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Questionable health: Increased access to healthcare will boost revenue, but competition will siphon demand



Pharmacy & Drug Store Franchises

A large number of franchisees have joined the Pharmacy and Drug Store Franchises industry in an attempt to capitalize on a number of positive upstream trends that are driving demand for pharmacies and drug stores nationwide. For example, healthcare reform has increased the number of Americans with private health insurance and the number of adults aged 65 and older, the industry’s largest demographic, has grown considerably over the past five years. Over the five years to 2021, The underlying positive trends that drove industry growth over the past five years will continue to be a boon for industry operators. However, the leading franchisors, McKesson Corporation and Cardinal Health, which have exhibited explosive growth in recent years, are expected to reach a point of relative saturation in which it becomes increasingly difficult to compete amid rising costs from PBMs and increased competition.

Franchises in this industry retail a range of prescription and over-the-counter medications, beauty items, toiletries and consumable goods directly to consumers. Reports in our Business Franchise collection focus solely on the operation of franchised outlets. They show the total number of franchise outlets, total franchise revenue and the average profit margin earned by franchisees. Our reports also highlight the largest franchisors by market share.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.



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Table Of Contents

Pharmacy and Drug Store Franchises - Industry Market Research Report

TABLE OF CONTENTS

ABOUT THIS INDUSTRY
Industry Definition
Main Activities
Similar Industries
Additional Resources

INDUSTRY AT A GLANCE

INDUSTRY PERFORMANCE
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

PRODUCTS and MARKETS
Supply Chain
Products and Services
Demand Determinants
Major Markets
International Trade
Business Locations

COMPETITIVE LANDSCAPE
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalization

MAJOR COMPANIES

OPERATING CONDITIONS
Capital Intensity
Technology and Systems
Revenue Volatility
Regulation and Policy
Industry Assistance

KEY STATISTICS
Industry Data
Annual Change
Key Ratios

JARGON and GLOSSARY



MAJOR COMPANIES

McKesson Corporation

Cardinal Health Inc.

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