The global Generic Drugs market size was estimated to be US$ 566.85 Billion in 2022 and is expected grow at a CAGR of 5.7% between 2023 to 2032.
A generic drug is a medication that is equivalent to a brand-name product in dosage, strength, route of administration, quality, and intended use, but does not carry the brand name. Generic drugs are typically less expensive than the brand-name version.
Conventional drugs, also known as brand-name drugs, are medications that are developed and marketed by a pharmaceutical company under a specific brand name. These drugs are typically more expensive than generic drugs because the company that developed them has invested significant amounts of money in research and development, clinical trials, and marketing.
The main difference between generic and conventional drugs is the price. Generic drugs are cheaper because they do not have the same development and marketing costs as brand-name drugs. They also do not have the same patent protection, which means that multiple companies can manufacture and market the same drug. Conventional drugs, on the other hand, are protected by patents, which means that only the company that holds the patent can manufacture and market the drug.
The global generic drugs market is driven by several key factors including increasing healthcare costs, aging population, government support, expiration of patents, technological advancements and increase in chronic diseases. The rising cost of healthcare is a major factor driving the growth of the global generic drugs market.
As healthcare costs continue to rise, more and more individuals are looking for ways to reduce their expenses. Generic drugs provide a more affordable alternative to brand-name drugs, making them more accessible to a larger population.
The global population is aging, and older individuals typically require more medication. This increase in demand for medication is driving the growth of the generic drugs market. Many governments around the world are actively promoting the use of generic drugs as a way to reduce healthcare costs. This support is driving the growth of the generic drugs market.
The expiration of patents on brand-name drugs opens the door for generic drug manufacturers to enter the market. Advances in technology are also helping to reduce the cost of manufacturing generic drugs, making them more affordable for consumers. The rising incidence of chronic diseases such as diabetes, cancer, and heart disease is driving the demand for generic drugs as they provide a more affordable alternative.
The global generic drugs market is segmented into Simple Generics, Super Generics, and Biosimilars on the basis of product type. Amongst these, the Simple Generics segment is the largest in the global generic drugs market. This is because simple generics are the most common type of generic drugs and are widely available in the market. They are also the most affordable and are used to treat a wide range of conditions, making them accessible to a large population.
Simple Generics are the drugs that have been off-patent for quite some time, and have multiple manufacturers producing them, resulting in the price drop.
While the Biosimilars segment is the fastest-growing in the global generic drugs market. Biosimilars are generic versions of biologic drugs, which are drugs made from living organisms. They are becoming more popular because they are highly effective and have fewer side effects than traditional drugs.
Additionally, the patent of many biologic drugs is expiring, and this allows manufacturers to produce biosimilars, which is driving the growth of this segment. Furthermore, the increasing incidence of chronic diseases such as cancer and diabetes is expected to drive the demand for biosimilars.
Super generics are drugs that are similar to brand-name drugs, but have slight variations in their chemical composition. These drugs are typically manufactured after the patent on a brand-name drug has expired, and are considered to be bioequivalent to the brand-name drug. The demand for super generics is driven by the fact that they offer a more affordable alternative to brand-name drugs, without sacrificing quality.
On the basis of applications, the global generic drugs market is segmented into cardiovascular products, anti-infective drugs, anti-arthritis drugs, central nervous system drugs, anti-cancer drug, respiratory products, and others drugs.
The largest segment of the global generic drugs market is the cardiovascular products segment. This is due to the high prevalence of cardiovascular diseases, such as hypertension and heart disease, and the ongoing need for medications to treat these conditions. Cardiovascular products include medications such as blood pressure and cholesterol-lowering drugs, which are widely used by individuals with cardiovascular disease.
The fastest-growing segment of the global generic drugs market is the anti-cancer drug segment. This is due to the increasing incidence of cancer, along with the high cost of brand-name cancer drugs.
Generic anti-cancer drugs provide a more affordable alternative to brand-name drugs, making them more accessible to a larger population. Additionally, new cancer drugs are continuously being developed and patented, which leads to the expiration of patents and availability of generic drugs in the market.
Based on the distribution channel, global generic drugs market is segmented into hospitals, pharmacies, private clinics, drug stores, retail pharmacies, and others.
On the basis of region, the market is segmented into North America, Europe, Asia Pacific, Middle-east and Africa, and South America. Amongst these regions, North America is expected to hold a significant share of the market due to the presence of a large patient population and the high adoption rate of generic drugs in the region.
The increasing healthcare costs and government support for the adoption of generic drugs are driving the market growth in the region. Additionally, the expiration of patents on several key brand-name drugs and the availability of a wide range of generic drugs in the region are key regional trends.
Europe is also a significant contributor to the global generic drugs market, driven by the presence of a large patient population and the high adoption rate of generic drugs in the region. The increasing healthcare costs and government support for the adoption of generic drugs are driving the market growth in the region. Additionally, the expiration of patents on several key brand-name drugs and the availability of a wide range of generic drugs in the region are key regional trends.
While the Asia Pacific region is expected to witness the highest growth rate in the global generic drugs market, driven by the presence of a large patient population and the increasing adoption of generic drugs in the region. The increasing healthcare costs and government support for the adoption of generic drugs are driving the market growth in the region. Additionally, the increasing incidence of chronic diseases and the rising awareness of the benefits of generic drugs are key regional trends.
Companies operating in the generic drugs market are implementing various growth strategies to expand their market share and increase revenue. One key strategy is mergers and acquisitions, with companies acquiring smaller players in the market to expand their product portfolio and gain access to new markets. Companies are also investing in research and development to bring new generic drugs to the market, as well as to improve the quality and efficacy of existing products.
Another important strategy being implemented by companies in the generic drugs market is the expansion of their geographic presence through the establishment of new manufacturing facilities and distribution networks in key regions. Companies are also focusing on building strategic partnerships and collaborations with other companies, healthcare providers, and government organizations to expand their reach and increase their market share.
Additionally, companies are focusing on building strong brand image and reputation to gain customer loyalty. These strategies are aimed at increasing their market share, improving their competitive positioning and driving revenue growth.
Some of the biggest companies operating in the global generic drugs market are Abbott Laboratories, ALLERGAN, Baxter International Inc., Eli Lilly and Company, GlaxoSmithKline Plc., Mylan N.V., Pfizer Inc., Sandoz International GmbH, STADA, Arzneimittel AG, Teva Pharmaceutical Industries Ltd. and many more.
By Product Type
By Application
By Distribution Channel
Based on Region
Generic drugs market size was estimated to be US$ 566.85 Billion in 2022
The global generic drugs market is estimated to exhibit a CAGR of 5.7% from 2023 to 2032.
The global generic drugs market is driven by several key factors including increasing healthcare costs, aging population, government support, expiration of patents, technological advancements and increase in chronic diseases.
The simple generics segment is the largest in the global generic drugs market. This is because simple generics are the most common type of generic drugs and are widely available in the market.
The largest segment of the global generic drugs market is the cardiovascular products segment. This is due to the high prevalence of cardiovascular diseases, such as hypertension and heart disease, and the ongoing need for medications to treat these conditions.
The North America is expected to hold a significant share of the market due to the presence of a large patient population and the high adoption rate of generic drugs in the region.
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