USD 416.86 Billion
Generic Drugs Market Size, Share, Growth Analysis, By Type(Simple Generics, Super Generics), By Brand(Pure Generic, Branded Generic), By Indication(Central Nervous System (CNS), Cardiovascular, Dermatology, Oncology), By Route of Administration(Oral, Topical, Parenteral, Others), By End-Users(Hospitals, Homecare, Specialty Clinics, Others), By Distribution Channel(Hospital Pharmacy, Online Pharmacy, Retail Pharmacy), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG35J2094 |
Region:
Global |
Published Date: September, 2024
Pages:
157
|Tables:
65
|Figures:
75
Generic Drugs Market Insights
Generic Drugs Market size was valued at USD 621 Million in 2022 and is poised to grow from USD 681.86 Million in 2023 to USD 1440.50 Million by 2031, growing at a CAGR of 9.8% during the forecast period (2024-2031).
Generic drugs are similar in chemical composition to their reference branded drugs however they are cheaper which makes them more attainable than the brand-name medications. The increasing incidence of chronic diseases has enhanced the need for low-cost drugs, particularly driving the generic drug market. Cost advantage in comparison to the branded counterparts is a key factor contributing to its adoption in developing and developed economies.
The FDA grants patent and exclusivity protection to the developer of the branded drug to be able to benefit from their research and innovation for a period of a few years. During this period there are too many competitors for the brand and no generic products can enter the market. However, once the patent has expired generic drugs can enter the market through a fast-track FDA approval process. Generic medications must meet the same quality, safety, and efficiency standards as branded ones. Moreover, the expirations of expiring patents of high value drugs have led to an increase in the development of generic drugs, which also drives market growth.
US Generic Drugs Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Pure
Fastest Growth
Pure
Growth Rate
5.4% CAGR
Global Generic Drugs Market ($ Bn)
Country Share for North America Region (%)
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Generic Drugs Market Segmental Analysis
Global Generic Drugs Market is segmented Type, Brand, Indication, Route of Administration, End-Users, Distribution Channel, and region. Based on Type, the market is segmented into Simple Generics, and Super Generics. Based on Brand, the market is segmented into Pure Generic, and Branded Generic. Based on Indication, the market is segmented into Central Nervous System (CNS), Cardiovascular, Dermatology, Oncology, and Respiratory Others. Based on Route of Administration, the market is segmented into Oral, Topical, Parenteral, and Others. Based on End-Users, the market is segmented into Hospitals, Homecare, Specialty Clinics, and Others. Based on Distribution Channel, the market is segmented into Hospital Pharmacy, Online Pharmacy, and Retail Pharmacy. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Generic Drugs Market Analysis by Type
The small-molecule generic drugs segment accounted for the leading share of the market revenues in 2023. Generic small-molecule drugs are increasingly used globally as they are drastically cheaper than their branded alternatives. The development of generics is also not hindered by the necessity for comprehensive animal and clinical trials, which saves time and resources on the research and development side of the issue. The production of super generics takes things one step further by adding to the improved effectiveness of treatment the ability for the patient to more easily adhere to their treatment regimen. With such benefits, the market for small-molecule generics is likely to only grow in the future and contribute to the increase in the number of generic drugs produced.
The biosimilar segment is expected to be the fastest-growing segment over the forecast period. A biosimilar is a biological product that is similar to an FDA-approved biological product, which is the reference product, and there are no clinically meaningful differences in terms of the safety and effectiveness of the reference product. The key driver augmenting the growth of investment in biosimilars is the large reference product market since the market for monoclonal antibodies is large. As substantial sales of the reference product enable the manufacturers of biosimilars to official market their products. In the case of plant-based biosimilars, the cost price point is lowered as a few known manufacturing companies dominate the market.
