The global generic drugs market is anticipated to grow at a CAGR of around 11.1% during the forecast period 2020 to 2027 and to reach around US$ 627.6 Bn by 2027.
Increase government focus on encouraging manufacturers to produce generic drugs with the focus to deliver cost-effective medication to consumers, coupled with an approach towards lowering healthcare spending are major factors expected to drive the growth of the global market. There is a substantial increase in the number of patients suffering from chronic diseases. Also, the percentage of patients not receiving care due to the high cost of services is also increasing. The regulatory bodies are focused on encouraging generic drug development so that patients can access affordable medications. According to the Generic Pharmaceutical Association, generic drugs accounted for 88% of all dispensed retail prescriptions in the U.S in 2014, while consuming only 28 % of total drug spending. The use of generics, where available, is estimated to have saved the U.S. healthcare system US$ 1.68 trillion between 2005 and 2014, with US$ 254 billion saved in 2014 alone. Generic medicines generated US$ 253 billion in savings for patients and taxpayers in 2016. In the last decade, the U.S. healthcare system has saved US$ 1.67 trillion due to the availability of low-cost generics. Savings for the two largest government healthcare programs, Medicare and Medicaid, totaled US$ 77 billion and US$ 37.9 billion, respectively in 2016. That means every Medicare enrollee saved an average US$ 1,883, while every Medicaid enrollee saved an average US$ 512. Introduction of innovative drugs from players is expected to support the growth of generic drugs regional market.
In 2021, Ajanta Pharma Limited, a drug manufacturing company received approval for “Northera (Droxidopa) Capsules” a generic medicine. The medicine is focused on the treatment of orthostatic dizziness or lightheadedness in adult patients with symptomatic neurogenic orthostatic hypotension.
In 2021, Unichem Laboratories Limited, a generic drug manufacturing company received approval for “Otezla (Apremilast) Tablets” a generic drug. The drug is for the treatment of adult patients with moderate to severe plaque psoriasis.
Factors such as stringent government regulations related to product approval and adverse effect of drugs are expected to hamper the growth of global generic drugs market. In addition, lack of awareness among consumers related to generic drugs is expected to challenge the growth of target market. However, high investment by major players, increasing clinical trial activities and rising demand for new generic drugs are factors expected to create new opportunities for players operating in the generic drugs market over the forecast period. In addition, increase in the number of licensing & partnering strategies in order to launch new products is expected to support the revenue transaction of the target market.
Segment Analysis by Region
The market in North America is expected to account for major revenue share in the global market due to increasing awareness of generic medications among consumers. In addition, presence of large number of players operating in the country and introduction of innovative solutions are factors supporting the regional growth.
The market in Asia Pacific is expected to witness faster growth in the generic drugs market in the coming years due to high healthcare spending by the government. Major players approach towards enhancing the business in emerging economies and focus on shifting the manufacturing units to developing countries for the development of low cost products are factors expected to boost the growth of the generic drugs market. According to India Brand Equity Foundation, India is the largest provider of generic drugs globally. Indian pharmaceutical sector supplies over 50% of global demand for various vaccines, 40% of generic demand in the US, and 25% of all medicine in the UK.
The global generic drugs market is high highly competitive due to presence of large number of players and innovative product offerings. In addition, business expansion activities through partnerships and agreements are factors expected to further increase the competition.
Global Generic Drugs Market
2016 – 2027
2020 – 2027
Product Type, Application, Route Of Administration, Distribution Channel and
North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling,
Generic Drugs Market Segment Analysis, 2019
The global generic drugs market is segmented into product type, application, route of administration, and distribution channel. The application segment is bifurcated into cardiovascular products, anti-infective drugs, anti-arthritis drugs, central nervous system drugs, anti-cancer drugs, respiratory products, and others. Among applications, the anti-cancer drug is expected to witness faster growth in the generic drugs market. The distribution channel segment is divided into hospitals, pharmacies, and others. Among distribution channel the hospital segment is expected to account for major revenue share in the global market. Players operating in the global generic drugs market are Abbott Laboratories, Teva Pharmaceutical Industries Ltd., ALLERGAN, Sandoz International GmbH, Mylan N.V., STADA Arzneimittel AG, Baxter International Inc., Eli Lilly and Company, GlaxoSmithKline Plc., and Pfizer Inc.
Market By Product Type
Market By Route of Administration
Market By Application
Central Nervous System Drugs
Market By Distribution Channel
Market By Geography
• Rest of Europe
• South Korea
• Rest of Asia-Pacific
• Rest of Latin America
Middle East & Africa
• South Africa
• Rest of Middle East & Africa
The global generic drugs market in 2027 is expected to be above US$ 627.6 Bn.
The CAGR of the global generic drugs market from 2020-2027 is above 11.1%.
In the global market the Asia Pacific region is expected to grow faster.
Increase government focus on encouraging manufacturer to produce generic drugs with the focus to deliver cost-effective medication to consumers, coupled with approach towards lowering the healthcare spending are major factors expected to drive the growth of global market.
In product type the simple generics segment is growing at faster pace.
Some of the players considered in the report scope are Abbott Laboratories, Teva Pharmaceutical Industries Ltd., ALLERGAN, Sandoz International GmbH, and Mylan N.V.
The North America is expected to account for major revenue share in the global market.