Generic Drug Market Size, Share, Growth & Forecast 2031

Report Description

The global generic drug market size is anticipated to expand at a CAGR of 6.85% and is projected to reach USD 437.1 billion during the forecast period, between 2021 and 2028. The adoption of advanced technologies in the medical and healthcare industry, globalization of unhealthy lifestyle of consumers, and increasing application of robotic process automation are boosting the market.

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Generic drugs are pharmaceutical or prescription drugs that have the same active-ingredient formula as branded-name drugs. A generic drug contains an equivalent chemical substance that was originally protected by chemical patents. These drugs are allowed for sale only after the patents of the original drug (patented molecule) is expired. Furthermore, generic drugs are available at a low cost as compared to original drugs and are the same as branded drugs in strength, quality, dosage, route of administration, and applications. In the production process of generic drugs, it is understood that the manufacturers do not require to conduct any clinical trial procedures, as the original drug had successfully gone through all the phases Additionally, the generic drugs help the countries in improving patient access and sustaining their healthcare system. However, these drugs are subjected to government regulation in various countries and are rated safe and effective as brand-name drugs by the Food and Drug Administration (FDA).

Market Trends, Drivers, Restraints, and Opportunities:

• Growing occurrence of chronic and life-threatening diseases such as cardiovascular, respiratory, Parkinson’s disease, diabetes, and Alzheimer’s disease are driving the market.
• Rising geriatric population and high demand for generic medicines among consumers associated with the low-cost availability of drugs are boosting the market.
• Increasing demand for generic drugs associated with the larger number of branded drug patents is expired. Thus, fueling the market.
• Stringent rules and regulations imposed by the government on the production of generic drugs are hampering the market.
• High competition and shortage of generic drugs are hindering the global generic drug market.
• Rising demand for a newer version of generic drugs shifted the manufacturer's focus towards research activities and an increasing number of clinical trials are generating opportunities for the market to grow.
• Growing investment in the healthcare industry and key vendors are strategic partners to launch new innovative products are creating opportunities for the market.

Scope of the report:

The report on the global generic drug market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.

Generic Drug Market Segment Insights:

Branded segment to grow during the anticipated period

In terms of types, the global generic drug market is segmented into unbranded and branded. The unbranded segment is further sub-segmented into simple generics and super generics. The branded segment consists of pure generics & biosimilar generics. The branded segment is expected to hold a significant market share during the forecast period. The manufacturers are focusing on the development of innovative medications and the formulation of biosimilar generic drugs. Moreover, the increasing initiatives by the government to promote the manufacturing of generic drugs that can fight against various fatal chronic diseases. These factors are anticipated to propel the segment during the forecast period.

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Cardiovascular segment to grow in the forecasted period

On the basis of therapy areas, the global generic drug market is segregated into cardiovascular, central nervous system, dermatology, genitourinary/hormonal, respiratory, rheumatology, diabetes, oncology, and others. The cardiovascular segment constituted a significant market share in 2020 and is projected to expand at a rapid rate during the forecast period. The constant increases in the number of patients suffering from cardiovascular diseases worldwide increase the demand for therapy are driving the segment. Cardiovascular disease includes high blood pressure, stroke, heart failure, angina, and high cholesterol. Additionally, the growth in cardiovascular diseases is associated with the changing lifestyle, food habits (increase in consumption of a high amount of sugar and fatty products), and lack of physical exercise performed by the consumers.

Injectable segment to grow at a significant pace in the near future

Based on drug delivery, the generic drug market is segregated into oral, injectable, dermal/topical, and inhalers. The injectable segment is expected to hold a significant share of the market during the forecast period, attributed to changing preferences towards the adoption of effective drug solutions. The injectable is considered one of the most effective forms to deliver drugs in the body as compared to oral administrations. The bioavailability of the drugs is higher in the injectable route and the drug takes less time to react with the patient’s body. Moreover, the researchers developed needle-free injectors and worked towards the development of the customized device as per the patient’s need. These factors are anticipated to propel the segment during the forecast period.

Retail pharmacies segment to grow in the forecasted period

In terms of distribution channels, the global generic drug market is segregated into hospitals, clinics, drug stores, retail pharmacies, and others. The hospital segment held a considerable share of the market in 2020, owing to the ease in the availability of generic drugs. The retail pharmacies segment is expected to hold a significant share of the market during the forecast period attributed to the shift in consumer preference and increasing trust for purchasing generic drugs from retailers. Moreover, the retail pharmacies offer a wide range of products and on-spot purchasing convenience to the consumers, which are anticipated to propel the segment during the forecast period.

Asia Pacific estimated to account for significant market share

On the basis of regions, the global generic drug market is split into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America constituted a significant share of the market in 2020, due to the presence of major manufacturers and the increasing geriatric population. The drug manufacturing companies are focusing on the development of new products consisting of mainly branded generic drugs. The market in the Asia Pacific is projected to expand at a significant CAGR during the forecast period, due to the growing geriatric population in countries like India and China. The older population needs more generic drugs, due to comorbidities and other factors. Moreover, increasing investment in the healthcare sector and growing research to develop new molecules and current technologies. However, India is the major supplier of generic drugs to the United States and European countries. The Indian pharmaceutical companies such as Sun Pharma, Alkem Laboratories, and Aurobindo Pharma Limited are the largest manufacturer of generic drugs, which are projected to boost the market in Asia Pacific.

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