Market Research Report
Japan Pharmaceutical Market - Growth, Trends, And Forecasts (2020 - 2025)
|Published by||Mordor Intelligence Pvt Ltd||Product code||965041|
|Published||Content info||80 Pages
Delivery time: 2-3 business days
|Japan Pharmaceutical Market - Growth, Trends, And Forecasts (2020 - 2025)|
|Published: August 1, 2020||Content info: 80 Pages||
The Japan Pharmaceutical market studied was anticipated to show a slow growth with a CAGR of 1.1%. In Japan, the pharmaceutical industry has experienced modest growth patterns in recent years. Strong regulation and pricing systems, along with frequent price cuts, both made it almost impossible for pharmaceutical drug manufacturers to launch new revolutionary drugs. A further explanation for the stagnating business is the adoption of generic medicines introduced by the government from 2007 in order to minimize expenditure on healthcare in Japan. In the last decade, the volume percentage of generic drugs has almost doubled, and still, it is rising. Furthermore, with several pharmaceutical patents coming to an end in the coming years, Japanese corporations are obliged to respond to a changing business situation.
Japan's pharmaceutical market has a strategic edge in its ability to make strong-quality pharmaceutical drugs and high-quality packaging technology. Japan also has the greatest standard of quality assurance and quality control throughout the globe, as the Japanese pharmaceutical market aims to enhance the quality of pharmaceutical products across the globe. Nevertheless, Japan's pharmaceutical market remains third largest market, behind the United States and China. Although Japan's industry is undergoing change, it provides a range of prospects and growth potential. Aging population and rising life expectancy have contributed to a strong demand for treatment which would be a major driver of potential trends in the pharmaceutical industry in the country over the forecast period.
Healthcare Expenditure in Japan
According to the OECD, as of 2018, per capita, healthcare spending in Japan is estimated to be $4,766. The healthcare spending hit 10.9% of GDP in 2018 and is expected to achieve 12.1% by 2030. Japan is expected to face economic strain attributable to a growing geriatric population and a declining workforce. There seems to be scope for increases in productivity in the Japanese healthcare industry. Generic use has steadily grown over the years, due in part to initiatives aimed by doctors, patients, and pharmacists. However, generics account for just 40 percent of the number of pharmaceutical products, relative to an average of OECD which is 52 percent and even smaller than that of the United Kingdom, Germany, and Chile. Strengthened efforts to convince healthcare professionals and the public about the effectiveness and efficacy of generics could further enhance the generics uptake.
Prescription Drugs segment Holds the Largest Share and Expected to do Same in the Forecast Period
Japan's Prescription Drugs segment is expected to constitute the largest proportion in the forecast period. Prescription medications account for more than 80% of the market. The industry drivers for this field are technical advances, growing geriatric populace, rising prevalence of chronic diseases such as cardiovascular disease, cancer, autoimmune disease, and new product innovations are also accountable for this rising trend. Cardiovascular disease and other chronic diseases are increasing in Japan, they are not only impacting the standard of living but also hindering economic development. Rising cases of chronic diseases would lead to a rise in the use of prescription drugs that will accelerate demand growth in the country during the forecast period, along with an improvement in per capita healthcare expenditure in the country which is also anticipated to further boost growth during the forecast period.
The Japanese pharmaceutical market is highly competitive and consists of several major players. In terms of market share, few of the major players are currently dominating the market. And some prominent players are vigorously making acquisitions and joint ventures with the other companies to consolidate their market positions in the country. Some of the Key companies which are currently dominating the market are Takeda Pharmaceutical Company Limited, Pfizer Inc., Chugai Pharmaceutical Co., Ltd., Merck & Co., Inc., and Daiichi Sankyo Company, Limited