Olanzapine Market Expected to Reach $2.2 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Olanzapine Market," The olanzapine market size was valued at $1.8 billion in 2021, and is estimated to reach $2.2 billion by 2031, growing at a CAGR of 2.3% from 2022 to 2031.

Olanzapine is a class of medications called as atypical second-generation antipsychotics. Olanzapine oral tablets are available as the brand-name drugs such as Zyprexa (oral tablet) and Zyprexa Zydis (disintegrating tablet). It predominantly affects the dopamine and serotonin receptors. As an antagonist, it acts on the mesolimbic pathway's dopamine D2 receptors to prevent dopamine from acting at the post-synaptic receptor.

The olanzapine binds loosely to the receptor and dissociates easily, allowing for normal dopamine neurotransmission. It is used to treat psychosis, including hallucinations, delusions, paranoia, or disordered thought, schizophrenia, and bipolar disorder.

Factors such as increase in the prevalence of schizophrenia drive the growth of the market during olanzapine market analysis. For instance, in January 2022, according to a report of the World Health Organization (WHO), schizophrenia affects approximately 24 million people globally in every year. In addition, rise in the number of geriatric population with schizophrenia drives the growth of the olanzapine market.

Old age people are more prone to mental disorders, such as Alzheimer and dementia. Thus, geriatric population signifies increase in patients of chronic diseases. For instance, according to World Health Organization (WHO), by 2050, the global population of people aged 60 years and older is estimated to reach to 2.1 billion. Moreover, government initiatives for mental illness are expected to boost growth of the global olanzapine market, thus, offering expansion opportunities for market competitors.

Furthermore, rise in prevalence of mental health disorders, such as schizophrenia and bipolar disorder amongst the population is major olanzapine market trends that drive the growth of the market. As per the Anxiety and Depression Association of America, an anxiety disorder is the most common mental illness in the U.S., affecting 40 million adults aged 18 and older, or 18.1% of the population every year. Nearly one-half of those diagnosed with depression are also diagnosed with an anxiety disorder. However, rise in awareness about schizophrenia drugs and increase in acceptability of schizophrenia drugs by medical practitioners contribute toward the growth of the olanzapine market size.

Depending on application, the market is segmented into schizophrenia, bipolar disorder, and others. The schizophrenia segment exhibited highest growth in 2021 during olanzapine market forecast, owing to rise in prevalence of schizophrenia due to change in lifestyle. However, the others segment is projected to register highest CAGR during the forecast period owing to rise in prevalence of depression, Tourette's Syndrome, and anorexia. For instance, according to data published by Centers for Disease Control and Prevention (CDC) in 2022, 44% children reported as having moderate or severe Tourette's Syndrome (TS) in the U.S.

On the basis of route of administration, the olanzapine industry is segmented into oral and parenteral. The oral segment exhibited highest growth in 2021, owing to its advantages such as simplest route, pain free, good patient compliance, and convenient to administer drug. However, the parenteral segment is projected to register highest CAGR during the forecast period, owing to advantages such as rapid absorption of drug and onset action of drug.

On the basis of distribution channel, the market is classified into hospital pharmacies, drug stores & retail pharmacies, and online providers. The drug stores & retail pharmacies segment dominated the olanzapine market share in 2021, owing to factors such as provide better financial & debt management to patients, which boosts consumers to focus on retail pharmacy stores.  

Moreover, the online providers segment is projected to register a highest CAGR of 3.6% during the forecast period, owing to availability of a variety of antipsychotic drugs, such as olanzapine in online system. In addition, e-commerce platforms are more suitable than pharmacies/retail stores, which helps patients buy products at ease, which further drive the segment growth.

Region-wise, North America registered largest olanzapine market share in 2021, owing to its well-established healthcare infrastructure, surge in adoption of mental healthcare services, increase in geriatric population, and rise in prevalence of mental diseases. In addition, strong presence of key players, such as Alkermes, Apotex Inc., Dr. Reddy’s Laboratories Ltd., and Eli Lilly and Company that provide olanzapine products further drives the market growth in this region.

However, Asia-Pacific is anticipated to register the highest CAGR during the forecast period, owing to increase in health awareness, development in healthcare infrastructure, and rise in number of hospitals equipped with advanced medical facilities.

Key findings of the study
• By application, the schizophrenia segment was highest contributor to the olanzapine industry in 2021. However, the others segment is anticipated to grow at the highest CAGR during the forecast period.
• On the basis of route of administration, the oral segment was dominated the market in 2021. However, the parenteral segment is anticipated to grow at the highest CAGR during the forecast period.
• By distribution channel, the drug stores & retail pharmacies segment dominated the market in 2021. However, the online providers segment is anticipated to grow at the highest CAGR during the forecast period.
• Region-wise, North America generated the largest revenue in 2021. However, Asia-Pacific is anticipated to grow at the highest CAGR during the forecast period.