The global Generic Drugs Market Growth Accelerated by Increased Demand for Cost-Effective Medicines

 Generic drugs provide the same therapeutic benefits as their branded counterparts at a much lower cost. The rising healthcare costs have increased the demand for generic medicines globally. Generic drugs help treat a variety of chronic and acute conditions such as diabetes, cardiovascular diseases, cancer, respiratory diseases among others in a cost-effective manner.

The global Generic Drugs Market is estimated to be valued at US$ 439.37 bn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The demand for generic drugs has been accelerating owing to the growing prevalence of chronic diseases worldwide. According to the WHO, chronic diseases are projected to account for almost three-quarters of all deaths worldwide. The rising healthcare spending on the treatment of chronic diseases has prompted patients to opt for affordable generic drugs over branded equivalents. Furthermore, patent expiry of major blockbuster drugs is expected to open lucrative opportunities for generic manufactures in the coming years. For instance, the patents of Eliquis, Revlimid and Humira with collective sales of over $25 billion are set to expire by 2026, offering opportunities for companies to launch generic versions.

Segment Analysis
The global generic drugs market is dominated by the oral segment. Oral generic drugs account for over 60% share of the market owing to the convenience of oral administration and higher patient compliance for medicines that can be self-administered at home. These oral tablets and capsules are predominantly used for chronic therapies targeting a range of therapeutic areas including cardiovascular diseases, diabetes, arthritis pain etc. The demand for oral generics is expected to further rise with growth in the prevalence of lifestyle diseases and geriatric population globally.

Key Takeaways
The global generic drugs market is expected to witness high growth over the forecast period of 2023 to 2030 supported by patent expiries of blockbuster drugs and increasing penetration in developing nations. The global Generic Drugs Market is estimated to be valued at US$ 439.37 bn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030.

North America currently holds the leading share of the generic drugs market owing to strong generic penetration and favourable regulatory framework supporting generics usage in the US healthcare system. However, the Asia Pacific region is projected to emerge as the fastest growing market during the forecast period with countries like India, China and Japan emerging as key generic manufacturing hubs and witnessing rising healthcare spending and demand.

Key players
Key players operating in the generic drugs market are Mylan N.V., Novartis International AG, Pfizer, Inc., Allergan Plc, Sun Pharmaceuticals, Fresenius Kabi, Sanofi, Endo International, Lupin Ltd., Abbott Healthcare, AstraZeneca Plc, and Novo Nordisk. Mylan N.V. is currently the largest generic player globally leveraging its vertically integrated manufacturing and marketing infrastructure. Novartis AG and Teva Pharmaceuticals also have a significant global generics footprint.