U.S. Pharmaceutical Market Size, Share & Trends Analysis Report By Molecule (Biologics & Biosimilars, Conventional Drugs), By Product, By Type, By Route Of Administration, By Disease, By Age Group, By Distribution Channel, And Segment Forecasts, 2025 - 20

U.S. Pharmaceutical Market Size & Trends

The U.S. pharmaceutical market size was estimated at USD 634.32 billion in 2024 and is expected to grow at a CAGR of 5.72% from 2025 to 2030, to reach an estimated value of USD 883.97 billion by 2030. This growth can be attributed to the rising prevalence of chronic diseases, increasing geriatric population, growing healthcare expenditure by government organizations, and extensive efforts to improve the affordability & accessibility of pharmaceuticals.

The U.S. pharmaceutical industry has experienced significant growth due to advancements in therapeutics and a robust product pipeline. The development of targeted therapies, biologics, and personalized medicine has reshaped treatment model, offering more effective solutions for complex conditions such as cancer, autoimmune diseases, and genetic disorders. Gene therapies and RNA-based treatments, like those for inherited retinal diseases and certain types of cancers, have gained FDA approvals, contributing to the industry's momentum. The approval of cutting-edge drugs such as CAR-T cell therapies for certain cancers exemplifies the market's growing focus on precision medicine, offering hope for previously untreatable conditions. A notable advancement is the continued progression in immuno-oncology treatments, which are redefining cancer care.

In the U.S. market for pharmaceuticals, the transformative clinical outcomes of GLP-1 receptor agonists and GLP-1/GIP dual agonists, have set a new benchmark for obesity treatment. As they are emerged as transformative therapies, delivering unprecedented clinical results. These medications, such as semaglutide and tirzepatide, have demonstrated weight loss of up to 25%, significantly outperforming earlier drug classes, which achieved only about 7% weight reduction. This breakthrough has reshaped the obesity treatment paradigm for both patients and providers, offering a viable medical solution to a condition long viewed as difficult to manage. Coupled with advances in digital health tools, these therapies are part of integrated care models that combine pharmacological treatments with technology, behavioral coaching, and personalized interventions. This comprehensive approach not only addresses obesity but also improves overall patient outcomes, presenting a credible pathway to overcoming a major public health challenge in the U.S.

Pharmaceutical R&D spending in the U.S. has been a pivotal driver of market growth, with the sector continuously investing in the discovery and development of new therapies. In 2023, pharmaceutical companies in the U.S. spent over USD 80 billion on R&D, a figure that continues to rise annually. Major companies like Johnson & Johnson, Merck, and Eli Lilly have earmarked significant portions of their revenues to R&D, recognizing the importance of developing innovative drugs to meet the demands of an aging population and the increasing prevalence of chronic diseases.

This high level of investment fuels the discovery of breakthrough therapies across various segments, including oncology, immunology, and rare diseases. According to an article by oxford Academic, in 2023, U.S. pharmaceutical spending rose by 13.6% to reach USD 722.5 billion. This increase was driven by a 6.5% rise in utilization, a 4.2% boost from new drugs, and a 2.9% uptick in prices. The top-selling drug of 2023 was semaglutide, followed by adalimumab and apixaban. Furthermore, In 2023, drug spending in nonfederal hospitals decreased by 1.1%, totaling USD 37.1 billion, while expenditures in clinics increased by 15.0% to USD 135.7 billion. Clinic growth was driven by higher utilization, with a minor impact from new products and price changes. In nonfederal hospitals, lower utilization led to reduced spending, while new drugs and prices had a modest influence. Several new drugs expected in 2024, especially in specialty, endocrine, and cancer treatments, will continue to drive spending. 

The growing market adoption of innovative and modern medicines is another key driver of the U.S. pharmaceutical market. As patients and healthcare providers become more aware of the effectiveness of new treatments, there is an increasing demand for cutting-edge therapies that offer better outcomes and fewer side effects. The uptake of biologics, gene therapies, and immunotherapies in oncology, autoimmune diseases, and other areas has been particularly notable. For example, the rapid adoption of monoclonal antibodies, such as those used in immuno-oncology, has transformed the treatment landscape, with market leaders like Keytruda and Opdivo showing impressive year-on-year sales growth. Recently, in September 2024, the API Innovation Center received USD 14 million in strategic funding aimed at strengthening U.S. pharmaceutical independence. The funding will support the development of critical Active Pharmaceutical Ingredients (API) manufacturing capabilities within the U.S., enhancing resilience in the supply chain and reducing reliance on foreign sources. This initiative aligns with efforts to bolster domestic production, improve national security, and ensure consistent access to essential medicines.

However, Patent expiration of key pharmaceutical drugs has emerged as a significant restraint for the growth of the U.S. pharmaceutical industry. Once patents expire, generic versions of these drugs can enter the market, often leading to a sharp decline in sales for the original branded drugs. For instance, in January 2023, the patent for AbbVie’s blockbuster drug Humira (adalimumab), which generated over USD 20 billion in annual sales, expired, allowing biosimilars to compete. The shift from branded to generic drugs reduces the market share of originator companies and significantly impacts their revenue streams. The overall market dynamics are also affected by the pricing pressure brought on by these generics, forcing branded companies to reduce prices or find new market niches. This change is particularly evident in the biologics market, where patents for key products like Enbrel and Herceptin have expired, opening the door for cheaper alternatives.

U.S. Pharmaceutical Market Report Segmentation

This report forecasts revenue growth and provides an analysis on the latest trends in each of the sub-segments from 2018 to 2030. For the purpose of this report, Grand View Research has segmented the U.S. pharmaceutical market report based on molecule, product, type, disease, route of administration, age group, and distribution channel:

• Molecule Type Outlook (Revenue, USD Billion, 2018 - 2030)
• Biologics & Biosimilars (Large Molecules)

Monoclonal Antibodies

Vaccines

Cell & Gene Therapy

Others

• Conventional Drugs (Small Molecules)
• Product Outlook (Revenue, USD Billion, 2018 - 2030)
• Branded
• Generic
• Type Outlook (Revenue, USD Billion, 2018 - 2030)
• Prescription
• OTC
• Disease Outlook (Revenue, USD Billion, 2018 - 2030)
• Cardiovascular diseases
• Cancer
• Diabetes
• Infectious diseases
• Neurological disorders
• Respiratory diseases
• Autoimmune diseases
• Mental health disorders
• Gastrointestinal disorders
• Women’s Health Diseases
• Genetic and Rare genetic diseases
• Dermatological conditions
• Obesity
• Renal diseases
• Liver conditions
• Hematological disorders
• Eye conditions
• Infertility conditions
• Endocrine disorders
• Allergies
• Others
• Route of Administration Outlook (Revenue, USD Billion, 2018 - 2030)
• Oral

Tablet Capsule

Suspensions

Other

• Topical
• Parenteral

Intravenous

Intramuscular

• Inhalations
• Other
• Age Group Outlook (Revenue, USD Billion, 2018 - 2030)
• Children & Adolescents
• Adults
• Geriatric
• Distribution Channel Group Outlook (Revenue, USD Billion, 2018 - 2030)
• Hospital Pharmacy
• Retail Pharmacy
• Others

Please note The report will be delivered in 2-3 business days upon order notification.