A complex mix of forces is reshaping India’s pharmaceutical industry. For example, slower growth, pricing pressure, and intensifying competition in developed markets are pushing companies to look beyond their traditional focus on Europe, India, and the United States and toward emerging markets, note McKinsey’s Ankur Bhajanka, Jean-Baptiste Pelletier, Parag Patel, Sasikanth Dola, Sathya Prathipati, Vishnukaant Pitty, and Vivek Arora. In fact, pharma sales in emerging markets are projected to grow at nearly twice the global average from 2023 to 2028. As structural challenges in emerging markets are addressed, Indian players are expected to gain scale over the next five to seven years and unlock the potential of these regions.
Image description:
A stacked bar chart visualizes global pharmaceutical sales by region from 2018 to a 2028 forecast, highlighting both historical data and projected growth. The bars display sales in billions of dollars for 5 regions: rest of Asia and Oceania, Europe, North America, Indian subcontinent, and emerging markets (which include the Middle East, Africa, and Latin America). The global market grows from $1,113 billion in 2018 to a projected $2,324 billion by 2028, with considerable contributions from each region. North America consistently holds the largest share, increasing from $518 billion in 2018 to $1,144 billion in 2028. Europe follows, growing from $230 billion to $468 billion over the same period. Emerging markets surge to $261 billion by 2028, from $80 billion in 2018, while the Indian subcontinent rises from $21 billion to $53 billion. The rest of Asia and Oceania see an increase from $264 billion in 2018 to $398 billion in 2028. Complementing the chart, a table shows compound annual growth rates (CAGR) for each region: globally, growth accelerates from 7.4% (2018–23) to 7.9% (2023–28), but emerging markets stand out with a jump from 10.0% to 15.1% in the forecasted period—nearly double the global average. North America and Europe post more moderate CAGRs for 2023–28 at 8.4% and 7.1%, respectively, while the rest of Asia and Oceania show slower growth at 3.8%.
Note: This image description was completed with the assistance of Writer, a gen AI tool.
Source: Middle East & Africa pharmaceutical market insights: Thirty second edition, IQVIA, June 2024.
End of image description.
