Slow growth: Competition from physical stores with online offerings has constrained revenue

Significant changes across the wider pharmaceuticals sector have strongly affected the Online Pharmaceutical Sales industry’s performance over the past five years. In particular, the Pharmacies industry has become increasingly polarised between traditional full-service pharmacies and high-volume, low-margin big-box pharmacies. However, online pharmacies have struggled to effectively compete with either of these models. Online operations cannot offer the value-added services (such as health advice) provided by their bricks-and-mortar counterparts, and they cannot compete on price against the heavy discounters. Regulatory controls governing prescription pharmaceutical sales also restrict the product portfolio of industry more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Competitive pressures are expected to intensify over the next five years
  • The industry’s most significant external competition comes from the community pharmacy sector
  • External competition will remain the biggest threat to the industry over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The Online Pharmaceutical Sales industry exhibits low market share concentration, with no player expected to account for more than 5.0% of industry revenue. This reflects the small-scale nature of the industry. In terms of revenue, the Online Pharmaceutical Sales industry generates less than 2.0% of its physical counterpart, the Pharmacies industry.Low concentration also reflects the industry’s regulatory environment and the associated legal structures of industry operations. State and territory legislation restrict pharmacy ownership. Only qualified pharmacists (and not incorporated entities) can own pharmacies. In addition, the number of pharmacies that can be owned by a pharmacist is generally limited, so individual operators dominate the industry...purchase to read more.

    Additional Insights for the Online Pharmaceutical Sales Industry

    IBISWorld has determined the most important Key Success Factors for the Online Pharmaceutical Sales are:

  • Ability to control stock on hand
  • Production of goods currently favoured by the market
  • Prompt delivery to market
  • IBISWorld analysts also discuss how external factors such as Demand from pharmacies and Real household disposable income in the Online Pharmaceutical Sales industry impact industry performance..

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    What's in this report

    What is the Online Pharmaceutical Sales Industry?

    Industry companies primarily sell pharmaceutical products, including prescription and non-prescription medicines, and associated personal care items, through the internet. The industry includes online pharmacies that operate through one registered physical shop-front pharmacy. The industry excludes establishments that operate several physical stores that are supplemented with complementary online operations.

    Industry Products
  • Non-prescription medicines
  • Cosmetics and fragrances
  • Vitamins and supplements
  • Personal care items
  • Prescription medicines
  • Other products
  • Industry Activities
  • Retail sale of prescription medicines
  • Retail sales of cosmetics and fragrances
  • Retail sale of scheduled non-prescription medicines and general medicines
  • Retail sale of vitamins, minerals and nutritional supplements
  • Retail sale of personal care items
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from pharmacies
  • Real household disposable income
  • Internet subscribers
  • Health consciousness

  • Current Performance
  • Competitive pressures
  • Banner groups and supermarkets
  • Profit and participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Intensifying competitive forces
  • Regulatory constraints
  • Potential growth opportunities
  • Profit and participation
  • Table: Online Pharmaceutical Sales Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Online Pharmaceutical Sales Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Cosmetics and Toiletry Wholesaling
  • Cosmetics, Perfume and Toiletries Manufacturing
  • Courier Pick-up and Delivery Services
  • Internet Service Providers
  • Pharmaceutical Product Manufacturing
  • Pharmaceuticals Wholesaling

  • Products & Services
  • Personal care items
  • Non-prescription medicines
  • Vitamins and supplements
  • Prescription medicines
  • Cosmetics and fragrances
  • Other products
  • Chart: Online Pharmaceutical Sales Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 35 to 54
  • Consumers aged 25 to 34
  • Consumers aged 55 to 64
  • Consumers aged 18 to 24
  • Consumers aged over 65
  • Chart: Major Market Segmentation for the Online Pharmaceutical Sales 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 Online Pharmaceutical Sales

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Online Pharmaceutical Sales Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Online Pharmaceutical Sales 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 Online Pharmaceutical Sales Industry
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    General Sales Medicines
  • Products that do not have a poison schedule attached to them.
  • Illegitimate Online Pharmacies
  • These are online pharmacies that do not provide an Australian street address and telephone number, and do not require a valid Australian-issued prescription to dispense prescription medicines.
  • Otc Products
  • Products that are sold over the counter without requiring a prescription.
  • Pbs
  • Stands for Pharmaceuticals Benefit Scheme, which is a government scheme for subsidising pharmaceuticals to the Australian community.
  • Schedule 2 Pharmacy Medicines
  • Non-prescription medicines that can only be sold in a pharmacy.
  • Schedule 3 Pharmacist-Only Medicines
  • Non-prescription medicines sold through a pharmacy on the provision of pharmacist advice.
  • Schedule 4 Prescription Only Medicines
  • Medicines that can only be dispensed on production of a script from a medical or dental professional.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Online Pharmaceutical Sales market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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 Online Pharmaceutical Sales:
    • 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 Online Pharmaceutical Sales 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 Online Pharmaceutical Sales, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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