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

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...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

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
  • Industry Report - Industry Investment Chapter

    The Pharmacies and Drug Stores industry in Texas exhibits a low level of capital intensity. In 2017, for every dollar spent on wages, an estimated $0.03 is spent on capital. Labor costs account for an estimated 9.5% of revenue in 2017 and have declined as a share of revenue over the past five years. However, the anticipated shortage of pharmacists during the five-year period to 2022 is expected to increase wage expenses, as operators leverage higher wages to attract and/or retain pharmacists. Additionally, many pharmacies and drug stores are offering additional services, such as on-site vaccinations, as more consumers use industry services as a form of primary healthcare. As ...purchase to read more.

    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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    What's in this report

    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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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

  • 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
    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

  • CVS Health Corporation, The Walgreen Company, Costco 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

  • 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
    Table: Industry Data for the Pharmacies & Drug Stores in Texas Industry
  • 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
    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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Pharmacies & Drug Stores in Texas is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    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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