The world pharmaceutical market is projected to rise between three and six percent from 2018-2022, with the greatest growth expected in ‘pharmerging markets’— developing countries where use of pharmaceuticals is growing rapidly.
Experts at IQVIA, a leading global provider of advanced analytics, technology solutions and contract research services to the life sciences industry, predicted a compound annual growth rate, or CAGR, of six to nine percent in pharmerging markets.
Countries in pharmerging markets have a per capita GDP threshold of USD 25,000 and more than USD one billion spending growth from 2012 to 2016.
Transparency Market Research, a company that provides analytics, research, and advisory services for Fortune 500 companies, estimates the global pharmerging market will reach US$1.4 billion by 2024.
Aging populations coupled with increasing healthcare expenditure, a growing number of public hospitals and increased disease burden of chronic diseases have boosted the demand for pharmaceuticals in pharmerging markets.
In 2018, pharmerging markets spent the greatest amount of money on therapies marketing towards therapies for pain, antibiotics, high blood pressure, cancer and diabetes, according to a report from IMS Health (Institute for Health Informatics).
Pharmerging markets have been divided into three tiers based on economic growth levels. Tier I contains China, which dominated the global pharmerging market because of high government healthcare spending. Tier II is made up of Brazil, India and Russia, all of which feature a rapidly aging population, rise in consumer awareness and favorable government policies. Counties in Tier III, which hold the least market shares among pharmerging countries, include Indonesia, Thailand, Mexico, Turkey, Egypt, Vietnam and South Africa.
Leading players in the pharmerging market include Huadong Medicine Co. Ltd., Sun Pharmaceutical Industries Ltd., Tata Consultancy Services Ltd., LUPIN, GlaxoSmithKline Plc., AstraZeneca, Teva Pharmaceutical Industries Ltd., Johnson & Johnson, Novartis AG, Merck & Co. Inc. F. Hoffmann-La Roche Ltd., Koninklijke Philips N.V. and Abbott Laboratories as of April 2017, according to a report from Transparency Market Research.
Pharmaceutical markets in developed countries should stay stable, but may rise up to three percent by 2022. The United States owned 40.7 percent of the worldwide market share in 2017, according to statistics obtained by IQVIA.