The United States pharmaceuticals market is estimated to be valued at US$ 599.47 Bn in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Key Market Takeaways
:The US pharmaceutical market is anticipated to witness a CAGR of 8.6% during the forecast period 2023-203. Major factors contributing to the growth are rising healthcare expenditure, increasing demand for prescription drugs and specialty medications, rapid uptake of new drug launches, and improving access to healthcare.
- On the basis of product type, prescription drugs segment is expected to hold a dodminant position, owing to the availability of wide range of prescription medications with strong sales across therapeutic segments.
- On the basis of therapy area, oncology segment is expected to hold the largest share owing to high adoption and demand for advanced cancer therapeutics.
- On the basis of distribution channel, retail pharmacies segment is expected to hold a dominant position, owing to the widespread availability and accessibility of retail pharmacies across different regions in the country.
- On the basis of route of administration, oral segment is expected to hold the largest share owing to ease of use compared to other routes. On the basis of end user, hospitals segment is anticipated to register the highest growth on account of increasing hospital-based drug prescriptions and inpatient drug utilization.
- On the basis of region, Northeast region is expected to hold a dominant position over the forecast period, due to high healthcare spending, presence of pharmaceutical manufacturing hubs and advanced healthcare infrastructure in states like New York and New Jersey.
United States Pharmaceuticals Market Report Coverage
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Report Coverage
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Details
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Market Revenue in 2023
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USD 599.47 Billion
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Estimated Value by 2030
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USD 1,068.02 Billion
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Growth Rate
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Poised to grow at a CAGR of 8.6%
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Historical Data
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2018–2022
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Forecast Period
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2023–2030
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Forecast Units
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Value (USD Million/Billion)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Segments Covered
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By Product Type, By Therapy Area, By Distribution Channel, By Route of Administration, By End User
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Geographies Covered
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United States
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Growth Drivers
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• Increasing Prevalence of Chronic Diseases
• Favorable Regulatory and Reimbursement Scenario
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Restraints & Challenges
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• Probability of Drug Abuse
• Lack of Local Production of Necessary Medicine Ingredients |
Market Dynamics
:The United States pharmaceuticals market is witnessing robust growth owing to rising prevalence of chronic diseases such as cancer, diabetes, cardiovascular diseases and others in the region.
As per Centers for Disease Control and Prevention (CDC), in 2020 around 6 in 10 adults in the United States had at least one chronic disease and 4 in 10 had two or more chronic diseases. The rising diabetes prevalence in the country has augmented the demand for pharmaceutical drugs for managing the condition.
Additionally, growing geriatric population who are highly susceptible to various chronic diseases has attracted US pharmaceutical companies to invest in research and development of therapies and drugs to cater to the high unmet need.
Market Trends
:- The injectable drugs have been gaining significant traction in recent years owing to advantages such as rapid drug absorption into systemic circulation bypassing gastrointestinal and hepatic metabolism leading to better bioavailability.
- The United States specialty drug spending is increasing at a faster pace and was valued at around USD 186 billion in 2020. The patent expiry of blockbuster drugs is driving major pharmaceutical companies focus on specialty drugs to sustain growth.
Market Opportunities
:- The generic drug market in the US is expected to see significant growth over the forecast period. As many blockbuster drugs lose patent protection, their generic versions are expected to capture a large market share.
- The specialty drug market in the US is witnessing robust growth on account of the increasing availability of novel, high-cost specialty drugs for the treatment of chronic and rare diseases. This will create new opportunities for players in the United States pharmaceuticals market.
Competitor Insights
Key players in the United States pharmaceuticals market include:
- Johnson and Johnson Inc.
- Pfizer Inc.
- AbbVie Inc.
- Merck KGaA
- Bristol-Myers Squibb Company
- Amgen Inc.
- Eli Lilly and Company
- Novartis AG
- Gilead Sciences, Inc.
- Hoffmann-La Roche Ltd
- Sanofi
- AstraZeneca
- GSK plc.
- Bayer AG
- Boehringer Ingelheim International GmbH
- Teva Pharmaceutical Industries Ltd.
- Abbott
- Biogen
Recent Developments
:- In May 2023, Pfizer announced plans to acquire Seagen, a biotech specializing in cancer therapeutics, in a deal worth around $43 billion. This move is intended to bolster Pfizer’s oncology portfolio, particularly in antibody-drug conjugates (ADCs).
- In September 2022, J&J separated its consumer health segment (including brands like Band-Aid and Tylenol) into a standalone company, Kenvue, which launched an initial public offering (IPO).
- In August 2022, Novartis AG announced its intention to separate Sandoz, its generics and biosimilars division, into a new publicly traded standalone company through a 100% spin-off.
Market Segmentation:
By Product Type
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- Prescription Drugs
- Generic Drugs
- OTC Drugs
- Biologics
- Biosimilars
By Therapy Area
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- Oncology
- Diabetes
- Autoimmune Diseases
- Neurological Disorders
- Cardiovascular
- Infectious Diseases
- Others (Respiratory, Gastrointestinal, etc.)
By Distribution Channel
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- Hospital Pharmacies
- Retail Pharmacies
- Online Pharmacies
- Others
By Route of Administration
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- Oral
- Parenteral
- Topical
- Others
By End-User
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- Hospitals
- Clinics
- Homecare
- Others
By Geography
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- Northeast
- West
- South
- Midwest