Global Pharmaceuticals Market Size, Share, Growth Analysis, By Type, By Distribution Channel, By Region - Industry Forecast 2022-2028

Global Pharmaceuticals Market size was valued at USD 209.85 billion in 2021 and is poised to grow from USD 222.4 billion in 2022 to USD 352.98 billion by 2030, growing at a CAGR of 5.9% in the forecast period (2023-2030).

The global pharmaceuticals market refers to the industry involved in the research, development, production, and distribution of drugs and medications for human or animal use. It is a highly regulated industry, and companies must adhere to strict guidelines to ensure the safety and efficacy of their products. The market is driven by factors such as increasing demand for healthcare services, growing prevalence of chronic diseases, and advancements in technology. The industry is highly competitive, with many players vying for market share through product innovation and strategic partnerships.

Top-down and bottom-up approaches were used to estimate and validate the size of Pharmaceuticals market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined by using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Segments covered in this report

The Global Pharmaceuticals Market is segmented based on Type, Distribution Channel and Region. Based on the Type, the Market is segmented as Pharmaceutical Drugs and Biologics. Based on the Distribution Channel, the Market has been segmented as Supermarkets/Hypermarkets, Convenience Stores, E-Commerce, and Others. Based on Region it is categorized into North America, Europe, Asia-Pacific, Latin America, and MEA.

Driver

One significant trend in many countries is the aging of their populations. According to the Bureau of Census, the global proportion of individuals aged 65 and above has increased from 8% in 2015 to 9% in 2021, becoming a crucial driver for the market. Due to improved living standards and population growth, many nations are experiencing a significant shift in their demography, with a considerable rise expected in the number of elderly citizens. The United Nations has projected a 56% increase in the 60-plus age group between 2015 and 2030. Although longer lifespans have their advantages, they also place a tremendous burden on global healthcare systems as age-related illnesses become more common. To address this unmet medical need, the development of new and more effective treatments is necessary, and pharmaceutical innovation plays a critical role in bringing these novel therapies to market. Recent advancements in nanotechnology and artificial intelligence offer exciting prospects for tackling this issue. Furthermore, the surge in the patient population has significantly impacted market growth during this period by fueling the demand for medicines to treat these diseases.

Restrain

The growth of the global pharmaceutical market faces significant restrictions due to a severe shortage of skilled professionals with specialized skill sets needed for drug development. These skills are limited to certain research organizations and medical equipment. Additionally, the unstable prices of raw materials present another hindrance to the market's growth. Furthermore, there is an emerging talent gap as the skills of the pharmaceutical workforce are not in line with the demands of modern biopharmaceutical production. Advanced skills such as automation, computer science, and process modeling, which were not traditionally required in traditional pharmaceutical manufacturing, are now essential. Neglecting this skills gap may hinder innovation.

Trend

Customized medications for various health conditions are provided by pharmaceutical companies. Precision medicine, or personalized medicine, is gaining popularity as it aims to offer medical treatment based on a patient's individual characteristics and genetic makeup. As standard approaches to treating common illnesses are abandoned, the use of precision therapies is growing.