The Australian pharmaceutical industry is highly competitive, with the country being one of the biggest and highest-revenue marketplaces in the world. The sector has seen price cuts on international and patented drugs by more than 10%. There are many big players in this industry, but who are they?
While there are many large pharmacy groups (and small ones), these six big Australian pharmacy groups by revenue really stand out. There are six big Australian pharmacy groups. They work hard to make sure all Australians have access to affordable, quality medicines, by providing supply of prescription medicines, dispensing services and related support services to people in Australia. Of all the 6 companies listed below, it can be difficult to know who is who and what they do. That’s why we’re here! We’ll look at each company in turn and see what they offer you as a consumer.
Pharmacy Groups play an essential role in providing healthcare commodities in an accessible form. There are various big players in the pharmacy industry throughout the country. Here are the 6 big Australian Pharmacy Groups by revenue:
6 big Australian Pharmacy Groups by revenue
1. My Chemist Group
My Chemist Group has a market share of 23.3 percent in pharmaceuticals retail and has many Chemist warehouse stores under its wings. It has grown from five stores in 1995 to 300 stores with annual sales of $4 billion in 2020. The Group also owns the chain stores My Beauty Sport and ePharmacy. Estimations predict a further increase in revenue after a franchise agreement with Chemist Warehouse Berjaya Asia in Malaysia.
My Chemist Group has been expanding its operations via joint ventures and franchises. It has established partnerships with major brands such as Watsons and Sephora. In 2019, the group acquired Australian health and beauty retailer Beauty Bliss and is planning to open more than 15 stores in Australia and New Zealand over the next three years. My Chemist Group’s e-commerce platform is growing with an increase in sales of over $1 million in 2019. The Group has also introduced a new app with features such as prescription ordering and booking appointments with pharmacists and doctors.
Company Revenue: $ 4 billion
2. Sigma Healthcare Limited
Sigma Pharmaceuticals established in 1912. The company has come a long way during the past 100 years. After 1996, it was no more than a co-operative company, and in 2011, it divested its manufacturing part, too. The company is going to concentrate on wholesale and retail distribution, including multi-channel elements. Sigma Pharmaceuticals covers 19.3 percent of retail pharmacies with brands like Amcal, Chemist King, Guardian, PharmaSave, and Discount Drug Stores. Supplying independent pharmacies, the company is also a critical player in the wholesale market.
Sigma Pharmaceuticals has a long-term relationship with the leading healthcare brands. The company provides its customers with affordable health products. It also provides services to the Australian community. The company has more than 4,000 employees, and more than 1,000 stores across Australia. It also has its own distribution center, which includes a warehouse of more than 90,000 square meters. The company has a strong online presence, and its online store is one of the largest in the market. It is also the largest exporter of health products in Australia.
It has representatives in more than 15 countries. The company offers a wide range of health products for men, women, and children. The company also has a sports division that supplies sports equipment. Sigma Pharmaceuticals is a major sponsor of the Australian Olympic team and the Rugby World Cup. The company also donates to several charities.
Company Revenue: $ 4.3 billion
3. Terry White Chemmart Group
In 2016 the Terry White Group merged with Chemmart to create Terry White Chemmart Group. One of Australia’s major retail Australian pharmacy groups networks, it has 500 pharmacies under the Terry White Chemmart banner now. Together they claim 10.2 percent of the market share of the company recorded a growth of 3.5 percent in the financial year of 2017 and generates annual sales of $2 billion. The Australian based Symbion company owns Terry White Group and Chemmart Group under the ownership of Zuellig Healthcare Holdings Australia Pty Limited.
Terry White Chemmart Group is Australia’s largest pharmacy franchise, with over 500 pharmacies and more than 8,000 employees. The company has been operating since February 2015, when Chemmart and Terry White Chemists announced a merger. In December 2019, Terry White Chemmart announced that it had entered into an agreement to merge with Amcal and Guardian Pharmacies, two other Australian pharmacy chains. The merged entity will have a network of around 1,500 pharmacies and will be owned by the global health and beauty retailer, Chemist Warehouse.
Company Revenue: $ 2 billion
4. Australian Pharmaceutical Industries Limited
Australian Pharmaceutical Industries Limited (API) is a company that covers three main business areas- pharmacy distribution mainly wholesale product delivery, retailing, and healthcare products. The company operates through the brands Priceline, Pharmacist Advice, Soul Pattinson Chemist, Pharmacy Best Buys, and Club Premium. With these brands and independent wholesale businesses, the API owns 10.2 percent market share of retail industry. In nine years, the company’s sales have grown from $1.9 million to $3.4 million. In April 2012, the company announced its intention to increase its retail business to acquire 50 percent of its sales from retail from 30 percent of Priceline. It also launched an online Priceline store in June 2012.
