US segment to hit $121.8 billion in 2022, notes market research firm.
The global market for generic drugs is projected to reach approximately $508 billion by 2026, growing at a compound annual growth rate (CAGR) of 5.6%, according to estimates based on a study from Global Industry Analysts, Inc.
Additionally, the market for small molecule generics, 1 of the segments analyzed in the report, is projected to grow at a 5.2% CAGR, reaching approximately $325 billion by 2026.
The growth in biosimilars was readjusted to a 6.3% CAGR for the next 7 years, with the segment accounting for a 37.7% share of the generic drugs market. Furthermore, biosimilars are expected to increase their share within the coming years, with overall spending on pharmaceutical drugs expected to rise because of biosimilars.
The emergence of more biosimilars is expected to increase the competition in the drugs market, as more of the agents, which are designed to improve cost factors, efficacy, and safety, are anticipated to come to market.
The analysis projects that the generic drugs market in the United States will be approximately $121.8 billion for 2022, accounting for about 30.46% of the global market. Meanwhile, China is forecasted to reach a market size
of approximately $91.2 billion in 2026, with a CAGR of approximately 7.2% during the analysis period.
Other markets of interest were Canada and Japan, which are estimated to grow at 5% and 3.8% CAGR, respectively, over the analysis period.
The market is expected to be driven by chronic diseases and conditions, such as diabetes, hypertension, and obesity. Although brand name drugs are still being produced for these, generic drugs are expected to continue to meet most therapeutic needs, especially for older individuals.
Brand-name medications have become a financial burden for many patients, so developing cost-effective generic drugs has begun to intensify, according to the report.
Major application areas for generic drugs include arthritis, cancer, cardiology, central nervous system, infection, and respiratory. Generic agents for cardiovascular diseases dominate the generics market and are expected to cover an even larger part of the global generic drugs market.
Cardiovascular diseases such as angina, arrhythmias, cholesterol, circulatory disorders, dyslipidemia, heart failure, hypertension, and stroke are major cause of deaths globally, according to the report.
Generic drugs for infectious diseases have also gained traction, and that is expected to continue because of the increasing number of cases worldwide.
Further, the COVID-19 pandemic has proved to be a driver of the generic drugs market over the past year.
As economies come under more stress and unemployment rises, the demand for cheaper substitutes of brand-name drugs increases, according to the report.
The report included data from 42 different companies and was released in February 2022.
Global generic drugs market to reach $507.8 billion by 2026. News release. Global Industry Analysts, Inc. March 11, 2022. Accessed March 22, 2022. https://www.prnewswire.com/news-releases/global-generic-drugs-market-to- reach-507-8-billion-by-2026--301499091.html