Industry Statistics and Trends
Market size and recent performance (2015-2030)
Industry revenue has declined at a CAGR of 0.2 % over the past five years, to reach an estimated $26.5bn in 2025.
Trends and Insights
Pharmacies are becoming more integral to the Australian healthcare landscape
- Pharmacies are expanding their service offerings beyond traditional dispensing, including immunisations, weight management programs and home medicine reviews.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2025-2030)
Market size is projected to grow over the next five years.
Trends and Insights
An older population with a greater chronic disease burden will boost demand for pharmacy services
- According to ABS projections, the proportion of Australia's population aged over 65 will climb from 17.8% in 2025 to 18.9% in 2030, with growth accelerating in regional areas. Older Australians more often contend with chronic conditions like cardiovascular disease and diabetes, necessitating more consistent interactions with healthcare providers and regular prescriptions.
Biggest companies in the Pharmacies in Australia
| Company | Market Share (%)
2026 | Revenue
2026 |
|---|
There are no companies that hold a market share exceeding 5% in the Pharmacies in Australia industry.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Prescription medicines, Scheduled non-prescription medicines and General retail. Prescription medicines is the largest segment of the Pharmacies in Australia.
Trends and Insights
Prescription medicine remains the dominant revenue stream for pharmacies
- Prescription medicines are only available to consumers who have a prescription from an authorised healthcare professional with prescribing rights. By law, pharmacies are the only businesses authorised to sell prescription medication. These include subsidised and unsubsidised PBS prescriptions, as well as private prescriptions.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
The industry includes all community or retail pharmacies that sell prescription drugs and patent medicines to general consumers. Pharmacies source medicines either from pharmaceutical wholesalers or directly from upstream pharmaceutical manufacturers. Key pharmacy groups include independent community pharmacies, banner groups, friendly societies, buying groups and discount pharmacies. Legislation that limits the ownership of multiple pharmacies has prevented any one company from technically owning a major portion of industry establishments.
What's included in this industry?
Products and services covered in the Pharmacies industry in Australia include General retail , Scheduled non-prescription medicines, Prescription medicines and Pharmacy professional services.Companies
Companies covered in the Pharmacies industry in Australia include .Purchase this report to view all major companies in this industry.
Related Terms
Related terms covered in the Pharmacies industry in Australia include banner groups, schedule 2 pharmacy medicines, schedule 3 pharmacist-only medicines, general sales medicines (gsm), section 90 approved pharmacies, eprescriptions and non-pharmacy stores.Industry Code
ANZSIC 4271 - Pharmacies in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The pharmacy operating landscape has changed over the past decade in response to ongoing PBS reforms. The latest reforms have involved the staged introduction of 60-day dispe...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2015-2024) and forecast (2025-2030)
- Employees, including historical (2015-2024) and forecast (2025-2030)
- Businesses, including historical (2015-2024) and forecast (2025-2030)
- Profit, including historical (2015-2025)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Pharmacies are increasingly focusing on front-of-store operations to counteract declining over-the-counter sales and ongoing downwards pressures on dispensary remuneration. M...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2025
- Product innovation level
Charts
- Products & services segmentation in 2025
- Major market segmentation in 2025
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The industry’s geographic distribution reflects Australia's economic, social and demographic distribution. More than three-quarters of all community pharmacies are located in...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2025
Tables
- Number and share of establishments in each region in 2025
- Number and share of revenue each region accounts for in 2025
- Number and share of wages each region accounts for in 2025
- Number and share of employees in each region in 2025
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Regulatory controls that define pharmacies' operating landscapes also shape the competitive environment. Only community pharmacies and hospital pharmacies can dispense prescr...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2020-2025
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
There are no companies that hold a market share exceeding 5% in the Pharmacies in Australia industry.
Analyst insights
Due to ownership regulations, the Pharmacies industry is defined by small, owner-operated firms. Individual pharmacists own more than half Australia's pharmacies, with most o...
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Volumes of medicines dispensed under the PBS impact pharmacy dispensary revenue. In 2023-24, community pharmacies dispensed over 227 million prescriptions under the PBS and R...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2015-2030)
- Assistance historical data and forecast (2015-2030)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Cost structures for individual pharmacies vary depending on size, location and business model. For example, a pharmacy's cost structure depends on whether it operates in a sh...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2015-2030)
- Revenue per Employee (2015-2030)
- Revenue per Enterprise (2015-2030)
- Employees per Establishment (2015-2030)
- Employees per Enterprise (2015-2030)
- Average Wage (2015-2030)
- Wages/Revenue (2015-2030)
- Establishments per Enterprise (2015-2030)
- IVA/Revenue (2015-2030)
- Imports/Demand (2015-2030)
- Exports/Revenue (2015-2030)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2015-2030)
- IVA (2015-2030)
- Establishments (2015-2030)
- Enterprises (2015-2030)
- Employment (2015-2030)
- Exports (2015-2030)
- Imports (2015-2030)
- Wages (2015-2030)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Pharmacies industry in Australia in 2025?
The market size of the Pharmacies industry in Australia is $26.5bn in 2025.
How many businesses are there in the Pharmacies industry in Australia in 2025?
There are 4,337 businesses in the Pharmacies industry in Australia, which has grown at a CAGR of 1.1 % between 2020 and 2025.
How may import tariffs affect the Pharmacies industry in Australia?
The Pharmacies industry in Australia is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Pharmacies industry in Australia?
The Pharmacies industry in Australia is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Pharmacies industry in Australia grown or declined over the past 5 years?
The market size of the Pharmacies industry in Australia has been declining at a CAGR of 0.2 % between 2020 and 2025.
What is the forecast growth of the Pharmacies industry in Australia over the next 5 years?
Over the next five years, the Pharmacies industry in Australia is expected to grow.
What does the Pharmacies industry in Australia include?
General retail and Scheduled non-prescription medicines are part of the Pharmacies industry in Australia.
How competitive is the Pharmacies industry in Australia?
The level of competition is moderate and increasing in the Pharmacies industry in Australia.
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