API’s retail business comprises of over 500 pharmacies, which includes the API’s two branded retail pharmacy chains, Priceline and Soul Pattinson. API has an average of 50,000 customers a day. API has recently announced its intention to increase its retail business to 50 percent of its sales from 30 percent of Priceline. It also launched an online Priceline store in June 2012. API’s distribution business comprises of over 100 wholesale customers, including the company’s two branded retail pharmacy chains, Priceline and Soul Pattinson. API delivers to over 1,000 pharmacies and hospitals every day. API’s healthcare business comprises of over 3,000 products, which are supplied to over 200 hospitals and aged care facilities.
Company Revenue: $ 4,035,373,000 (2018)
5. EBOS Group Limited
EBOS Group is a company with operations in both New Zealand and Australia in the fields of pharmacy, healthcare, animal health products. It manufactures and distributes products as wholesalers and through franchises too. It is a publicly traded company on the Australian Securities Exchange and was founded in the year 1839. EBOS Group offer services in the following sectors: * Wholesale * Healthcare * Animal Health In AU, The company was founded in Adelaide, South Australia.
The company is present in all of the Australian states through warehouses and distribution centers. The company has been the recipient of many awards. In 2014, it was named as one of the top employers in Australia by the Randstad Group. It was ranked as the 18th most attractive company in the Randstad Group’s Employer Brand Research conducted in 2014.
Company Revenue: $ 4 billion
6. National Pharmacies
National Pharmacies is a mutual organization with headquarters in South Australia and was established under the name of Friendly Society Medical Association (FSMA). It generated sales of $304.3 million with 57 pharmacies under its wings. It operates as a PBS medicines wholesaler and CSO distributor in South Australia and Victoria.
In addition to this, it provides a pharmacy software system, IT services, pharmacy training and professional services. The company has established a new supply agreements with Rite Price, which is a member-owned pharmacy group of South Australia. This deal came into existence in September 2018 and it has helped in the expansion of National Pharmacies’ supply business. The group has been associated with National Pharmacies for the last eight years. The new supply agreement has provided a three-year extension to their existing contract. The agreement is helpful for National pharmacies as it will enable it to expand its business in the Northern Territory and Western Australia.
The main aim of National Pharmacies is to provide an opportunity to the pharmacists to do what they do best which is to provide the best possible healthcare to their customers. The company’s main focus is to provide access to the best possible community healthcare services and products at the most competitive prices.
Company Revenue: $304.3 million
The demand for healthcare products is never going to decrease, but there are several factors like changes in market conditions or government policies that might produce positive, negative, or mixed effects on the future revenues of these companies.
Impact of COVID-19 on the Australian Pharmacy Sector
The COVID-19 pandemic has undoubtedly had a significant impact on various sectors around the world, and the Australian pharmacy sector is no exception. The restrictions imposed to curb the spread of the virus have transformed how pharmacies operate and serve their customers. There has been a surge in demand for essential healthcare items such as hand sanitizers, face masks, and over-the-counter medications. This increased demand put immense pressure on pharmacies to ensure adequate stock levels and meet customer needs promptly.
Social distancing measures meant that many Australians turned to online platforms for their pharmaceutical needs. Online ordering and home delivery services became vital lifelines for individuals who were unable or hesitant to visit physical stores during lockdowns. The pandemic also highlighted the importance of pharmacists as frontline healthcare professionals. They played a crucial role in providing accurate information about COVID-19 symptoms, testing centers, and vaccine availability. Their expertise and guidance reassured anxious individuals seeking reliable advice during uncertain times.
The impact of COVID-19 on the Australian pharmacy sector cannot be underestimated. It forced pharmacies to adapt quickly to changing circumstances while continuing to prioritize public health and safety. As we move forward into a post-pandemic era, it will be interesting to see how these changes shape the future of this essential industry.
Future Projections for the Australian Pharmacy Sector
The Australian pharmacy sector is poised for significant growth in the coming years. With an aging population, increasing demand for healthcare services, and advancements in technology, the future looks promising for this industry. One of the key projections for the Australian pharmacy sector is the continued expansion of services offered by pharmacies. In addition to dispensing medications, pharmacies are increasingly providing a range of other healthcare services such as vaccinations, health checks, and medication management programs. This diversification will not only drive revenue growth but also enable pharmacies to play a more integral role in community healthcare.
Another trend that is likely to shape the future of Australian pharmacies is increased adoption of digital platforms. Online ordering and home delivery services have become increasingly popular during the COVID-19 pandemic, and it’s expected that this trend will continue post-pandemic. Pharmacies that invest in robust online platforms and embrace telehealth solutions will be well-positioned to meet changing consumer expectations.
Collaboration between pharmacies and other healthcare providers is expected to increase in the future. As part of an integrated healthcare approach, pharmacists can work closely with general practitioners and specialists to optimize patient care outcomes. This collaborative model has been shown to improve medication adherence rates and reduce hospital readmissions. While there may be challenges ahead for the Australian pharmacy sector, such as ongoing regulatory changes and competition from online retailers, there are also exciting opportunities on the horizon. By adapting to emerging trends and embracing innovation, Australian pharmacy groups can position themselves for long-term success in a rapidly evolving landscape.
