Pharmaceutical markets have grown to become enormous empires in many regions. However, certain nations have shown fast-paced development and innovation and have an efficient healthcare disbursement for patients. This is a list of such countries that command the world’s pharmaceutical market.
The US.
The US pharmaceutical market is the world’s largest in terms of global image, revenue generation, acceptance, and drug development and production, with around 46% of the total global revenue generation.
Few Facts:
- When compared with 32 different countries, prescription drug prices are around 250 percent higher in the US.
- As of 2020, The total US pharmaceutical R&D spending is expected to be around USD 91 billion.
- According to the Bureau of Economic Analysis (BEA) data, as of 2019, the US pharmaceutical market has around USD 511 billion of foreign investments.
Top Pharmaceutical Companies:
- Merck & Co.
- Johnson & Johnson.
- Abbott Laboratories.
- Pfizer.
- AbbVie.
- Gilead Sciences.
- Roche.
- Amgen.
China.
With 11% of the world pharmaceutical market, the Chinese pharmaceutical market is well-positioned to become a world leader in drug development and innovation.
Few Facts:
- With unique policies made for primary healthcare institutions, the prices of drugs in China’s pharmaceutical market are comparatively lower than in other countries.
- China’s total pharmaceutical R&D spending by the end of 2019 was estimated to be roughly USD 150 billion.
- According to predictions, China’s pharmaceutical export can grow to USD 10.2 billion by 2023, which was roughly around USD 5.3 billion in 2018.
Top Pharmaceutical Companies:
- Jiangsu Hengrui Medicine.
- Shanghai Pharmaceuticals.
- Sinopharm Group.
- Yunnan Baiyao Group.
- Shanghai Fosun Pharmaceutical.
- Huadong Medicine.
- China Meheco.
- Guangzhou Pharmaceutical.
- Harbin Pharmaceutical.
Japan.
The only developed country with a negative CAGR caused due to price-cutting policies, Japan has the slowest total growth among developed markets. In spite of the challenges, Japan’s pharmaceutical market remains the third-largest in the world.
Few Facts:
- Being the only developed pharmaceutical market with a probable negative CAGR growth, the Japanese government has been revising and evaluating drug prices on alternate years, leading to price cuts of up to 7%.
- Japan’s pharmaceutical manufacturers spent around 1.3 trillion Japanese yen on R&D, as of 2019.
- Japan’s outward FDI as of 2020 in the pharmaceutical and chemical industries was around USD 10 billion.
Top Pharmaceutical Companies:
- Astellas Pharma.
- Takeda Pharmaceuticals.
- Daiichi Sankyo.
- Mitsubishi Tanabe Pharma.
- Otsuka.
Germany.
The fourth-largest pharmaceutical market in the world and Europe’s largest, Germany’s healthcare system is single-payer and universal. It has both private health insurance for people earning decently and choosing to buy their own insurance, and statutory health insurance for people making less income than a set wage.
Few Facts:
- In Germany, the providers, insurance, and patient advocacy groups self-regulate the drug prices, which is further overseen by the Federal Ministry of Health and state and federal parliamentary committees.
- Germany’s healthcare spent a total of 390 billion in 2018, which has been climbing steadily since 2002. R&D spending of up to 47.4% goes for clinical studies, ranging from phase one through phase three.
- As of 2019, Germany’s top pharmaceutical supplier is Switzerland, which imports a value of around 12 billion euros.
Top Pharmaceutical Companies:
- Boehringer Ingelheim.
- Helios Kliniken GmbH.
- Bayer.
- TÜV NORD Group.
- Sandoz International GmbH.
- Symrise AG.
- Fresenius AG.
- Evotec AG.
France.
The second-largest pharma market in Europe, France is a global leader in pharmaceutical products thanks to its capacity of dealing with changing business needs, consistent study growth, and highly skilled workforce.
Few Facts:
- Compared to a regular rate of 18.6 percent, VAT in France is charged at 5.5 percent for non-prescription drugs and 2.1 percent for prescription medicines.
- French pharma companies spend more than 1.4 billion euros on R&D outsourcing, as of 2018.
- In 2019, France imported pharma products worth 18.3 billion euros from Germany (16.4%), Ireland (14.5%), Switzerland (10.4 percent), and the United States (15.2%).
Top Pharmaceutical Companies:
- Sanofi.
- Ipsen.
- Servier.
- Supersonic Imagine.
- Pierre Fabre.
- Mauna Kea Technologies.
- Rhône-Alpes.
- Lyonbiopôle.
- Alsace BioValley. Alsace.
- Medicen. Paris Région.
- Nutrition Health Longevity. Nord Pas de Calais
These Leading pharmaceutical markets in the world have a massive influence on the global economy. However, emerging markets like Israel, Brazil, and India are developing rapidly and paving their way to the top. With new statistics every year, it will be worth looking at who remains at the top and who joins this list in upcoming years.
