According to a new technical market research report, GLOBAL PHARMACEUTICAL MARKETS (PHM037B) from BCC Research, the global market for pharmaceuticals was worth $693.6 billion in 2007. This is expected to increase to $737.6 billion in 2008 and reach over $1.0 trillion in 2013, a compound annual growth rate (CAGR) of 6.9%.
The market is broken down into applications of branded prescription drugs, generic prescription drugs and over-the-counter (OTC) products. Of these, branded prescription drugs have the largest share of the market. Worth an estimated $525.1 billion in 2007, this segment is expected to grow to a value of $553.2 billion in 2008 and $741.5 billion by the end of 2013, for a CAGR of 6.0%.
The second largest segment, generic prescription drugs, will experience the highest growth rate over the study period. Worth $78.5 billion in 2007 and an estimated $88.7 billion in 2008, it will reach $151.4 billion by the end of 2013, for a CAGR of 11.3%.
The OTC segment was worth over $90.0 billion in 2007. It should increase to $95.7 billion in 2008 and reach $135.1 billion in 2013, for a CAGR of 7.1%.
Though the worldwide pharmaceutical industry remains one of the most profitable and stable industries, several variables are influencing fundamental changes in its structure including increasing examples of government-imposed price reductions in pharmaceutical prices, the increasing role of generic substitutes, and enhanced outsourcing, in-licensing, contract research and manufacturing activities.
Increased health awareness amongst patients and governments, changing world demographics, declining R&D productivity, worldwide compliance of general agreements on tariffs and trade (GATT) and trade related intellectual property rights (TRIPS), along with the emergence of e-pharmaceuticals also are reshaping the dynamic pharmaceuticals industry.¹