Debt Service Ratios (% of Sales)
Assets, %
Liabilities, %

BANNER GROUPS

GENERAL SALES MEDICINES (GSM)

SCHEDULE 2 PHARMACY MEDICINES

SCHEDULE 3 PHARMACIST-ONLY MEDICINES

SECTION 90 APPROVED PHARMACIES

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Included in Report

  • Industry Financial Ratios
    Industry Financial Ratios
  • Revenue Forecasts
    Revenue Forecasts
  • Historical and Forecast Growth
    Historical and Forecast Growth
  • Industry Market Size
    Industry Market Size
  • Industry Major Players
    Industry Major Players
  • Profitability Analysis
    Profitability Analysis
  • SWOT Analysis
    SWOT Analysis
  • Industry Trends
    Industry Trends
  • Industry Operating Conditions
    Industry Operating Conditions
  • Porter's 5 Forces Analysis
    Porter's 5 Forces Analysis

Why buy this report on the Pharmacies industry?

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This report on Pharmacies in Australia:

  • Provides Market Size information to assist with planning and strategic decisions.
  • Includes the necessary information to perform SWOT, PEST and STEER analysis.
  • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
  • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.

The Pharmacies in Australia market research report includes:

  • Historical data and analysis for the key drivers of this industry
  • A five-year forecast of the market and noted trends
  • Detailed research and segmentation for the main products and markets
  • An assessment of the competitive landscape and market shares for major companies
  • And of course, much more

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