Generic Drugs Market (Drug Type: Simple Generics and Super Generics; By Brand: Pure generic drugs and Branded generic drugs; By Route of Drug Administration: Oral, Topical, Parental, and Others; By Therapeutic Application: Central nervous system (CNS), Cardiovascular, Dermatology, Oncology, Respiratory, and Others; By Distribution Channel: Hospitals Pharmacies, Retail Pharmacies, and Others) - Global Industry Analysis, Market Size, Share, Growth, Trends, Region Outlook, And Segment Forecasts, 2022 - 2030


The global generic drugs market size was valued at USD 439.37 billion in 2022 and projected to hit around USD 670.82 billion by 2030, growing at a CAGR of 5.4% over the forecast period 2022 to 2030.

Generic Drugs Market Size 2022 to 2030

Key market Insights:

Global generic drugs industry is expected to rise at substantial CAGR during the forecast era. The low cost of generics, as an alternative to branded drugs is major factor expected to fuel growth of the target industry in the near future. Additionally, increasing use of RPA to ensure regulatory and standards compliance can create lucrative growth opportunities for the key players operating in the global market. The use of artificial intelligence (AI) technology to automate routine, rules-based processes is robotic process automation. Through this automation, key operating players in the target market are capable to devote more time, energy, and capitals to advanced value tasks. The use of RPA to ensure compliance with regulatory and standards is one of the major trends in the market for generic brands that will gain traction in the coming years. Company process automation systems such as RPA are commonly used by pharmaceutical firms to conduct high-volume R&D and production activities. RPA technology includes software that logs into programs, enters data, measures and completes the necessary activities, and logs out. It aims to ensure conformity with laws and requirements, to complete procedures at a faster speed and to reduce costs.

Crucial factors accountable for market growth are:

  • The low cost of generics as an alternative to branded drugs
  • Large number of patents expired branded drugs
  • Initiatives by governments and other regulatory bodies across the globe

COVID-19 to Impact Pharma Supply Chain

As the COVID-19 pandemic continues to spread over the world, the global pharmaceutical supply chain is likely to be jeopardized in the coming months. The pharmaceutical business has been disrupted by widespread city lockdowns in China, as well as ongoing airfreight problems, particularly in countries that rely on Chinese raw supplies. These raw materials are known as Active Pharmaceutical Ingredients (APIs) in the pharmaceutical business, and they are chemical compounds that are used to build a final medication product. The US Food and Medicine Administration (FDA) confirmed the first occurrence of a drug shortage owing to an API manufacturer being affected by the COVID-19 outbreak in China on February 27, 2020, albeit particular facts about the drug in question were not revealed due to confidentiality concerns.

During the COVID-19 epidemic, raw materials were scarce due to manufacturing halts and labor constraints, exposing the pharma industry's reliance on China. The country contributes significantly to worldwide API production and intermediate manufacturing. China accounts for 20% of global API output, according to the World Health Organization, while many healthcare organizations believe the proportion is double. According to the FDA, between 2010 and 2019, the number of registered facilities manufacturing APIs for US pharmaceutical companies in China more than doubled, owing to labor availability and economic benefits.

While Shanghai is home to several large international pharmaceutical businesses including Bristol-Myers Squibb, Roche, and Ajinomoto, Zhejiang province, just south of Shanghai, is home to the most pharmaceutical manufacturing facilities that export to the US and EU markets. The following graph indicates that the FDA has more facilities approved in certain regions than the EU, although both organizations have similar regulatory standards. The claim is consistent with FDA records from August 2019, which claimed that 72 percent of API manufacturing facilities for the US market were located outside of the country, with 13 percent in China.

Resuming operations does not always imply a resumption of full production: some companies have reported capacity utilization rates of up to 80%. Raw material supply continues to be limited since suppliers have not yet completely ramped up operations. Furthermore, manufacturers face challenges due to a workforce scarcity, since some employees are still stranded in their hometowns due to travel restrictions between Wuhan and other cities, at least until April 8, when Wuhan is expected to remove its lockdown completely and resume all transit.

