Generic Pharmaceuticals Market Size, Share & Trends Analysis Report By Type (Simple Generics, Specialty Generics, Biosimilars), By Route Of Administration, By Product, By Application, By Distribution Channel, By Region And Segment Forecasts, 2023 - 2030

Generic Pharmaceuticals Market Size, Share & Trends Analysis Report By Type (Simple Generics, Specialty Generics, Biosimilars), By Route Of Administration, By Product, By Application, By Distribution Channel, By Region And Segment Forecasts, 2023 - 2030

Generic Pharmaceuticals Market Growth & Trends

The global generic pharmaceuticals market is expected to reach over USD 682.9 billion expanding at a CAGR of 8.3% from 2023 to 2030, according to a new study by Grand View Research Inc. The growth of the generic pharmaceuticals market is largely attributable to the expiry of product patents which clears the way for generic drugs and biosimilar manufacturers to launch products in the market. For instance, in July 2020, Teva Pharmaceutical Industries Ltd. entered into a joint venture with Takeda Pharmaceutical Company Limited aimed to manufacture and commercialize specialty assets, complex generic drugs, and other pipeline opportunities. This joint venture was anticipated to drive the generic pharmaceuticals market.

Furthermore, increasing government initiatives to promote generic drug products for reducing the overall healthcare expenditure on pharmaceuticals and the patent expiry of major products. For instance, the Therapeutic Goods Administration (TGA) Australia aims to offer affordable, efficient, high-quality, and accessible generic drugs to citizens for their treatment. In support of generic drugs, the TGA has been trying to reduce regulatory and reimbursement burdens such as changing the landscape of generic drugs and reducing barriers through international collaboration with manufacturers to launch their generic drugs in the market. Such initiatives of the Australian government open new avenues in the market.

In the U.S., every year millions of Americans use a generic drug for their treatment, hence, generic drugs remain the best bargain in the health care insurance programs, and given the recent enactment of healthcare reform legislation such as the introduction of the Patient Protection and Affordable Health Care Act. P.L. 111-148. Under this act, prescription drug coverage is mandated by the government as part of these new health insurance plans. The introduction of such policies may improve the quality and efficiency of healthcare, thereby, driving market growth.

The rising disease burden of infectious & non-infectious diseases coupled with the increasing geriatric population which is prone to chronic diseases such as diabetes, and hypertension, among others, may positively affect the market growth. According to an article published, in September 2022, around 17.9 million general population suffer from cardiovascular diseases (CVD) every year worldwide. Diseases including TB, diabetes, cardiovascular diseases, and HIV were among the major causes of death. The increasing incidence and prevalence of these diseases is expected to drive the market.

Generic Pharmaceuticals Market Report Highlights

• The small molecule segment by type held the largest share of 91.2% in 2022 and the large molecule segment is expected to grow at the fastest rate. The increasing approval and uptake of biosimilars is expected to drive the growth of the large molecule segment.
• Based on the route of administration, the injectable segment is the fastest-growing segment due to the rising approval for biosimilar drugs.
• By application, cardiovascular diseases dominated the market with a share of 18.27% in 2022, owing to the highest prescription rate of generic statins coupled with a high disease burden.
• Specialty generics are expected to grow moderately due to increasing investments and the focus of pharmaceutical companies to develop value-added products. In 2019, the U.S. FDA approved 110 complex generics.
• Based on distribution channel, the retail pharmacy segment dominated the market space in 2022. Retail pharmacy chains across the world are investing in advanced technologies and undertaking new initiatives to improve sales and attract more customers.
• North America held the majority share in 2022. Favorable government initiatives coupled with an evolving reimbursement landscape for pharmaceutical products support continual growth.