Pharmaceuticals Market Size, Share, Growth Analysis, By Type(Pharmaceutical Drugs; Biologics), By Distribution Channel(Hospital Pharmacies, Drugs Stores & Retail Pharmacies, Online Pharmacies), By Region(North America, Europe, Asia-Pacific, South America), By Region - Industry Forecast 2024-2031

Pharmaceuticals Market size was valued at USD 209.85 billion in 2019 and is poised to grow from USD 222.4 billion in 2023 to USD 352.98 billion by 2031, growing at a CAGR of 5.9% in the forecast period (2024-2031).

The Pharmaceuticals market is fragmented, and the vendors are deploying organic and inorganic growth strategies to compete in the market. Companies are working on new product launches and other initiatives to provide better equipment to their customers and expand their companies globally. These industry leaders are expanding their client base in a variety of ways, and many organizations are forming strategic and creative partnerships with other start-up businesses to increase market share and profitability. 'Abbott Laboratories', 'AbbVie Inc.', 'Amgen Inc.', 'AstraZeneca PLC', 'Bayer AG', 'Biogen Inc.', 'Bristol Myers Squibb Company', 'Eli Lilly and Company', 'Gilead Sciences Inc.', 'GlaxoSmithKline PLC', 'Johnson & Johnson', 'Merck & Co., Inc.', 'Novartis International AG', 'Pfizer Inc.', 'Roche Holding AG', 'Sanofi SA', 'Takeda Pharmaceutical Company Limited', 'Teva Pharmaceutical Industries Ltd.', 'Valeant Pharmaceuticals International, Inc.', 'Vertex Pharmaceuticals Incorporated'

The population profile of most countries is aging. According to the Bureau of Census, the proportion of the world's population aged 65 and over has increased from 8% in 2015 to 9% in 2021. This is an important driving force for the market. Improved living standards combined with a constantly expanding net population are causing a massive change in demography, with many nations facing a substantial increase in the percentage of old residents. Indeed, the United Nations predicts a 56% growth in the 60-plus age group between 2015 and 2030. While longer lifespans provide several benefits to individuals and society, they exert tremendous strain on healthcare systems. Age-related disorders are becoming increasingly prevalent as our population ages, necessitating the development of new and more effective treatments. Pharma innovation is vital to bring these novel therapies to market, and recent advancements in nanotechnology and artificial intelligence provide particularly exciting prospects for addressing this significant unmet medical need. Furthermore, the increase in the patient pool has driven the demand for medicines to treat these diseases and has had a significant impact on market growth during this period.

Companies have reorganized their businesses and are recovering from the effects of COVID-19. This previously led to limited containment measures due to social distance, telework, and closure of business activities, leading to business challenges.

With about 46% of the market share, North America was the largest market for pharmaceuticals in the pharmaceuticals market in 2021. The Asia Pacific was the second largest region making up more than 26% of the pharmaceuticals market. Although the need for medicines is much greater in Africa, it holds the smallest market share in the pharmaceuticals market.