COVID-19 Impact on Global Generic Drugs Market

The outburst of COVID-19 has affected most of the world's main markets, generic drugs market is no exception. The Covid-19 pandemic has influenced leading countries across the world including China, India, the U.S., and other nations. Upsurge in the cost of raw materials and drugs owing to supply chain disruption, lockdown situations has affected growth of the generic drugs industry. This is due to; around 13% of brand and generic manufacturers are based in China and 24% of medicines and 31% of medicinal ingredients were imported from India.The pharmaceutical supply chain is easily broken and the impact of Covid-19 has taken it to the fore once again. The API plant for these is often overseas, with India and China dominating the API market. The API can be produced in a single plant and, at each level, has very little inventory. However, COVID-19 is gradually solving the problem, with most businesses starting their facilities at full capacity.

Report Scope of the Generic Drugs Market

Report Highlights Details
Market Size US$ 670.82 Billion by 2030
Growth Rate CAGR of 5.4% From 2022 to 2030
Base Year 2021
Historic Data 2017 to 2021
Forecast Period 2022 to 2030
Segments Covered Drug, Brand, Route of Drug Administration, Therapeutic Application, Distribution Channel
Regional Scope North America, Europe, Asia Pacific, Latin America, Middle East & Africa (MEA)
Companies Mentioned Mylan N.V., Abbott Laboratories, ALLERGAN, Teva Pharmaceutical Industries Ltd., Eli Lilly and Company, STADA Arzneimittel AG, GlaxoSmithKline Plc., Baxter International Inc., Pfizer Inc., Sandoz International GmbH

 

Future of Global Generic Drugs Market

Major companies of the global industry including Abbott Laboratories and Teva Pharmaceutical Industries Ltd. are pointing towards commercial growth by adopting strategies like mergers and acquisitions, heavy investments in the manufacturing facilities that is predictable to flourish the global market growth in next few years. This trend is probable to continue and will augment growth of thetarget industry in the near future. For instance, in August 2016, Teva Pharmaceutical Industries Ltd. acquired Anda, a wholesale distributor of pharmaceutical products in the United States.

Brand Insights

The pure generics segment accounted largest revenue share 52.6% in 2020. Emerging markets can be challenging for pharmaceutical companies that are more accustomed to operating in developed markets, but understanding the unique problems these markets present may distinguish winners from losers, especially as the competitive battlefield becomes more global. Emerging markets are home to more than 70% of the world's population, cover 46% of the planet's surface, and generate 31% of global GDP. As a result, they are the industry's next great growth engine.

  • In terms of revenue, the pure generics segment was contributed USD 220.26 billion in 2021 and registering a CAGR of 4.8% from 2022 to 2030. 

Branded generics, on the other hand, are given names to increase consumer recognition and loyalty. Cryselle, for example, is a brand-name generic contraceptive pill. To improve the possibility of patients requesting it by name, it is referred to as Cryselle rather than its generic name (norgestrel and ethinyl estradiol). To achieve cost savings, formulary administrators must examine the drugs on their formularies regularly. Branded generics, like generics, offer a cost-effective alternative to branded medications. When it comes to ways that PBMs avoid complete disclosure of their revenues, there is some friction between formulary managers and PBMs. Some pharmacy benefit consultants believe that one of the ways PBMs hide revenue is through branded generics.

  • The branded generics segment was valued at US$ 194.30 billion in 2021 with a CAGR of 7.75% over forecast period 2022 to 2030.

Route of Administration Insights

Oral formulations account for around 90% of the global market share of all pharmaceutical formulations intended for human use, according to current estimates. Orally administered pharmaceuticals account for about 84 percent of the top-selling pharmaceuticals.

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  • The oral segment was reached at USD 272.48 billion in 2021 with a CAGR of 5.1% over forecast period 2022 to 2030.
  • The injection segment was valued at USD 87.37 billion in 2021 with a CAGR of 5.7% from 2022 to 2030.
  • The cutaneous segment contributed at USD 32.27 billion in 2021 with a CAGR of 5.5% between 2022 to 2030.

