The pharmaceuticals market consists of sales of pharmaceuticals and related services by entities (organizations, sole traders and partnerships) that produce pharmaceuticals used in treating diseases. Pharmaceuticals can be any type of drugs that are used for medicinal purposes, in the treatment of diseases. This industry includes establishments that produce biologics and pharmaceutical drugs.
The main types of pharmaceuticals are pharmaceutical drugs and biologics. Biologics are products that are made from or contain components of living organisms. The various nature included are organic and conventional that are distributed through supermarkets/hypermarkets, convenience stores, e-commerce and others.
The global pharmaceuticals market size is expected to grow from $1454.66 billion in 2021 to $1587.05 billion in 2022 at a compound annual growth rate (CAGR) of 9.1%. The growth in the market is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The pharmaceuticals market is expected to reach $3201.02 billion in 2026 at a CAGR of 19.2%.
The population profile of most countries is becoming older. According to the WHO, by 2030, one in every six people on the planet will be 60 or older. The proportion of the population aged 60 and up will rise from 1 billion in 2020 to 2.2 billion by 2050. This rise in the aging population increased the patient pool of many chronic diseases such as rheumatoid arthritis, hypertension, diabetes and cancer. The increase in the patient pool drove the demand for pharmaceuticals used in the treatment of these diseases, significantly impacting market growth during this period.
The biologics market growth will be hinder by severe shortage of skilled workforce for developing biologics drugs which require specialized skillsets. These skillsets are limited to some research organizations and medical equipment companies in the USA and Europe. According to a study conducted by the consulting firm Mercer, the United States will face significant healthcare worker shortages in the coming decade. The firm predicts a shortage of more than 400,000 home health aides and 29,400 nurse practitioners by 2025. This shortage will rise in competition and salaries for the limited talent pool available for biologics manufacturing, thereby limiting growth of the market during the forecast period.
Pharmaceutical companies are offering drugs for customized individual treatment for various diseases. Personalized medicine, also referred to as precision medicine, aims to provide medical care according to the patient’s individual characteristics and genetic makeup. Precision therapies are increasingly being adopted as firms increasingly let go of the one-size-fits-all model for common medical conditions. Major companies such as GSK, Teva Pharmaceuticals and AstraZeneca are investing in development of personalized medicines.
Major companies in the pharmaceuticals market include Johnson & Johnson, Novartis AG, Bristol-Myers Squibb, AbbVie, Sanofi S.A, Pfizer Inc., GlaxosmithKline, F. Hoffmann-La Roche Ltd., and Merck & Co, AstraZeneca
North America was the largest region in the pharmaceuticals market in 2021. The Middle East is expected to be the fastest growing region in the forecast period. The regions covered in the pharmaceuticals market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the pharmaceuticals market report are Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Nigeria, Norway, Peru, Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, UAE, UK, USA, Venezuela and Vietnam.
The global pharmaceuticals market is segmented -
1) By Type: Pharmaceutical Drugs, Biologics
2) By Distribution Channel: Supermarkets/Hypermarkets, Convenience Stores, E-Commerce, Others
3) By Nature: Organic, Conventional
Subsegments Covered: Cardiovascular Drugs, Dermatology Drugs, Gastrointestinal Drugs, Genito-Urinary Drugs, Hematology Drugs, Anti-Infective Drugs, Metabolic Disorders Drugs, Musculoskeletal Disorders Drugs, Central Nervous System Drugs, Oncology Drugs, Ophthalmology Drugs, Respiratory Diseases Drugs, Monoclonal Antibodies (MAbs), Therapeutic Proteins, Vaccines