Generic Drugs Market

Generic Drugs Market Size (2022 to 2027)

The global generic drugs market is expected to grow at a CAGR of 7.24% during the forecast period. The market is forecasted to be worth USD 442.3 billion by 2027 and USD 311.8 billion in 2022. 

Generic Drugs Market Share Insights:

• Based on type, the pure generic drugs segment led the market and accounted for 53.8% of the global market share in 2021.
• Based on application, the oncology segment is predicted to dominate the market in the coming years and was valued at USD 38.55 billion in 2021.
• North America led the generic drugs market in 2021 and held the largest global market share in 2021.
• The European region is expected to be valued at USD 105.3 billion by 2027.
• The Asia-Pacific region is anticipated to grow at a CAGR of 8.34% from 2022 to 2027.

Generic drugs first appeared in 1984, when the Hatch-Waxman Act encouraged the manufacture of generic drugs and developed system regulation. In contrast to branded products, generic drugs have the same API pharmacokinetic and pharmacodynamic properties. It is also bioequivalent to currently available branded drugs but differs in fillers, preservatives, form, packaging, and flavor. Branded drug manufacturers spend money on research and development and ads for their new products, and they are granted a monopoly for a set period. However, when a patent expires, generic drug manufacturers may apply to the FDA for permission to produce generic drugs. Consequently, generic medications are less expensive than marketed drugs, and almost 80% of prescription drugs are generic. Metformin, metoprolol, amphetamine salt combo, acyclovir, bupropion HCL tablet, cholestyramine, ibuprofen tablet, letrozole, and verapamil are some examples of generic drugs.

MARKET DRIVERS:

Patent expiry and cost efficiency drive the global generic drugs market.

The expiration of branded drug patents is a major driver of development in the global generic drug market growth. When a branded drug's patent expires, and FDA clearance is obtained, generic products may be manufactured. As a result of the number of patents expired or about to expire, the generic industry is expanding. Following the expiration of patents in 2018, about 26 generic drugs will be available on the market in 2019. Furthermore, the U.S. FDA stated that approximately 158 drug patents would expire in 2021, providing a massive market potential for generic medicines. 44 patents out of 158 would be freely available to generic suppliers. For instance, many market companies target Hanmil Pharmaceutical's Amosartan and Amlopidine drugs for hypertension treatment, which are set to expire in March 2021. Around 30 firms have now begun to distribute Amosartan generics.

Y-O-Y growth in the prevalence of chronic diseases is another significant driver of the global generic drugs market.

Chronic diseases necessitate long-term therapy, and marketed medications are prohibitively costly for this purpose. As a result, more patients choose generic drugs as demand grows with time. According to the National Health Interview Survey (NHIS), approximately 51.8 % of US adults have one chronic illness, while approximately 27.2 % have several chronic conditions. In addition, chronic diseases can cause almost 38 million deaths per year worldwide, According to the WHO. As a result, the demand for generic medications rises in tandem with the prevalence of chronic diseases, propelling the generic drugs market to new heights.

The cost-effectiveness of generic medications has led to an increase in demand for the generic drugs market.

Generic drugs increase competition in the industry, which leads to a drop in generic medication prices and more people being prescribed generic drugs by healthcare providers. Generic drugs are 85 % less expensive than conventional drugs, so in the United States, 9 out of 10 prescriptions are filled with generic drugs, saving almost $2.2 trillion over the past decade.

MARKET RESTRAINTS:

Stringent regulations limit the expansion of the generic drugs market.

Nonetheless, FDA’s stringent approval and distribution process restrict the expansion of the generic drug industry. The FDA examines the side effects, accuracy, and other ingredients of generic medications. If a corporation fails to follow the requirements, the substance is recalled. For example, Sun Pharma recalls 747 bottles of generic diabetes medication in October 2020 because they could contain cancer-causing nitrosodimethylamine above the limit.

The lack of knowing the generic drug market is the curb to the worldwide market. In developing countries, drugs are cheap, but the quality is restraining growth. Emerging markets like India and China are supposed to generate more opportunities for the generic drugs market. 

