Dispensing Chemists in the UK Industry Market Research Report now updated by IBISWorld

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Dispensing chemists play an important role in UK society. They distribute prescription and National Health Service medicines, sell over-the-counter (OTC) medicines, and provide professional advice and basic medical testing. As such, they play a primary role in the United Kingdom's health-care system. In 2012-13, the industry is expected to generate revenue of £11.1 billion, an increase of just 0.9% over the previous year. Despite its meagre nature, this growth rate is above the annualised growth rate of the five years through 2012-13 (0.1%). Industry performance over this period has been greatly affected by the partial deregulation of the industry, the entry of new players, pharmacy funding cuts and cuts to pharmaceutical drug tariffs. As the United Kingdom'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. Revenue is forecast to grow 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 Market Research

IBISWorld Market Research

Industry revenue growth is recovering slowly after several years of decline

Dispensing chemists play an important role in UK society. They distribute prescription and National Health Service medicines, sell over-the-counter (OTC) medicines, and provide professional advice and basic medical testing. As such, they play a primary role in the United Kingdom's health-care system. The industry includes small, family-run chemists which serve the local area, and high-street pharmacies which operate on a nationwide basis, such as Boots and Superdrug. 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, with many industry participants extending their product offerings to incorporate health and beauty products. According to IBISWorld industry analyst Arna Richardson, “they are now providing additional primary care health services as they take advantage of their footfall and the growing demand for convenience from the average consumer”. At the same time there has been sustained growth in dispensing volumes over the past decade, a trend that is expected to continue through the next decade.

In 2012-13, the industry is expected to generate revenue of £11.1 billion, an increase of just 0.9% over the previous year. Despite its meagre nature, this growth rate is above the annualised growth rate of the five years through 2012-13 (0.1%). Richardson adds, “industry performance over this period has been greatly affected by the partial deregulation of the industry, the entry of new players, pharmacy funding cuts and cuts to pharmaceutical drug tariffs”. As the United Kingdom'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. Additional consolidation is expected as the industry remains in the mature phase of its life cycle. The industry may also have to contend with further regulatory changes relating to the dispensing, sale and supply of medicines. Revenue is forecast to grow over the next five years to 2017-18.

The Dispensing Chemists industry has a medium level of market share concentration, reflecting its fragmented nature and the continued existence of a large (albeit declining) number of independent pharmacies. Major companies include Alliance Boots, Lloyds Pharmacy and Co-operative Group.

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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