Dispensing Chemists in the UK Industry Market Research Report Now Updated by IBISWorld

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Operators in the Dispensing Chemists industry distribute pharmaceutical products to consumers and thus play an important role in the health-care system. Since 2005, several regulatory changes have been introduced, bringing changes to the retail pharmacy landscape. Over the five years through 2012-13, industry revenue is estimated to increase at a compound annual rate of 0.6% to reach £12 billion. This includes a forecast 0.3% increase in 2012-13. Industry operators have faced revenue declines over the past five years, which is atypical for the industry. A weak economic environment has led to a decline in OTC products while regulation changes have resulted in decreases in the average revenue per prescription set. Industry performance has also been affected by partial deregulation and pharmacy funding cuts. However, increased volumes of prescriptions have kept revenue afloat and the damage has not been too bad. As the UK’s population ages and health expectations rise, pharmacies will continue to play an important role in the nation's health-care framework. They will continue to evolve in line with their changing operating backdrop as they move towards the provision of patient-focused clinical services. An improving economy is likely to improve sales of OTC medications, which will boost revenue streams for operators. Revenue is forecast to return to healthy growth over the next five years to 2017-18. For these reasons, industry research firm IBISWorld has updated its report on the Dispensing Chemists industry.

IBISWorld industry market research
Industry revenue is recovering slowly after several years of decline

Operators in the Dispensing Chemists industry distribute pharmaceutical products to consumers and thus play an important role in the health-care system. Retail pharmacies and community pharmacies also sell over-the-counter (OTC) medicines and provide professional advice and basic medical testing. Since 2005, several regulatory changes have been introduced, bringing changes to the retail pharmacy landscape. Increasing external competitive pressures from supermarkets have also stimulated changes in the industry as many operators have struggled to maintain profit margins.

Over the five years through 2012-13, industry revenue is estimated to increase at a compound annual rate of 0.6% to reach £12 billion. This includes a forecast 0.3% increase in 2012-13. Industry operators have faced revenue declines over the past five years, which is atypical for the industry. According to IBISWorld industry analyst Temitope Onabanjo, “a weak economic environment has led to a decline in OTC products while regulation changes have resulted in decreases in the average revenue per prescription set”. Industry performance has also been affected by partial deregulation and pharmacy funding cuts. However, increased volumes of prescriptions have kept revenue afloat and the damage has not been too bad.

As the UK’s population ages and health expectations rise, pharmacies will continue to play an important role in the nation's health-care framework. They will continue to evolve in line with their changing operating backdrop as they move towards the provision of patient-focused clinical services. The industry may also have to contend with further regulatory changes relating to the dispensing, sale and supply of medicines. Onabanjo adds, “an improving economy is likely to improve sales of OTC medications, which will boost revenue streams for operators”. Revenue is forecast to return to healthy growth over the next five years to 2017-18.

The Dispensing Chemists industry has a medium level of market share concentration. The level of concentration measures the extent to which the top players dominate an industry. The four largest players - Alliance Boots, Lloyds, Co-operative and Superdrug - control approximately 45.9% of the total market in 2012-13.

For more information on the Dispensing Chemists industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

This industry comprises companies that dispense and retail pharmaceutical goods via community pharmacies and chemists. In addition to dispensing prescriptions, pharmacies also provide other National Health Services (advanced and local enhanced services) and sell over-the-counter medications and a range of non-pharmacy goods. This report does not cover in-store supermarket pharmacies.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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Gavin Smith
IBISWorld
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