The global generic drugs market is projected to grow at a CAGR of 7.20% from 2022 to 2030, driven by factors such as an increasing elderly population, the expiration of patents for branded drugs, a rising incidence of both acute and chronic diseases, and substantial R&D investments by biotechnology and pharmaceutical companies. In 2022, the market generated USD 404.3 billion and is anticipated to reach USD 705.1 billion by 2030. The market is currently witnessing strategic collaborations and partnerships among pharmaceutical companies.
A significant driver of the market's growth is the expanding elderly population. The World Health Organization (WHO) notes a rise in average life expectancy, which has led to a larger senior demographic. Older adults, who are more susceptible to various acute and chronic illnesses due to weakened immune systems, have a higher demand for medications. With the high cost of branded drugs, there is a strong preference for more affordable generic alternatives worldwide.
Additionally, the rising prevalence of chronic and acute diseases is boosting the generic drugs market. According to WHO, chronic diseases were responsible for nearly 75% of global deaths in 2020. In developing countries, ischemic heart disease, stroke, and diabetes were among the leading causes of mortality, accounting for 71%, 75%, and 70% of deaths, respectively. Limited health coverage for chronic conditions like cancer, stroke, and COPD has further increased the demand for generic medications globally.
Moreover, the expiration of patents on key branded drugs continues to drive revenue growth in the generic drugs market. Pharmaceutical companies are ready to produce affordable generic alternatives once patents on expensive drugs expire. For instance, FORADIL by Novartis AG and DULERA by Merck Sharp & Dohme Corp. both lost their patents in 2020, allowing for the introduction of generics.
Among various types, the simple generic drugs segment is expected to grow the fastest, with a CAGR of 8.4%. These drugs are favored due to their lower cost, reduced risk, and established safety and efficacy profiles, making them widely accepted by doctors and patients alike.
Regionally, the Asia-Pacific dominates the generic drugs market, holding over 46% of the global share. This region is set to maintain its leadership, driven by factors such as a growing elderly population, an increase in chronic disease cases, rising healthcare spending, and supportive government policies promoting the use of generic drugs. The United Nations Population Fund (UNFPA) projects that by 2050, one in four people in the region will be over 60 years old.
In conclusion, the growing aging population, increasing incidence of chronic and acute diseases, and the rapid expiration of branded drug patents are expected to significantly boost the demand for generic drugs in the coming years.
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