Posted on 24 Feb 2017
Global Generic Drugs Market to Reach US$ 500 Billion by 2024
Generic drugs are bioequivalent of branded drugs in terms of form, quality, strength, dosage, effect, side effect, intended use and route of administration. A new research report titled, “Generic Drugs Market - Global Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast, 2019 to 2024”, by Syndicated Analytics estimates that the global generic drugs market was worth US$ 340 Billion in 2018, registering a CAGR of 6.6% during the year 2011-2018. The report further anticipates the market to reach US$ 500 Billion by 2024, at a projected CAGR of 6.3% over the forecast period.
The market has experienced rapid growth over the past several years. Efforts have been made by the manufacturers to improve the quality of generic drugs so as to increase their profitability. Owing to this, manufacturers have started to offer innovative products, such as super generics – enhanced versions of off-patent drugs; and biosimilars – generic versions of biopharmaceutical drugs.
The demand for generic drugs has been growing worldwide owing to a number of favorable factors. One of the major factors is the demographic changes witnessed across the globe. The elderly population has been increasing continuously, resulting in a rise in the demand for prescription drugs. This has led the governments and healthcare providers to encourage the use of generics so as to reduce the overall expenditure. Another factor driving the market growth is the patent expiry of a large number of blockbuster drugs. Looking ahead, this trend is likely to continue in the near future, providing several opportunities to the generic drug manufacturers.
However, negative consumer perceptions regarding the quality and effectiveness of generic drugs hamper the market growth. Moreover, challenges faced by manufacturers, such as regulatory constraints, price pressure and stiff market competition, reduce their profitability.
On a geographical front, the United States enjoys the leading position in the global generic drugs market owing to the transformation of the healthcare sector and cost-control measures taken by the Government. The region currently accounts for around a third of the total market share. The United States is followed by China, Brazil, Germany and France.
The global generic drugs market is fragmented in nature due to the presence of a number of local and international manufacturers who compete in terms of prices. Some of the other leading players are:
- Teva Pharmaceuticals
- Sun Pharma
- Aspen Pharmacare
- Aurbindo Pharma
- Endo Pharma
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