Pharmaceutical Sector Growth Projections up to 2030

Statistic shows the worldwide forecast data of pharmaceutical sector growth between 2017 and 2030.

The data of pharmaceutical sector growth predicts that between 2017 and 2030 the pharmaceutical sector will grow by 160% worldwide, with the biggest growth forecast given for India with 232%. The global pharmaceutical market is projected to exceed USD 2,832.66 billion by 2033, growing at a CAGR of 6.15% from 2024 to 2033. Biggest growth drivers will be Obesity, Neurological and Cancer segments. Fastest growing therapy areas up to 2028 will be Immunomodulators (+ 13.5%), Oncology (+ 11.4%) and Central Nervous System (+ 8.6%).

Oncology Drugs are forecast to account for more than a third of all Pharmaceuticals sales in 2023, worth $1.87 billion. According to the data provided by Statista, total 3.50% increase is expected annually over the period, resulting in a total sales value of $15.47 billion by 2027.

Indian government was estimated to spend over 2% of the country’s GDP on healthcare in financial year 2022. This was forecasted to reach over 2.5% of the GDP by financial year 2025. This significant increase was predicted based on the likelihood of greater penetration of government health insurance in the country.

India received a financial benefit of nearly 517 billion Indian rupees by importing medicinal and pharmaceutical products worth 352 billion Indian rupees in the fiscal year 2021, up to September 2022.

Despite slow economic growth in the past years, India still managed to stay a world leader in the pharmaceutical sector thanks to its ability to produce generic drugs and vaccines.

Economic considerations, however, have made the country mainly rely on imported active pharmaceutical ingredients (API).

Online Pharmacies in India

The pharmaceutical industry of India is expected to see much expansion because of epidemiological factors and increased prevalence of lifestyle diseases.

In 2020, the share of market revenue for generic drugs was the greatest, in comparison to OTC medicines and patented drugs.

By 2023, online pharmacies in India are anticipated to have a 50% addressable market. Because of the expansion of online markets for drugs as well as the convenience and affordable prices, online shoppers have increased. An estimated 20 billion U.S. dollars was generated in the online pharmacy industry in India in 2019. Addressable medicines accounted for about 47% of the market, and this was forecast to rise over 60% by 2023.

The rise of chronic disease treatments along with the ease of ordering medicines online through e-pharma outlets are attributed for this estimated spike of market share.

Top Indian Pharma Companies Revenue

1. Dr. Reddy’s Laboratories

• Overview: Focuses on generics, biosimilars, and proprietary products, with a strong presence in North America and Europe.
• Annual Revenue (2024): INR 150 billion (approx. USD 1.8 billion).
• Year-over-Year Revenue Growth: 8% increase from 2023.
• Profit Margin: 20%; Net Income: INR 30 billion.
• Key Drivers: Expansion in the U.S. market and new product launches in oncology.

2. Sun Pharmaceutical Industries

• Overview: A leader in specialty pharmaceuticals, particularly in dermatology and oncology, with a global footprint.
• Annual Revenue (2024): INR 400 billion (approx. USD 4.8 billion).
• Year-over-Year Revenue Growth: 10% increase from 2023.
• Profit Margin: 18%; Net Income: INR 72 billion.
• Key Drivers: Strong performance in the U.S. and new product approvals.

3. Cipla

• Overview: Known for its respiratory and anti-retroviral drugs, with significant exports to the U.S. and Europe.
• Annual Revenue (2024): INR 250 billion (approx. USD 3 billion).
• Year-over-Year Revenue Growth: 7% increase from 2023.
• Profit Margin: 15%; Net Income: INR 37.5 billion.
• Key Drivers: Growth in chronic disease management products and expansion in emerging markets.

4. Lupin Pharmaceuticals

• Overview: Focuses on generics and specialty pharmaceuticals, particularly in the U.S. and India.
• Annual Revenue (2024): INR 210 billion (approx. USD 2.5 billion).
• Year-over-Year Revenue Growth: 6% increase from 2023.
• Profit Margin: 14%; Net Income: INR 29.4 billion.
• Key Drivers: New product launches and increased market share in the U.S.

5. Aurobindo Pharma

• Overview: Specializes in generics and active pharmaceutical ingredients (APIs), with a strong presence in the U.S. market.
• Annual Revenue (2024): INR 230 billion (approx. USD 2.8 billion).
• Year-over-Year Revenue Growth: 5% increase from 2023.
• Profit Margin: 16%; Net Income: INR 36.8 billion.
• Key Drivers: Expansion of product portfolio and strategic acquisitions.

Leading Companies

• Revenue Leader: Sun Pharmaceutical Industries with INR 400 billion.
• Highest Profit Margin: Dr. Reddy’s Laboratories at 20%.
• Strongest YoY Growth: Sun Pharmaceutical Industries with 10% growth.

Pharma R & D in India

According to the data of pharmaceutical sector growth provided by the Indian Institute of Pharmaceutical Statistics, Indian pharmaceutical companies spend only around 13 percent of their annual revenue on R & D. This is based on the likelihood of greater penetration of government health insurance.

In Fiscal Year 2020, Lupin invested the most money in R & D and Sun Pharmaceuticals has its development plan and investments towards a variety of complex drugs, including active pharmaceutical ingredients (APIs).

In financial year 2020 in India, Lupin invested 225 million dollars on R & D, more than any other company. Wockhardt, on the other hand, invested 48 million dollars.

The pharmaceutical industry in India is estimated to be worth around US$50 billion, and the country is expected to become a major global player in R & D over the next few years.

To capitalize on this potential, the government has implemented several initiatives to foster innovation, such as tax incentives, grants and subsidies.

In addition, there are several industry-led initiatives, such as the International Conference on Drug Discovery, Development, and Delivery and the Pharmaceutical Research and Manufacturers Association of India, that seek to bring together industry, academia and government stakeholders in the pharmaceutical space.

Overall, Pharma R & D in India is set to become even more prominent on the global stage, and with the right incentives and support, the sector stands to benefit greatly from India’s growing economic power.

Teplizumab New Molecule in Pharma is one of the new outcome product of R & D sector.

Market outlook on data of pharmaceutical sector growth

According to forecasts based on data of pharmaceutical sector growth, the pharmaceutical industry in India is anticipated to increase by 317% between 2017 and 2060, leading the global pharmaceutical market.

In addition to supplying 40% of all generic drug needs in the United States, the Indian pharmaceutical industry also supplies over 50% of the world’s vaccines. Cancer Statistics and Data also shows the need for generic drugs.

The thriving Indian pharmaceutical export market was valued at 20 billion U.S. dollars in fiscal year 2020.

Indian players abroad have succeeded in developing and expanding, as they have successful joint ventures within the industry.

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Top 10 PCD Pharma Companies in India