Industry Statistics and Trends
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 1.2 % over the past five years, to reach an estimated $24.8bn in 2024.
Trends and Insights
Demographic trends are upping healthcare providers' usage
- The US population is becoming significantly older on average as medical technology improves and expands the nation's life expectancy rates. The massive population of baby boomers are entering their sixties and seventies, further lifting the average age in the US. Older adults face higher incidences of medical ailments and are much more likely to need healthcare services.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Demographics will continue to move in institutional pharmacies' favor
- Adults aged 50 and older are poised to account for a comparatively higher proportion of the domestic population than in years past as life expectancies climb. Since medical issues are more common among this demographic, growth in the population of adults over 50 translates to an expanding market for institutional pharmacies' clients.
Biggest companies in the Institutional Pharmacies in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Omnicare Inc. | 8,448.6 | 356.1 | 4.2 | |
Pharmerica Corp | 3,946.9 | 95.1 | 2.4 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Brand-name prescription medications, Generic prescription medications and Nonprescription medications. Brand-name prescription medications is the largest segment of the Institutional Pharmacies in the US.
Trends and Insights
Brand-name drugs' rising prices are ushering in revenue growth
- Since institutional pharmacies are primarily based in hospitals and long-term care (LTC) facilities, medications are typically prescribed and based on the medical needs of the resident population. Purchased medications differ depending on the type of treatment specific to each facility.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
This industry comprises pharmacies that offer a range of services to residents of nursing homes, hospitals or hospice environments without an onsite pharmacy. In addition to supplying pharmaceuticals, institutional pharmacies also provide consulting services, which include monitoring the control, distribution and administration of drugs and assisting with regulation compliance.
What's included in this industry?
Providing brand-name pharmaceuticalsProviding generic pharmaceuticalsProviding non-prescription medicationsProviding other servicesCompanies
Omnicare Inc.Pharmerica CorpPurchase this report to view all 2 major companies in this industry.
Related Terms
MEDICARE PART DGENERIC DRUGBRAND NAME DRUGIndustry Code
NAICS 44611 - Institutional Pharmacies in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Demographics are moving in institutional pharmacies' favor. An aging population is boosting the US's health expenditure and filling rooms at healthcare facilities. Institutio...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Hospitals and long-term care facilities rely on institutional pharmacies. The general aging of the population is keeping demand for healthcare high, sustaining revenue growth...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Institutional pharmacies' distribution follows that of hospitals and nursing care facilities. Population is the most crucial factor for clients, as healthcare providers must ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Some healthcare providers maintain in-house pharmacies. Larger hospitals and other major facilities are typically more equipped to afford an in-house pharmacy's high start-up...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
PharMerica acquired OnePoint Patient Care (OPPC) in 2020. OPPC is one of the largest, and the largest nonpayer-owned, providers of dedicated hospice pharmacy and pharmacy ben...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Omnicare Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Pharmerica Corp's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Omnicare Inc., and factors influencing its performance in the industry
- Description and key data for Pharmerica Corp, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Heightened federal spending on Medicare and Medicaid are offsetting lackluster private healthcare coverage. Consumers seek medical treatments more often when they're more aff...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit is strong and climbing. Consolidation among the largest institutional pharmacies is giving them more control over prices, allowing profit to trend upward.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Institutional Pharmacies in the US industry in United States in 2024?
The market size of the Institutional Pharmacies in the US industry in United States is $24.8bn in 2024.
How many businesses are there in the Institutional Pharmacies in the US industry in 2024?
There are 1,292 businesses in the Institutional Pharmacies in the US industry in United States, which has declined at a CAGR of 0.3 % between 2019 and 2024.
Has the Institutional Pharmacies in the US industry in United States grown or declined over the past 5 years?
The market size of the Institutional Pharmacies in the US industry in United States has been growing at a CAGR of 1.2 % between 2019 and 2024.
What is the forecast growth of the Institutional Pharmacies in the US industry in United States over the next 5 years?
Over the next five years, the Institutional Pharmacies in the US industry in United States is expected to grow.
What are the biggest companies in the Institutional Pharmacies in the US market in United States?
The biggest companies operating in the Institutional Pharmacies market in United States are Omnicare Inc. and Pharmerica Corp
What does the Institutional Pharmacies in the US in United States include?
Providing brand-name pharmaceuticals and Providing generic pharmaceuticals are part of the Institutional Pharmacies in the US industry.
Which companies have the highest market share in the Institutional Pharmacies in the US in United States?
The company holding the most market share in United States is Omnicare Inc..
How competitive is the Institutional Pharmacies in the US industry in United States?
The level of competition is high and increasing in the Institutional Pharmacies in the US industry in United States.
Related Industries
Widen your competitive advantage with related industries
Competitors
- Pharmacies & Drug Stores in the US
- Hospitals in the US
Complementors
- Specialty Hospitals in the US
- Nursing Care Facilities in the US
- Orphanages & Group Homes in the US
International industries
- Pharmacies & Drug Stores in Canada
- Pharmacies in Australia
- Pharmaceutical, Cosmetic and Toiletry Goods Retailing in New Zealand
- Dispensing Chemists in the UK
- Dispensing Chemists in Ireland
View all industries in United States
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
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