Impact of COVID-19 on the global generic drugs market:

People became more health-conscious as a result of the pandemic. They are afraid of being infected and becoming sick. People get medication as quickly as possible, increasing the market for generic drugs. Because of the lockdown and social distancing, the availability of medical stores and supermarkets decreased, but the supply of online pharmacies is increased. The government also helps the generic drug industry. They want to repurpose existing drugs that are safe and useful in treating other illnesses to reduce drug costs. More than 100 generic drugs are effective against coronavirus in this study.

Furthermore, the main players face difficulties due to the lockdown, travel ban, and social distancing in the availability of generic drugs. China supplies about 70% of active pharmaceutical ingredients, and the coronavirus affected the generic drug supply. Still, during this time, the market for generic drugs remained high. As a result, the cost of generic medications rose during the lockdown. The Association of Accessible Medicines (AAM) discovered that travel and transportation costs increased by 224%.

REPORT COVERAGE:

This research report on the global generic drugs market has been segmented and sub-segmented based on the type, application, and region.

Generic Drugs Market - By Type:

• Pure Generic Drugs
• Branded Generic Drugs

Based on type, the pure generic drugs segment dominated the market in 2021 and held more than half of the global market share. Therefore, the upper hand of the pure generic drugs segment is predicted to continue during the forecast period. On the other hand, the branded generic drugs market had decent occupancy in the global market in 2021 and is predicted to showcase a CAGR of 8.01% from 2022 to 2027.

Generic Drugs Market - By Application:

• The Central Nervous System (CNS)
• Cardiovascular
• Dermatology
• Oncology
• Respiratory
• Others

Based on the application, the oncology segment is predicted to play the leading role in the global generic drugs market during the forecast period. The growing patient population suffering from cancer and increasing demand for drugs and treatment procedures to cure cancer propel the segment’s growth.

On the other hand, the cardiovascular segment is estimated to showcase a healthy CAGR during the forecast period. CVDs are one of the leading causes of death worldwide, including heart failure, circulatory disorders, high blood pressure, cholesterol, dyslipidemia, angina, arrhythmias, and stroke. Moreover, the cardiovascular segment covers more than 6% of the global generic drug market due to a series of cardiovascular drug patent expiration. In addition, global population growth and aging prove beneficial for the healthcare sector and the manufacturers of generic drugs.

Generic Drugs Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Geographically, the North American generic drugs market held the largest share of the global generic drugs market in 2021 and is predicted to maintain the same dominating position throughout the forecast period. It is mainly due to the prescription patterns mostly covered with branded generic drugs. Hence, the demand for generic drugs is high in this region. The United States had the largest market share for generic drugs in North America in 2021, followed by Canada and Mexico.

The Asia-Pacific generic drugs market had a noteworthy share in the global market in 2021. The APAC region is anticipated to project the fastest CAGR during the forecast period. Countries such as India and China in the Asia-Pacific region dominated the global generic drugs business in volume. However, India is leading in this region due to the number of Indian companies waiting for approval in the U.S and other countries.

The MEA generic drugs market is forecasted to register a steady CAGR in the coming years.

KEY MARKET PLAYERS:

A few of the notable market participants operating in the global generic drugs market profiled in the report are Ranbaxy Laboratories, Ltd, Actavis, Mylan, Inc., Industries, Ltd., Dr. Reddy’s Laboratories, Par Pharmaceutical, Inc., Sandoz International GmbH, Hospira, Inc., Apotex, Inc., Watson Pharmaceuticals, Ltd., Teva Pharmaceutical and others.

KEY DEVELOPMENTS IN THIS MARKET:

• In March 2021, Biocon announced that its subsidiary would partner with Libbs Farmaceutica to launch generic drugs in Brazil. Biocon is responsible for drug development and manufacturing as a part of the partnership, while Libbs is responsible for import and distribution.
• In March 2021, ANI Pharmaceuticals, Inc. acquired Novitium Pharma, a New Jersey-based pharmaceutical company, to strengthen the generic business and R&D engine.