Overview

Spoonful of sugar: Healthcare reform is expected to bolster pharmaceutical sales

The Pharmacies & Drug Stores in Texas industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Many operators in Texas are able to capture larger profit margins than those in other states
  • The growing presence of generic drugs has bolstered revenue growth
  • With an increasingly insured population, more individuals will be able to afford preventive care

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    Industry Analysis & Industry Trends

    The Pharmacies and Drug Stores industry in Texas performed strongly over the five years to 2017. Pharmacy and drug store operators benefited from favorable macroeconomic conditions, such as increased consumer spending and steadily rising total health expenditure. Operators in Texas were able to capture larger profit margins over the five years to 2017, thanks to a low minimum wage and reduced cost of doing business in the state. Over the next five years, healthcare reform is anticipated to increase the number of individuals with private health insurance in Texas, increasing the number of individuals who can afford prescription medicine, thereby increasing the volume of pharmaceuticals sold at industry locations...

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    Industry Report - Industry Products Chapter

    Pharmacies and drug stores provide a range of products and services, the most important of which are the sales of prescription and nonprescription (e.g. over-the-counter) medicines. In total, these segments account for 78.0% of total revenue in 2017. Other products include vitamins and supplements, personal hygiene supplies, cosmetics, tobacco, consumables, stationery and house items.

    Prescription drugs

    A prescription drug is a licensed medicine that requires a prescription from a physician or other medical practitioner before a consumer can purchase it. Sales of prescription drugs as a percentage of total industry revenue increased during the five-year period, in response to competition from mass merchants by strengthening their core product areas. Ove..

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    Additional Insights for the Pharmacies & Drug Stores in Texas Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Pharmacies & Drug Stores in Texas 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 physician visits and Number of adults aged 65 and older in Texas in the Pharmacies & Drug Stores in Texas industry impact industry performance..

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    Industry Products

    What is the Pharmacies & Drug Stores in Texas 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 and other food items
    Brand name prescriptions
    Generic prescriptions
    Over-the-counter medicine
    Vitamins, minerals and other dietary supplements
    Personal hygiene supplies
    Cosmetics
    General merchandise and other
    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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Number of physician visits
  • Number of adults aged 65 and older in Texas
  • Per capita disposable income in Texas
  • Regulation for the Vitamin & Supplement Manufacturing industry
  • Federal funding for Medicare and Medicaid

  • Current Performance
  • Generic medications
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry landscape
  • Pharmacy Benefit Managers (PBMs) intensify external competition
  • Table: Pharmacies & Drug Stores in Texas Industry Revenue Outlook

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

  • Products & Markets
    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 name prescriptions
  • Generic prescriptions
  • General merchandise and other
  • Personal hygiene supplies
  • Over-the-counter medicine
  • Groceries and other food items
  • Cosmetics
  • Vitamins, minerals and other dietary supplements
  • Chart: Pharmacies & Drug Stores in Texas Industry Products and Services Segmentation

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

  • Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Pharmacies & Drug Stores in Texas

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

  • Major Companies
    CVS Health CorporationThe Walgreen CompanyCostco Wholesale Corp.HEB Pharmacy
  • Table: CVS Health Corporation - financial performance
  • Table: The Walgreen Company - financial performance
  • Table: Costco Wholesale Corp. - financial performance
  • Table: HEB Pharmacy - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Pharmacies & Drug Stores in Texas Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Pharmacies & Drug Stores in Texas Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Total health expenditure (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Blockbuster Drug
  • A drug product that generates annual sales in excess of $1.0 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, separate 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 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 Texas:
    • 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 Texas 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 Texas, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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