Generic Drugs Market Share, By Route of Administration, 2020 (%)

Segment 2020 (%)
Oral 65.7%
Injection 21.2%
Cutaneous 7.8%
Others 5.2%

 

The Simple Generic Drugs Segment Is Projected To Dominate the Drug Type Segment of Generic Drugs Market Revenue

On the basis of drug type simple generic drugs segment is dominant owing to its low cost over super generic drugs. These drugs also yield the same therapeutic effect and are prescribed in the same dosing, with the same quality, and same the way of consumption and usage. Super generics of drug type segment is expected to hold share more than 25 % in global generic drugs market.

  • In terms of revenue, the simple generics was valued at USD 255.36 billion in 2021 and is expected to reach USD 387.90 billion by 2030, registering a CAGR of 4.7% from 2022 to 2030. 

Oncology Therapeutic Application Is Predictable To Take over the Therapeutic Application Segment of Generic Drugs Market Revenue

On the basis of therapeutic application the global market is segmented into major types cardiovascular, oncology, Central nervous system, respiratory, dermatology, others. The Oncology therapeutic application segment is leading with major share owing to increasing demand for the treatment of oncology disorders worldwide. The cardiovascular segment is anticipated to grow at reasonable CAGR over the forecast period.

  • The oncology segment was valued at US$ 46.48 billion in 2021 with a CAGR of 6.8% over forecast period 2022 to 2030.
  • The respiratory segment was reached at US$ 28.47 billion in 2021 with a CAGR of 5.5% from 2022 to 2030.
  • The cardiovascular segment was valued at US$ 98.87 billion in 2021 with a CAGR of 5.6% between 2022 to 2030.
  • The central nervous system (CNS) segment generated revenue at US$ 78.03 billion in 2021 with a CAGR of 5.9% over forecast period 2022 to 2030.

North America is estimated to be the Largest Market for Generic Drugs

North America acquired the largest revenue share in the year 2021. U.S. recorded the highest sale in Generics Drugs Market in the year 2021. While the region’s primary healthcare emphasis remains on the pandemic as it moves through the 3rd year of its disruptive impacts and the death toll which approached to 1 million, other key dynamics are playing out with respect to health services utilization, the associated level of spending including patient costs out-of-pocket, and the use of prescription medicines. Understanding these factors of the health care system and how they may develop over the next few years remains critical to stakeholders – and decision-makers including patients. Spending and drivers for growth reflect the substantial differences in spending levels by stakeholders as rebates and discounts deforms these trends even as the most affecting driver has been the amount which is spent on COVID-19 therapeutics and vaccines.

  • Despite a rise in spending overall, costs per prescription generally are flat or a little declining.
  • Use of Prescription drug reached a record 194 billion daily doses in the year 2021 as new prescription starts for both acute and chronic care recovered from the slacking off in 2020.
  • Utilization of Health services returned to pre-pandemic stratum by the end of the year 2021 but still has to make up for the pandemic-lured backlog in screenings and diagnostics, missed patient visits, new prescription starts, and elective procedures.
  • Spending on medicines is likely to return to pre-pandemic trend lines by the year 2023.
  • The medicines use in the U.S. region — based on definite daily doses — has risen 9.6% over the last few years to nearly 194 billion days of therapy in both non-retail as well as retail settings in the year 2021.

Global generic drugs market revenue, by region, 2019-2021 (USD Billion)

  2019 2020 2021
North America 134.84 141.33 147.91
Europe 95.97 101.30 106.77
Asia Pacific 74.84  81.63 88.89
CIS Countries 24.03 25.44 26.90
ROW 37.73 40.87 44.08
Total 367.42 390.57 414.56

 

The growth is attributed to speedy increase in the prevalence of chronic disease in the countries of APAC owing to changing lifestyle which is creating demand for the generic drugs. Additionally, growing demand for the generic drugs for the end users in LATAM and the countries of Middle East and Africa is anticipated to propel industry growth in the next 10 years.

