Generic Drugs Market To Generate Revenue Worth $786 Billion by 2030

  • Published: March 2021

The increasing ageing population, surging number of branded drugs losing their patient protection, growing prevalence rate of chronic diseases, and rising R&D investments by pharma and biotech companies are some of the main factors positively impacting the growth of the global generic drugs market. Due to the aforementioned factors, the market is projected to grow at a CAGR of 10.0% during the forecast period (2020–2030), to reach $786.0 billion by 2030.

Due to the ongoing COVID-19 pandemic, the generic drugs market has been positively impacted. This is due to the high demand for pharmaceutical drugs from patients and healthcare systems. Moreover, several key players in the market continued their normal operations and serve the patients, across the globe. For instance, Sun Pharmaceutical Industries Limited has ensured the supply chain protection and optimal use of production sites, while following social distancing regulations. This is done by recruiting workforce in shifts and obeying government regulations on sanitization of transport vehicles as well as products.

Infectious Category Dominated the Industry

Based on application, the generic drugs market is categorized into cardiological diseases, infectious diseases, neurological diseases, respiratory diseases, metabolic diseases, orthopedic diseases, genitourinary/hormonal diseases, and others. Amongst these, the infectious category dominated the market during the historical period (2014–2019), due to the highest prevalence rate of infectious diseases across the globe.

Based on type, the generic drugs market is categorized into simple, super, and biosimilars. Among these, the simple category led the market during the historical period. This is majorly attributed to the growing preference for this type of generics, due to its low cost and low risk, as compared to other types.

Based on route of administration, the generic drugs market is categorized into oral, injection, cutaneous, mucosal, inhalation, and others. Amongst these, the oral category is expected to witness the fastest growth in the forecast period. This is ascribed to the growing adoption of this route by patients, due to its benefits such as pain avoidance and ease of administration for kids as well as for adults.

Based on distribution channel, the generic drugs market is bifurcated into indirect and direct. Between the two, the indirect channel accounted for larger share in 2019. This is due to the increasing cases of chronic as well as acute diseases and the rising number of hospitals, clinics, and pharmacies, across the globe.

Geographically, the Asia-Pacific (APAC) region held the largest share in the generic drugs market in 2019, and is predicted to witness the same trend during the forecast period. This is attributed to the rising geriatric population, growing healthcare expenditure, increasing cases of chronic diseases, and government initiatives to promote generics usage.

Industry Players Involving in Product Launches and Approvals to Expand their Position

The players in the global generic drugs market are actively involved in product launches and approvals to gain a competitive edge over others. For instance, in October 2020, Amphastar Pharmaceuticals Inc. announced that the U.S. Food and Drug Administration (USFDA) approved its abbreviated new drug application (ANDA) for Atropine Sulfate injection 0.1 mg/mL in the 10 mL Luer-Jet prefilled syringe system. Similarly, in October 2020, Dr. Reddy’s Laboratories Ltd. launched the generic version of Sapropterin Dihydrochloride tablets, for oral use.

Some of the key players operating in the market include 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.