Generic Drugs Market: Current Analysis and Forecast (2021-2027)

The global generic drugs market is expected to witness a robust CAGR of around 7% owing to the increasing aging population coupled with the growing prevalence of acute and chronic diseases and patent expiration of blockbuster drugs. Further, chronic diseases like respiratory diseases, cardiovascular diseases (CADs), herpes, hepatitis, and influenza attack the immune system and cause fever, and headache, especially among the middle-aged population. Furthermore, major players in the market are continuously focusing on the development and launch of new generic drugs in the market. For instance, in 2021, Generic Ferumoxytol, an injectable drug that is used to treat lack of iron deficiency anemia (IDA), was launched by Sandoz, in the U.S.

The COVID-19 outbreak has spread to almost every country, due to which the number of infected patients is rising, which is straining the countries' healthcare ecosystem and resources. This is mainly on account of the intensifying demand for healthcare facilities, workers, and most importantly, medical equipment, devices, drugs, and research studies. However, due to the COVID-19 pandemic, the generic drugs market has been positively impacted. Strategic measures have been taken by key players to ensure the supply of generic drugs in the market. For instance, Sandoz International GmbH has enhanced its manufacturing capacity to maintain the supply of generic medicines for patients.

Based on type, the generic drugs market is segmented into simple, super, and biosimilar. In 2020, the biosimilar drug category dominated the market and is expected to maintain its dominance throughout the forecast period. That is mainly used for the treatment of various types of diseases such as chronic diseases, central nervous system (CNS) drugs, cardiovascular diseases, diabetes, etc. Furthermore, the category is expected to witness growth during the forecast period due to the rising geriatric population coupled with unhealthy lifestyle and hormonal imbalances across the globe.

Based on application, the market is bifurcated into neurological diseases, cardiological diseases, metabolic diseases, infectious diseases, orthopedic diseases, genitourinary/hormonal diseases, respiratory diseases, and others. Among these, the cardiovascular diseases segment is accounted for the largest market share. As per the World Health Organization (WHO), cardiovascular diseases (CVDs) are the leading cause of death globally, taking an estimated 17.9 million lives each year.

Based on distribution channel, the market is bifurcated into offline and online. The online segment is expected to witness significant CAGR owing to the growing penetration of e-pharmacy platforms across the world coupled with increasing awareness regarding services offered by e-pharmacy. Furthermore, the growing focus on digitization and rising internet penetration in developing nations are some other key factors driving the market.

For a better understanding of the market, the report is analyzed based on different regions including North America (US, Canada, Mexico, Rest of North America); Europe (UK, Germany, France, Italy, Spain, Rest of Europe); Asia-Pacific (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific); and Rest of World. In 2020, APAC dominated the market on account of the rising research and development initiatives and the presence of a large number of pharmaceutical companies in countries such as India and China of the region. For instance, as per the India Brand Equity Foundation, India is the largest provider of generic drugs globally. Indian pharmaceutical sector supplies over 50% of global demand for various vaccines, 40% of generic demand in the U.S., and 25% of all medicine in the U.K.

Some of the major players operating in the market include Cipla Ltd., Pfizer Inc., Fresenius Medical Care AG & Co. KGaA, Aurobindo Pharma Limited, Amneal Pharmaceuticals Inc., Alkem Laboratories Limited, Teva Pharmaceutical Industries Limited, Mylan N.V., Lupin Limited, and Sanofi S.A.