The global pharmaceutical market size is calculated at USD 1,772.65 billion in 2025 and is expected to reach around USD 3,033.21 billion by 2034, growing at a CAGR of 6.15% for the forecasted period.
Ottawa, Feb. 07, 2025 (GLOBE NEWSWIRE) — The global pharmaceutical market size was valued at USD 1,669.95 billion in 2024 and is predicted to hit around USD 2,857.48 billion by 2033, a study published by Towards Healthcare a sister firm of Precedence Statistics.
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An Overview and Growth Potential of the Market
The global pharmaceutical market is experiencing unprecedented growth due to the rising advancements in drug discovery and development, increasing prevalence of various diseases, and expanding healthcare infrastructure. With the growing burden of various life-threatening diseases, the need for pharmaceuticals is rising. Persistent diseases, such as cardiovascular illnesses, diabetes, and cancer, remain the most common causes of death worldwide, accounting for approximately 71% of total global annual deaths. In addition, the advent of new biotechnologies is redefining treatment modalities, supporting the growth of the market. There is a heightened demand for gene therapy and RNA-based drugs. Governments of various nations and healthcare organizations are investing heavily to support the pharmaceutical industry. The U.S. National Institutes of Health (NIH) spent over USD 45 billion in 2023 on medical studies to accelerate the development of drugs and vaccines.
Major Trends in the Pharmaceutical Market
Rising Chronic Disease Burden
The number of cases of chronic diseases, such as diabetes, cardiovascular conditions, and cancer, is on the rise globally. These diseases are one of the key causes of death worldwide. The World Health Organization (WHO) reveals that non-communicable diseases cause 71% of total mortality, approximately 41 million each year. This prompts pharmaceutical companies to develop innovative drugs to manage conditions and reduce mortality rates.
Advancements in Drug Development
Ongoing advancements in drug development technologies are driving the market growth. Innovations in genomics and biotechnology are revolutionizing the drug development options. The introduction of novel therapies, including biologics and gene therapies, is transforming the treatment landscape. Approval for novel drugs is increasing due to their effectiveness in managing certain conditions. According to the 2023 report, the U.S. FDA approved around 50 novel drugs in 2023, showcasing the pace of innovation in the sector. Innovations of new therapies, including biological agents, gene therapies, and cellular therapies, are fuelling the growth of the pharmaceutical market. Additionally, rising investments in R&D activities to accelerate drug development and discoveries contribute to market expansion.
Expanding Access in Emerging Markets
Governments in developing nations are making efforts to expand healthcare accessibility, especially in underserved areas. India’s Ayushman Bharat program of free healthcare for over half a billion people and China’s Healthy China 2030 plan, with approaches to enhancing public health services and expanding insurance services, represent immense opportunities for the pharmaceutical industry. Such programs play a key role in improving access to important medicines and boosting the use of novel medicines. Moreover, rising partnerships between healthcare and pharmaceutical organizations to boost pharmaceutical production and distribution support the growth of the market.
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Regional Insights
North America to Sustain Dominance in the Market
North America dominated the pharmaceutical market in 2024 by holding the largest share. This is mainly due to the presence of well-developed research facilities and significant R&D funding. The region, especially the U.S., is a home to a large number of leading pharmaceutical companies, supporting the growth of the regional market. The growing geriatric population further contributes to market expansion. As the population ages, the demand for medications and healthcare services increases. In addition, the region is committed to the development of new therapies, and is at the forefront of developing innovative healthcare technologies, contributing to market growth.
Asia Pacific: The Fastest-growing Region
Asia Pacific is anticipated to emerge as the fastest-growing region due to increasing healthcare spending, supportive government policies, and rising awareness about health and wellness. Several Asian countries are making efforts to improve healthcare services and expand accessibility to them. Government health programs, including Japan’s Healthcare Vision 2030 and India’s National Health Mission, are expanding accessibility to healthcare services in the region. In addition, rising government funding in research and development and personalized medicines contribute to regional market growth.
