May 21, 2024

Global Ethical Pharmaceuticals Market is Estimated to Witness High Growth Owing to Increasing Focus on Improving Access to Affordable Healthcare

The global ethical pharmaceuticals market is experiencing steady growth owing to rising demand for affordable drugs globally. Ethical pharmaceuticals or generics are medicines that contain the same active ingredients as brand-name drugs and are usually available at significantly lower prices. They offer significant advantages over patented drugs including lower costs, greater accessibility for patients without compromising on quality or efficacy. The global ethical pharmaceuticals industry is centered around researching, developing and manufacturing generic versions of branded drugs once the patents expire.

The Global ethical pharmaceuticals market is estimated to be valued at US$ 4.76 BN in 2024 and is expected to exhibit a CAGR of 10.% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in The Global Ethical Pharmaceuticals Market are Amgen Inc, AbbVie Inc, Johnson & Johnson, Eli Lilly and Company, Merck & Co., Inc, GlaxoSmithKline plc, Sanofi, Novartis AG, Abbott Laboratories, Otsuka Holdings, F. Hoffmann-La Roche Ltd, Teva Pharmaceutical Industries Ltd., Pfizer Inc, Takeda Pharmaceutical Company. These companies are focusing on expanding their generics portfolio through acquisitions and product launches.

The key opportunities in the market include increasing demand for affordable medicines in developing nations due to rising incomes, growing geriatric population worldwide bolstering chronic disease treatments requirement and favourable regulatory environment for generic approvals in several countries.

The global ethical pharmaceuticals industry is witnessing rapid expansion in emerging markets of Asia Pacific, Middle East, Africa and Latin America as these regions contribute substantially to the rising global generics consumption. Increasing healthcare investments, growing focus on universal healthcare goals and proliferation of healthcare infrastructure in developing nations are propelling the market growth.

Market drivers

One of the major growth drivers of the global ethical pharmaceuticals market is increasing focus on improving healthcare access and affordability around the world. Governments across both developing and developed regions are promoting production and consumption of generics as it enables patients to receive equally effective treatment at a much lower cost. This in turn is supporting the expansion of global ethical pharmaceuticals industry. Other drivers include rising prevalence of lifestyle diseases necessitating long term drug therapies and growing geriatric population susceptible to chronic ailments worldwide.

PEST Analysis

Political: Regulations imposed by governments mandating ethical standards in pharmaceutical research and manufacturing. Stringent laws protecting patient data privacy and banning non-consensual testing.

Economic: Rising healthcare costs driving demand for more affordable treatment options. Higher income levels enabling greater access to advanced medicines.

Social: Growing public awareness about healthcare rights and ethics influencing consumer choices. Increasing focus on well-being and preventive care instead of symptomatic treatment.

Technological: Advancements in biotechnology and genetic engineering expediting drug discovery. Adoption of AI and analytics improving clinical research and streamlining supply chains.

Geographical Regions of Concentration

The market in terms of value is highly concentrated in developed regions like North America and Western Europe due to strong demand, rising affordability, and well-established regulatory frameworks ensuring medication safety and quality. These regions account for over 60% of the global market size led by the US, Germany, France, UK, and other major economies with universal healthcare.

Fastest Growing Region

Asia Pacific is poised to be the fastest growing regional market for ethical pharmaceuticals during the forecast period. This is attributed to rapidly developing health infrastructure, increasing spending on medical services, growing middle-class population with insurance coverage, and improving awareness about ethical practices in emerging countries like India, China, South Korea, and others.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it