Generic Drugs Market

Generic Drugs Market Research, 2032

The global generic drugs market was valued at $385.3 billion in 2022, and is projected to reach $835.7 billion by 2032, growing at a CAGR of 8.1% from 2023 to 2032. Generic drugs have the same ingredient as their reference branded drugs. Generic drugs are also available at a lower cost than brand-name medications. The generic drugs are around cost 85% less than branded drugs. The FDA approves patent and exclusivity protection for the branded drug developer to allow them to profit from their innovation and research for several years. During this time, no generics can compete with the brand. However, once the patent has expired generic drugs can enter the market through a shortened FDA approval process. Generic medications need to meet the same quality, safety, and effectiveness standards as brands.

The COVID-19 pandemic affected the generic drugs industry in a negative way, like various other healthcare industries were affected. Overall, the COVID-19 pandemic had a fairly negative impact on the generic drugs industry owing to the decrease in the number of hospital visits during the phase of pandemic. In addition, the number of new generic drugs approvals was also reported to be medium paced. Moreover, factors such as the adoption of various strategies by the market players such as new product launch, merger and acquisitions also created lucrative opportunities for the market to grow in the post pandemic situations.

Market dynamics

The growth of Generic Drugs Market Size is majorly driven by rise in prevalence of chronic diseases such as hypertension, asthma and COPD. For instance, according to American Lung Association, in 2020, 12.5 million people, reported a diagnosis of chronic obstructive pulmonary disease (COPD), chronic bronchitis, or emphysema. Moreover, rise in number of patients suffering from cardiovascular diseases is expected to creates remunerative opportunities for the expansion of the Generic Drugs Industry. In addition, key players are adopting various strategies such as product launch, product approval, agreements, partnerships, and collaborations to strengthen their foothold in the market. For instance, in May 2023, Lupin, approval from U.S. FDA for its Abbreviated New Drug Application for Obeticholic Acid Tablets, 5 mg and 10 mg, a generic equivalent of Ocaliva Tablets, 5 mg and 10 mg, of Intercept Pharmaceuticals, Inc.

The demand for generic drugs is not only limited to developed countries but is also being witnessed in the developing countries, such as China, Brazil, and India, which fuels the Generic Drugs Market Growth. Factors such as rise in hospital admissions, increase in number of surgeries, and surge in awareness toward advantages of generic drugs drive the growth of the Generic Drugs Industry.

Furthermore, the rising cost of branded medicines, increase in healthcare expenditure, and growing demand of generic drugs contributes to the growth of Generic Drugs Market Size. In addition, increase in research activities by manufacturers for developing enhanced generic drugs is expected to fuel the growth of the industry.

However, concern related to quality of generic drugs is hampering market growth.

Segmental Overview

The global generic drugs market is segmented into therapeutic application, route of administration, distribution channel, and region. By therapeutic application, the market is classified into cardiovascular, infectious diseases, cancer, diabetes, and others. Based on the route of administration, the market is classified into oral, injection and others. Depending on distribution channel, it is classified into hospital pharmacies, retail pharmacies and online providers. Region wise, the market is studied across North America (the U.S., Canada, and Mexico), Europe (Germany, France, UK, Italy, Spain, and rest of Europe), Asia-Pacific (Japan, China, Australia, India, South Korea, and rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Saudi Arabia, and rest of LAMEA).

By Therapeutic Application

On the basis of the therapeutic application, the market is classified into cardiovascular, infectious diseases, cancer, diabetes, and others. The others segment dominated the global Generic Drugs Market Share in 2022 and is expected to remain dominant throughout the forecast period owing to increase in adoption of generic drugs for treatment of target diseases and rise in demand for generic drugs among the patient population. Moreover, surge in geriatric population is anticipated to boost the demand for generic drugs. This is attributed to the fact that aged individuals are highly susceptible to chronic diseases.

By Route of Administration

Based on the route of administration, the market is classified into oral, injection, and others. The oral segment dominated the global Generic Drugs Market Share in 2022 and is expected to remain dominant throughout the Generic Drugs Market Forecast period owing to an increase in the prevalence of chronic diseases and the growing adoption of the oral route of administration.

By Distribution Channel

Based on distribution channel the market is divided into hospital pharmacies, retail pharmacies and online providers. The retail pharmacy treatment segment dominated the global market in 2022 and is anticipated to continue this trend during the forecast period. This is attributed to an increase in the adoption of generic drugs in retail pharmacies. In addition, an increase in the number of hospital visits drives the growth of the market. Moreover, improvements in the healthcare infrastructure are anticipated to drive the growth of market.

By Region

By region, the generic drugs market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. In 2022, North America was the dominant region and is expected to continue this trend throughout the forecast period owing to high prevalence of chronic disorders such as diabetes, asthma and bronchitis, strong presence of key players, and surge in number of generic drugs approved in the region. However, Asia-Pacific is expected to witness the highest CAGR during the analysis period, owing to the presence of high populace countries such as India and China, which, in turn, increases the number of chances of suffering from various types of chronic and fatal conditions and rise number of strategies and trends adopted by the market players that include product development, product approval, partnership, collaboration, and agreement.  

COMPETITION ANALYSIS

Competitive analysis and profiles of the major players in the generic drugs market such as Amneal Pharmaceuticals, Aurobindo Pharma, Cipla, GlaxoSmithKline Plc, Hikma Pharmaceuticals, Lupin Pharmaceuticals, Sandoz International GmbH, Sun Pharmaceuticals, Teva Pharmaceutical Industries Ltd and Viatris Inc. are provided in this report. These players have adopted product launch and product development as key developmental strategies to improve the product portfolio of the generic drugs.  

Product Approval

In May 2023, Lupin Limited announced that its Canada subsidiary, Lupin Pharma Canada Ltd., has received approval from Health Canada to market a generic version of Spiriva (tiotropium bromide inhalation powder) for the treatment of chronic obstructive pulmonary disease (COPD)

In March 2023, Lupin Limited announced that it has received approval from the U.S. FDA for its Abbreviated New Drug Application for Tenofovir Alafenamide Tablets,25 mg, a generic equivalent of Vemlidy Tablets, 25 mg, of Gilead Sciences, Inc.

In March 2022, Viatris Inc. andKindeva Drug Delivery L.P.today announced that, Mylan Pharmaceuticals Inc., a Viatris subsidiary, has received approval from the U.S. Food and Drug Administration (FDA) for its Generic Version of Symbicort Inhalation Aerosol, Breyna (Budesonide and Formoterol Fumarate Dihydrate Inhalation Aerosol).

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the generic drugs market analysis from 2022 to 2032 to identify the prevailing Generic Drugs Market Opportunity.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the generic drugs market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global generic drugs market trends, key players, market segments, application areas, and market growth strategies.

 Generic Drugs Market Report Highlights