Bitter pill: Changes to the industry's operating environment have constrained revenue growth

Operators in the Pharmaceuticals Wholesaling industry procure, distribute and sell a range of pharmaceutical and medicinal products. Pharmaceutical wholesalers are also an important link between local and international pharmaceutical manufacturers and Australia's community pharmacies. Products sold by the industry include prescription medicines, pharmacy-only medicines, over-the-counter (OTC) medicines, other healthcare products and veterinary pharmaceuticals.Changes to the industry's operating environment and ongoing reforms to the Pharmaceutical Benefits Scheme (PBS) have limited the industry's performance over the past five more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25

Industry Threats & Opportunities

  • Reforms to the Pharmaceutical Benefits Scheme (PBS) have constrained industry revenue
  • Regulated price deflation for PBS pharmaceuticals has limited industry revenue growth
  • Operators are anticipated to boost profit margins through improved stock and logistics management
  • Industry Report - Starting a New Business Chapter

    Barriers to entry in the prescription pharmaceutical segment of the Pharmaceutical Wholesaling industry are high. These barriers include the existence of well-established, vertically integrated companies that operate at the manufacturing and retail levels of the supply chain. The top three players control just under three-quarters of the wholesale market. Similarly, existing supply arrangements with retailers, including major retail banner groups, can act as a significant entry barrier. The top three players, which are all full-line wholesalers, have established pharmacy guarantees and loyalty arrangements plus affiliated banner groups. These banner groups are expected to account for one-third of all Australian pharmacies. The...purchase to read more.

    Additional Insights for the Pharmaceuticals Wholesaling Industry

    IBISWorld has determined the most important Key Success Factors for the Pharmaceuticals Wholesaling are:

  • Having links with suppliers
  • Financial support from a downstream activity
  • Access to the latest available and most efficient technology and techniques
  • 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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    What's in this report

    What is the Pharmaceuticals Wholesaling Industry?

    Industry companies wholesale pharmaceutical products, including prescription drugs, over-the-counter medicines and complementary or alternative medicines. Industry companies also wholesale veterinary drugs and medicines. Industry products are obtained from upstream manufacturers and distributed to hospitals, veterinarians and retail outlets, such as pharmacies and supermarkets.

    Industry Products
  • PBS pharmaceuticals
  • 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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Federal funding for the Pharmaceutical Benefits Scheme
  • Demand from pharmacies
  • Population aged 50 and older
  • Health consciousness

  • Current Performance
  • PBS reforms
  • Industry challenges
  • Profitability constraints
  • Chart: Revenue Growth

  • Industry Outlook
  • Ongoing PBS changes
  • Changing market conditions
  • Table: Pharmaceuticals Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Pharmaceuticals Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • General Hospitals
  • Supermarkets and Grocery Stores
  • Convenience Stores
  • Pharmacies

  • Key Selling Industries
  • Pharmaceutical Product Manufacturing

  • Products & Services
  • PBS pharmaceuticals
  • Other medications
  • Veterinary pharmaceuticals
  • Chart: Pharmaceuticals Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Community pharmacies
  • Hospital pharmacies
  • Other markets
  • Supermarkets and health food stores
  • Chart: Major Market Segmentation for the Pharmaceuticals 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 Pharmaceuticals Wholesaling

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Pharmaceuticals Wholesaling Industry

  • Industry Globalization
    EBOS Group Limited, Australian Pharmaceutical Industries Limited, Sigma Healthcare Limited,
  • Table: EBOS Group Limited - financial performance
  • Table: Australian Pharmaceutical Industries Limited - financial performance
  • Table: Sigma Healthcare Limited - financial performance

  • 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
    Table: Industry Data for the Pharmaceuticals Wholesaling 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
    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
  • Single brand drugs listed on the PBS that are not considered interchangeable on an individual patient basis.
  • F2 Formulary
  • Drugs listed on the PBS for which there exists at least one alternative product considered to be clinically interchangeable. These drugs 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 Medicines
  • General PBS medicines available in the community, as opposed to those distributed under special arrangements through PBS Section 100 programs.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Pharmaceuticals Wholesaling 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
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    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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