BCC Research Analysis Forecasts Booming Generic Drug Market, Anticipated to Reach $655.8 Billion

Generic drugs, mirroring brand-name counterparts in composition and efficacy, offer affordable solutions for managing diverse health conditions, from hypertension to cardiovascular diseases. Fueled by expiring patents, a rising elderly population, and industry collaborations, the global market is thriving amid increasing demand and technological advancements.

BOSTON, March 5, 2024 /PRNewswire/ -- According to the latest BCC Research study, the demand for Global Markets for Generic Drugs is estimated to increase from $435.3 billion in 2023 to reach $655.8 billion by 2028, at a compound annual growth rate (CAGR) of 8.5% from 2023 through 2028.

The comprehensive report delves into the global landscape of generic drugs, providing insights into market size and growth. It analyzes key national markets, offering a breakdown of the industry's current status and prospects. Encompassing both small molecule drugs and biosimilars, the report addresses drivers and challenges shaping the generic drug sector. A detailed competitive landscape outlines key players' sales and market rankings, while also highlighting emerging trends within the industry. Geographically, the market is segmented across North America, Europe, Asia-Pacific, and the Rest of the World, with specific countries detailed in each region. The estimations are grounded in drug manufacturers' total revenues, offering a comprehensive view of the market dynamics across varied regions.

In 2022, the combined impact of biosimilars and generics played a pivotal role in delivering substantial cost savings of over $400 billion to the U.S. healthcare system. Notably, generic companies, with a notable example being Viatris, are directing their attention towards cutting-edge technologies, particularly in the realm of complex injectables. These advancements underscore the industry's commitment to innovation and addressing the evolving healthcare landscape. However, despite these cost-saving measures and technological strides, the generic drug industry grapples with a highly fragmented nature marked by intense competition. This competitive landscape contributes to the challenge of maintaining robust profit margins, emphasizing the delicate balance generic companies must strike between affordability and sustainable business growth. The industry's continuous evolution in response to market dynamics is indicative of its resilience and determination to navigate complexities for the benefit of both healthcare providers and consumers.

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Key Drivers of Global Markets for Generic Drugs

Increasing Patent Expirations and Loss of Exclusivity: The phenomenon of patent cliffs denotes the termination of patents protecting branded drugs, enabling the entry of generic versions into the market. Loss of exclusivity occurs when manufacturers of branded drugs lose legal safeguards against generic competition. These circumstances create opportunities for generic drug producers to enter the market, providing cost-effective alternatives for both consumers and healthcare providers.

Supportive Healthcare Policies: Governments and regulatory bodies worldwide have instituted policies that favor the development and utilization of generic drugs. These measures encompass offering incentives to generic drug manufacturers, minimizing entry barriers to the market, fostering price competition, advocating for the substitution of branded drugs with generics, and enhancing public awareness regarding the advantages of generic alternatives.

Evolving Physician Perspectives: Physicians, pivotal in prescribing medications, significantly influence the demand and acceptance of generics. Recent years have witnessed a shift in physician attitudes towards generics, driven by factors such as heightened evidence supporting their safety and efficacy, increased availability and diversity of generic options, growing pressure to curtail healthcare expenses, and expanded education and training on the merits of generic drugs.

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Report Synopsis 

Global Markets for Generic Drugs Segmentation:

Global Market for Generic Drugs, Breakdown by Molecule Type

This segment scrutinizes the market for generic drugs based on the type of molecule they originate from, distinguishing between small molecule generics and biosimilars. Small molecule generics, synthesized chemically, represent generic versions of branded drugs with well-established regulatory pathways, predominantly utilized in treating various diseases such as cardiovascular, central nervous system, respiratory, and infectious diseases. In contrast, biosimilars are generic counterparts of branded biologic drugs, featuring large, complex molecules derived from living organisms. Manufacturing biosimilars entails greater complexity and adherence to stringent regulatory requirements, and they find application in treating chronic and rare diseases like oncology, immunology, hematology, and endocrinology.

Global Market for Generic Drugs, Breakdown by Region

This segment dissects the market for generic drugs based on the geographic regions where they are sold. The primary regions include North America, Europe, Asia-Pacific, and the Rest of the World. North America, comprising the U.S., Canada, and Mexico, stands as the largest market, fueled by a high prevalence of chronic and infectious diseases, a robust healthcare infrastructure, favorable reimbursement scenarios, and the significant presence of key market players. Europe, encompassing Germany, the U.K., France, Italy, and others, represents the second-largest market, driven by a growing geriatric population, demand for personalized medicine, supportive regulatory frameworks, and increasing awareness of generic benefits. Asia-Pacific, inclusive of China, India, Japan, and other nations, emerges as the fastest-growing market, propelled by a large and expanding patient pool, rising disposable income, increased healthcare expenditure, and the adoption of advanced diagnostic technologies. The Rest of the World, covering Latin America, the Middle East, Africa, and other regions, constitutes the smallest market, characterized by lower diagnostic service penetration, a scarcity of skilled professionals, and limited resource availability.

This report on Global Markets for Generic Drugs provides comprehensive insights and analysis, addressing the following key questions:

1. What is the projected market size and growth rate of the market?
   The generic drugs market is projected to grow from $407.2 billion in 2022 to $655.8 billion in 2028, at a compound annual growth rate (CAGR) of 8.5% during the forecast period.
2. What are the key factors driving the growth of the market?
   The increasing number of patent cliffs and favorable regulatory policies are responsible for market growth.
3. What segments are covered in the market?
   The generic drugs market is segmented on the molecule type and region.
4. By Type, which segment will dominate the market by the end of 2028?
   Small molecule generics segment will dominate the market by the end of 2028.
5. Which region has the highest market share in the market?
   Asia-Pacific has the highest market share.

Some of the Key Market Players Are:

• Teva
• Sandoz
• Viatris
• Sun Pharmaceuticals
• Fresenius Kabi

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