Generic Drugs Market Size & Share Analysis - Emerging Trends, Growth Opportunities, Competitive Landscape, and Forecasts (2025 - 2032)

Generic Drugs Market Trends & Drivers

Shift in Preference toward Generic Drugs is a Major Trend

• The market is experiencing a major shift as government, healthcare providers, patients are continuously giving preference to generic medicined as compared to branded medicines. Generic drugs are gaining attention due to the easy accessibility to necessary medications, minimal healthcare costs, and less burden of chronic diseases globally.
• Globally, governments are executing new policies to amplify the use of generics in public health systems. For example, the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) was launched by Indian government with an aim to offer generic medicines at cheaper rates. Likewise, in U.S., the FDA announced the drug competition action plan to enable patients to access more affordable medications.
• In November 2023, Par Pharmaceutical Inc., one of the operating companies of ssInternational plc has started to ship colchicine 0.6 mg capsules which is a generic version of the Hikma’s Mitigare. Colchicine capsule is the first generic approved by the U.S. Food and Drug Administration.

Growing Prevalence of Collaborations and Partnerships is Another Key Trend

• Numerous pharmaceutical companies are entering into partnerships and collaborations to increase their prominence as suppliers of medications the patents of which have expired in key markets, such as the U.S. and China.
• For example, in April 2024, Bristol Myers Squibb partnered up with Cellares and announced a USD 380M worldwide capacity reservation and supply agreement to produce CAR T cell therapies. Further, in June 2024, Sun Pharma entered into a licensing agreement with Takeda to introduce novel gastrointestinal drug, Voltapraz (Vonoprazan) in India. This will boost their product portfolio as well as market presence.
• Moreover, in June 2023, Samsung Biologics and Pfizer announced strategic collaboration for the long-term production of biosimilars portfolio.

Increasing Aging Population Is Propelling Product Demand

• The increasing aging population is a key factor stimulating the growth of the market. According to a report by the World Health Organization (WHO), people are living longer and the average life expectancy of the population has increased.
• This has led to a huge rise in the geriatric population. As treatment with branded drugs costs a fortune, such patients are expected to prefer low-cost generic variants.

Patent Expiration of Blockbuster Drugs Is Pushing Product Demand

• The rise in non-proprietary drugs’ approvals and their market entry have proved to be beneficial for healthcare systems and patients preferring cost-effective treatments.
• This is due to the low cost of developing such pharmaceuticals results in their lower market prices compared to branded ones.
• This opportunity has been recognized by several pharma companies, which are now waiting for several blockbuster drugs to lose their patents.

Growing Prevalence of Chronic Diseases Is Boosting Demand for Generic Drugs

• The burden of chronic diseases has increased globally. Diseases such as cancer, diabetes, respiratory ailments, and cardiovascular disorder, are increasing the demand for cost-effective treatment options including generic drugs. Generic drugs have become the first choice for treating long-term diseases since they are more affordable and therapeutically equivalent.
• Globally, almost 71% of the deaths because of ischemic heart disease, 70% due to diabetes, and 75% because of stroke occur in LMICs.
• Furthermore, the low health insurance coverage for chronic diseases, such as cancer, chronic obstructive pulmonary disease (COPD), and stroke, in emerging economies has created a high demand for the low-cost generics.

Generic Drugs Market Segmentation and Category Analysis

Type Insights

The simple category is growing rapidly, at a CAGR of 7.3%, during the forecast period, and it is also the largest category. The growth can be due to the increasing preference for this type of non-patented medication due to its lower development cost than the 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.

This segment comprises of three categories:

• Simple (Largest and Fastest-Growing Category)
• Super
• Biosimilars

Application Insights

The infectious diseases category is largest application with a market share of 25% in 2024. It is also expected to lead in generic pharmaceutical sales during the forecast period. This is primarily due to the increasing cases of infectious diseases across the globe because of the growing geriatric population, low immunity because of malnutrition, and poor living conditions.

