Korea Pharmaceutical Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Korea Pharmaceutical Market Value & Analysis. The Market is segmented by Therapeutic Category (Anti-Infectives, Cardiovascular, Gastrointestinal, Anti Diabetic, Respiratory, and Other Therapeutic Categories) and Drug Type (Prescription Drugs (Branded Drugs and Generic Drugs) and Over-the-Counter Drugs). The value is provided (in USD million) for the above segments.

Korea Pharmaceutical Market Size

Korea Pharmaceutical Market Summary
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Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 2.50 %

Major Players

Korea Pharmaceutical Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Korea Pharmaceutical Market Analysis

The Korean pharmaceutical market is expected to record a CAGR of 2.5% over the forecast period.

The COVID-19 pandemic affected the healthcare sector. The initial phase of the pandemic has impacted the market significantly due to restrictions on movement, supply chain disruption, travel bans, etc. Although the demand for OTC drugs and prescription drugs decreased during the pandemic, the need for OTC drugs for the common cold and fever increased, which boosted the market's growth. The import of medicinal and pharmaceutical products decreased in 2021 (3,847.1 million) compared to 2020 (4,055.5 million). However, with the released COVID-19 restrictions and resumed import and export activities, the demand for pharmaceutical products is expected to increase over the forecast period.

Factors such as the rising incidence of chronic diseases, such as cardiovascular diseases and diabetes, the increasing geriatric population, and the growing research and development activities and expenditures in the country are expected to drive the market's growth.

The rising number of chronic diseases such as cardiovascular diseases, diabetes, hypertension, cancer, neurological diseases, and others are the key factor driving the market growth. For instance, according to GLOBOCAN, in 2020, there were around 230,317 new cancer cases in South Korea, with 28,713 new cases of stomach cancer, 28,651 prostate cancers, and 25,814 breast cancer. According to the 2022 statistics published by the International Diabetes Federation in the 10th edition of 2021, in South Korea, 3.5 million people were living with diabetes in 2021. As per the same source, this number is projected to reach 3.9 million by 2030. Thus, the expected highly diabetic population is at high risk of developing other chronic diseases, such as liver diseases and kidney and cardiovascular diseases, which is anticipated to boost the demand for pharmaceutical drugs over the forecast period.

The rising geriatric population is contributing to the growth of the market studied. For instance, according to the 2022 statistics published by the United Nations Population Fund, in South Korea, a large proportion of the living population is aged 15-64 and accounts for 71% of the total population in 2022. As per the same source, 17% of the population is aged 65 years and above in 2022. Thus, the rising geriatric populations are more prone to develop chronic diseases such as cardiovascular diseases, neurological disorders, and cancer, raising the demand for effective therapeutics, which accelerates the company's research and development activities to develop drugs and medicines along with other pharmaceutical products., thereby propelling the market's growth.

The increasing government initiatives to launch awareness programs to educate people regarding cancer and other chronic diseases contribute to the market's growth. For instance, the Korean Breast Cancer Society announced the Global Breast Cancer Conference 2023 (GBCC 2023), which will be held in April 2023 in Korea. Such activities are expected to significantly boost the demand for cancer drugs and vaccines, propelling the market's growth.

The growing research and development spending in the country creates opportunities for the company to increase its R&D activities to develop advanced and effective therapeutic or biological drugs and vaccines for treating chronic diseases. This is expected to increase the availability of pharmaceutical drugs in the market, boosting the market's growth. For instance, as per the Federation of Korean Industries (FKI) 2021 report, 93.1 trillion won (USD 75.4 billion) was spent on research and development activities in the country in 2020, accounting for 4.81% of its GDP.

The rising company focus on developing pharmaceutical products for treating various chronic diseased as the growing adoption of various business strategies such as collaboration, acquisition, partnerships, and increasing product launches in the country is also expected to boost the market's growth over the forecast period. For instance, in February 2022, Pharma Korea Co. Ltd, a South Korean subsidiary of Ono Pharmaceutical Co. Ltd, received approval from the South Korean Ministry of Food and Drug Safety (MFDS) for Opdivo (nivolumab) Intravenous Infusion (Opdivo), a human anti-human PD-1 monoclonal antibody for two adjuvant treatments and three combination treatments. In January 2022, ABL Bio Inc., a clinical-stage biotech company, collaborated and entered into a worldwide license agreement with Sanofi to develop and commercialize a treatment for Parkinson's disease and other potential indications. The treatment, ABL301, is a preclinical stage bispecific antibody that targets alpha-synuclein and insulin-like growth factor 1 receptor (IGF1R) with bolstered penetration of the blood-brain barrier.

