Australia Retail Pharmacy Market Analysis

Australia Retail Pharmacy Market Executive Summary

Australia's Retail Pharmacy Market is projected to grow from $12.46 Bn in 2022 to $23.76 Bn by 2030, registering a CAGR of 8.4% during the forecast period of 2022-30.

Australia is a developed country with a strong and diversified economy. The country has a market-oriented economy, with a focus on exports of goods and services. The service sector is the largest contributor to the economy, followed by the mining and agriculture sectors. Australia's GDP of over $1.5 Tn places it as the 13th largest economy in the world. The nation has a positive trade balance of $28.7 Bn and is the 24th largest exporter and importer in the world, according to the most recent data.

Australia's economy has been relatively stable and resilient, with consistent growth over the last decade. The country has a low unemployment rate and a relatively low level of government debt.

The Australian economy is heavily dependent on exports, particularly of commodities such as iron ore, coal, natural gas, and gold. The country also has a strong financial sector and a well-developed infrastructure.

The country has also been impacted by the COVID-19 pandemic, which has led to a decline in economic activity and an increase in unemployment. The government of Australia has implemented various measures to support the economy and mitigate the impact of the pandemic, such as providing financial assistance to businesses and individuals.

Overall, Australia's economy is characterized by a high level of stability and a strong focus on exports, but it also faces challenges such as an aging population, high household debt, and a heavy dependence on China.

The retail pharmacy market in Australia is a highly regulated and competitive industry. The market is dominated by a few large retail chains, such as Chemist Warehouse and Priceline, which control a significant market share. The Australian government also plays a major role in the market through the Pharmaceutical Benefits Scheme (PBS), which regulates the prices of prescription drugs. In recent years, there has been a trend towards the expansion of discount and online pharmacies, which has resulted in increased price competition. Additionally, the government has also implemented policies to encourage the growth of smaller independent pharmacies. Overall, the retail pharmacy market in Australia is expected to continue growing in the coming years, driven by factors such as an aging population and an increase in chronic diseases.

Market Dynamics

Market Drivers

The Australia pharmacy industry has recently been characterized by a more competitive market, significant technological advancements, budgetary constraints, significant reform, and increasing scrutiny from payers, regulators, and the general public. Due to this, pharmaceutical companies have had to review their business plans to make sure they continue to be responsive.

It is anticipated that the Prescription Drugs segment would continue to hold the largest share during the forecast period. The Australian Institute of Health and Welfare (AIHW) reported in November 2021 that 16% of all Australians were 65 years of age or older, and that number was growing. In addition, the ageing population, which is more susceptible to chronic illnesses including cancer, cardiovascular disease, musculoskeletal disorders, and others, is anticipated to fuel market expansion. One of the major factors driving the demand for therapeutic pharmaceuticals, which will drive the market, is the rising burden of chronic diseases.

Competitive Landscape

Key Players

The key players in the Australia retail pharmacy market include:

• Chemist Warehouse: This is one of the largest retail pharmacy chains in Australia, with over 400 stores across the country. It is known for offering a wide range of products at competitive prices
• Priceline: This is another large retail pharmacy chain in Australia, with over 400 stores across the country. It is known for offering a wide range of health, beauty, and wellness products
• Amcal: This is a leading chain of independent pharmacies in Australia, with over 800 stores across the country. It is known for its personalized customer service and focus on health and wellness
• Terry White Chemists: This is a chain of independent pharmacies in Australia, with over 150 stores across the country. It is known for its focus on customer service and health education
• Discount Drug Stores: This is a chain of discount pharmacies in Australia, with over 150 stores across the country. It is known for its low prices and wide range of products
• Soul Pattinson: This is an Australian company that is one of the major players in the retail pharmacy market, having a chain of over 100 stores across the country
• My Chemist Retail Group: This is another retail pharmacy chain in Australia that operates over 150 stores across the country

Healthcare Policies and Regulatory Landscape

The retail pharmacy market in Australia is heavily regulated by the government through various policies and regulations. Some of the key policies and regulations that shape the market include:

Pharmaceutical Benefits Scheme (PBS): The PBS is a government program that regulates the prices of prescription drugs in Australia. Under the PBS, the government negotiates with pharmaceutical companies to set a price for certain drugs and then subsidizes a portion of the cost for consumers. This helps to make prescription drugs more affordable for consumers and also helps to control healthcare costs.

Sixth Community Pharmacy Agreement (6CPA): The 6CPA is an agreement between the government and the pharmacy industry that sets out the terms and conditions under which pharmacies can provide services and receive reimbursement. This agreement includes provisions for professional services, such as medication reviews and vaccinations, that pharmacies can offer to consumers.

National Health Act 1953: The National Health Act provides for the listing of drugs on PBS and the regulation of their supply and pricing. The Act also establishes the Pharmaceutical Benefits Advisory Committee (PBAC) to advise the Minister of Health on the listing of drugs on the PBS.

National Medicines Policy: The National Medicines Policy sets out the principles and objectives for the use of medicines in Australia. It aims to ensure that medicines are used safely, effectively, and economically.

Therapeutic Goods Administration (TGA): TGA is the body that regulates the quality, safety, and efficacy of therapeutic goods in Australia. It is responsible for ensuring that all therapeutic goods, including prescription and over-the-counter medicines, meet the required standards of quality, safety, and efficacy.

Privacy laws: The Australian Privacy Principles, which are part of the Privacy Act 1988, sets out the rules for how personal information, including health information, can be collected, used, and shared.

These regulations and policies are designed to ensure the safety and quality of drugs, while also controlling healthcare costs and promoting the use of medicines in a safe and effective way.