Many people use the terms drugstore and pharmacy interchangeably and they would not necessarily be wrong. Strictly speaking however, a stand-alone pharmacy primarily sells prescription-only drugs but they also sell OTC drugs. A drugstore on the other hand sells OTC drugs, other medical health products, beauty products, dietary supplements and toiletries. These days a drug store is more like a convenience store where magazines, condoms, pregnancy kits, home drug test kits, ice cream, snack items and various other consumer goods are sold. The bigger drugstores will often have a separate Pharmacy counter for dispensing prescription drugs.
The Pharmacy and Drug Store industry includes all stores that retail prescription and OTC medications, health and beauty items and a wide range of consumer goods directly to consumers on a walk-in basis. The industry includes other types of retail stores that house a pharmacy, but hospitals, clinics and mail-order/online retailers are not included.
The US Drugstore/Pharmacy Industry
In the United States, drugstores generate revenues from the sale of prescription drugs, OTC meds, health and beauty products and other merchandise. By the number of stores distributed all over the United States, the 3 largest drugstore companies are WBA (Walgreens Boots Alliance), CVS (CVS Health), and RAD (Rite Aid). Together these 3 companies account for over 75% of the US pharmacy market share. The rest of the market is shared by non-US drugstore chains (Rexall, Shoppers Drug Mart, China Nepstar) and emerging competition from the grocery segment players like Walmart which operates pharmacies in its 4,000 stores nationwide, Kroger (2,000 pharmacies) and Costco. Target’s 1,700 pharmacies were recently sold to CVS.
In 2014, Walgreens raked in $49 billion in revenues from prescription drugs alone, with CVS a close second at $45.6 billion. If the pharmacy and drugstore industry makes this much from prescription drugs alone, how much more can they make from ramping up their marketing of other items like the OTC drug tests for example? If the revenue from prescription drugs is anything to go by, the revenues from home drug test kits to detect prescription and other drugs (legal or otherwise) must be substantial as well.
Revenue Projections for the Drug and Alcohol Testing Market
It is expected that the drug and alcohol testing market will reach $6.3 billion by 2019, a CAGR (compound annual growth rate) of 9.5% from $4 billion in 2014. Major observations/projections from the 2014 numbers are as follows:
- The urine testing segment accounted for the largest share.
- It is projected that the breath sample segment will grow at the highest CAGR considering that it is the most common test performed for DUI cases. This increase in breath testing is driven by the rise in roadside accidents and the government’s initiatives to curb DUIs.
- The oral fluid segment or saliva drug testing has gained prominence in the market due to the non-invasive nature of the sample collection procedure which can be performed under direct observation, hence preventing sample adulteration.
- Based on region, North America dominates the market, followed by Europe, Asia-Pacific and the rest of the world. Asia Pacific is expected to see the highest growth in this market.
OTC Drug Tests
Market growth projections for the drug and alcohol testing market are very promising. These are exciting times and the drugstore and pharmacy industry is in a unique position to capture a sizable chunk of that market.
Capitalizing on this projected growth can initially mean ramping up marketing efforts for store-bought drug tests, making sure a wider array of choices than before are prominently displayed for the public to take notice. Many drugstores and pharmacies already carry home drug test kits but consumers do not always find their brands of choice or are not offered enough options to choose from. How can a customer buy something that’s not right there when they’re out shopping?
Why Choose Confirm BioSciences?
Urine Drug Tests
- Urine test cups – These products are very convenient to use and thus, have become highly popular. Sample collection and integrated testing are easy to perform, with quick and accurate results. These multi-panel urine tests can detect different combinations of up to 19 substances including Alcohol, Amphetamines, Barbiturates, Benzodiazepines, Buprenorphine, Cocaine, EDDP, Fentanyl, Marijuana, Methadone, Morphine, Methamphetamine, Ecstasy, Opiate, Oxycodone, PCP, PPX, Synthetic Marijuana, and TCA.
- Urine test dip cards – Dip cards offer an affordable solution for organizations who buy drug tests in bulk. They are as easy to use as urine test cups and are just as reliable. They are capable of detecting Alcohol, Amphetamines, Barbiturates, Benzodiazepines, Buprenorphine, Cocaine, Ecstasy, Fentanyl, Marijuana, Morphine, Methamphetamine, Methadone, Oxycodone, Phencyclidine, Propoxyphene and Synthetic Marijuana.
Other Types of Drug Testing
- Saliva Drug Tests – These tests have risen in popularity in recent years largely due to their ease-of-use and improved accuracy. Mouth swabs can detect drugs for up to 2 days after use, depending on the substance used including marijuana, cocaine, heroin other less common illicit drugs and prescription drugs.
- Hair Drug Tests – Hair drug tests are favored when long-term drug use needs to be established. These tests provide a substance use profile of up to 90 days prior to sample collection. These tests are highly accurate, more sensitive than even urine or saliva testing.
- Nicotine/Tobacco Tests – These tests can detect recent tobacco use through pipe tobacco, cigars, cigarettes and smokeless tobacco. They are very simple to use and highly accurate.
- Steroid Drug Test – These tests are typically used by sports organizations, schools and workplaces to stem abuse of anabolic steroids. They are easy to use and very affordable.
- Synthetic Drug Tests – These tests detect synthetic cannabinoids (K2/Spice) and bath salts. They are especially useful to parents who wish to test their children for these substances which are easy to obtain from smoke shops and convenience stores.
Confirm BioSciences can help drugstores and pharmacies gain a stronger foothold on the alcohol and drug testing market in anticipation of the expected revenue growth in the coming years. Please ask about our bulk pricing from our highly efficient customer representatives. We are always happy to help.