However, the stringent regulatory scenario is expected to restrain the growth of the pharmaceutical market over the forecast period.

Korea Pharmaceutical Market Trends

This section covers the major market trends shaping the Korea Pharmaceutical Market according to our research experts:

The Prescription Drugs Segment is Expected to Hold a Significant Share Over the Forecast Period

The prescription drug segment is expected to hold the largest proportion of the pharmaceutical market over the forecast period in the country due to the high burden of chronic disease that is mainly treated by prescription drugs, growing demand, and adoption of prescription drugs among the population and increasing product launches in the country. For instance, in an article published in October 2021, it has been observed that the prevalence of dementia among people aged 65 years or older was 10.25% in 2020, and it is projected to increase to about 15.91% by 2050. Thus, the expected increase in the population suffering from dementia is expected to increase the demand for drugs, propelling the market's growth.

According to the GLOBOCAN 2020 report, about 287,973 new cases of cancer were recorded combinedly in North and South Korea, and as per the same source, this number is projected to reach 432,770 by 2040. Thus, owing to the high burden of chronic diseases, the demand for prescription drugs is expected to be high in the country, and the segment studied is expected to grow.

With the growing demand for pharmaceuticals, the companies operating in the country are engaged in various business expansion activities, such as launching new drugs, filing for new approval applications, and researching and developing agreements. This is anticipated to boost the segment's growth and the availability of prescription pharmaceuticals in the country. For instance, in December 2021, Pfizer received approval from the South Korean authorities for its antiviral prescription of viral pills against COVID-19. This is expected to to boost the growth of the segment as it will increase the availability of prescription pharmaceuticals in the country.

Therefore, owing to the above-mentioned factors, the prescription drugs segment is expected to grow over the forecast period.

Korea Pharmaceutical Market: Research Development Spending (in trillion South Korean), South Korea, 2020-2021

Respiratory System Segment is Expected to Have the Significant Market Share Over the Forecast Period

The respiratory segment is expected to grow over the forecast period, owing to factors such as the increasing prevalence of respiratory diseases such as asthma, chronic obstructive respiratory diseases, and others. The rising pediatric and aging population is more susceptible to developing respiratory diseases due to weak immunity. For instance, an article published in the Journal of Thoracic Disease in April 2021 observed that the prevalence of chronic obstructive pulmonary disease was highest in people aged 60 years or over, followed by people aged 40 years or over in South Korea. Thus, the high burden of respiratory diseases among the population is anticipated to increase the demand for COPD drugs, propelling the market's growth.

The rising company activities in developing drugs are expected to increase the market's growth. For instance, in October 2022, Merck Biopharma Korea launched Tepmetko, a treatment for non-small cell lung cancer, in Korea. The increasing drug approvals in the country are also contributing to the market's growth. For instance, in October 2022, Ono Pharmaceutical, Korea received support for Opdivo (nivolumab) Intravenous Infusion (Opdivo), a human anti-human PD-1 monoclonal antibody (mAb), from the Ministry of Food and Drug Safety (MFDS) in South Korea, for neoadjuvant treatment of adult patients with resectable non-small cell lung cancer in combination with platinum-doublet chemotherapy. In September 2022, the Ministry of Food and Drug Safety approved Boryung's Zepzelca for treating small-cell lung cancer in Korea.

Therefore, due to the factors mentioned above, the segment studied is expected to grow over the forecast period.

Korea Pharmaceutical Market: Total Population (%), by Age, South Korea, 2022

Korea Pharmaceutical Industry Overview

The Korean pharmaceutical market is highly competitive and consists of several major players. A few major players dominate the market in terms of market share. Some prominent players are vigorously making acquisitions and joint ventures with other companies to consolidate their market positions in the country. The key companies dominating the market are AbbVie Inc., AstraZeneca PLC, Bayer AG, and SAMSUNG PHARM. Co. LTD, GlaxoSmithKline PLC, F. Hoffmann-La Roche AG, Bristol Myers Squibb Company, Eli Lilly and Company, Merck & Co. Inc., and Sanofi SA.

