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 grow at an annualised 1.3%...read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 13-18
1.3%
Forecast Growth 18-23
Profit
Employment
4,535
Businesses
447
Market Share of Companies

Industry Report - Industry Investment Chapter

As with the general wholesale division, the industry displays low capital intensity. IBISWorld estimates that for every dollar spent on capital, $8.13 is spent on labour through wages and salaries. In line with the need to achieve productivity and profitability improvements, industry wholesalers have invested in various technology platforms and pick-and-pack processes. For example, several players have adopted new stock and logistics management systems supported by various IT platforms. However, the New Zealand pharmaceutical and cosmetics supply chains remain characterised by low levels of automation compared with other countries. 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 in the pharmaceutical or cosmetic sector
  • Having a loyal customer base in the pharmacy market
  • Having a cost effective distribution system for pharmaceuticals and cosmetic products
  • IBISWorld analysts also discuss how external factors such as Public health expenditure and Demand from pharmaceutical, cosmetic and toiletry goods retailing in the Pharmaceutical and Toiletry Goods Wholesaling industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

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

    The industry wholesales pharmaceuticals, medicines, cosmetics, perfumes and toiletries. Veterinary drugs and medicines distributed to veterinary practices are also included in the industry. These products are obtained from upstream local and international manufacturers, and distributed to hospitals and retail outlets, including pharmacies, department stores, supermarkets and cosmetics retailers.

    Industry Products
  • Pharmaceuticals
  • Cosmetics, perfumes and fragrances
  • Toiletries
  • Veterinary pharmaceuticals
  • Industry Activities
  • Cosmetic wholesaling
  • Drug and medicine wholesaling
  • Perfume wholesaling
  • Toiletry wholesaling
  • Veterinary drug and 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
  • Demand from pharmaceutical, cosmetic and toiletry goods retailing
  • Real household discretionary income
  • 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
  • Hospitals
  • Other retailers
  • 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
  • Internal competition
  • External 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 (Otc) Drugs
  • These medications 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
  • A trend through which wholesalers are bypassed, such as when retailers purchase directly from manufacturers.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Pharmaceutical and Toiletry Goods Wholesaling in New Zealand 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.

    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.

    Contact Us

    Want to speak to a representative? Call us.

    clear