What is the size of the global pharmaceutical market?
Report Overview. The global pharmaceutical manufacturing market size was valued at USD 405.52 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 11.34% from 2021 to 2028.
The market has experienced significant growth during the past two decades, and pharma revenues worldwide totaled 1.27 trillion U.S. dollars in 2020.
Global Pharmaceutical Market Revenue Distribution. Recently, the pharmaceutical market worldwide has significantly increased. In 2019, the value of the market was on the order of USD 1.25 trillion, in comparison to USD 390 billion in 2001 (Figure 1).
Pharmaceutical companies boost the global economy
As well as driving medical progress by researching, developing and bringing new medicines that improve health and quality of life for patients around the world, the pharmaceutical industry is a key asset to the global economy.
Comparison of Pharmaceutical and S&P 500 Profits
However, pharmaceutical companies were significantly larger than S&P 500 companies as measured by median market capitalization ($36.1 billion vs $12.2 billion; median difference, $15.6 billion [95% CI, $12.0 billion to $19.7 billion]; P < . 001) (Table 1).
The United States was the largest pharmaceutical market in 2020, generating roughly 46 percent of total revenues worldwide.
The U.S. pharmaceutical industry is the largest in the world, making up about 40% of the worldwide drug development, manufacturing, and revenue generation.
KEY MARKET INSIGHTS
The U.S. pharmacy market size was USD 534.21 billion in 2020. The market is projected to grow from USD 560.00 billion in 2021 to USD 861.67 billion by 2028 at a CAGR of 6.3% in the 2021-2028 period.
As of end-2021, the total global pharmaceutical market was valued at about 1.42 trillion U.S. dollars. This is a significant increase from 2001 when the market was valued at just 390 billion U.S. dollars. The pharmaceutical market plays a key role in how people get medications and what people pay for medication.
Revenue in the Pharmaceuticals market is projected to reach US$1,109.00bn in 2022. Revenue is expected to show an annual growth rate (CAGR 2022-2027) of 5.23%, resulting in a market volume of US$1,431.00bn by 2027.
How much does the pharmaceutical industry contribute to the economy?
The overall value added of the U.S. biopharmaceutical industry, or its contribution to U.S. GDP, is also substantial, with a total value added impact exceeding $625 billion, accounting for 3.2 percent of U.S. gross domestic product (GDP).
The US has the largest pharmaceutical market in the world with a value of $339,694 million USD followed by Japan ($94,025 million USD) and China ($86,774 million USD). In Germany, the value of its pharmaceutical market is about $45,828 million USD and in France, it is about $37,156 million USD.
The future of the pharma landscape
The global pharma market is set to be worth $1.7 trillion (at ex-manufacturer prices) by 2025, and it is predicted that the US (39%) and China (12%) will represent more than 50% of business.
Directly and indirectly, the industry supports over 3.4 million jobs across the US and added an estimated $800 billion to the economy in 2015 (PhRMA, 2016). The pharmaceutical industry has consistently been one of the most R&D intensive industries in the US.
The government-funded research and major tax benefits that these pharmaceutical companies enjoy help them stay profitable. Meanwhile, they continue to hike up the costs of drugs, particularly life-sustaining drugs such as insulin.
The pharmaceutical industry is becoming an oligopoly due to the staggering costs of developing and marketing new drugs and because of patents that protect new products from competitors.
The US pharmaceutical industry is heavily competitive, with nine out of the top ten pharmaceutical companies based in the US. In recent years though, the market has become even more competitive both with branded and generic product segments.
The structure of the global pharmaceutical manufacturing industry is highly concentrated in a relatively small number of firms in the US, a handful of EU countries, and to a lesser extent India and China. About 42 percent of global market share is held by just 10 Big Pharma firms.
Evaluate Pharma predicts a $981-billion global pharma market for 2021, up 14.3% Following the tumult of the 2020 pandemic—now leaking well into 2021—the market research firm Evaluate Pharma projects a healthy growth for the current year, based on data collected during the first half of 2021.
Revenue in the Pharmaceuticals market is projected to reach US$1,109.00bn in 2022. Revenue is expected to show an annual growth rate (CAGR 2022-2027) of 5.23%, resulting in a market volume of US$1,431.00bn by 2027.
Is the pharmaceutical industry the biggest?
1. The U.S. pharmaceutical industry is the largest in the world. The U.S. pharma industry is the largest in the world in drug development and production, revenue generation, advertising, global image, and acceptance.
Global generic-drug spending was estimated at $234 billion in 2010, up from $124 billion in 2005.
KEY MARKET INSIGHTS
The U.S. pharmacy market size was USD 534.21 billion in 2020. The market is projected to grow from USD 560.00 billion in 2021 to USD 861.67 billion by 2028 at a CAGR of 6.3% in the 2021-2028 period.
As of November 2021, the total value of the pharmaceutical sector in the United States was around 2.8 trillion U.S. dollars, while the value in China stood at around 840 billion U.S. dollars.
The future of the pharma landscape
The global pharma market is set to be worth $1.7 trillion (at ex-manufacturer prices) by 2025, and it is predicted that the US (39%) and China (12%) will represent more than 50% of business.
The global pharmaceutical market has experienced significant growth in recent years. As of end-2021, the total global pharmaceutical market was valued at about 1.42 trillion U.S. dollars.
- Artificial Intelligence.
- Wearable Tech Integration.
- Data Management & Analytics.
- Single-Use Processes.
- Precision Medicine.
- Bioprinting.
- “In Silico” Testing.
- Real-World Data.
The U.S. pharmaceutical industry earned $425 billion in annual revenue in 2020 and the total biopharmaceutical industry, valued at $625 billion, makes up roughly 3.2% of total U.S. GDP. The U.S. pharmaceutical industry also accounts for up to 48% of the total global pharmaceutical market, by sales.
| # | Country | Value US$bn |
|---|---|---|
| 1 | Germany | 50 |
| 2 | United States | 38.1 |
| 3 | Switzerland | 34.1 |
| 4 | Spain | 27.5 |
1. Pfizer Inc (US) Pfizer is the world's largest research-based pharmaceutical company. Its research headquarters are located in Groton, Connecticut, America.
Why is the pharmaceutical industry growing?
Imarc cites the following reasons for growth in the pharmerging market: The prevalence of chronic diseases and an increase in consumer awareness about treatment. Government actions aimed at lowering the cost of treating chronic diseases. Aging populations that face issues such as cardiac failure and hypertension.
In the global pharmaceuticals sector, India is a significant and rising player. India is the world's largest supplier of generic medications, accounting for 20% of the worldwide supply by volume and supplying about 60% of the global vaccination demand. The Indian pharmaceutical sector is worth US$ 42 billion worldwide.
IMS Health reported today that the size of the global market for pharmaceuticals is expected to grow nearly $300 billion over the next five years, reaching $1.1 trillion in 2014.
Pharmaceutical marketing can also be defined as a management process that serves to identify and meet patients’ needs in a profitable way (5). Pharmaceutical business mainly adopts sales and promotion, the branches of marketing (6).
