Bitter pill: Despite favourable consumer trends, intense competition constrains revenue growth

The Pharmaceutical, Cosmetic and Toiletry Goods Retailing industry is involved in the sale of pharmaceuticals, medicines, cosmetics, perfumes and toiletries within a specialty retailer setting. This includes New Zealand's 900 plus community pharmacies that are responsible for dispensing roughly 50 million scripts per year, alongside specialty cosmetic boutique and mass-market beauty retailers. The lion's share of these products is sourced from overseas suppliers, reflecting New Zealand's dependence on imported pharmaceuticals, and the global nature of the beauty sector including the dominant position of global brands. Many of these products are also available to consumers from alternative distribution channels, including supermarkets, department stores and online websites...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
0.9%
Forecast Growth 18-23
Profit
Employment
10,050
Businesses
1,840
Market Share of Companies

Industry Threats & Opportunities

  • Intensifying competition and an uncertain operating environment are constraining industry growth
  • Retailers are capitalising on current green consumerism and ethical consumption trends
  • An ageing population, rising health consciousness and innovative products will drive industry growth
  • Industry Report - Industry Key Buyers Chapter

    The industry is characterised by low concentration, with the top four players expected to generate less than 20% of industry revenue in 2017-18. This is despite the existence of international retail cosmetic chains like the Body Shop, Lush and L'Occitane. Only one pharmacy player commands a market share of more than 10%, however its share of the pharmacy segment is considerably higher. For example, in terms of number of scripts dispensed, its share of the dispensary market exceeds 40%. Unlike in Australia and the United Kingdom, independent pharmacies are still very much a common feature in New Zealand. Low industry concentration is likely to continue over the five years through 2022-23...purchase to read more.

    Additional Insights for the Pharmaceutical, Cosmetic and Toiletry Goods Retailing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Pharmaceutical, Cosmetic and Toiletry Goods Retailing Industry are

  • Having a clear market position
  • Production of goods currently favoured by the market
  • Experienced work force
  • IBISWorld analysts also discuss how external factors such as Public health expenditure and Real household discretionary income in the Pharmaceutical, Cosmetic and Toiletry Goods Retailing industry impact industry performance..

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    What's in this report

    What is the Pharmaceutical, Cosmetic and Toiletry Goods Retailing in New Zealand Industry?

    The industry covers operators involved in retailing prescription drugs or patent medicines, cosmetics or toiletries. Industry retailers include community pharmacies, specialty cosmetics stores, perfume and fragrance stores and beauty supply stores. It does not include related product sales made by rival department stores, supermarkets and pure-play pharmacy or cosmetic online retailers.

    Industry Products
  • Cosmetics, perfumes and fragrances
  • Toiletries
  • Pharmaceuticals
  • Industry Activities
  • Cosmetic and toiletries retailing
  • Drug and patent medicine retailing
  • Perfume retailing
  • Prescription medicine dispensing
  • Pharmacy operations
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Public health expenditure
  • Real household discretionary income
  • Demand from supermarkets, grocery stores and convenience stores
  • Demand from online shopping

  • Current Performance
  • Demand drivers
  • Profitability constraints
  • Intensifying competitive pressures
  • Chart: Revenue Growth

  • Industry Outlook
  • Growth drivers
  • Restraints to growth
  • Table: Pharmaceutical, Cosmetic and Toiletry Goods Retailing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Pharmaceutical, Cosmetic and Toiletry Goods Retailing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers in New Zealand
  • Aged Care Residential Services in New Zealand

  • Key Selling Industries
  • Internet Service Providers and Web Search Portals in New Zealand
  • Pharmaceutical and Toiletry Goods Wholesaling in New Zealand

  • Products & Services
  • Pharmaceuticals
  • Cosmetics, perfumes and fragrances
  • Toiletries
  • Chart: Pharmaceutical, Cosmetic and Toiletry Goods Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 55 years and over
  • People between 35 and 54 years of age
  • People between 15 and 34 years of age
  • Chart: Major Market Segmentation for the Pharmaceutical, Cosmetic and Toiletry Goods Retailing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Pharmaceutical, Cosmetic and Toiletry Goods Retailing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Pharmaceutical, Cosmetic and Toiletry Goods Retailing Industry

  • Industry Globalization
    Green Cross Health Limited,
  • Table: Green Cross Health Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Pharmaceutical, Cosmetic and Toiletry Goods Retailing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

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

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Pharmaceutical, Cosmetic and Toiletry Goods Retailing 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
    Masstige Products
  • Mass-market products possessing the appearance of prestige or premium products.
  • Over-The-Counter (Otc) Drugs
  • These medications may be sold directly to consumers without a prescription.
  • Pharmacist-Only Medicines
  • Also known as restricted medicines, pharmacist-only medicines can be purchased from a pharmacist without a script. They are not available for self-selection from pharmacy shelves.
  • Prescription Pharmaceuticals
  • These medications can only be dispensed by pharmacies on receipt of a prescription issued by an authorised medical practitioner.
  • What Our Customers Say

    Why buy this report?

    The Pharmaceutical, Cosmetic and Toiletry Goods Retailing in New Zealand market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 Pharmaceutical, Cosmetic and Toiletry Goods Retailing in New Zealand:
    • 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 Pharmaceutical, Cosmetic and Toiletry Goods Retailing in New Zealand 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 Pharmaceutical, Cosmetic and Toiletry Goods Retailing in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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