Generic Drugs Market Analysis by Indicators
The largest revenue share of the generic drugs market is held by the central nervous system segment, which is not surprising in the context of continually high rates of neurological disorders. For conditions such as epilepsy or depression and anxiety, proper disease management often requires a lifetime medication. Consequently, as the patents of branded CNS drugs expire, their generic versions become more widely available and cost-effective, assisting ongoing patient care in the field. Keeping in mind that lower income regions can present costs as the major limiting factor in patient treatment, the affordability factor is crucial. Moreover, moving forwards, the growing market will also benefit from future generics likely developed to increase drug efficacy or patient compliance.
During the forecast period, it is expected that the cancer segment will record the fastest growth owing to the statistics concerning the disease. The World Cancer Research Foundation International in 2020, reported that there were an estimated 18.1 million new cancer cases globally with 8.8 million representing women and 9.3 million representing men. Additionally, the loss of exclusivity of oncology products is expected to spur the growth of the market, whereby the leading manufacturers are currently offering biosimilar oncology products of trastuzumab, bevacizumab, and rituximab, among others.
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Generic Drugs Market Regional Insights
North America accounts for the largest demand share in terms of revenue with the US market a major demand hub in the region. The US is the home to some of the major pharmaceutical companies such as Pfizer Inc., Merck and Co. Inc., and Amgen Inc. Pharmaceutical giants are influencing both physicians and patients through a varied range of specialized products. In demand in North American is high due to key factors such as spike in chronic liver diseases, drastic change in the lifestyles and increased consumption of alcohol and tobacco in the US. Canada is witnessing rising demand for biosimilars, driven by increasing cases of breast cancer.
Asia Pacific is the fastest growing region in the generic drug market. With its population that only continues to grow, increasing necessity in healthcare, and efforts to minimize the costs, the Asia-Pacific region has seen considerable interest in the use of generic medication for efficient and affordable healthcare. Many countries in Asia Pacific have clear targets set by the government to increase the sales of generic drug. As a result, in many countries over 70% of all issued prescriptions are generics. Established pharmaceutical industry is another reason vendors from the region have such many drugs in their portfolios and a major reason why they are the top players in the world generics manufacturing.
Global Generic Drugs Market By Geography
- Largest
- Fastest
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Generic Drugs Market Dynamics
Generic Drugs Market Drivers
Growing Cases of Chronic Diseases
- As of 2021, there were more than 10.1 million cases of cancer in men and 9.3 million cases in women. In addition, there were over 350 million people diagnosed with arthritis worldwide and the number is expected to grow as a result of the increase of the elderly population. Increasing prevalence of chronic diseases is expected to add to the need for quality health services, which would result in the growth of the generic drugs market across the forecast period.
Implementation of Automation in Manufacturing
- Robotic process automation (RPA) leverages artificial intelligence technology to automate routine, rules-based activities. The market’s leading operational players can devote more time, energy, and assets to this automation on higher value opportunities. One of the most significant developments in the market for generic brands that is projected to gain traction over the upcoming years is the use of RPA to ensure compliance with applicable regulations and standards. The RPA and other business process automation tools to execute high-volume R&D and production activities are frequently used by life sciences companies such as pharmaceutical firms.
Restraints
Strict Regulation on Pharmaceutical Products
- One of the main factors that inhibit the growth of generic drugs is the rigorous regulations as the FDA evaluates the precision, side effects, and other substances used in generic pharmaceuticals. The manufacturers must withdraw pharmaceutical drugs if the providers do not follow the standards required. Due to severe governmental regulations, approval is required for generic pharmaceuticals, which is expected to affect the growth of the market.
Lack of Trust on Brands and Quality Standards
- Many stakeholders, including some patients and healthcare providers, may have issues with the quality, effectiveness, and safety standards of generic drugs compared to some brand-name drugs. Thus, to ensure that more people are accepting generic drugs, it is essential to build trust and assure stakeholders. Failure to build trust on generic drugs will lead to a lack of their market expansion.
