Industry Analysis & Industry Trends
The challenging operating environment characterized by government supervised price cuts on essential drugs is a substantial threat to the Pharmacies and Drug Retailers industry. Industry revenue is expected to total $32.9 billion by the end of 2011, up 7.6% for the year, with annualized growth of 8.5% since 2006. Industry profitability is low, due to relatively high prices paid to upstream suppliers, and tight margins resulting from intense industry competition. The industry's profits are forecast to account for 3.7% of industry revenue in 2011.
IBISWorld estimates there will be about 37,500 enterprises operating 254,050 establishments within the industry in 2011. These firms are estimated to employ more than 761,000 people, with a payroll of $1.65 billion.... purchase to read more
Industry Report - Industry Key Buyers Chapter
In 2011, the combined market share in terms of sales revenue of the industry's top four firms is forecast to be about 6.5%. The top 100 chain drugstores are expected to have a combined market share of about 30% during 2011. This represents a low industry concentration level.
As many mergers and acquisitions have occurred across the industry in recent years, this has slightly increased the industry concentration level. Industry concentration is expected to increase steadily in the future as large chain drug retailers further increase their outlet numbers... purchase to read more