Pharmerging Market

Global Pharmerging Market Size

The global pharmerging market was valued at USD 1,065.30 billion in 2024. It is projected to reach USD 5892.2 billion by 2033 from USD 1,289.71 billion in 2025, growing at a CAGR of 20.93% from 2025 to 2033.

MARKET DRIVERS

The growing global healthcare expenditure is majorly propelling the pharmerging market growth.

Global healthcare expenditure has grown significantly over the past decade and is anticipated to reach USD 11.98 trillion by 2025. Among all the countries, the United States had the highest healthcare expenditure in 2019, which accounted for 17.7% of the GDP of the United States and was valued at USD 3.8 trillion. The disposable income of people in emerging regions is gradually increasing. The same growth can be seen in the increasing affordability of medical products and services, providing a promising opportunity for pharmaceutical companies. Furthermore, in emerging regions such as Asia-Pacific, the population is aging rapidly, which is expected to result in greater consumption of healthcare products and services and an increase their demand and healthcare expenditure. As a result, international pharmaceutical companies are capturing the market potential of emerging regions by offering their products and services. Likewise, the global healthcare expenditure is contributing to the pharmerging market growth at a global level.

The increasing number of private hospitals in emerging regions accelerates global pharmerging market growth.

The public healthcare system needs proper infrastructure, funding, and resources in some emerging regions. Therefore, it cannot provide quality healthcare to the public of its respective countries. Due to this, the private healthcare system is increasing and offering the best possible treatment to those who can afford it. Therefore, the possibility for private hospitals to be equipped with the latest medical technologies and treatments is high, and the same is attracting the attention of people to seek healthcare from private hospitals and offering a possibility for pharmaceutical companies to operate in emerging regions. Likewise, the increasing number of private hospitals in emerging regions supports the growth rate of the pharmerging market.

The rising prevalence of chronic diseases is driving the pharmerging market growth.

The new cases suffering from chronic diseases is growing with time. Significantly the relevant patient population is growing at an alarming rate in emerging countries. According to statistics published by the World Health Organization (WHO), an estimated 41 million people worldwide die of chronic diseases every year, accounting for 71% of worldwide deaths. People suffering from chronic diseases require regular monitoring of their healthcare and consumption of drugs and medical services, which directly fuels the demand levels for pharmaceutical products and services. In addition, the aging population, much more likely to suffer from chronic diseases, is increasing the demand for medical products and services. Due to these factors, the pharmaceutical industry in emerging countries is increasing. Likewise, the rising patient population with chronic diseases supports market growth.

Furthermore, the growing awareness among people regarding the early detection of diseases, growing life expectancy, increasing government spending for public welfare, and rising R&D activities in the pharmaceutical industry are expected to boost the pharmerging market growth.

MARKET RESTRAINTS

The issues associated with the infrastructure in emerging countries are key factors hampering the global pharmerging market. In addition, unfavorable reimbursement policies in some countries limit the market's growth rate. Furthermore, factors such as high costs associated with R&D, issues associated with the regulatory environment of some countries, intellectual property, and the availability of low-cost generic drugs are further predicted to inhibit the growth of the pharmerging market.

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Product Insights

Based on product, the pharmaceutical segment captured the largest share of the global pharmerging market in 2024. During the forecast period, the domination of the segment is predicted to continue. The growing adoption of generic drugs is primarily contributing to the domination of the segment. In addition, factors such as growing price sensitivity among people in emerging countries, the presence of favorable government policies for generic drugs, and the rising availability of various generic drugs are propelling segmental growth.

On the other hand, the healthcare segment accounted for a considerable share of the global market in 2024.

By Distribution Channel Insights

Based on distribution channels, the online store segment is forecasted to have the largest share, closely followed by the hospital segment in the global pharmerging market during the forecast period. The growing penetration of mobile and the Internet among people allows consumers to buy the required pharmaceutical goods online, primarily boosting segmental growth. In addition, the usage of online platforms to order several products, including pharmaceutical and healthcare goods, is growing aggressively worldwide, which is also expected to result in segmental growth in the coming years.

The hospital segment is predicted to hold a considerable share of the global market during the forecast period. The growing number of initiatives from the governments to develop healthcare infrastructure in emerging regions is boosting the growth of the hospital segment. The growing number of developments in the healthcare infrastructure in emerging countries is expected to favor the segment's growth rate.

REGIONAL ANALYSIS

The APAC pharmerging market captured the largest share of the global market in 2024 and is expected to progress at a promising CAGR during the forecast period. The growing population in the APAC countries is expected to promote the need levels of pharmaceutical products and services and is one of the major factors driving the pharmerging market in APAC. In addition, factors such as growing disposable income, consistent developments in the healthcare infrastructure in recent times in the APAC region, the growing aging population, and growing health awareness among people are expected to propel the APAC market growth. During the forecast period, the Chinese market is expected to occupy a significant share of the APAC market as it is one of the largest markets for pharmaceuticals in the Asia-Pacific region.

The North American pharmerging market held a considerable share in the global market in 2023. The availability of sophisticated healthcare infrastructure and increasing adoption of technological developments such as precision medicine are propelling the pharmerging market in North America. In addition, the demand for prescription drugs and medical devices is expected to rise significantly in North American countries in the coming years owing to the growing aging population and increasing volume of patients suffering from various diseases, which is expected to result in the North American pharmerging market growth.

On the other hand, the European pharmerging market is anticipated to hold a considerable share in the global market during the forecast period owing to the increasing awareness among people regarding the significance of being healthy and the growing adoption of online platforms to purchase medicines.

The Latin American pharmerging market is estimated to showcase a healthy growth rate in the coming years. Factors such as the growing number of R&D activities in the Latin American pharmaceutical industry, growing penetration of technology in the healthcare industry, and the presence of emerging nations are contributing to the growth of the pharmerging market in Latin America.

During the forecast period, the MEA region is expected to hold a moderate global market share.

KEY MARKET PARTICIPANTS

Companies playing a leading role in the global pharmerging market profiled in this report are Sanofi S.A., Pfizer Inc., AstraZeneca Plc., GlaxoSmithKline Plc., F. Hoffmann-La Roche AG (Roche AG), Eli Lilly and Company, Johnson & Johnson, Abbott Laboratories, Novartis AG and Teva Pharmaceutical Limited.

To sustain and further strengthen their position in the pharmerging market, the market participants are adopting strategies such as agreements, partnerships, mergers, and acquisitions.

RECENT MARKET HAPPENINGS

• In May 2020, AbbVie finished the acquisition of Allergan PLC to diversify its portfolio and boost global reach.
• In July 2016, the China Food and Drug Administration (CFDA) approved GSK's human papillomavirus (HPV) vaccine called Cervavix, which is used for cervical cancer.
• In June 2016, Sanofi had an agreement with Boehringer Ingelheim, in which Sanofi agreed to share their animal health unit (Merial) with Boehringer Ingelheim.
• In February 2016, AstraZeneca and China Medical System Holdings had a licensing agreement for the commercialization rights in China to its calcium channel broker.

MARKET SEGMENTATION

The global pharmerging market research report has been segmented and sub-segmented based on the product, distribution channel, and region.

By Product

• Pharmaceuticals
  • Patented Prescription Drugs
  • Generic Prescription Drugs
  • OTC Drugs
• Healthcare
  • Medical Devices
  • Clinical Diagnosis
  • Others

By Distribution Channel

• Hospitals
• Retail Pharmacies
• Online Stores
• Others

By Region

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