Rising workplace-associated disorders, rise in pharmaceutical production capacity, increased approvals of generic drugs, and escalating R&D investments in the pharmaceutical sector drive the US pharmaceutical market growth. However, the high cost of drug development and marketing approval hinders the market growth. The US pharmaceutical market forecast, by product, is segmented into vaccines, biologicals & biosimilars, and small molecules. The small molecules segment is further bifurcated into generic and branded. The small molecules segment held the largest market share in 2022. The biologicals & biosimilars segment is expected to register the highest CAGR during the forecast period.
Pharmaceutical is a broad segment that consolidates a group of chemicals classified based on their pharmacological effect and therapeutic use. For instance, alkaloids were the first pure pharmaceuticals derived from plants; they include quinine, nicotine, cocaine, atropine, and morphine. Similarly, some drugs are made of animal origin, which includes glandular extracts containing hormones. These pharmaceutical products diagnose, treat, and prevent chronic diseases such as cancer, diabetes, and genetic disorders.
The demand for generic drugs, which serve as an alternative to branded drugs, has increased tremendously owing to their low costs. Many branded drug patents are nearing expiry, which is a major reason for the surged production of generics. In February 2023, Zydus Lifesciences received tentative approval from the US Food & Drug Administration (USFDA) for two generic drugs: bosentan tablets (32 mg) and canagliflozin tablets (100 mg and 300 mg). Bosentan tablet is indicated for the treatment of pulmonary arterial hypertension (PAH) in pediatric patients with age 3 years or above. The canagliflozin tablet is indicated to improve glycemic control in patients with type 2 diabetes mellitus. In July 2022, Glenmark PHARMACEUTICALs Inc. received approval from the USFDA for norethindrone acetate and ethinyl estradiol capsules, and ferrous fumarate capsules (1 mg/20 mcg). The approved drug is the generic version of Taytulla capsules offered by Allergan PHARMACEUTICALs International, which is a prescription birth control pill. In November 2022, the USFDA granted tentative approval for Lupin’s Abbreviated New Drug Application (ANDA) for drospirenone tablets, 4 mg, which is a generic version of Slynd Tablets, 4 mg, of Exeltis USA Inc.
Thus, the growing number of approvals of generic drugs drives the US pharmaceutical market share and demand for generic segment.
Majority of investments in the US pharmaceutical market, companies primarily target drug discovery and development. According to the Pharmaceutical Research and Manufacturers Association (PhRMA), pharmaceutical companies in the US perform more than half of the world's R&D, with investments totaling ~US$ 75 billion, and they hold intellectual property rights on most of the new pharmaceuticals. In 2021, Pfizer Inc. invested US$ 13,829 million in research and development, recording an increase of US$ 4.4 billion from 2020 (US$ 9,393 million). Similarly, Johnson & Johnson invested US$ 14.7 billion in research and development in 2021, with an annual rise of 21% in its all-time-high investment recorded in 2020. These investments reflect the commitment of companies to creating life-enhancing innovations.
The research-based pharmaceutical industry is an important asset of the European economy; it is one of the top-performing high-technology segments in the region. As per the European Federation of Pharmaceutical Industries and Associations (EFPIA), the research-based pharmaceutical industry in Europe invested ~US$ 44,266.18 million (€ 41,500 million) in R&D in 2021. Similarly, governments of countries in Asia Pacific are focusing on pharmaceutical R&D activities. For instance, the Government of Thailand launched the “Thailand 4.0” initiative to facilitate the country’s shift from a “manufacturing hub” to an “innovation hub.” Additionally, as per the India Brand Equity Foundation, the foreign direct investment (FDI) inflows in the Indian drugs and pharmaceuticals sector reached US$ 1,414 million between 2021 and 2022.
Such high investments in R&D activities are driving the growth of the US pharmaceutical market share at present and also in future years.
| Report Attribute | Details |
|---|---|
| Market size in 2022 | US$ 846.72 Billion |
| Market Size by 2030 | US$ 1,285.79 Billion |
| Global CAGR (2022 - 2030) | 5.36% |
| Historical Data | 2020-2021 |
| Forecast period | 2023-2030 |
| Segments Covered |
By Product
|
| Regions and Countries Covered | United State
|
| Market leaders and key company profiles |
The List of Companies - US Pharmaceutical Market
The market growth in the US pharmaceutical market is driven by rising workplace-associated disorders, rise in pharmaceutical production capacity, increased approvals of generic drugs, and escalating R&D investments in the pharmaceutical sector. However, the high cost of drug development and marketing approval hinders the market growth.
Johnson & Johnson, Merck & Co Inc, Abbott Laboratories, Amgen Inc, Eli Lilly and Company, Bristol-Myers Squibb Company, Bayer AG, Takeda Pharmaceuticals, Zoetis Inc, Moderna Inc, AbbVie Inc, Pfizer Inc, Gilead Sciences Inc, and Regeneron Pharmaceuticals Inc are a few of the key companies operating in the US pharmaceutical market. Leading players focus on expanding and diversifying their market presence and clientele, tapping prevailing business opportunities.
The US pharmaceutical market, by product, is segmented into vaccines, biologicals & biosimilars, and small molecules. The small molecules segment is further bifurcated into generic and branded. The small molecules segment held the largest market share in 2022. The biologicals & biosimilars segment is expected to register the highest CAGR during the forecast period.
The CAGR value of the US Pharmaceutical Market during the forecasted period of 2022-2030 is 5.36%.
Pharmaceutical is a broad segment that consolidates a group of chemicals classified based on their pharmacological effect and therapeutic use. For instance, alkaloids were the first pure pharmaceuticals derived from plants; they include quinine, nicotine, cocaine, atropine, and morphine. Similarly, some drugs are made of animal origin, which includes glandular extracts containing hormones. Drugs or medicines from animal origins are biological, biosimilar, and vaccines. These pharmaceutical products diagnose, treat, and prevent chronic diseases such as cancer, diabetes, and genetic disorders.