Role of Digital Platforms in Growth
In today’s digital age, the role of digital platforms in driving growth for Australian pharmacy groups cannot be overstated. These platforms have revolutionized the way pharmacies operate and connect with their customers, offering convenience and accessibility like never before. Digital platforms provide a seamless online shopping experience for customers. With just a few clicks, they can browse through an extensive range of products, compare prices, and make purchases from the comfort of their own homes. This not only saves time but also opens up opportunities for pharmacies to reach a wider audience beyond their physical locations.
Digital platforms enable pharmacies to enhance customer engagement and loyalty. Through personalized email marketing campaigns or social media interactions, pharmacies can stay connected with their customers by providing valuable health information and exclusive offers. This not only strengthens customer relationships but also encourages repeat business. Digital platforms facilitate efficient inventory management and supply chain processes. By using sophisticated software systems integrated with these platforms, pharmacy groups can streamline operations such as stock tracking and ordering. This helps reduce costs associated with overstocking or understocking products while ensuring timely deliveries to meet customer demands.
Digital platforms have become essential tools for Australian pharmacy groups seeking growth in an increasingly competitive market. Embracing technology allows them to cater to evolving consumer preferences while staying ahead of the curve in this rapidly changing industry landscape.
Challenges Faced by the Australian Pharmacy Sector
Despite the growth and success of the big six Australian pharmacy groups, there are several challenges that they face in today’s dynamic market. One of the biggest challenges is increased competition from online pharmacies, which offer convenience and competitive prices to customers. This shift towards digital platforms has forced traditional brick-and-mortar pharmacies to adapt and find ways to enhance their online presence. Another challenge is changing consumer behavior and expectations. Customers now demand a personalized experience, including tailored healthcare solutions and convenient access to medication. Pharmacy groups need to invest in technology and innovation to meet these evolving demands.
Additionally, regulatory changes can pose hurdles for pharmacy groups. Changes in government policies or regulations related to pharmaceutical pricing or subsidies may impact their revenue streams. Supply chain disruptions due to global events like COVID-19 have also presented challenges for the sector. The pandemic highlighted vulnerabilities within supply chains, leading to shortages of certain medications and medical supplies. Implementing robust contingency plans will be crucial moving forward.
Workforce shortages are a pressing issue faced by many pharmacy groups. There is an increasing demand for pharmacists across Australia, but a limited pool of qualified professionals available. This shortage puts strain on existing staff members and affects customer service levels.
The big six Australian pharmacy groups continue to thrive financially, it is essential for them to navigate these challenges effectively in order to sustain their growth into the future. By embracing digital platforms, adapting strategies according to changing consumer behavior, and investing in innovation, these pharmacy groups can maintain their competitive edge in the market. Addressing workforce shortages and supply chain disruptions will also be crucial for long-term success.
Conclusion
With such a lucrative industry, it is no surprise that the top six Australian pharmacy Groups chains are ranked as the top profit-earning companies in Australia. For most people, visiting their neighborhood pharmacy will be an everyday affair, so ensuring that these pharmacy chains are at the forefront of global innovation and customer care is vital for everyone.
Overall, the Australian and New Zealand market for the pharmacy industry is very large. There are multiple chains that have been developing and growing to accommodate the community in a time of increased demand for pharmaceuticals. These pharmacy groups have many opportunities for growth in the years ahead, particularly since there are a number of markets that are still underdeveloped in this region. Check out our other article about top 6 Biggest Hospitals in Australia Ranked by Services.
FAQs
Is there a difference between Australian pharmacy groups and Australian pharmacies?
The answer is yes. A pharmacy group is a company that owns multiple pharmacies, while a pharmacy is an individual shop or business that sells prescription medications. There are many large pharmacy groups in Australia, and they can be found in most major cities, suburbs and towns across the country.
What is the difference between retail and wholesale?
Retail is when you buy something from a shop, or online store. Wholesale is when you buy goods in bulk to sell at a profit.
Are Australian Pharmacy Groups regulated?
Yes. Australian Pharmacy groups are expected to abide by a set of rules and regulations that are enforced by the TGA (Therapeutic Goods Administration).
How do I know if my medication is safe and effective?
All medications sold in Australia must meet strict safety and efficacy requirements set out by the TGA (Therapeutic Goods Administration). This means that all drugs available in Australia are considered safe to use and have been tested for effectiveness.
What happens if I take too much of my medication? Will it harm me?
If you take too much of your medication, call an ambulance immediately. Taking too much can be dangerous or fatal, so make sure you follow instructions carefully, especially when taking prescription drugs or supplements.
References:
- https://www.guildevents.com.au/presentations/G525A%20Pharmacies%20in%20Australia%20industry%20report.pdfhttps://www.ibisworld.com.au/
- https://www.commbank.com.au/content/dam/commbank/assets/corporate/industries/pharmacy-insights-report-2018.pdf
- https://www.insideretail.com.au/news/chemist-giants-go-head-to-head-201801