Pharmerging Market Analysis By Product, By Region {Tier I (China), Tier II (India, Brazil, Russia, South Africa) Tier III (Argentina, Mexico, Poland, Turkey, Indonesia)}, And Segment Forecasts, 2018 - 2025

Industry Insights

The global pharmerging market size was valued at USD 548.3 billion in 2016 and is expected to grow at a CAGR of 17.1% over the forecast period. The increasing geriatric population, increasing healthcare expenditure, increasing the number of private hospitals, and increasing disease burden of chronic diseases is expected to boost the demand for products over the forecast period.

An increase in the geriatric population is affecting this market in various parts of the world differently. It has been estimated that by 2030 one in every sixth person will be above the age of 60. China’s geriatric population is expected to increase to 330 million by 2050, and India’s geriatric population is expected to cross 277 million by 2050. The most common disease in the geriatric population includes dementia, hypertension, and cardiac failure. These diseases require constant and prolonged treatment. 

There is also a greater demand for home healthcare and second care due to the increasing geriatric population. There has been a spike in these facilities in countries such as India, China, and Brazil. These facilities may be privately funded or may be funded by the government. The government of Tier I and Tier II have also increased healthcare spending and are implementing supportive policies in order to reduce the cost of treatment for chronic diseases.

In 2016, the Chinese fiscal healthcare expenditure increased by 10.0% to reach 20 billion. The out-of-pocket expenditure for healthcare needs in China has decreased over the years, as the penetration of insurance has increased. This trend was reinforced by the healthcare reforms of 2009, which included increased government healthcare expenditure and this reform is expected to further decrease the out of the pocket expenditure.

The healthcare expenditure in the APAC region is estimated to be USD 472.5 billion in 2016. The healthcare expenditure in this region is anticipated to be the driving factor for the global healthcare expenditure.

Products Insights

The product segments included in the analysis of the pharmerging countries are pharmaceuticals and other healthcare products. The pharmaceutical segment includes patented prescription drugs, generic prescription drugs, and over-the-counter (OTC) drugs. The pharmaceutical segments hold a majority of the market share in the healthcare industry of pharmerging countries. The generic prescription drugs are estimated to have more than 70.0% market share by 2025. This generic prescription drug segment is expected to drive the growth of the pharmaceutical industry. The price sensitivity of these countries and increasing out-of-pocket healthcare expenditure is expected to boost the generic prescription drugs market.

The other healthcare vertical includes medical devices, clinical diagnostics, and other segments. The other segment includes products and services such as healthcare IT, biotechnology, and healthcare software services. The medical device segment is expected to drive growth in the other healthcare vertical segment.

Regional Insights

The healthcare market in Tier I is estimated to be the largest amongst the pharmerging countries in 2016 and is expected to grow at a lucrative rate over the forecast period. Tier I is expected to drive growth in the pharmerging market globally. India is expected to drive growth among the Tier II countries. While Brazil held the highest market share as of 2016. Tier II also includes Russia and South Africa. 

The countries included in Tier III are Argentina, Mexico, Poland Turkey, Ukraine, Saudi Arabia, Nigeria, Algeria, Egypt, Pakistan, Indonesia, Thailand. The healthcare market in Tier III holds the least market share among pharmerging countries however, it is estimated to grow substantially over the forecast period. Thailand, Indonesia, Nigeria are expected to drive growth amongst Tier III countries.

Competitor Insights

Some of the key players in this market include Sanofi, Pfizer Inc., AstraZeneca, GlaxoSmithKline, F.Hoffmann-La Roche, GE Healthcare, Eli Lilly, Medtronic, Johnson and Johnson, Abbott. Collaborations, product launch, and mergers & acquisitions are the key strategic undertakings of these players

For instance, in January 2017, Sanofi signed a strategic transaction with Boehringer Ingelheim (BI) to exchange of Sanofi’s animal health business (Merial) and BI’s consumer healthcare business.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the pharmerging market on the basis of product, and region:

• Regional Outlook (Revenue, USD Billion; 2014 - 2025)

  • Tier I

    • China

  • Tier II

    • India

    • Brazil

    • Russia

    • South Africa

  • Tier III

    • Argentina

    • Mexico

    • Poland

    • Ukraine

    • Turkey

    • Saudi Arabia

    • Egypt

    • Algeria

    • Nigeria

    • Thailand

    • Indonesia

    • Pakistan

    • Saudi Arabia

• Product Outlook (Revenue, USD Billion; 2014 - 2025)

  • Pharmaceutical

    • Patented prescription drugs

    • Generic prescription drug

    • OTC drugs

  • Other healthcare verticals

    • Medical device

    • Clinical diagnostics

    • Other