Published: March 2021 | Report Code: LS12164 | Available Format: PDF | Pages: 203
The global generic drugs market was valued at $278.4 billion in 2019, which is projected to progress at a CAGR of 10.0% during the forecast period (2020–2030). The major factors responsible for the growth of the market include rising geriatric population, increasing number of patent expiration of branded drugs, surging cases of chronic and acute diseases, and growing R&D expenditure of biotech and pharma companies.
Due to the COVID-19 pandemic, the generic drugs market has been positively impacted. This is owing to the crashing economies of various nations, due to increasing rate of unemployment, which, in turn, has increased the demand for low-cost substitutes of pharmaceutical drugs. Moreover, strategic measures have been taken by key players to ensure the supply of generic drugs in the market. For instance, Sandoz International GmbH has enhanced its manufacturing capacity to maintain the supply of generic medicines for patients.
Based on type, the simple category is expected to witness the fastest growth, in the generic drugs market, during the forecast period. This can be attributed to the rising preference for this type of generics, due to its low development cost over other types. Moreover, this type has larger acceptance among patients and doctors, due to its known mechanism of action and predefined efficacy and safety profile.
Based on application, the infectious diseases category led the generic drugs industry during the historical period (2014–2019), and it is expected to retain its position in upcoming years. This is majorly due to the rising cases of infectious diseases across the globe.
Based on route of administration, the oral category dominated the generic drugs market in the historical period. This is owing to the huge preference for this route by patients, due to its ease of administration and pain avoidance.
Based on distribution channel, the indirect category dominated the generic drugs market in the historical period and is expected to maintain the lead in the forecast period as well. This is attributed to the surging cases of chronic diseases and the rising number of hospitals, clinics, and pharmacies, across the globe.
The Asia-Pacific (APAC) region generated the largest share in the generic drugs market in 2019, and is expected to maintain its position in coming years. This is majorly ascribed to the rising geriatric population, growing healthcare expenditure, increasing cases of chronic diseases, and government initiatives to promote generics usage. For instance, according to the United Nations Population Fund (UNFPA), one in four individuals in APAC will be over 60 years of age by 2050.
Many pharmaceuticals companies are witnessing partnerships and collaborations to enhance their generic drugs industry share in key markets such as the U.S. and China. As the time and cost involved in developing generic drugs is very less, as compared to that of a new drug, the companies are receiving maximum profit by its generic business. For instance, in September 2019, Eisai Co. Ltd. and Nichi-Iko Pharmaceutical Co. Ltd. entered into a collaborative agreement to sell generic drugs in China. Both companies aim to increase their customer base for generic drugs in the country, as it is the second-largest pharmaceutical market in the world.
Increasing ageing population is a key factor stimulating the growth of the generic drugs market. According to a report by the World Health Organization (WHO), people are living longer and average life expectancy of the population has increased. This has led to a huge growth in the world geriatric population. As treatment with branded drug costs a fortune, patients are expected prefer low-cost generic drugs, leading to the growth of the market.
Increasing demand for low-cost generics over expensive branded drugs has been recognized by several pharma companies, which are waiting for several blockbuster drugs to lose their patents. The expiration of patents of some of the highly sold-out drugs has given a thrust to the growth of the generic drugs market. For instance, DULERA, which is marketed by Merck Sharp & Dohme Corp., lost its patent protection in December 2020; and FORADIL, a drug marketed by Novartis AG, lost its patent in November 2020.
The burden of chronic diseases has increased globally. According to the WHO, in 2020, chronic illnesses claim up to three quarters of deaths worldwide. Among all deaths due to chronic illnesses, in developing countries, 71% of deaths occur because of ischemic heart disease, 70% of deaths due to diabetes, and 75% of deaths because of stroke. Moreover, low health insurance coverage for chronic diseases, such as cancer, chronic obstructive pulmonary disease (COPD), and stroke, has created high demand for low-cost generic drugs.
|Base Year (2019) Market Size||$278.4 Billion|
|Forecast Period CAGR||10.0%|
|Report Coverage||Market Trends; Revenue Estimation and Forecast; Segmentation Analysis; Regional Breakdown; Competitive Analysis; Companies’ Strategic Developments; Product Benchmarking; Company Profiling|
|Market Size by Segments||By Type; By Application; By Route of Administration; By Distribution Channel; By Region|
|Market Size of Geographies||China; India; Japan; South Korea; Australia; U.S.; Canada; Mexico; Brazil; Germany; U.K.; France; Russia; Spain; Italy; Saudi Arabia; South Africa|
|Secondary Sources and References (Partial List)||Association for Accessible Medicines; Canadian Generic Pharmaceutical Association; Centers for Disease Control and Prevention; European Generic Medicines Association; Indian Drug Manufacturers Association; Innovative Pharmaceutical Association of South Africa; Medicines for Europe; Mexican Association of Generic Medicines|
The global generic drugs market has the presence of various key players, such as Cipla Ltd., Dr. Reddy’s Laboratories Ltd., Alkem Laboratories Limited, Teva Pharmaceutical Industries Limited, Mylan N.V., Lupin Limited, Endo International plc, and Aurobindo Pharma Limited.
In recent years, the players in the generic drugs market have been actively involved in product launches and approvals to cut through the strong market competition.
The global generic drugs market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Type
Based on Application
Based on Route of Administration
Based on Distribution Channel
The generic drugs market revenue is expected to reach $786.0 billion by 2030 from $278.4 billion in 2019.
The generic drugs industry is dominated by oral medications because they are easy to take and their administration is painless.
APAC generates the highest revenue in the generic drugs market.
The generic drugs industry report has five segments: type, application, route of administration, distribution channel, and region.
The competitive landscape of the generic drugs market is characterized by product launches.
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