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Pharmacies in Australia Industry Data and Analysis
The Pharmacies industry plays an essential role in community primary health care, acting as the primary distribution point for prescriptions and scheduled over-the-counter medicines. Intensifying retail competition from internal and external operators, including discount pharmacies, online-only retailers 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. Chemist Warehouse and Sigma Healthcare, previously two of the largest names in the Pharmacies industry, merged in early 2025. Despite operating akin to a franchise model, the two companies provided branding rights to a significant number of pharmacies nationwide. Following the merger of these two heavyweights, truly independent pharmacies face an operating environment in which competing on price is even more difficult and potentially enterprise-ending.
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What's included in this industry analysis
IBISWorld's research coverage on the Pharmacies industry in Australia includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released August 2025.
About this industry
What's this industry report about?
The Pharmacies industry in Australia operates under the ANZSIC industry code G4271a. 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. Legislation that limits the ownership of multiple pharmacies has prevented any one company from technically owning a major portion of industry establishments. Related terms covered in the Pharmacies industry in Australia include banner groups, schedule 2 pharmacy medicines, schedule 3 pharmacist-only medicines, general sales medicines (gsm), section 90 approved pharmacies, eprescriptions and non-pharmacy stores.
What's included in this industry?
Products and services covered in Pharmacies industry in Australia include Prescription medicines, Scheduled non-prescription medicines and General retail.
What companies are included in this industry?
The Pharmacies industry in Australia is highly fragmented with no companies holding a market share greater than 5%.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Pharmacies industry in Australia.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Pharmacies industry in Australia.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Pharmacies industry in Australia.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Pharmacies industry in Australia. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Pharmacies industry in Australia. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Pharmacies industry in Australia. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Pharmacies industry in Australia. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Pharmacies industry in Australia.
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Frequently Asked Questions
What is the market size of the Pharmacies industry in Australia in 2026?
The market size of the Pharmacies industry in Australia is $26.5bn in 2026.
How many businesses are there in the Pharmacies industry in Australia in 2025?
There are 4,337 businesses in the Pharmacies industry in Australia, which has grown at a CAGR of 1.1 % between 2020 and 2025.
How may import tariffs affect the Pharmacies industry in Australia?
The Pharmacies industry in Australia is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Pharmacies industry in Australia?
The Pharmacies industry in Australia is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
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 declining at a CAGR of 0.2 % between 2020 and 2025.
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 does the Pharmacies industry in Australia include?
General retail and Scheduled non-prescription medicines are part of the Pharmacies industry in Australia.
How competitive is the Pharmacies industry in Australia?
The level of competition is moderate and increasing in the Pharmacies industry in Australia.
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