Unhealthy prospects: Constrained growth in NHS spending is expected to restrict expansion

A key development affecting the Pharmaceutical Wholesaling industry over the past five years has been the move away from the traditional wholesale model. An increasing number of upstream manufacturers have adopted new distribution models that involve just one or a very limited number of wholesalers in the distribution of their branded pharmaceuticals. In addition, the effects of the patent cliff and the Pharmaceutical Price Regulation Scheme combined with pressure on government spending have weighed on industry revenue. However, Britain's ageing population has supported demand, leading to rising prescription volumes and an expansion in the range of products sold by operators. Overall, revenue is expected to rise at a compound annual rate of 1.1% over the five years through 2018-19...read more.

Industry Statistics & Market Size
Revenue
£38.5bn
Annual Growth 14-19
1.1%
Forecast Growth 19-24
Profit
Employment
70,067
Businesses
2,860

Industry Threats & Opportunities

  • Moves away from the traditional wholesaling model have threatened industry demand
  • The depreciation of the pound increased the cost of parallel imports, negatively affecting profit
  • Public-sector spending pressures are expected to restrict growth in government spending on health care
  • Industry Report - Industry Key Buyers Chapter

    The industry exhibits a low level of market share concentration. The top four firms operating in the industry are estimated to have a combined market share of 23.6% in 2018-19. However, market share concentration varies by product and market segments. For instance, the market share concentration level is higher in the full-line wholesaler segment when compared with the short-line wholesaler segment.The industry consists of many small wholesalers, specialist medical supplies wholesalers and parallel importers operating alongside a few large players. In 2017, approximately 71.8% of industry operators employed fewer than 10 staff members, which demonstrates the high degree of fragmentation within the industry...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
  • Key developments
  • Parallel problems
  • Regulatory changes
  • Consolidation activity
  • Chart: Revenue Growth

  • Industry Outlook
  • Limiting growth
  • EU exit
  • New technology
  • Continued threats
  • 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 health-care industries
  • 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
    ProfitPurchasesWagesOther 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 is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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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