Brand name boom: As disposable income increases, consumers are more willing to purchase cosmetics and organic alternatives

The Pharmacy and Drug Stores industry in New Jersey has increased steadily over the five years to 2018. Pharmacy and drug store operators in the state benefit from favorable macroeconomic conditions, such as rising total health expenditure and per capita disposable income. In New Jersey, disposable income is anticipated to increase an annualized 2.2% to $50,016.37 over the five years to 2018. As a result, industry revenue in New Jersey is estimated to increase at an annualized rate of 1.8% to $10.4 billion over the same five-year period, including an increase of 2.3% in 2018 alone. Additionally, operators in New Jersey have been offering more general merchandise and organic products in their drug stores and pharmacies to bolster revenue...purchase to read more.

Industry Statistics & Market Size
Revenue
$10bn
Annual Growth 13-18
1.8%
Forecast Growth 18-23
Profit
Employment
27,404
Businesses
1,970

Industry Threats & Opportunities

  • Operators have been offering more general merchandise and organic products to bolster revenue
  • Industry Report - Industry Key Buyers Chapter

    • The state industry exhibits a medium level of market share concentration, whereas the national industry has a high level of concentration.•The top three companies at the state and national levels are the same: CVS, Walgreens and Rite Aid, indicating that several players dominate the overall industry.•Additionally, these three companies are anticipated to generate over 40.0% of state industry revenue.•The state has a lower level of concentration due to the presence of more local pharmacies that serve specific areas exclusively in New Jersey. As a result, nonemployers are anticipated to account for 13.1% of total establishments...purchase to read more.

    Additional Insights for the Pharmacies & Drug Stores in New Jersey Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Pharmacies & Drug Stores in New Jersey 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 Per Capita Disposable Income in New Jersey and Number of people with private health insurance in the Pharmacies & Drug Stores in New Jersey industry impact industry performance..

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    What's in this report

    What is the Pharmacies & Drug Stores in New Jersey 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
  • Brand Prescription Drugs
  • Generic Drugs
  • Nonprescription Drugs
  • Personal Health
  • Groceries
  • Cosmetics
  • Vitamins, minerals and dietary supplements
  • 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
  • Per Capita Disposable Income in New Jersey
  • Number of people with private health insurance
  • External competition for the Pharmacies and Drug Stores industry
  • Number of adults aged 65 and older in New Jersey
  • Number of physician visits
  • Federal funding for Medicare and Medicaid

  • Current Performance
    Industry Outlook
    Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Pharmacies & Drug Stores in New Jersey 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
  • Brand Prescription Drugs
  • Generic Drugs
  • Other
  • Personal Health
  • Nonprescription Drugs
  • Groceries
  • Cosmetics
  • Vitamins, minerals and dietary supplements
  • Chart: Pharmacies & Drug Stores in New Jersey Industry Products and Services Segmentation

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

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

  • Basis of Competition
    Barriers to Entry
    CVS Health Corporation, Rite Aid Corporation, Walgreens Boots Alliance Inc., Costco Wholesale Corp., Pharmacy Plus New Jersey, Walmart Inc.,
  • Table: CVS Health Corporation - financial performance
  • Table: Rite Aid Corporation - financial performance
  • Table: Walgreens Boots Alliance Inc. - financial performance
  • Table: Costco Wholesale Corp. - financial performance
  • Table: Pharmacy Plus New Jersey - financial performance
  • Table: Walmart Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Pharmacies & Drug Stores in New Jersey 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 New Jersey Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Total health expenditure (2009-2023)

  • 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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Pharmacies & Drug Stores in New Jersey contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
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    This report on Pharmacies & Drug Stores in New Jersey:
    • 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 New Jersey 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 New Jersey, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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