A bitter pill: Downward pricing pressures are constraining growth, despite product innovation

The Pharmaceutical and Toiletry Goods Wholesaling industry plays an integral role in distributing pharmaceutical and personal-care products to downstream pharmacies, cosmetics and toiletry retailers, supermarkets, hospitals and veterinarians. Products distributed include pharmaceuticals, medicines, cosmetics, perfumes and toiletries. Many of these are sourced from overseas suppliers, reflecting New Zealand's dependence on imported pharmaceuticals, and cosmetic and personal-care products.Despite underlying favourable social, economic and demographic trends, the industry's growth has been sluggish, constrained by downward pricing pressures and a changing operating environment. Due to these constraints, industry revenue is expected to only grow at an annualised 1.4%...read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 13-18
1.4%
Forecast Growth 18-23
Profit
Employment
4,535
Businesses
447
Market Share of Companies

Industry Threats & Opportunities

  • The industry's growth has been sluggish, constrained by downward pricing pressures
  • Subdued conditions in the industry’s operating environment have added to consolidation pressures
  • An increasing awareness of health and wellbeing is forecast to drive industry growth
  • Industry Report - Industry Locations Chapter

    The industry's geographic spread is heavily skewed towards the Auckland region, reflecting the city's dominant position in terms of population base and economic wealth. The region accounts for approximately one-third of the country's population and GDP. In addition, given the industry's dependence on imports, its port and international airport also boost the region's dominant position. For example, the majority of pharmaceutical products are sourced from offshore manufacturers, and the bulk of this is imported to Auckland. Nevertheless, the region is still significantly over-represented, accounting for over 60% of all industry establishments.Canterbury and Wellington are the next two sizeable regions in terms of establishment numbers. The...purchase to read more.

    Additional Insights for the Pharmaceutical and Toiletry Goods Wholesaling Industry

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

  • Having a clear market position
  • Having a loyal customer base
  • Having a cost effective distribution system
  • IBISWorld analysts also discuss how external factors such as Public health expenditure and Real household discretionary income in the Pharmaceutical and Toiletry Goods Wholesaling industry impact industry performance..

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    What's in this report

    What is the Pharmaceutical and Toiletry Goods Wholesaling in New Zealand Industry?

    Industry companies wholesale human pharmaceuticals, medicines, cosmetics, perfumes and toiletries. The industry also includes companies that wholesale veterinary drugs or medicines.

    Industry Products
  • Pharmaceuticals
  • Cosmetics, perfumes and fragrances
  • Toiletries
  • Veterinary pharmaceuticals
  • Industry Activities
  • Cosmetic wholesaling
  • Drug wholesaling
  • Medicine wholesaling
  • Perfume wholesaling
  • Toiletry wholesaling
  • Veterinary drug wholesaling
  • Veterinary medicine wholesaling
  • 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 pharmaceutical, cosmetic and toiletry goods retailing
  • Trade-weighted index
  • Demand from veterinary services

  • Current Performance
  • Demand drivers
  • Profitability constraints
  • Consolidation processes
  • Chart: Revenue Growth

  • Industry Outlook
  • Growth drivers
  • Restraints to growth
  • Table: Pharmaceutical and Toiletry Goods Wholesaling Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Department Stores in New Zealand
  • Hospitals in New Zealand
  • Supermarkets, Grocery Stores and Convenience Stores in New Zealand
  • Pharmaceutical, Cosmetic and Toiletry Goods Retailing in New Zealand

  • Key Selling Industries
  • Human Pharmaceutical and Medicinal Product Manufacturing in New Zealand
  • Veterinary Pharmaceutical and Medicinal Product Manufacturing in New Zealand

  • Products & Services
  • Pharmaceuticals
  • Cosmetics, perfumes and fragrances
  • Toiletries
  • Veterinary pharmaceuticals
  • Chart: Pharmaceutical and Toiletry Goods Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Pharmacies and cosmetics retailers
  • Supermarkets and grocery stores
  • Other retailers
  • Hospitals
  • Veterinary practices
  • Chart: Major Market Segmentation for the Pharmaceutical and Toiletry Goods Wholesaling 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 and Toiletry Goods Wholesaling

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Pharmaceutical and Toiletry Goods Wholesaling Industry

  • Industry Globalization
    EBOS Group Limited, CDC Pharmaceuticals Limited,
  • Table: EBOS Group Limited - financial performance
  • Table: CDC Pharmaceuticals Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Pharmaceutical and Toiletry Goods Wholesaling 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 and Toiletry Goods 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
    Over-The-Counter Products
  • These products, usually medication, may be sold directly to consumers without a prescription.
  • Prescription Pharmaceuticals
  • These medications can only be dispensed by pharmacies on receipt of a prescription issued by an authorised medical practitioner.
  • Wholesale Bypass
  • The trend of retailers bypassing wholesalers to directly purchase their products from the manufacturers.
  • What Our Customers Say

    Why buy this report?

    The Pharmaceutical and Toiletry Goods Wholesaling 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 and Toiletry Goods Wholesaling 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 and Toiletry Goods Wholesaling 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 and Toiletry Goods Wholesaling 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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