Cost of living: Due to patent expirations, operators will negotiate new supplier contracts

The success of the Drug, Cosmetic and Toiletry Wholesaling industry is driven by the nondiscretionary nature of its primary product: pharmaceuticals. Although industry demand is booming, the patent cliff that preceded this period has limited industry growth. A number of major brand-name drugs have lost patent exclusivity over the past five years, creating an opportunity for less-expensive generic drugs to join the market. Nevertheless, wholesalers have prepared for the expanded use of generic drugs and adjusted their prices and supplies accordingly over the past few years. The effects of various newly introduced regulation as well as changes in the supply of generic and branded pharmaceuticals will characterize the industry's outlook...purchase to read more.

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

Industry Threats & Opportunities

  • Consolidation within the industry has increased, as already powerful wholesalers have expanded their market share
  • Competition among generic manufacturers allows wholesalers to extract advantageous terms from retailers
  • The expansion of access to health insurance will increase demand for industry products
  • Industry Report - Industry Key Buyers Chapter

    The Drug, Cosmetic and Toiletry Wholesaling industry has a medium level of concentration. This concentration has increased significantly over the past decade following a wave of consolidation. McKesson Corporation, AmerisourceBergen Corporation and Cardinal Health Inc., which have benefited from this trend, are driving further changes in the market. Popularly known as the "Big Three," these companies are expected to account for more than 40.0% of industry revenue in 2017. In addition to being the major customers for manufacturers, the Big Three are in a powerful position to control delivery to pharmacies and other outlets. This dominance has come to the attention of regulators, especially because pharmaceutical pricing is a politically sensitive topic...purchase to read more.

    Additional Insights for the Drug, Cosmetic & Toiletry Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Drug, Cosmetic & Toiletry Wholesaling Industry are

  • Guaranteed supply of key inputs
  • Having an extensive distribution and collection network
  • Having contacts within key markets
  • IBISWorld analysts also discuss how external factors such as Number of people with private health insurance and Per capita disposable income in the Drug, Cosmetic & Toiletry Wholesaling industry impact industry performance..

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    What's in this report

    What is the Drug, Cosmetic & Toiletry Wholesaling Industry?

    Drug, cosmetic and toiletry wholesalers primarily distribute pharmaceutical products intended for internal and external consumption, such as tablets, capsules, vials, ointments and powders. The industry includes a range of biological and medical products, and botanical drugs and herbs. The industry does not include businesses that primarily distribute surgical, dental or hospital equipment.

    Industry Products
  • Brand-name prescription drugs
  • Generic prescription drugs
  • Nonprescription pharmaceuticals and nutritional supplements
  • Cosmetics, toiletries and other
  • Industry Activities
  • Antibiotics wholesaling
  • Antiseptics wholesaling
  • Beauty supplies wholesaling
  • Cosmetics wholesaling
  • Nonprescription drugs wholesaling
  • Pharmaceuticals wholesaling
  • Prescription drugs wholesaling
  • Toiletries wholesaling
  • Vaccine wholesaling
  • Vitamins wholesaling
  • 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
  • Per capita disposable income
  • Research and development expenditure
  • Government consumption and investment
  • Median age of population

  • Current Performance
  • External growth influences
  • Generic markets
  • Consolidation trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Healthcare reform
  • Further consolidation
  • Industry structure
  • Table: Drug, Cosmetic & Toiletry Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Drug, Cosmetic & Toiletry Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Convenience Stores
  • Pharmacies & Drug Stores
  • Beauty, Cosmetics & Fragrance Stores
  • Health Stores
  • Department Stores
  • Warehouse Clubs & Supercenters
  • Primary Care Doctors
  • Specialist Doctors
  • Hospitals

  • Key Selling Industries
  • Brand Name Pharmaceutical Manufacturing
  • Cosmetic & Beauty Products Manufacturing
  • Generic Pharmaceutical Manufacturing
  • Medical Instrument & Supply Manufacturing
  • Soap & Cleaning Compound Manufacturing

  • Products & Services
  • Brand-name prescription drugs
  • Generic prescription drugs
  • Cosmetics, toiletries and other
  • Nonprescription pharmaceuticals and nutritional supplements
  • Chart: Drug, Cosmetic & Toiletry Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
  • Government funding and regulation
  • Demographics
  • Product development

  • Major Markets
  • Other wholesalers
  • Retailers
  • Businesses
  • Other
  • Chart: Major Market Segmentation for the Drug, Cosmetic & Toiletry Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Drug, Cosmetic & Toiletry Wholesaling

  • Basis of Competition
  • Auxiliary services
  • Diversified product mix
  • The price is right
  • Building a network
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Drug, Cosmetic & Toiletry Wholesaling Industry

  • Industry Globalization
    McKesson Corporation, AmerisourceBergen Corporation, Cardinal Health Inc.,
  • Table: McKesson Corporation - financial performance
  • Table: AmerisourceBergen Corporation - financial performance
  • Table: Cardinal Health Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Drug, Cosmetic & Toiletry Wholesaling 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 Drug, Cosmetic & Toiletry Wholesaling Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of Physician Visits (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
  • Type of specialty drug made from living organisms.
  • Disintermediation
  • The removal of intermediaries in a supply chain: "cutting out the middleman."
  • Fee-For-Service (Ffs)
  • A standard business model where services are unbundled and paid for separately.
  • Generic Drug
  • Drug that is not protected by any patents, but can act as a substitute for the original brand-name product.
  • Investment Buying (Ib)
  • A standard business model where large quantities of a commodity are purchased under the assumption that its price will increase.
  • Managed Care
  • A type of health insurance plan that controls costs by providing a network of pre-approved doctors and hospitals.
  • Over-The-Counter (Otc) Medication
  • Medicines that can be sold without a prescription.
  • Specialty Drug
  • Complex drug therapies, including injectables and biologics.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Drug, Cosmetic & Toiletry Wholesaling can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    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
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    This report on Drug, Cosmetic & Toiletry Wholesaling:
    • 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 Drug, Cosmetic & Toiletry Wholesaling 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 Drug, Cosmetic & Toiletry Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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