No side effects: The advent of biologic drugs will stimulate revenue and fuel industry growth

The Pharmaceuticals and Pharmacy Supplies Wholesaling industry in Canada has benefited from its integral role in the pharmaceutical supply chain without the plague of wholesale bypass, whereby retailers source their products straight from manufacturers instead of wholesalers, which is endemic to most wholesale industries. Due to the burgeoning elderly population's sustained need for pharmaceuticals, many downstream markets have looked toward wholesalers to provide quick product turnaround. Perpetuating this trend, the uptick of new, biologic drugs, particularly cancer and immunosuppressant drugs, have stimulated demand for wholesalers, causing revenue to increase over the five years to 2017. Over the five years to 2022, industry revenue is forecast to continue its growth...read more.

Industry Statistics & Market Size
Revenue
$52bn
Annual Growth 12-17
1.7%
Forecast Growth 17-22
Profit
Employment
37,063
Businesses
681
Market Share of Companies

Industry Threats & Opportunities

  • Biologic drugs require stringent temperature controls, thus spurring demand for wholesalers
  • The regulatory landscape has largely shaped downstream demand for pharmaceuticals
  • Downstream markets stimulated growth by outsourcing procurement of biologic drugs
  • Industry Report - Industry Analysis Chapter

    The Pharmaceuticals and Pharmacy Supplies Wholesaling industry in Canada has benefited from strong pharmaceutical use over the past five years. For example, the rise in the volume of pharmaceuticals administered, coupled with a larger product mix, has encouraged many downstream markets (e.g. pharmacies and hospitals) to purchase pharmaceuticals from wholesalers. This industry is not mired by the typical burden of wholesale bypass, where retailers purchase directly from manufacturers rather than wholesalers. According to the Canadian Association for Pharmacy Distribution Management, pharmaceutical wholesalers and self-distributing pharmacy chains (excluded from the industry) comprise over 95.0% o...purchase to read more.

    Additional Insights for the Pharmaceuticals & Pharmacy Supplies Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Pharmaceuticals & Pharmacy Supplies Wholesaling Industry are

  • Guaranteed supply of key inputs
  • Having an extensive distribution and collection network
  • Having contacts within key markets
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Research and development expenditure in the Pharmaceuticals & Pharmacy Supplies Wholesaling industry impact industry performance..

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    What's in this report

    What is the Pharmaceuticals & Pharmacy Supplies Wholesaling Industry?

    This industry distributes medicines, cosmetic products and personal grooming products. This industry does not include manufacturers that sell medicines, equipment and supplies directly to hospitals or doctors’ offices.

    Industry Products
  • Prescription pharmaceuticals
  • Non-prescription pharmaceuticals
  • Vitamin, mineral and other health supplements
  • Eye care (prescription or non-prescription)
  • Infant care products
  • Cosmetics and fragrances
  • Toiletries
  • Industry Activities
  • Antibiotics wholesaling
  • Antiseptics wholesaling
  • Beauty supplies wholesaling
  • Cosmetics wholesaling
  • Nonprescription drugs wholesaling
  • Pharmaceuticals wholesaling
  • Prescription drugs wholesaling
  • Toiletries wholesaling
  • Vaccine wholesaling
  • Vitamins wholesaling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Research and development expenditure
  • Total health expenditure
  • Number of adults aged 65 and older

  • Current Performance
  • Regulatory environment
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Public and private payers
  • Biologic drugs change distribution
  • Table: Pharmaceuticals & Pharmacy Supplies Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Pharmaceuticals & Pharmacy Supplies Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Convenience Stores in Canada
  • Pharmacies & Drug Stores in Canada
  • Beauty, Cosmetics & Fragrance Stores in Canada
  • Health Stores in Canada
  • Warehouse Clubs & Supercentres in Canada

  • Key Selling Industries
  • Brand-Name Pharmaceutical Manufacturing in Canada
  • Cosmetic & Beauty Product Manufacturing in Canada
  • Generic Pharmaceutical Manufacturing in Canada
  • Medical Instrument & Supply Manufacturing in Canada

  • Products & Services
  • Prescription pharmaceuticals
  • Toiletries
  • Non-prescription pharmaceuticals
  • Vitamin, mineral and other health supplements
  • Other
  • Cosmetics and fragrances
  • Infant care products
  • Eye care (prescription or non-prescription)
  • Chart: Pharmaceuticals & Pharmacy Supplies Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Banner pharmacies
  • Chain pharmacies
  • Independent pharmacies
  • Grocery store pharmacies
  • Hospitals and other healthcare providers
  • Mass merchandiser pharmacies
  • Chart: Major Market Segmentation for the Pharmaceuticals & Pharmacy Supplies Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Pharmaceuticals & Pharmacy Supplies Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Pharmaceuticals & Pharmacy Supplies Wholesaling Industry

  • Industry Globalization
    McKesson Canada,
  • Table: McKesson Canada - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Pharmaceuticals & Pharmacy Supplies Wholesaling Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Pharmaceuticals & Pharmacy Supplies Wholesaling Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Total Health Expenditure (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Biologics
  • Type of specialty drug made from living organisms.
  • Generic Drug
  • Drug that is not protected by any patents, but can act as a substitute for the original brand-name product.
  • Over-The-Counter (Otc) Medication
  • Medicines that can be sold without a prescription.
  • Specialty Drugs
  • Complex drug therapies, including injectables and biologics.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Pharmaceuticals & Pharmacy Supplies Wholesaling market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Pharmaceuticals & Pharmacy Supplies Wholesaling:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Pharmaceuticals & Pharmacy Supplies Wholesaling market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Pharmaceuticals & Pharmacy Supplies Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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