Generic Drugs Market size is projected to reach USD 594.99 billion by 2031, With growing at a CAGR of 5.0% | The Insight Partners

The report runs an in-depth analysis of market trends, key players, and future opportunities. The generic drugs market comprises a range of drugs used for the treatment of various conditions that are expected to register strength in the coming years.

/EIN News/ -- US & Canada, May 09, 2025 (GLOBE NEWSWIRE) -- According to a new comprehensive report from The Insight Partners, the global Generic Drugs Market is growing owing to patent expiry and loss of market exclusivity, along with increasing government initiatives to promote the use of generic drugs.

The global generic drugs market Key players include Teva Pharmaceutical Industries Ltd., Mylan N.V., Dr. Reddy's Laboratories Ltd., Novartis Pharmaceuticals Corporation, Apotex Inc., Pfizer Inc. are significant contributors to the U.S. generics market, supplying nearly half of the nation's generic prescriptions. The oncology segment is expected to witness notable growth during the forecast period.

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Overview of Report Findings

      1.   Market Growth: The generic drugs market is expected to reach US$ 594.99 Billion by 2031 from US$ 423.55 billion in 2023 at a CAGR of 5.0% during the forecast period. Generic Drugs have the same active ingredients as the branded drugs with different excipients which drastically reduces the prices of drugs and makes it affordable to large population with the same efficacy, intended use and performance. The increasing prevalence of various diseases, increasing patent expiry, and market exclusivity, along with higher affordability of generic drugs, are major factors driving the market growth. Additionally, supportive government and regulatory policies further contribute to the market growth.

      2.   Patent Expiry and Loss of Market Exclusivity: When patents expire, generic manufacturers can produce and sell bioequivalent versions of these drugs at lower prices, unlocking new market opportunities. In 2025-2026, Keytruda (Merck’s cancer immunotherapy), which generated over US$ 25 billion in 2024 sales, and Ozempic (Novo Nordisk’s treatment for diabetes and obesity) are set to lose their patents. Additionally, other high-revenue drugs, such as Eliquis (Bristol-Myers Squibb’s blood thinner) and Cosentyx (Novartis' immunology drug), are also expected to experience patent loss, paving the way for more generic pharmaceuticals and biosimilars. In 2024, several blockbuster drugs lost their patents, creating additional space for generic alternatives. Notable drugs facing patent expiration include:

• Abilify Maintaina (Otsuka Pharmaceutical), an injectable antipsychotic that generated US$ 15.5 billion in sales in 2022, lost its patent in October 2024.
• Xarelto (Janssen Pharmaceuticals), an anticoagulant, lost its patent in August 2024.
• Farxiga (AstraZeneca), an anti-diabetic drug with annual sales of approximately US$ 4.3 billion, lost its patent in 2024.
• Lynparza (AstraZeneca), a cancer treatment generating ~US$ 2.7 billion in sales, lost its patent in 2024.
• Symbicort (AstraZeneca), a respiratory drug, lost its patent in November 2024.
• Entresto (Novartis), a heart failure treatment generating US$ 2.5 billion in sales in 2022, lost its patent.
• Latuda (Sunovion Pharmaceuticals), an antipsychotic with US$ 1.8 billion in sales, lost its patent in February 2024.
• Xifaxan (Salix Pharmaceuticals), a gastrointestinal drug with sales of US$ 1.6 billion, lost its patent in June 2024.
• Cabometyx (Exelixis), used to treat advanced renal cell carcinoma, lost its patent in September 2024.

These drugs have generated substantial global revenue and opened opportunities for generic manufacturers to create cost-effective alternatives. Between 2023 and 2029, patents for more than 100 critical drugs—including those for cancer, diabetes, and cardiovascular diseases—are set to expire, representing over US$ 300 billion in global annual sales. Thus, the loss of exclusivity is increasing the production of generics and biosimilars, leading to a reduction in global healthcare costs.

