IBISWorld pharmacy report
July 12, 2016
ONGOING reforms to the
Pharmaceutical Benefits Scheme
and continued debate about how
to meet the health requirements
of an ageing population are forcing
pharmacy to focus business growth
in non-PBS sectors, according to a
recently updated industry report
titled Pharmacies in Australia from
analyst firm IBISWorld.
The industry is expected to
generate revenue of $15.8b in
2016-17 and record a less than
exciting annualised growth of 0.3%
over the five years through 2012-
2017, the report reveals.
IBISWorld anticipates the
Australian pharmacy industry to
grow by an annualised 0.8% in the
five years through 2021-22 to reach
revenue of over $16 billion.
With further price disclosure
changes due to cut in from 01
Oct, the price of generic drugs is
expected to fall further, following
originator brand versions being
removed from weighted average
disclosed price calculations.
The result of this price-deflation
is that pharmacists will inevitably
be forced into alternative revenue
sources such as scheduled nonprescription
medicines, cosmetics,
beauty products, baby products,
skin and hair-care products, suncare
products and other general
health items, the report said.
In addition, pharmacies will also
focus on preventative and primary
health care programs as they seek
to cement their role in community
primary health care.
“Over the past decade, traditional
community pharmacies have
undergone significant changes,”
said author Arna Richardson.
“Intensifying retail competition
from new internal and external
operators, such as discount
pharmacies and supermarkets,
have altered the industry’s
operating landscape, particularly as
a growing number of operators rely
on promotional discounting.”
The report also discusses the
increasing impact of consumers
gravitation toward supermarkets
stocking a range of widely used
non-scheduled medicines reducing
demand for traditional pharmacies.
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