Medical Supplies Wholesaling in Canada Industry Market Research Report Now Available from IBISWorld

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In the five years to 2013, the Medical Supplies Wholesaling industry has exhibited robust revenue growth as healthcare expenditure expanded in line with the aging Canadian population required more medical supplies. For these reasons, industry research firm IBISWorld has added a report on the Medical Supplies Wholesaling industry to its growing industry report collection.

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An aging population and product innovation have kept industry demand steady

In the five years to 2013, the Medical Supplies Wholesaling industry has exhibited robust revenue growth as healthcare expenditure expanded 4.5% per year on average, driving demand for medical supplies. Furthermore, the number of adults aged 65 and older has risen at an annualized rate of 3.3% per year. “As the Canadian population grows older, disease and health complications become more frequent,” says IBISWorld industry analyst Nima Samadi. “In particular, devices that affect the older population, including neurological and cardiovascular products, are expected to experience strong sales over the next five years.” Therefore, companies within this industry are increasingly wholesaling these types of medical supplies.

Each year, newly introduced products give providers reasons to purchase supplies from wholesalers. “The substitution of new and more expensive products, rising prices for existing products and more per-patient use of drugs and supplies have contributed to industry growth,” Samadi says. Revenue is expected to grow at an annualized rate of 3.1% to total $5.3 billion from 2008 to 2013, including an estimated 2.3% in 2013. However, rising commodity prices and prevalence of group purchasing organizations (GPOs), which have the power to negotiate collectively lower prices, have suppressed Medical Supplies Wholesaling industry profit growth during the past five years.

The industry has a low level of market share concentration because the diversity of medical and dental supplies makes it difficult for one wholesaler to source products from all upstream manufacturers. Within specific product segments, however, market share concentration is higher. For example, industry firm Henry Schein primarily focuses on dental supplies and equipment, giving it a higher market share in the dental products wholesaling segment. Other industry leaders include McKesson Canada and Cardinal Health Canada.

New product development among medical device manufacturers will continue to support industry growth by offering solutions to previously unresolved health issues. Consolidation among medical device manufacturers will cause wholesalers to merge to maintain negotiating power and meet the needs of larger customers. While larger company structures will help reduce costs, industry profitability is expected to suffer due to continued pricing pressure from GPOs leading to falling product prices and thinning profit margins. In an attempt to counteract downward pressure on profit, industry operators are expected to implement initiatives focused on improving their efficiency, including investing in warehouse-management and demand-forecasting systems. For more information, visit IBISWorld’s Medical Supplies Wholesaling in Canada industry report page.

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IBISWorld industry Report Key Topics

This industry wholesales medical and surgical equipment from distribution centres. Customers include medical and dental practitioners, clinics and hospitals.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & 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 Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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Gavin Smith
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