Generic Drugs Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Generic Drugs Market Analysis

The Generic Drugs Market size is expected to grow from USD 396.81 billion in 2023 to USD 488.14 billion by 2028, at a CAGR of 4.23% during the forecast period (2023-2028).

COVID-19 severely impacted the generic drugs market during the early pandemic due to lockdown restrictions and supply chain disruption. Later, there was an increased demand for generic pharmaceuticals as the COVID-19 infections provided many opportunities for generic drug manufacturers to manufacture the drugs to treat this infection. As the COVID-19 public health emergency unfolded last year, the FDA shifted its focus to generic drug submissions involving potential treatments and supportive therapies for COVID-19 patients. To combat the virus's effects on patients, generic medicines such as intravenous drugs for patients on ventilators and steroids were used, which helped reduce COVID-19 fatalities. For instance, according to a report by the USFDA published in November 2021, the FDA has implemented a generic drug program. This initiative assisted generic medication developers with product development by sending written communications and holding meetings to clarify regulatory expectations early in the development process and during application review. The FDA received 121 requests for product development and pre-submission pre-abbreviated NDA meetings in 2020. Thus, such initiatives have positively impacted market growth in the post-pandemic phase. Thus, as per the analysis, the market studied is expected to follow the same trend over the forecast period as the demand for generic drugs is expected to increase.

Furthermore, the reasons attributed to the growth of the market are the increasing prevalence of chronic diseases, a surge in the geriatric population, and growing healthcare expenditure. As per the 2020 report of the International Agency for Research on Cancer (IARC), which estimated the incidence and mortality of 36 cancers in 185 countries globally, an estimated 19.3 million new cases of cancer were diagnosed in 2020 all over the world, and from the total number of diagnosed cancer cases, over 10.1 million cases were reported in males and 9.3 million cases were reported in females. Additionally, according to the 2021 report of the Global RA Network, more than 350 million people are living with arthritis around the world, and its burden is expected to increase owing to various factors, one of which is the rising burden of the geriatric population around the globe. Thus, the growing prevalence of chronic diseases is expected to surge the demand for effective treatment, thereby boosting the growth of the generic drug market over the forecast period.

Furthermore, the geriatric population is more susceptible to chronic diseases, which increases the demand for effective treatment options for prevention and treatment, thereby boosting the market's growth. According to the WHO data for 2021, the proportion of the global population aged 60 and above will nearly double from 12% to 22% between 2015 and 2050. By 2050, 80% of the world's elderly will live in low- and middle-income countries. The population is aging considerably more quickly than in the past, and this demographic is also more likely to suffer from chronic diseases, which will likely increase demand for generic drugs and accelerate market expansion.

Additionally, various organic and inorganic strategies adopted by the key market players are expected to support the growth of the market. In February 2022, Jamp Pharma Group launched Guanfacine XR, a generic version of the reference product INTUNIV XR from Takeda Canada Inc. that treats attention deficit hyperactivity disorder (ADHD). Moreover, in October 2021, The Yangtze River Pharmaceutical Group in China submitted the first marketing application for eslicarbazepine acetate, a class 3 generic medication used to treat epileptic patients. In addition, in July 2021, Generic Ferumoxytol, an injectable drug used to treat iron deficiency anemia (IDA), was launched in the United States by Sandoz, a global leader in generic and biosimilar medicines.

Hence, based on the aforementioned factors, the market is expected to grow significantly during the forecast period. However, stringent government regulation may restrain the market over the forecast period.

Generic Drugs Industry Segmentation

As per the scope of this report, a generic drug is a pharmaceutical drug that contains the same chemical substance as that used for the patented molecule. A generic drug is only allowed onto the market when its original drug's patent period expires. It is a molecule now allowed to be sold by all the players under a different brand name. The Generic Drugs Market is Segmented by Route of Administration (Oral, Topical, Injectable, and Other Routes of Administration), Application (Cardiovascular Products, Anti-infective Drugs, Central Nervous System Drugs, Anti-cancer Drugs, Respiratory Products, and Other Applications), Distribution Channel (Hospitals/Clinics, Retail Pharmacies, and Other Distribution Channels), and Geography (North America, Europe, Asia-Pacific, Middle East & Africa, and South America). The market report also covers the estimated market sizes and trends for 17 different countries across major regions globally. The report offers the value (in USD billion) for the above segments.

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Generic Drugs Market Trends

This section covers the major market trends shaping the Generic Drugs Market according to our research experts:

Oral Segment is Expected to Hold Significant Share in the Market Over the Forecast Period

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