Korea Pharmaceutical Market Leaders

  1. AbbVie Inc.

  2. AstraZeneca plc

  3. Bayer AG

  4. SAMSUNG PHARM. Co., LTD.

  5. GlaxoSmithKline plc

*Disclaimer: Major Players sorted in no particular order

Korea Pharmaceutical Market Concentration
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Korea Pharmaceutical Market News

  • In November 2022, the Korean the Ministry of Food and Drug Safety approved the combined administration of platinum-based chemotherapy and Opdivo as neoadjuvant therapy before surgery in non-small cell lung cancer patients with tumors that can be resected (tumor size greater than four centimeters or benign lymph nodes).
  • In May 2022, Dr. Reddy's Laboratories signed an exclusive partnership deal with the South Korean firm HK inno. N Corporation for the commercialization of the latter's novel molecule Tegoprazan, which is indicated for gastrointestinal diseases, in India and select emerging markets.

Korea Pharmaceutical Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

      1. 4.1.1 Healthcare Expenditure

      2. 4.1.2 Pharmaceutical Imports and Exports

      3. 4.1.3 Epidemiology Data For key Diseases

      4. 4.1.4 Regulatory Landscape/Regulatory Bodies

      5. 4.1.5 Licensing and Market Authorization

      6. 4.1.6 Pipeline Analysis

        1. 4.1.6.1 By Phase

        2. 4.1.6.2 By Sponsor

        3. 4.1.6.3 By Disease

      7. 4.1.7 Statistical Overview

        1. 4.1.7.1 Number of Hospitals

        2. 4.1.7.2 Employment in the Pharmaceutical Sector

        3. 4.1.7.3 R&D Expenditure

      8. 4.1.8 Ease of Doing Business

    2. 4.2 Market Drivers

      1. 4.2.1 Rising R&D Expenditure

      2. 4.2.2 Rising Incidence of Chronic Disease such as CVD and Diabetes

    3. 4.3 Market Restraints

      1. 4.3.1 Stringent Regulatory Scenario

    4. 4.4 Porter's Five Force Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size by Value - USD million)

    1. 5.1 By Therapeutic Category

      1. 5.1.1 Anti-Infectives

      2. 5.1.2 Cardiovascular

      3. 5.1.3 Gastrointestinal

      4. 5.1.4 Anti Diabetic

      5. 5.1.5 Respiratory

      6. 5.1.6 Other Therapeutic Categories

    2. 5.2 By Drug Type

      1. 5.2.1 Prescription Drug

        1. 5.2.1.1 Branded Drugs

        2. 5.2.1.2 Generic Drugs

      2. 5.2.2 OTC Drugs

  6. 6. COMPETITIVE LANDSCAPE & COMPANY PROFILES

    1. 6.1 Company Profiles

      1. 6.1.1 AbbVie Inc.

      2. 6.1.2 AstraZeneca PLC

      3. 6.1.3 Bayer AG

      4. 6.1.4 SAMSUNG PHARM. Co. LTD

      5. 6.1.5 GlaxoSmithKline PLC

      6. 6.1.6 F. Hoffmann-La Roche AG

      7. 6.1.7 Bristol Myers Squibb Company

      8. 6.1.8 Eli Lilly and Company

      9. 6.1.9 Merck & Co. Inc.

      10. 6.1.10 Sanofi SA

    2. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
**Competitive Landscape covers- Business Overview, Financials, Products and Strategies and Recent Developments
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Korea Pharmaceutical Industry Segmentation

As per the scope of this report, pharmaceuticals are referred to as prescribed and non-prescription drugs. These medicines can be bought by an individual with or without the doctor's prescription and are safe for consumption for various illnesses with or without the doctor's consent.

The Korean pharmaceutical market is segmented by therapeutic category (anti-infectives, cardiovascular, gastrointestinal, anti-diabetic, respiratory, and others) and drug type (prescription drugs (branded drugs and generic drugs) and over-the-counter drugs). The report offers the value (in USD million) for the above segments.

By Therapeutic Category
Anti-Infectives
Cardiovascular
Gastrointestinal
Anti Diabetic
Respiratory
Other Therapeutic Categories
By Drug Type
Prescription Drug
Branded Drugs
Generic Drugs
OTC Drugs
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Korea Pharmaceutical Market Research FAQs

The Korea Pharmaceutical Market is projected to register a CAGR of 2.5% during the forecast period (2024-2029)

AbbVie Inc., AstraZeneca plc, Bayer AG, SAMSUNG PHARM. Co., LTD. and GlaxoSmithKline plc are the major companies operating in the Korea Pharmaceutical Market.

The report covers the Korea Pharmaceutical Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Korea Pharmaceutical Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Korea Pharmaceutical Industry Report

Statistics for the 2024 Korea Pharmaceutical market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Korea Pharmaceutical analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Korea Pharmaceutical Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)