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Pharmaceutical Market Segmentation
- By molecule type, the conventional drugs (small molecules) dominated the market with the largest share in 2024. This is mainly due to the widespread availability, cost-effectiveness, and proven efficacy of these drugs in treating a wide range of medical conditions.
- By product, the branded segment dominated the market in 2024. Consumers and healthcare professionals highly favor branded pharmaceutical products due to rigorous research, innovation, and consistent quality. These products are effective and prevent any side effects.
- By type, the prescription segment accounted for a major share of the market in 2024. This is primarily due to the increasing prevalence of chronic diseases and the reliance on healthcare professionals for prescribing specialized medications.
- By disease, the cancer segment led the pharmaceutical market in 2024, as it is characterized by a high demand for innovative therapies and advancements in oncology treatments. The rising prevalence of cancer across the globe further bolstered the segment. According to the WHO, cancer is a leading cause of death.
- By route of administration, the oral segment captured the largest market share in 2024. This is due to the ease of administration, patient compliance, and extensive use of oral formulations in treating various diseases.
- By formulation, the tablets segment registered dominance in the market in 2024. This is mainly due to the versatility and cost-effectiveness of tablets, which make them a preferred choice for treating diseases. Moreover, the long shelf life of tablets contributes to segmental growth.
- By age group, the adult segment dominated the market by holding the largest share in 2024. It is the largest demographic requiring pharmaceutical interventions for both chronic and acute conditions. The growing geriatric population worldwide further contributes to segmental growth since older adults require frequent medication.
- By end-user, the hospitals segment led the market with a significant share in 2024. This is due to increased patient admissions, reliance on advanced treatment, and significant procurement of pharmaceuticals for inpatient and outpatient care. The growing volume of hospital visits further contributes to segmental growth.
Competitive Landscape
The market is highly competitive, as market players are making efforts to capture the maximum share of the market. Key players operating in the pharmaceutical market are F. Hoffmann-La Roche Ltd., Novartis AG, AbbVie Inc., Johnson & Johnson Services, Inc., Merck & Co., Inc., Pfizer Inc., Bristol-Myers Squibb Company, Sanofi, GSK plc, Takeda Pharmaceutical Company Limited. These companies are adopting various business development strategic to boost their presence worldwide.
Recent Developments
- In December 2024, the U.S. Food and Drug Administration (FDA) approved Nemluvio, an interleukin-31 receptor antagonist, for treating adults and pediatric patients aged 12 years and older with moderate to severe atopic dermatitis. This treatment is to be used in combination with topical corticosteroids and/or calcineurin inhibitors when the disease is inadequately controlled by topical prescription therapies.
- In August 2024, Ascendis Pharma A/S announced FDA approval of YORVIPATH (palopegteriparatide), developed as TransCon PTH, for the treatment of hypoparathyroidism in adults. YORVIPATH is a once-daily prodrug of parathyroid hormone (PTH[1-34]), designed to provide continuous PTH exposure over a 24-hour dosing period. Hypoparathyroidism, a rare endocrine disease impacting multiple organs, affects an estimated 70,000 to 90,000 individuals in the United States.
- In August 2024, Servier received FDA approval for VORANIGO, an isocitrate dehydrogenase-1 (IDH1) and isocitrate dehydrogenase-2 (IDH2) inhibitor. VORANIGO is indicated for treating adult and pediatric patients aged 12 years and older with Grade 2 astrocytoma or oligodendroglioma harboring a susceptible IDH1 or IDH2 mutation following surgery (biopsy, subtotal resection, or gross total resection). This once-daily oral medication provides glioma patients with a convenient option for managing their condition.
- In July 2024, Sun Pharmaceutical Industries Limited (Sun Pharma) announced FDA approval of LEQSELVI (deuruxolitinib) 8 mg tablets for treating adults with severe alopecia areata, offering a new therapeutic option for this condition.
Browse More Insights of Towards Healthcare:
- The global pharmaceutical CDMO market was valued at $146.05 billion in 2023. It is expected to reach $315.08 billion by 2034, growing at a CAGR of 7.24% from 2024 to 2034.
