The global generic pharmaceuticals market is expected to grow from $302.39B in 2021 to $332.43B in 2022 at a compound annual growth rate (CAGR) of 9.9%. The market is expected to reach $426.30B in 2026 at a CAGR of 6.4%, according to a report by Research & Markets.
The rising incidence of chronic diseases is one of the major drivers of the generic pharmaceuticals market. As more individuals are diagnosed with chronic diseases, they look for more medicines for the treatment. Branded drugs come at a premium price, while generic drugs are available at a lower cost having the same chemical composition of branded drugs.
The low cost and same chemical composition and strength of generic drugs make a patient buy generic drugs instead of branded drugs. If it is a chronic disease, the treatment goes for a longer period of time and hence, the sales of generic drugs also increase. For instance, according to the WHO (World Health Organization), over the next 10 years, the deaths due to chronic disease is projected to increase by 17%. Also, in 2020, almost 75 percent of all deaths in the world are due to chronic diseases.