  • North America contributed revenue around USD 147.91 billion in 2021 and registering a CAGR of 4.0% from 2022 to 2030. 
  • The Asia Pacific was valued at USD 88.89 billion in 2021 and growing at a CAGR of 8.2% over the forecast period 2022 to 2030.
  • Europe has generated revenue USD 106.77 billion in 2021 and registering a CAGR of 4.7% between 2022 to 2030.

Top Players contending in the Market:

The companies focusing on research and development are expected to lead the global generic drugs market. Leading competitors contending in global generic drugs market are as follows:

  • Mylan N.V.
  • Abbott Laboratories
  • ALLERGAN
  • Teva Pharmaceutical Industries Ltd.
  • Eli Lilly and Company
  • STADA Arzneimittel AG
  • GlaxoSmithKline Plc.
  • Baxter International Inc.
  • Pfizer Inc.
  • Sandoz International GmbH

For the better understanding the recent situation of the global generic drugs market and for most policies of the country, Precedence Research forecast the future evolution of the generic drugs industry. This research study offers qualitative and measureable insights on generic drugs market and valuation of market size and development trends for global market segments.

Key Market Developments:

  • In March 2019, Allergan acquired Envy Medical, a biotechnology company providing dermatology and medical aesthetics solutions
  • In September 2018, Allergan acquired Bonti Endurance Biotech, a biotechnology company based in Orange, California.
  • In 2018, Allergan has acquired Elastagen a leading player. This is order to increase the product portfolio which helps to maintain skin’s elasticity.

Major Market Segments Covered:

By Brand

  • Pure generic drugs
  • Branded generic drugs

By Route of Drug Administration

  • Oral
  • Topical
  • Parental
  • Others

By Therapeutic Application

  • Central nervous system (CNS)
  • Cardiovascular
  • Dermatology
  • Oncology
  • Respiratory
  • Others

Key Distribution Channel

  • Hospitals Pharmacies
  • Retail Pharmacies
  • Others

By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Malaysia
    • Philippines
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • North Africa
    • South Africa
    • Rest of the Middle East & Africa

Frequently Asked Questions

What is the current size of the global generic drugs market?
According to Precedence Research, the global generic drugs market size estimated at USD 439.37 billion in 2022 and is expected to hit around USD 670.82 billion by the end of 2030.
The low price of generic drugs as substitute to branded drugs is the supreme crucial factor in the growth of the global market for generic drugs.
The global generic drugs market is representing impressive CAGR of 5.4% during the forecast period 2022 to 2030.
In 2020, North America conquered the global market with a market share of more than 30%.
On the basis of drug type, simple generic drugs segment is expected hold largest revenue share in the forecast period of time 2021-2027. This growth is mostly attributed to low cost associated with the generic drugs over super generic drugs.
On the basis of therapeutic application, oncology therapeutic application segment accounted for the largest revenue with weighty share in 2020. This is attributed to increasing demand for the treatment of oncology disorders worldwide.
The key companies functioning in the worldwide generic drugs market are Mylan N.V. Abbott Laboratories, ALLERGAN, Teva Pharmaceutical Industries Ltd. Eli Lilly and Company, STADA Arzneimittel AG, GlaxoSmithKline Plc. Baxter International Inc. Pfizer Inc. Sandoz International GmbH among others.
Generic drugs refer to the drugs with a chemical make-up of a drug a like an existing branded drug. These medications are inexpensive and similar to branded drugs in power, and route of delivery, consistency, efficiency, and usage. These are subject to administration regulations in different nations, rather than associated with a particular company. These drugs are proven to be as safe and effective as their brand name formulation, which has already been marketed.
  • Report Code:1205
  • Category:Healthcare
  • No. of Pages:150+
  • Format:PDF/PPT/Excel
  • Status:Published

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