Further, these applications have been analyzed:

• Neurological Diseases
• Cardiological Diseases
• Metabolic Diseases
• Infectious Diseases (Largest and Fastest-Growing Category)
• Orthopedic Diseases
• Genitourinary/Hormonal Diseases
• Respiratory Diseases
• Others

Route of Administration Insights

The oral category is set to dominate the generic drugs market in the next few years and it is rapidly growing category too. This route of administration is preferred by patients owing to its ease and painlessness. For this reason, a large number of medicines are designed to be administered orally. For example, Accolate, Ciloxan, and Cardura are oral non-patented medications used to treat asthma, eye infections, and hypertension, respectively.

These routes of administration are covered in the report:

• Oral (Largest and Fastest-Growing Category)
• Injection
• Cutaneous
• Mucosal
• Inhalation
• Others

Distribution Channel Insights

The indirect category holds the largest marker share of 80% in 2024 and it is also the fastest-growing category too. This is due to the rising cases of chronic diseases and the rising number of hospitals, clinics, and pharmacies across the globe. For instance, the quick formation of pharmacies and hospitals in developing economies like India and China has boosted the accessibility of generic drugs. In India, currently, there are more than 70,000 hospitals.

There are two types of distribution channel:

• Indirect (Larger and Faster-Growing Category)
• Direct

Generic Drugs Market Geographical Analysis

• Globally, the Asia-Pacific (APAC) region is the largest region with the highest revenue in 2024, and it is expected to maintain its position in the near future. This is majorly ascribed to the growing healthcare expenditure, increasing cases of chronic diseases, government initiatives to promote generics usage, and rising geriatric population.
• In this region, China and India contribute significantly more revenue than the other countries. 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, which is indicative of a huge boom in the demand for non-patented medications.

• India is expected to be the fastest-growing market in the region over this decade. As per the IBEF, India is the top supplier of generic pharmaceuticals in the world. Currently, the Indian pharmaceutical industry is ranked third by volume.
• Moreover, Indian pharmaceutical companies meet more than half the global demand for several vaccines, 40% of the generic demand in the U.S., and 25% of the requirement for all drugs in the U.K.
• There are more than 3,000 pharmaceutical companies and more than 10,500 manufacturing plants in India. India is the 12^th largest exporter of medicines across the world, catering to more than 200 countries and territories. Some of the major areas of focus for pharma companies in the country are drugs with expired patents, over-the-counter medications, bulk pharmaceuticals, and vaccines.
• China dominates the APAC region, and it is expected to remain in the lead during the forecast period. This is due to the China’s healthcare industry transformation, which is visible in the increase in R&D activities, along with production. In this regard, the country’s pharmaceutical industry is driven by the government subsidies and public insurance.
• Moreover, a U.S. Food and Drug Administration (FDA) study has revealed that more than 70% of the API facilities supplying the U.S. market are overseas, with 13% of those located in China. Currently, the country has more than 5,000 pharmaceutical manufacturers and 4,000 API manufacturers.

The regions and countries analyzed for this report include:

• North America
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest and Fastest-Growing Country Market)
  • U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Largest and Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest and Fastest-Growing Country Market)
  • South Africa
  • U.A.E.
  • Rest of MEA

Generic Drugs Market Share

The generic drug market is fragmented in nature as numerous players exist in the market. Many strategies such as mergers and acquisitions, product launch and development, collaborations, and partnership are being adopted widely to beat the competition. The competitive landscape is mainly driven by the rising demand for affordable medicines globally, the expiration of patents for blockbuster drugs, and less barriers for entry.

Generic Drugs Market News & Updates

• In May 2024, Dr. Reddy’s Laboratories Ltd. launched a Doxycycline Capsules (40 mg) in the U.S. market which is generic alternative with equivalent therapeutic effect, approved by USFDA. This has been designed to treat a wide range of bacterial infections.
• In January 2024, SinoT has got approval by Health Canada for its generic Posaconazole delayed-release tablets, used for preventing particular fungal or yeast infections.
• In May 2023, Lupin Pharma Canada Ltd., a Canadian subsidiary of Lupin Limited received approval from Health Canada to market a generic version of Spiriva (tiotropium bromide inhalation powder) for the chronic obstructive pulmonary disease (COPD).
• In March 2023, U.S. FDA approved Abbreviated New Drug Application (ANDA) for Tenofovir Alafenamide Tablets, 25 mg of Lupin Limited which is generic equivalent to Gilead Sciences' Vemlidy Tablets, 25 mg.