An ounce of prevention: Industry revenue is forecast to increase as the population ages

While operators in the Pharmacies and Drug Stores industry in Illinois do sell other products, a majority of revenue is derived from prescription and over-the-counter (OTC) drugs. The Illinois industry follows the same trend. Operators in the Illinois industry operate with much smaller levels of profit compared to the national industry. The industry is highly competitive, with national chain stores Walgreens and CVS going up against independently owned operators with few locations. Small operators operate on lesser profit margins because they do not benefit from economies of scale, which allows industry leaders to offer front-end items at low cost. Over the five years to 2022, revenue in the Pharmacies and Drug Stores industry in Illinois is expected to continue growing...read more.

Industry Statistics & Market Size
Revenue
$11bn
Annual Growth 12-17
2.0%
Forecast Growth 17-22
Profit
Employment
30,419
Businesses
1,744
What Our Customers Say

Industry Threats & Opportunities

  • Growth in disposable income has caused industry revenue to grow
  • The industry has benefited from increased traffic into its locations as greater numbers of older people get more prescriptions filled
  • As the over-65 demographic continues to grow, prescription usage is expected to rise, benefitting the industry
  • Industry Report - Starting a New Business Chapter

    Large chains dominate the industryThe largest barrier potential entrants to the industry face is the presence of large, established chains. As a result, barriers to entry in the industry are medium and increasing. Large chain stores have significant advantages over market entrants. Their sheer size allows them to secure favorable supply contracts with wholesale distributors. Consequently, they are able to offer products at lower prices than new market entrants, which are less able to secure similar pricing due to lack of developed relationships.Additionally, due to high levels of industry consolidation, large chains have sizable networks to reach consumers, which also discourage new market entrants. The...purchase to read more.

    Additional Insights for the Pharmacies & Drug Stores in Illinois Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Pharmacies & Drug Stores in Illinois Industry are

  • Ability to control stock on hand
  • Participation in pharmacy benefit management (PBM) networks
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as Number of people with private health insurance in Illinois and Per Capita Disposable Income in Illinois in the Pharmacies & Drug Stores in Illinois industry impact industry performance..

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    What is the Pharmacies & Drug Stores in Illinois Industry?

    Pharmacies and drug stores retail a range of prescription and over-the-counter medications, health and beauty items, toiletries and consumable goods directly to consumers on a walk-in basis. Industry companies may also provide basic health and photo processing services. The industry includes retail stores with a pharmacy but excludes mail-order retailers, hospitals and clinics.

    Industry Products
  • Groceries, including alcohol and tobacco products
  • Prescription drugs
  • Personal health and hygiene products
  • Miscellaneous Consumer Products
  • Industry Activities
  • Preparing and selling prescription and nonprescription drugs and medicines
  • Retailing basic consumable goods
  • Selling other miscellaneous items, such as candy, cosmetics, magazines and light refreshments
  • Advising customers on the use of both prescription and over-the-counter drugs
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of people with private health insurance in Illinois
  • Per Capita Disposable Income in Illinois
  • Federal funding for Medicare and Medicaid
  • Number of adults aged 65 and older in Illinois

  • Current Performance
  • Mo’ years, mo’ problems
  • Falling off the cliff
  • Illinois had to regulate
  • Chart: Revenue Growth

  • Industry Outlook
  • Top players make gains
  • Beyond pharmaceuticals
  • More locations across the state
  • Pharmacy benefit managers grow
  • Table: Pharmacies & Drug Stores in Illinois Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Pharmacies & Drug Stores in Illinois Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Brand Name Pharmaceutical Manufacturing
  • Camera & Film Wholesaling
  • Chocolate Production
  • Cosmetic & Beauty Products Manufacturing
  • Drug, Cosmetic & Toiletry Wholesaling
  • Generic Pharmaceutical Manufacturing

  • Products & Services
  • Prescription drugs
  • Personal health and hygiene products
  • Miscellaneous Consumer Products
  • Groceries, including alcohol and tobacco products
  • Chart: Pharmacies & Drug Stores in Illinois Industry Products and Services Segmentation

  • Major Markets
  • Consumers aged 45 to 64 years
  • Consumers aged 18 to 44 years
  • Consumers aged 65 years and older
  • Consumers aged 17 and younger
  • Chart: Major Market Segmentation for the Pharmacies & Drug Stores in Illinois Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Pharmacies & Drug Stores in Illinois

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Pharmacies & Drug Stores in Illinois Industry

  • CVS Health CorporationThe Walgreen CompanyBasinger's PharmacyDoc's Drugs Ltd.
  • Table: CVS Health Corporation - financial performance
  • Table: The Walgreen Company - financial performance
  • Table: Basinger's Pharmacy - financial performance
  • Table: Doc's Drugs Ltd. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Pharmacies & Drug Stores in Illinois 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 Pharmacies & Drug Stores in Illinois Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of people with private health insurance in Illinois (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Blockbuster Drug
  • A drug product that generates annual sales in excess of $1 billion.
  • Formulary
  • A list of medicines that are covered by a health insurance plan and always meet Medicare's requirements.
  • Front-End Sales
  • Sales of products from the front of the store or products sold separately from the pharmacy.
  • Over-The-Counter (Otc) Medications
  • Medicine that can be purchased without a prescription.
  • Pharmacy Benefit Manager (Pbm)
  • A third-party administrator of prescription drug programs.
  • Prescription Drug
  • A licensed medicine that can only be obtained with a doctor's approval.
  • Why buy this report?

    IBISWorld’s industry research report on Pharmacies & Drug Stores in Illinois provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging 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 Pharmacies & Drug Stores in Illinois:
    • 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 of 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 Pharmacies & Drug Stores in Illinois 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 Pharmacies & Drug Stores in Illinois, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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