Changing the script: PBS reforms have forced industry players to diversify their revenue base

IBISWorld’s Pharmaceuticals Wholesaling market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.


Industry Threats & Opportunities

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

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    Industry Analysis & Industry Trends

    Pharmaceutical wholesalers 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.

    The performance of the Pharmaceuticals Wholesaling industry over the past five years has been subdued, in line with changes to the industry's operating environment and the ongoing reforms to the Pharmaceutical Benefits Scheme (PBS)...

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    Industry Report - Industry SWOT Analysis Chapter

    In the 10 years through 2021-22, the Pharmaceuticals Wholesaling industry's contribution to the Australian economy, as measured by industry value added, is expected to gradually fall as the industry underperforms relative to the wider economy. The 10-year annualised growth rate is estimated at 2.2%, lagging real GDP growth at an estimated compound annual rate of 2.5% over the same period.

    This suggests that the industry is in the mature phase of its life cycle, as does the industry's ongoing consolidation process. In the pharmaceutical distribution segment, the number of full-line players has been reduced from 28 in the late 1970s to fewer than five in 2016-17. Upstream and downstream suppliers and customers have also increasingly moved to bypass traditional wholesalers.


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    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 provided to downstream activities
  • 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..

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    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
    All 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
  • 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
  • All 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
  • 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
  • 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
    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. They 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.

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