Dublin, May 20, 2024 (GLOBE NEWSWIRE) -- The "US Generic Drug Market Report by Segment, Therapy Area, Drug Delivery, Distribution Channel 2024-2032" report has been added to ResearchAndMarkets.com's offering.
The US generic drug market size reached US$ 90.4 billion in 2023. The market is projected to reach US$ 124.3 billion by 2032, exhibiting a growth rate (CAGR) of 3.6% during 2023-2032. The increasing prevalence of chronic diseases, the rising geriatric population, the growing healthcare expenditure, a large number of patent-expired branded drugs, and the escalating demand for generic medicines are some of the factors propelling the market. 
The market in the United States is majorly driven by the easy availability and affordability of the product. In line with this, the increasing number of expired patents is significantly contributing to the market. Apart from this, with the rising cost of healthcare, including prescription medications, payers and healthcare providers seek to promote the use of generic drugs to contain expenses, thus catalyzing the market.
Moreover, numerous government initiatives encourage the use of generic drugs by providing incentives and lower reimbursement rates for generic prescriptions, thereby creating a positive outlook for the market. Besides, the aging population in the United States requires a larger volume of medications. Additionally, the expiration of patents for several blockbuster drugs creates growth opportunities for generic manufacturers.
Competitive Landscape
The top generic drug companies in the United States actively contribute to the market expansion with their extensive resources, research capabilities, and industry expertise. These companies invest heavily in research and development to bring a wide range of generic drugs. They focus on developing cost-effective alternatives to brand-name medications across various therapy areas, addressing the needs of patients and healthcare providers for affordable treatment options.
Furthermore, these companies maintain strong manufacturing capabilities and efficient supply chains, ensuring a steady and reliable supply of generic medications. This enables healthcare providers to confidently prescribe and dispense generic drugs, promoting their utilization and market growth. Besides, these companies engage in strategic partnerships, collaborations, and licensing agreements to enhance their product portfolios and expand market reach. By partnering with other industry leaders, they access a broader range of products, expertise, and distribution channels, allowing for increased market penetration and growth.
Moreover, top generic drug companies engage in comprehensive marketing and promotional efforts to raise awareness among healthcare providers and patients about the benefits of generic drugs. They actively participate in educational initiatives, formulary discussions, and healthcare conferences, aiming to promote the value and cost-effectiveness of generic medications.
Growing demand for chronic disease management
The growing demand for chronic disease management is favorably impacting the market. Chronic diseases, such as diabetes, cardiovascular conditions, and respiratory disorders, are prevalent and require long-term medication use. As the population ages and the prevalence of chronic diseases increases, the need for cost-effective medication options becomes crucial. Furthermore, generic drugs offer an affordable alternative for managing chronic diseases. They contain the same active ingredients as their brand-name counterparts, ensuring similar therapeutic effects at a fraction of the cost. This makes them highly attractive to patients, healthcare providers, and payers.
Moreover, healthcare providers often prioritize using generic drugs for chronic disease management due to their proven safety and efficacy. They may prescribe generics as a first-line treatment option or encourage patients to switch from brand-name medications to their generic equivalents to improve adherence and reduce costs. In addition, the payers, including insurance companies and government programs, recognize the cost-saving potential of generic drugs in chronic disease management. They may offer preferential coverage or lower co-pays for generic prescriptions, making them more accessible and affordable for patients. Additionally, formulary management programs may include generics as preferred options, further driving their utilization.
Increasing drug shortage across the region
The increasing drug shortage is strengthening the market across the region. Shortages of brand-name drugs can occur due to a variety of factors, including manufacturing issues, regulatory challenges, supply chain disruptions, and increased demand. These shortages can lead to increased utilization of generic alternatives. During a drug shortage, healthcare providers and pharmacies may face challenges maintaining a consistent supply of brand-name medications. As a result, they turn to generic drugs as a substitute to ensure continuity of patient care. Generic drugs offer a viable solution during these shortages as they are often readily available, produced by multiple manufacturers, and competitively priced.
Furthermore, healthcare providers may proactively prescribe generic drugs as alternatives to mitigate the impact of drug shortages on patient treatment plans. In some cases, healthcare systems and hospitals may implement protocols to promote the use of generic drugs during shortages to optimize resource allocation and minimize disruptions in patient care. Moreover, the reliance on generic drugs during drug shortages addresses immediate supply challenges and contributes to the growth of the generic drug market in the long term. This creates an opportunity for healthcare providers, patients, and payers to recognize the value and reliability of generic medications, potentially leading to increased utilization and market growth for generic drugs beyond the period of shortage.
Presence of patent cliffs
Patent cliffs refer to the expiration of patents for blockbuster brand-name drugs, opening the market for generic competitors. When a patent expires, generic manufacturers can legally produce and distribute their drug versions, often at significantly lower prices. Furthermore, patent cliffs are offering lucrative opportunities for generic drug manufacturers to enter the market and offer more affordable alternatives to brand-name drugs. As patents expire, competition increases, leading to the market growth for generic drugs. This increased competition promotes price transparency and drives down the cost of medications, benefiting patients and healthcare systems.
Moreover, pharmaceutical companies and healthcare providers closely monitor patent expirations to identify cost savings opportunities and promote the usage of generics. They may proactively switch patients to generic alternatives to take advantage of the cost savings. Additionally, the presence of patent cliffs in the pharmaceutical industry expands access to more affordable medications and fosters market growth for generic drugs by creating a competitive landscape and encouraging innovation among generic manufacturers.
Key Questions Answered in This Report
- What was the size of the US generic drug in 2023?
- What is the expected growth rate of the US generic drug during 2024-2032?
- What are the key factors driving the US generic drug market?
- What has been the impact of COVID-19 on the US generic drug market?
- What is the breakup of the US generic drug market based on the segment?
- What is the breakup of the US generic drug market based on the therapy area?
- What is the breakup of the US generic drug market based on the drug delivery?
- What is the breakup of the US generic drug market based on the distribution channel?
- Who are the key companies/players in the US generic drug market?
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 139 |
| Forecast Period | 2023 - 2032 |
| Estimated Market Value (USD) in 2023 | $90.4 Billion |
| Forecasted Market Value (USD) by 2032 | $124.3 Billion |
| Compound Annual Growth Rate | 3.6% |
| Regions Covered | United States |
Competition Analysis
- Teva
- Mylan
- Actavis (Teva)
- Sandoz (Novartis)
- Sun Pharma
- Par Pharmaceuticals (Endo Pharmaceuticals)
- Lupin Pharmaceuticals
- Dr Reddy's
- Hospira (Pfizer)
US Generic Drug Industry Segmentation:
Breakup by Segment:
- Unbranded
- Branded
Breakup by Therapy Area:
- CNS
- Cardiovascular
- Dermatology
- Genitourinary/Hormonal
- Respiratory
- Rheumatology
- Diabetes
- Oncology
- Others
Breakup by Drug Delivery:
- Oral
- Injectables
- Dermal/Topical
- Inhalers
Breakup by Distribution Channel:
- Hospital Pharmacies
- Retail Pharmacies
For more information about this report visit https://www.researchandmarkets.com/r/d6jfan
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
Attachment
