Pharmacies in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: November 2023
ANZSIC G4271aRevenue
$27.0bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
76,999
Businesses
4,191
Wages
$X.Xbn
Pharmacies in Australia industry analysis
The Pharmacies industry plays an important role in community primary health care. Retail pharmacies are the primary distribution points for prescription and scheduled over-the-counter medicines. Intensifying retail competition from internal and external operators, including discount pharmacies and supermarkets, has gradually changed the industry's operating landscape over the past decade. These competitive forces have increasingly polarised the industry into small, high-service pharmacies that offer allied preventative and primary healthcare services and large, high-volume, low-margin pharmacies that compete on price. Simultaneously, ongoing PBS price disclosure reforms have progressively cut the cost of PBS medicines, negatively affecting traditional industry revenue streams. In response, pharmacies have focused on increasing non-PBS and other retail revenue streams to become less reliant on dispensary revenue, supporting revenue growth.
Trends and Insights
- The pharmacy operating landscape has changed over the past decade in response to ongoing PBS reforms. The latest reforms involve the staged introduction of 60-day dispensing measures for 300 PBS medicines, which will impact dispensing revenue.
- Pharmacies increasingly focus on front-of-store operations to counteract declining over-the-counter sales and ongoing downward pressures on dispensary remuneration. More community pharmacies are also providing frontline primary care health services and patient support.
- The geographic distribution of the Pharmacies industry reflects Australia's economic, social and demographic distribution. The three eastern seaboard states are home to over three-quarters of all community pharmacies.
- Regulatory controls that define the operating landscape for pharmacies also shape the competitive environment. Only community pharmacies and hospital pharmacies can dispense prescription medicines, limiting external competition.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 2.9 % over the past five years, to reach an estimated $27.0bn in 2023.
Trends and Insights
New growth drivers are supporting alternative revenue streams
- In recent years, rising health consciousness and an ageing population in Australia have supported pharmacies.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Australia's ageing and increasingly health-conscious population will continue to be a key growth driver
- Long-term economic, demographic and social trends will support the Pharmacies industry in the coming years.
Biggest companies in the Pharmacies in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Sigma Healthcare | 3,800.0 | |
Chemist Warehouse | 2,950.0 | |
EBOS | 2,800.0 |
To view the market share and analysis for all 8 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Prescription medicines, Scheduled non-prescription medicines and General retail. Prescription medicines is the largest segment of the Pharmacies in Australia.
Trends and Insights
Ongoing PBS reforms have led pharmacies to reduce their dependence on prescription medicine revenue
- These medicines are only available to consumers that have a prescription from an authorised healthcare professional with prescribing rights. By law, the sale of prescription medication is restricted to pharmacies. These include subsidised and unsubsidised PBS prescriptions, and private prescriptions.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Pharmaceutical Product Manufacturing in Australia
- Cosmetics, Perfume and Toiletries Manufacturing in Australia
- Pharmaceuticals Wholesaling in Australia
- Cosmetics and Toiletry Wholesaling in Australia
International industries
- Pharmacies & Drug Stores in the US
- Compounding Pharmacies in the US
- Institutional Pharmacies in the US
- Pharmacies & Drug Stores in Canada
- Pharmaceutical, Cosmetic and Toiletry Goods Retailing in New Zealand
Table of Contents
About this industry
Industry definition
The industry includes all community or retail pharmacies that sell prescription drugs and patent medicines to general consumers. Pharmacies source medicines either from pharmaceutical wholesalers or directly from upstream pharmaceutical manufacturers. Key pharmacy groups include independent community pharmacies, banner groups, friendly societies, buying groups and discount pharmacies.
What's included in this industry?
General retail Scheduled non-prescription medicinesPrescription medicines Pharmacy professional servicesCompanies
Sigma HealthcareChemist WarehouseEBOSPurchase this report to view all 8 major companies in this industry.
Related Terms
BANNER GROUPSSCHEDULE 2 PHARMACY MEDICINESSCHEDULE 3 PHARMACIST-ONLY MEDICINESGENERAL SALES MEDICINES (GSM)SECTION 90 APPROVED PHARMACIESEPRESCRIPTIONSNON-PHARMACY STORESIndustry Code
ANZSIC 4271 - Pharmacies in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The pharmacy operating landscape has changed over the past decade in response to ongoing PBS reforms. The latest reforms involve the staged introduction of 60-day dispensing ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Pharmacies increasingly focus on front-of-store operations to counteract declining over-the-counter sales and ongoing downward pressures on dispensary remuneration. More comm...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The geographic distribution of the Pharmacies industry reflects Australia's economic, social and demographic distribution. The three eastern seaboard states are home to over ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Regulatory controls that define the operating landscape for pharmacies also shape the competitive environment. Only community pharmacies and hospital pharmacies can dispense ...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Due to ownership regulations, the Pharmacies industry is defined by small, owner-operated firms. Individual pharmacists own over half of Australia's pharmacies, with most of ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Sigma Healthcare's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Chemist Warehouse's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of EBOS's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 5 additional companies
Detailed analysis
- Description and key data for Sigma Healthcare, and factors influencing its performance in the industry
- Description and key data for Chemist Warehouse, and factors influencing its performance in the industry
- Description and key data for EBOS, and factors influencing its performance in the industry
- Description, key data and performance trends for 5 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Volumes of medicines dispensed under the PBS impact pharmacy dispensary revenue. In 2022-23, community pharmacies dispensed over 226 million prescriptions under the PBS. The ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Cost structures for individual pharmacies vary depending on size, location and business model. For example, a pharmacy's cost structure depends on whether it operates in a sh...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Pharmacies industry in Australia in 2024?
The market size of the Pharmacies industry in Australia is $27.0bn in 2024.
How many businesses are there in the Pharmacies in Australia industry in 2023?
There are 4,191 businesses in the Pharmacies industry in Australia, which has grown at a CAGR of 1.0 % between 2018 and 2023.
Has the Pharmacies industry in Australia grown or declined over the past 5 years?
The market size of the Pharmacies industry in Australia has been growing at a CAGR of 2.9 % between 2018 and 2023.
What is the forecast growth of the Pharmacies industry in Australia over the next 5 years?
Over the next five years, the Pharmacies industry in Australia is expected to grow.
What are the biggest companies in the Pharmacies market in Australia?
The biggest companies operating in the Pharmacies market in Australia are Sigma Healthcare, Chemist Warehouse and EBOS
What does the Pharmacies in Australia include?
General retail and Scheduled non-prescription medicines are part of the Pharmacies industry.
Which companies have the highest market share in the Pharmacies in Australia?
The company holding the most market share in Australia is Sigma Healthcare.
How competitive is the Pharmacies industry in Australia?
The level of competition is moderate and increasing in the Pharmacies industry in Australia.
