Industry Statistics and Trends
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 1.5 % over the past five years, to reach an estimated $12.9bn in 2024.
Trends and Insights
Demographic factors are driving growth
- Rising life expectancy and an ageing population are key growth drivers for the Pharmaceutical Product Manufacturing industry. Older age cohorts consume more pharmaceutical and medicinal products, as they’re more prone to developing health conditions requiring some form of medication. Australians aged 60 and over accounted for 60.0% of the total government cost of the Pharmaceutical Benefits Scheme (PBS) in 2022-23.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The ageing population and innovative therapies will drive growth
- An ageing population, higher incidences of chronic disease and changing community attitudes to healthcare will drive industry revenue growth. The Australian Government’s Sixth Intergenerational Report, released in August 2023, highlights an ageing population as one of five major shifts underway in Australia’s society and economy.
Biggest companies in the Pharmaceutical Product Manufacturing in Australia
| Company | Market Share (%)
2025 | Revenue ($m)
2025 |
|---|---|---|
GlaxoSmithKline | 1,048.9 | |
AstraZeneca Holdings | 765.0 | |
Aspen Asia Pacific | 580.0 |
To view the market share and analysis for all 7 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Benefit-paid pharmaceuticals, Non benefit-paid pharmaceuticals and OTC and complementary medicines. Benefit-paid pharmaceuticals is the largest segment of the Pharmaceutical Product Manufacturing in Australia.
Trends and Insights
Ongoing PBS reforms are reducing benefit-paid pharmaceuticals’ relative contribution to revenue
- Benefit-paid pharmaceuticals are pharmaceuticals listed on the Pharmaceuticals Benefits Scheme (PBS) and the Repatriation Pharmaceutical Benefits Scheme, for which pharmaceutical benefits are payable. The PBS currently covers 5,261 differently branded products.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
The industry comprises companies that manufacture medicinal and pharmaceutical products for human use from both synthetic (chemical) and natural sources. Other products include chemical or diagnostic testing agents, blood serums and biotech products. Industry activities include manufacturing active pharmaceutical ingredients and synthesising chemical ingredients, late-stage packaging and fill-finish activities.
What's included in this industry?
Benefit-paid pharmaceuticalsNon-benefit paid pharmaceuticalsOTC and complementary medicinesCompanies
GlaxoSmithKlineAstraZeneca HoldingsAspen Asia PacificPurchase this report to view all 7 major companies in this industry.
Related Terms
OVER-THE-COUNTER (OTC)BLOCKBUSTER DRUGSPRICE DISCLOSURE REFORMSBIOSIMILARSPATENT CLIFFIndustry Code
ANZSIC 1841 - Pharmaceutical Product Manufacturing 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
Favourable demand factors have benefited pharmaceutical manufacturers, including an ageing population and a greater incidence of chronic disease. Yet, ongoing challenges have...
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 (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- 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
Pharmaceutical manufacturers produce a variety of pharmaceutical products for human use. These products include prescription pharmaceuticals (patented and generic) that may o...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
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
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
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
While enterprises are present in all states, industry activity is concentrated in Sydney and Melbourne. Victoria and New South Wales account for just under two-thirds of all ...
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 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
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
The basis of competition partly depends on whether the pharmaceutical product is still in patent, out of patent or a generic equivalent. It also depends on whether the produc...
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 2019-2024
- 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
Learn about the performance of the top companies in the industry.
Analyst insights
The local operations of the major global pharmaceutical companies have traditionally dominated the market. However, their influence is waning as they continue to close local ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of GlaxoSmithKline's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of AstraZeneca Holdings's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Aspen Asia Pacific's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 4 additional companies
Detailed analysis
- Description and key data for GlaxoSmithKline, and factors influencing its performance in the industry
- Description and key data for AstraZeneca Holdings, and factors influencing its performance in the industry
- Description and key data for Aspen Asia Pacific, and factors influencing its performance in the industry
- Description, key data and performance trends for 4 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The PBS currently covers 928 medicines marketed as 5,261 differently branded products. The PBS can constrain pharmaceutical manufacturers' performance, as the government uses...
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 (2014-2029)
- Assistance historical data and forecast (2014-2029)
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
Manufacturers' cost structures vary depending on the type of manufacturing activity undertaken. Costs can differ depending on whether the pharmaceutical company manufactures ...
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 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
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 (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Pharmaceutical Product Manufacturing industry in Australia in 2024?
The market size of the Pharmaceutical Product Manufacturing industry in Australia is $12.9bn in 2024.
How many businesses are there in the Pharmaceutical Product Manufacturing in Australia industry in 2024?
There are 583 businesses in the Pharmaceutical Product Manufacturing industry in Australia, which has grown at a CAGR of 4.3 % between 2019 and 2024.
Has the Pharmaceutical Product Manufacturing industry in Australia grown or declined over the past 5 years?
The market size of the Pharmaceutical Product Manufacturing industry in Australia has been declining at a CAGR of 1.5 % between 2019 and 2024.
What is the forecast growth of the Pharmaceutical Product Manufacturing industry in Australia over the next 5 years?
Over the next five years, the Pharmaceutical Product Manufacturing industry in Australia is expected to grow.
What are the biggest companies in the Pharmaceutical Product Manufacturing market in Australia?
The biggest companies operating in the Pharmaceutical Product Manufacturing market in Australia are GlaxoSmithKline, AstraZeneca Holdings and Aspen Asia Pacific
What does the Pharmaceutical Product Manufacturing in Australia include?
Benefit-paid pharmaceuticals and Non-benefit paid pharmaceuticals are part of the Pharmaceutical Product Manufacturing industry.
Which companies have the highest market share in the Pharmaceutical Product Manufacturing in Australia?
The company holding the most market share in Australia is GlaxoSmithKline.
How competitive is the Pharmaceutical Product Manufacturing industry in Australia?
The level of competition is high and increasing in the Pharmaceutical Product Manufacturing industry in Australia.
Related Industries
Widen your competitive advantage with related industries
Competitors
- Industrial Gas Manufacturing in Australia
- Pesticide Manufacturing in Australia
- Veterinary Pharmaceutical Manufacturing in Australia
Complementors
- Sanitary Paper Product Manufacturing in Australia
- Medical and Surgical Equipment Manufacturing in Australia
- Packaging Services in Australia
International industries
- Global Pharmaceuticals & Medicine Manufacturing
- Brand Name Pharmaceutical Manufacturing in the US
- Generic Pharmaceutical Manufacturing in the US
- Vitamin & Supplement Manufacturing in the US
- Pharmaceuticals Packing & Labeling Services in the US
View all industries 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.
