Overview

Aspirin for more: Changing business models are forecast to support revenue growth

IBISWorld’s Pharmacies market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Intensifying retail competition has changed the industry's operating landscape
  • Fundamental changes to the PBS have significantly influenced industry operations
  • Industry operators will diversify revenue streams as they move towards service-based models

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    Industry Analysis & Industry Trends

    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. According to estimates by the Department of Health, Australian pharmacies are expected to dispense approximately 300 million PBS prescriptions in 2016-17. The traditional community pharmacy sector has undergone significant shifts over the past decade. Intensifying retail competition from new internal and external operators, such as discount pharmacies and supermarkets, has changed the industry's operating landscape. A growing number of operators have been relying on promotional discounting...

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    Industry Report - Industry Key Buyers Chapter

    The Pharmacies industry has a moderate level of market share concentration. The industry is highly fragmented, primarily because state and territory legislation restricts pharmacy ownership. Only qualified pharmacists (and not incorporated entities) can own pharmacies. In addition, a pharmacist can own only a limited number of pharmacies, which varies with each Australian state or territory. As a result, individual operators dominate the industry. At the same time, the industry's ownership rules still allow for pharmacies owned by different pharmacies to operate under a common brand or name. This explains why branded groups such as Priceline Pharmacy and Chemist Warehouse appear to dominate the industry. In ..

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    Additional Insights for the Pharmacies Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Pharmacies Industry are

  • Membership of joint marketing/distribution operations
  • Ability to control stock on hand
  • Production of goods currently favoured by the market
  • IBISWorld analysts also discuss how external factors such as Federal funding for the Pharmaceutical Benefits Scheme and Demand from supermarket and grocery stores in the Pharmacies industry impact industry performance..

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    Industry Products

    What is the Pharmacies Industry?

    The industry includes all community or retail pharmacies that sell prescription drugs and patent medicines to general consumers. The products are sourced either from pharmaceutical wholesalers or directly from upstream pharmaceutical manufacturers. Key pharmacy groups include independent community pharmacies, banner groups (both wholesaler-owned and independent), friendly societies, buying groups and discount pharmacies. Hospital pharmacies are not included in the industry.

    Industry Products
    Prescription medicines
    Scheduled non-prescription medicines
    General retail
    Industry Activities
    Drug retailing
    Patent medicine retailing
    Pharmacy retailing and operation
    Prescription and medicinal dispensing

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Federal funding for the Pharmaceutical Benefits Scheme
  • Demand from supermarket and grocery stores
  • Population aged 50 and older
  • Real household disposable income
  • Demand from department stores

  • Current Performance
  • Ongoing PBS reforms
  • Profit pressures
  • Intensifying competition
  • Industry consolidation pressures
  • Chart: Revenue Growth

  • Industry Outlook
  • Government reviews
  • Increasing competition
  • Continued profit pressures
  • Table: Pharmacies Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Pharmacies Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Consumers
  • Aged Care Residential Services

  • Key Selling Industries
  • Cosmetics and Toiletry Wholesaling
  • Cosmetics, Perfume and Toiletries Manufacturing
  • Pharmaceutical Product Manufacturing
  • Pharmaceuticals Wholesaling

  • Products & Services
  • Prescription medicines
  • General retail
  • Scheduled non-prescription medicines
  • Chart: Pharmacies Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 45 to 64
  • All other consumers
  • Consumers aged 65 and over
  • Chart: Major Market Segmentation for the Pharmacies Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent
  • Depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Pharmacies

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Pharmacies Industry

  • Industry Globalization
    Major Companies
    My Chemist Retail GroupSigma Healthcare LimitedTerry White Group LimitedAustralian Pharmaceutical Industries Limited
  • Table: My Chemist Retail Group - financial performance
  • Table: Sigma Healthcare Limited - financial performance
  • Table: Terry White Group Limited - financial performance
  • Table: Australian Pharmaceutical Industries Limited - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Pharmacies Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Pharmacies Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Banner Groups
  • Groupings of individually owned stores formed to provide support and undertake joint advertising and promotions.
  • General Sales Medicines (Gsm)
  • Unscheduled medicines that can be sold outside of a pharmacy.
  • Over-The-Counter (Otc) Products
  • Medicines sold without requiring a prescription, including Schedule 2, Schedule 3 and general sales medicines.
  • Pharmaceutical Benefits Scheme (Pbs)
  • Government scheme that subsidises the cost of most prescription drugs.
  • Schedule 2 Pharmacy Medicines
  • Non-prescription medicines that can only be sold in a pharmacy.
  • Schedule 3 Pharmacist-Only Medicines
  • Non-prescription medicines sold through a pharmacy on the provision of pharmacist advice.
  • Section 90 Approved Pharmacies
  • These are pharmacies authorised to supply Pharmaceutical Benefits Scheme medicines under Section 90 of the National Health Act 1953.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Pharmacies:
    • 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 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

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Pharmacies, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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