$1.3tr
$XX.Xbn
312k
9,601
$XX.Xbn
The success of the drug, cosmetic and toiletry wholesalers is driven by demand for its primary product segment, pharmaceuticals. With several major brand-name drugs losing patent exclusivity, new opportunities have been created for less expensive generic drugs, generating a larger profit margin but harming revenue. Nonetheless, wholesalers have countered this trend by adjusting their prices and supplies accordingly. The federal government has invested in multiple plans to make healthcare and prescription drugs more affordable for buyers, driving the need for wholesalers. Although unfavorable economic conditions in 2022, mainly rising inflation and shrinking disposable income, led to revenue shrinking, inflexible demand for pharmaceuticals enabled wholesalers to quickly recover. As a result, revenue has been growing at an estimated CAGR of 1.8% to $1.3 trillion through 2024, including a 1.1% hike that year alone.
Industry revenue has grown at a CAGR of 1.8 % over the past five years, to reach an estimated $1.3tr in 2024.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
---|---|---|---|---|
Mckesson Corporation | 250,595.3 | 3,127.2 | 1.2 | |
Amerisourcebergen Corp | 206,591.0 | 2,380.6 | 1.2 | |
Cardinal Health, Inc. | 144,929.2 | -3,099.5 | -2.1 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Industry revenue is measured across several distinct product and services lines, including Brand-name prescription drugs, Generic prescription drugs and Nonprescription pharmaceuticals and nutritional supplements. Brand-name prescription drugs is the largest segment of the Drug, Cosmetic & Toiletry Wholesaling in the US.
Brand-name prescription drugs generate higher revenue
Drug, cosmetic and toiletry wholesalers primarily distribute pharmaceutical products intended for internal and external consumption, such as tablets, capsules, vials, ointments and powders. The industry includes a range of biological and medical products, in addition to botanical drugs and herbs. The industry does not include businesses that primarily distribute surgical, dental or hospital equipment.
Purchase this report to view all 3 major companies in this industry.
NAICS 42421 - Drug, Cosmetic & Toiletry Wholesaling in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Revenue has grown even as brand-name drugs have lost their patents. The steady and inflexible demand for pharmaceutical products, alongside the steady demand for generic drug...
Learn about an industry's products and services, markets and trends in international trade.
Brand-name drugs generate the bulk of industry revenue. Without generic equivalents, brand-name products that are protected by patents face lower competition and are often pr...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
The West region is a major location for industry wholesalers. Its importance is underscored by its large share of the domestic population.
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.
Diversified product portfolios are essential to success. Successful wholesalers offer a one-stop shop for a wide variety of drugs and complimentary products.
Learn about the performance of the top companies in the industry.
The “Big Three” dominate the industry. McKesson, Cencora (formerly AmerisourceBergen) and Cardinal Healthcare account for more than 50.0% of revenue.
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Pharmaceutical supply chains are highly regulated. In addition to federal regulations, some states have passed laws governing the medical supply chain.
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Purchase costs represent the lion’s share of wholesalers' expenses. Increased demand for generics has offset the introduction of more expensive name-brand medications.
Including values and annual change:
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.
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 the US include:
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:
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.
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.
Unlock comprehensive answers and precise data upon purchase. View purchase options.
The market size of the Drug, Cosmetic & Toiletry Wholesaling in the US industry in United States is $1.3tr in 2024.
There are 9,601 businesses in the Drug, Cosmetic & Toiletry Wholesaling in the US industry in United States, which has declined at a CAGR of 0.7 % between 2019 and 2024.
The market size of the Drug, Cosmetic & Toiletry Wholesaling in the US industry in United States has been growing at a CAGR of 1.8 % between 2019 and 2024.
Over the next five years, the Drug, Cosmetic & Toiletry Wholesaling in the US industry in United States is expected to grow.
The biggest companies operating in the Drug, Cosmetic & Toiletry Wholesaling market in United States are Mckesson Corporation, Amerisourcebergen Corp and Cardinal Health, Inc.
Antibiotics wholesaling and Antiseptics wholesaling are part of the Drug, Cosmetic & Toiletry Wholesaling in the US industry.
The company holding the most market share in United States is Mckesson Corporation.
The level of competition is high and increasing in the Drug, Cosmetic & Toiletry Wholesaling in the US industry in United States.