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Generic Drugs Market Competitive Landscape
The situation in the generic drugs market is very competitive because of the presence of large number of players focusing on cost efficiency and market penetration. There are several leading companies who are the major market dominators due to their large product lines and global presence. These organizations possess strong manufacturing possibilities and perform a number of strategic partnerships to retain their position. In addition, the existence of considerable numbers of new players and local manufacturers in the developing regions such as Asia-Pacific lead to the necessity to compete. It is also significant to remember that new medications become harder to launch as off-patent originator products because they are more difficult to develop, produce, and sell.
Generic Drugs Market Top Player’s Company Profile
- Teva Pharmaceuticals Industries Ltd., (Israel)
- Novartis AG, (Switzerland)
- Pfizer Inc., (US)
- Sun Pharmaceutical Industries Ltd., (India)
- Fresenius SE & Co. KGaA.(Germany)
- Lupin (India)
- Endo International plc., (Ireland)
- Aurobindo Pharma (India)
- Novartis AG (Switzerland)
- Hikma Pharmaceuticals PLC. (UK)
- STADA Arzneimittel AG (Germany)
- Eli Lilly and Company (US)
- Aspen Holdings (South Africa)
- Dr. Reddy’s Laboratories Ltd. (India)
- Zydus Cadila (India)
- Amgen Inc. (US)
- Boehringer Ingelheim (Germany)
- Baxter International Inc. (US)
- MediGene AG (Germany)
- Alvogen (US)
- Sandoz International GmbH (Switzerland)
- Bristol-Myers Squibb Company (US)
- Recordati Industria Chimica e Farmaceutica S.p.A. (Italy)
Generic Drugs Market Recent Developments
- In June 2024, Teva Pharmaceuticals introduced the US-licensed generic of Victoza, which is liraglutide injection 1.8mg. It is used to treat type 2 diabetes and works to control blood sugar levels and reduces the possibility of strokes and cardiovascular diseases.
- In May 2024, Novartis strengthened its pipelined portfolio of radioligand therapy by acquiring Mariana Oncology, which is a US-based biotech firm specializing in radioligand therapy. It also got various radio ligand therapy programs and the preclinical phase of the technology.
- In May 2023, Lupin Pharmaceuticals Canada’s, Latin America, and Europe generic segment received approval for its generic version of tiotropium bromide inhalation powder, Spiriva, from Health Canada in Canada.
Generic Drugs Key Market Trends
- Growing Production and Consumption of Generic Drug in India: As one of the top pharmaceutical markets in the world, India hosts several of the world’s leading pharma companies. India’s pharma industry lauded as 3rd in the world by volume and 14th by value, according to Invest India, India’s official agency for Investment Promotion and Facilitation, and has more than 3,000 pharmaceutical companies and over 10,500 factories. Additionally, India boasts the most US-FDA approved pharma plants outside of the US.
- Government Initiatives: Many governments are trying to control the prices of pharmaceutical drugs to promote the use of generic drugs by enacting several policies and initiatives. The growth of generic drugs is expected to benefit by these initiative as it tries to mitigate the healthcare expenditures in the respective countries by ensuring that their populations have access to essential medications.
Generic Drugs Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the key factors affecting the growth of the generic drug industry at this time is being a low-cost alternative to name brand medications. Other major drivers that will likely boost the growth of this industry soon include an increased use of robotic process automation, as well as several global industry leaders enjoying lucrative growth prospects. Robotic process automation, or RPA, applies artificial intelligence, or AI technology, to normal, rule-based tasks; as it handles normal tasks for many key operational companies in the target market, it enables those companies to spend more time, attention and capital on higher value tasks.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 621 Million |
| Market size value in 2031 | USD 1440.50 Million |
| Growth Rate | 9.8% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Million |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Generic Drugs Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Generic Drugs Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Generic Drugs Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Generic Drugs Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Generic Drugs Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Generic Drugs Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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