      3.   Government Initiatives Promoting the Use of Generic Drugs: In high-income countries, governments are recognizing the financial benefits associated with the use of generics, which help in the overall reduction of healthcare spending. These initiatives offer financial benefits to healthcare providers who prescribe generic alternatives instead of brand-name drugs, with programs such as subsidies, tax rebates, or bonuses based on the volume of generics prescribed. In the US, Medicare and Medicaid promote the use of generics so they gain acceptance in public healthcare systems. Germany and France have implemented stringent regulations that mandate pharmacists to sell the generic version unless the prescription specifically states the brand-name alternative. Governments in India and Brazil are coming up with initiatives to help reduce increasing health costs and, thus, encourage the use of generics. In India, the Jan Aushadhi Scheme was initiated, which provides affordable generic medicines through public outlets, contributing to healthcare accessibility to millions. These efforts are not confined to developed economies but extend to economies with limited healthcare budgets, where cost-saving measures ensure access to medications. Thus, increasing demand for affordable drugs presents significant opportunites for pharmaceutical companies operating the generic drugs market.

      4.   Geographical Insights: In 2023, North America led the market with a substantial revenue share, followed by Europe and APAC. Asia Pacific is expected to register the highest CAGR during the forecast period.

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Market Segmentation

• Based on molecule type, the generic drugs market is segmented into antidepressants, antihistamines, analgesics, antibiotics, antivirals, diuretics, and others. The antibiotics segment held the largest share of the market in 2024.
• By indication, the generic drugs market is segmented into metabolic diseases, cancer, immunology, respiratory disorder, cardiovascular disorder, neurology disorder, rare disease, and others. The cancer segment held the largest share of the market in 2024.
• In terms of type, the generic drugs market is bifurcated into prescription and OTC drugs. The prescription segment held a larger share of the market in 2024.
• By distribution channel, the generic drugs market is segmented into hospital pharmacies, retail pharmacies, and online pharmacies. The hospital pharmacies segment held the largest share of the generic drugs market in 2024.
• The generic drugs market is segmented into five major regions: North America, Europe, APAC, Middle East & Africa, and South & Central America.
  
  

Competitive Strategy and Development

• Key Players: Major companies operating in the generic drugs market include Novartis AG, F. Hoffmann-La Roche Ltd, GSK Plc, Johnson & Johnson, Merck KGaA, Pfizer Inc, Sanofi SA, AstraZeneca Plc, Eli Lilly and Co, Bristol-Myers Squibb Co, Teva Pharmaceutical Industries Ltd, Mylan NV, UCB SA, Becton Dickinson and Co, ESTEVE, and Hikma Pharmaceuticals Plc.
• Trending Topics: Pharmaceutical Market, Oncology Drugs Market, Antibiotics Market, OTC Drugs Market, Prescription Drugs Market, etc.

Global Headlines on Generic Drugs

• Glenmark Launches Generic Ophthalmic Solution in US Market"
• Teva Announces the Launch of Authorized Generic of Victoza® (liraglutide injection 1.8mg), in the US "
• Senores to Acquire Generic Drug from Dr. Reddy’s "
• Synthon, a Global Leader in Complex Generic Drug Development and Manufacturing, Announces Investment from Goldman Sachs Alternatives "

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Conclusion

The generic drugs market is growing owing to patent expirations, government policies, and the increasing demand for affordable medicines. The increasing patent expiry for cancer drugs, anti-diabetic drugs, and treatments in immunology has created opportunities for generic drug manufacturers to provide inexpensive alternatives. The entry of these generics is crucial in lowering healthcare expenditures across nations and providing easier access to therapies for patients, especially when the country’s healthcare system has a constrained budget. Although financial incentives to healthcare providers and regulatory approaches to allow easier access to generics stimulate the trend, initiatives in advanced economies such as the US and Europe, as well as emerging markets such as India and Brazil, are making generics more available and affordable. The rise of generics is helpful in public healthcare systems that have limited budgets, where such savings ensure that greater numbers of people have access to needed treatments.

The report from The Insight Partners, therefore, provides several stakeholders—including pharmaceutical manufacturers, Contract Research and Manufacturing Organizations, healthcare providers, biopharmaceutical manufacturers, and others—with valuable insights into how to successfully navigate this evolving market landscape and unlock new opportunities.

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