- The U.S. pharmaceutical CDMO market was valued at $36.77 billion in 2024 and is projected to reach $68.57 billion by 2034, with a CAGR of 6.43% (2025–2034).
- The European pharmaceutical CDMO market was valued at $35.48 billion in 2024 and is expected to reach $70.05 billion by 2034, growing at a CAGR of 7.04% (2025–2034).
- The global compounding pharmacy market was valued at $13.19 billion in 2023. It is projected to grow to $22.91 billion by 2034, with a CAGR of 5.15% (2024–2034).
- The U.S. 503A compounding pharmacies market was $3.99 billion in 2022 and is expected to reach $7.18 billion by 2032, growing at a CAGR of 6.11% (2023–2032).
- The U.S. 503B compounding pharmacies market was valued at $1.08 billion in 2023 and is projected to reach $2.25 billion by 2033, with a CAGR of 7.63% (2024–2033).
- The pharmaceutical logistics market was valued at $105.6 million in 2023. It is expected to grow to $191.1 million by 2034, with a CAGR of 5.54% (2024–2034).
- The global pharmaceutical packaging market was valued at $139.40 billion in 2023. It is projected to reach $387.50 billion by 2034, growing at a CAGR of 9.74% (2024–2034).
- The generic pharmaceuticals market was valued at $392.23 billion in 2023. It is expected to reach $947.67 billion by 2034, with a CAGR of 8.35% (2024–2034).
- The global pharmaceutical water market was valued at $38.70 billion in 2023. It is projected to grow to $107.15 billion by 2034, with a CAGR of 9.25% (2024–2034).
- The global pharmaceutical filtration market was valued at $12.83 billion in 2023. It is expected to reach $27.90 billion by 2033, growing at a CAGR of 8.08% (2024–2033).
- The global vials market for compounding pharmacies is growing significantly. Revenue is expected to rise by hundreds of millions from 2024 to 2033.
- The global active pharmaceutical ingredients (APIs) market is forecast to grow at a CAGR of 6.66%. It is expected to increase from $219.7 billion in 2025 to $392.5 billion by 2034.
Segments Covered in the Report
By Molecule Type
- Conventional Drugs (Small Molecules)
- Biologics & Biosimilars (Large Molecules)
- Monoclonal Antibodies
- Vaccines
- Cell & Gene Therapy
- Others
By Product
- Branded
- Generics
By Type
- Prescription
- OTC
By Disease
- Cancer
- Cardiovascular diseases
- Diabetes
- Infectious diseases
- Neurological disorders
- Respiratory diseases
- Autoimmune diseases
- Mental health disorders
- Gastrointestinal disorders
- Women’s Health Diseases
- Genetic and rare genetic diseases
- Dermatological conditions
- Obesity
- Renal diseases
- Liver conditions
- Hematological disorders
- Eye conditions
- Infertility conditions
- Endocrine disorders
- Allergies
- Others
By Route of Administration
- Oral
- Parenteral
- Topical
- Intravenous
- Intramuscular
- Inhalations
- Other
By Formulation
- Tablets
- Sprays
- Injectable
- Capsules
- Suspensions
- Powders
- Other Formulations
By Age Group
- Adults
- Children & Adolescents
- Geriatric
By End-user
- Hospitals
- Clinics
- Others
By Region
- North America
- Asia Pacific
- Europe
- Latin America
- Middle East and Africa (MEA)
Discover our detailed Table of Contents (TOC) for the Pharmaceutical Market @ https://www.towardshealthcare.com/table-of-content/pharmaceutical-market-sizing
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About Us
Towards Healthcare is a leading global provider of technological solutions, clinical research services, and advanced analytics to the healthcare sector, committed to forming creative connections that result in actionable insights and creative innovations. We are a global strategy consulting firm that assists business leaders in gaining a competitive edge and accelerating growth. We are a provider of technological solutions, clinical research services, and advanced analytics to the healthcare sector, committed to forming creative connections that result in actionable insights and creative innovations.
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