New prescription: Growth and supply are likely to be affected by exit from the European Union

The pharmaceutical and health-care supply chain is characterised by extreme change. Over the past five years, structural changes to business models and operating practices employed by upstream manufacturers have had fundamental repercussions for operators in the Pharmaceutical Wholesaling industry. The shift away from the use of wholesalers has negatively affected industry demand and revenue over the period, as manufacturers have increasingly taken a direct-to-market approach. The loss of patent protection for several high-profile drugs also hampered performance because it tends to lower the revenue generated from such drugs. In addition, government spending pressures have exacerbated difficult operating conditions in the industry...read more.

Industry Statistics & Market Size
Revenue
£43.4bn
Annual Growth 14-19
5.0%
Forecast Growth 19-24
Profit
Employment
67,409
Businesses
2,819

Industry Threats & Opportunities

  • Despite more stringent pricing regulations, industry growth opportunities are available
  • Profitability has been affected by the fall of the pound and rising capital expenditure costs
  • Revenue growth is expected to be constrained by pricing regulation and the expiry of patents
  • Industry Report - Industry Locations Chapter

    The geographic spread of the industry tends to reflect the location of the industry's customer base, namely community pharmacies. The United Kingdom is well served by pharmacies on a geographic basis, with most of the population living within a short distance of one. In Britain, over three-quarters of the population are estimated to have a pharmacy within one kilometre of their residence. Thus, the location of community pharmacies tends to be in line with the population distribution of the United Kingdom. However, the location of upstream pharmaceutical manufacturers and proximity to transportation links also influence the location of industry establishments.LondonLondon is the most concentrated region with approximately 20.6% o...purchase to read more.

    Additional Insights for the Pharmaceutical Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Pharmaceutical Wholesaling Industry are

  • Having links with suppliers
  • Having a clear market position
  • Access to the latest available and most efficient technology and techniques
  • IBISWorld analysts also discuss how external factors such as Demand from dispensing chemists and NHS prescriptions volume in the Pharmaceutical Wholesaling industry impact industry performance..

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    What's in this report

    What is the Pharmaceutical Wholesaling Industry?

    This industry covers businesses that wholesale pharmaceuticals or medical goods. These are distributed to pharmacies, specialist retailers, hospitals, doctors and other specialist medical practitioners.

    Industry Products
  • Other products
  • Prescription medicine
  • Medical products, therapeutic appliances and equipment
  • Industry Activities
  • Pharmaceutical wholesaling
  • Medical goods wholesaling
  • 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 dispensing chemists
  • NHS prescriptions volume
  • Population aged 65 years and over
  • Real household disposable income

  • Current Performance
  • Changing models
  • Regulation and pricing
  • Profit pressures
  • Growing markets
  • Short supply
  • Use of generics
  • Profit
  • Chart: Revenue Growth

  • Industry Outlook
  • External competition
  • Industry pressures
  • New avenues
  • Future concerns
  • Table: Pharmaceutical Wholesaling Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Dispensing Chemists
  • Medical & Orthopaedic Supplies Retailers
  • Hospitals
  • General Medical Practices

  • Key Selling Industries
  • Basic Pharmaceutical Product Manufacturing
  • Medical & Dental Instrument Manufacturing
  • Pharmaceutical Preparations Manufacturing

  • Products & Services
  • Prescription medicine
  • Medical products, therapeutic appliances and equipment
  • Other products
  • Chart: Pharmaceutical Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Community pharmacies
  • Hospitals
  • Dispensing medical practitioners
  • Other markets
  • Chart: Major Market Segmentation for the Pharmaceutical Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesMarketing Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Pharmaceutical Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Pharmaceutical Wholesaling Industry

  • Industry Globalization
    Walgreens Boots Alliance Inc, AAH Pharmaceuticals Ltd, Phoenix Healthcare Distribution Ltd,
  • Table: Walgreens Boots Alliance Inc - financial performance
  • Table: AAH Pharmaceuticals Ltd - financial performance
  • Table: Phoenix Healthcare Distribution Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Pharmaceutical 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 Wholesaling Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Full-Line Wholesaler
  • A wholesaler that is able to supply the entire range of medicines.
  • Over-The-Counter (Otc) Medicines
  • Products sold without the need for a prescription.
  • Parallel Import
  • A non-counterfeit product imported from another country without the permission of the intellectual property owner.
  • Patent Cliff
  • The term patent cliff refers to the phenomenon of patent expiration dates and an abrupt drop in sales that follows for a group of products.
  • Prescription-Only Medicines
  • Medicines that must be prescribed by a general practitioner, nurse, dentist or other health-care professional. In some instances, they are classed as controlled drugs.
  • Short-Line Wholesaler
  • A wholesaler that concentrates on a restricted range of products.
  • Wholesale Bypass
  • A trend whereby the wholesaler is bypassed in the supply chain, such as when retailers purchase directly from the manufacturer.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Pharmaceutical 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
    • Quickly build competitive intelligence
    This report on Pharmaceutical 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 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 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 Pharmaceutical Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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