Overview

A bitter pill: PBS reforms are expected to constrain revenue growth in the current year

IBISWorld’s Pharmaceuticals Wholesaling 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

  • Despite volume gains, falling unit prices have hindered the industry's performance
  • Revenue growth has been subdued, due to regulated price deflation in the industry’s largest product market
  • Some industry players are expected to boost margins through improved stock and logistics management

  • shopping_cartBUY NOW TO READ MORE

    Industry Analysis & Industry Trends

    Operators in the Pharmaceutical Wholesaling industry are an important link between local and international pharmaceutical manufacturers and Australia's community pharmacies. Pharmaceutical wholesalers procure, distribute and sell a range of pharmaceutical and medicinal products. These products include prescription medicines, pharmacy-only medicines, over-the-counter (OTC) medicines, other healthcare products and veterinary pharmaceuticals.

    Changes to the industry's operating environment and ongoing reforms to the Pharmaceutical Benefits Scheme (PBS) have constrained the industry's performance over the past five years...

    shopping_cartBUY NOW TO READ MORE

    Industry Report - Industry Investment Chapter

    The industry has low capital intensity, echoing trends in the general wholesale division. IBISWorld estimates that for every dollar spent on capital, $8.78 is spent on labour via wages and salaries. In line with the need to achieve productivity and profitability improvements, industry wholesalers have invested in various technology platforms and automated processes. At the same time, smaller warehouses have been closed and replaced by new, state-of-the-art warehousing systems, which operate on a higher volume. Considerable resources have also been invested into cold-chain systems. These developments have meant a higher degree of capital expenditure in the industry over the past five years. New facilities recently opened include Symbion's new high-tech $40.0 mi..

    shopping_cartBUY NOW TO READ MORE

    Additional Insights for the Pharmaceuticals Wholesaling Industry

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

  • Having links with suppliers
  • Financial support from a downstream activity
  • Having a clear market position
  • IBISWorld analysts also discuss how external factors such as Federal funding for the Pharmaceutical Benefits Scheme and Demand from pharmacies in the Pharmaceuticals Wholesaling industry impact industry performance..

    shopping_cartBUY NOW TO READ MORE

    Look under the hood?

    Download a FREE sample report

    Top 500 Companies List
    has been released

    Click here for more

    Industry Products

    What is the Pharmaceuticals Wholesaling Industry?

    The industry is made up of companies that wholesale pharmaceutical products, including prescription drugs, over-the-counter medicines and complementary or alternative medicines. It also includes companies involved in wholesaling veterinary drugs and medicines. The products are obtained from upstream manufacturers and distributed to hospitals, veterinarians and retail outlets, such as pharmacies and supermarkets.

    Industry Products
    PBS pharmaceuticals
    Other medications
    Veterinary pharmaceuticals
    Industry Activities
    Prescription pharmaceuticals wholesaling
    Pharmacy-only pharmaceuticals wholesaling
    Over-the-counter pharmaceuticals wholesaling
    Complementary or alternative medicines wholesaling
    Veterinary pharmaceuticals wholesaling

    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 pharmacies
  • Population aged 50 and older
  • Health consciousness

  • Current Performance
  • Downward pressures
  • Profitability constraints
  • Chart: Revenue Growth

  • Industry Outlook
  • Regulatory review
  • Ongoing price deflation
  • Changing market conditions
  • Table: Pharmaceuticals Wholesaling Industry Revenue Outlook

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

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • General Hospitals
  • Supermarkets and Grocery Stores
  • Convenience Stores
  • Pharmacies

  • Key Selling Industries
  • Pharmaceutical Product Manufacturing

  • Products & Services
  • PBS pharmaceuticals
  • Other medications
  • Veterinary pharmaceuticals
  • Chart: Pharmaceuticals Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Community pharmacies
  • Hospital pharmacies
  • Supermarkets and health food stores
  • Other markets
  • Chart: Major Market Segmentation for the Pharmaceuticals Wholesaling Industry

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

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Pharmaceuticals Wholesaling Industry

  • Industry Globalization
    Major Companies
    Sigma Healthcare LimitedEbos Group LimitedAustralian Pharmaceutical Industries Limited
  • Table: Sigma Healthcare Limited - financial performance
  • Table: Ebos Group Limited - financial performance
  • Table: Australian Pharmaceutical Industries Limited - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Pharmaceuticals Wholesaling 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 Pharmaceuticals Wholesaling Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Community Service Obligation (Cso)
  • A patient-orientated model of distribution that ensures every pharmacy in Australia has access to PBS medicines from nominated wholesalers.
  • F1 Formulary Drugs
  • Single brand drugs listed on the PBS that are not considered interchangeable on an individual patient basis.
  • F2 Formulary Drugs
  • PBS drugs for which there is at least one alternative product considered to be clinically interchangeable. These drugs tend to be medicines where the patent has already expired.
  • Over-The-Counter (Otc) Drugs
  • These medications may be sold directly to consumers without a prescription.
  • Schedule 2
  • Pharmaceuticals sold only in pharmacies.
  • Schedule 3
  • Pharmaceuticals sold only by pharmacists.
  • Section 85 Pbs Medicines
  • This refers to general PBS medicines available in the community as opposed to those distributed under special arrangements through PBS Section 100 programs.
  • 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 Pharmaceuticals Wholesaling:
    • 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 Pharmaceuticals Wholesaling 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 Pharmaceuticals Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.

    clear