Consumer acceptance of e-tailers and ageing population drive growth
Melbourne, Australia (PRWEB) April 24, 2013
The Online Medical Supplies Sales industry has performed strongly over the past five years, driven by the overall growth in online retailing and robust demand conditions in downstream markets. According to IBISWorld industry analyst Naren Sivasailam, “flailing business and consumer confidence had minimal impact on the industry's fortunes, as demand for medical supplies is highly inelastic given its essential nature”.
To staff and equip clinics, medical practitioners and institutions rely on federal and state government funding, which has increased strongly over the past five years. The ease of purchasing medical consumables, such as catheters, applicators, drug-testing kits, protective apparel and disposable instruments, online has resulted in strong revenue growth over the past five years. Furthermore, the ageing Australian population has driven increased public health expenditure.
In the five years through 2012-13, industry revenue is estimated to have increased by an annualised 9.4% to $248.2 million. This includes a forecast 9.1% revenue increase over 2012-13.
The future of the industry is forecast to be bright, driven by the continued growth of online retailing and the pressures of an ageing population. The number of people aged 85 years and over is expected to quadruple by 2050, thus doubling healthcare costs of servicing this segment of the population. This is likely to result in burgeoning demand for industry products and increased government funding, since both policymakers and medical practitioners administer health care. “In line with current industry trends, small and medium enterprises will dominate the industry landscape and operate either as pure play retailers or as wholesalers and distributors that have relationships with domestic and international manufacturers”, says Sivasailam. “This is expected to result in increased competition, thereby marginally diluting profitability for existing players”.
The Online Medical Supplies Sales industry is characterised by a low level of market share concentration. There are no major players, but firms such as Multipoint Technologies (Medshop Australia), Livingstone International and DocStock have been successful over the past five years. These firms are expected to increase their market shares over the next five years. Nevertheless, market share concentration is expected to remain low.
For more information, visit IBISWorld’s Online Medical Supplies Sales report in Australia industry page.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
IBISWorld Industry Report Key Topics
This industry includes online retailers of medical supplies, which includes equipment and tools used in health care for diagnosis, therapy or surgery. Industry operators also sell products such as topical treatments and dressings, antiseptics, bandages, cotton, first-aid kits, syringes, thermometers and heating pads.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
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 every Australian 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.