Industry revenue growth is recovering slowly after several years of decline
London, United Kingdom (PRWEB) July 26, 2012
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.
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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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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