Globally, the pharma market is on an upward trajectory, according to a recent sectoral study by the Investment Promotion Agency Qatar (IPA Qatar). Biopharma deals soared to new heights in 2020, with a remarkable increase of 107% compared to 2018. R&D spending equally saw substantial growth, reaching $189 billion in 2020.
The study noted that this projected growth is indicative of the industry’s steady expansion in the aftermath of the pandemic and substantial investments in global healthcare systems.
By 2025, the market is estimated to reach $2,051 billion, a 70% increase from 2020. Similarly, drug sales are expected to rise by 32% from 2020 to reach $1,181 billion by 2024. It added that the Middle East is quickly becoming a key driver of this anticipated growth.
The region benefits from improved medicine accessibility and a robust economic development outlook, making it an attractive market for pharmaceutical investments.
With nations actively focusing on boosting healthcare and easy access to personalized digital services, the GCC countries are experiencing a surge in their $9 billion consumer health market.
The study highlighted a number of demand drivers for the pharmaceutical industry, including an ageing population, a rise in chronic diseases, stress-related illnesses, and pandemics are all contributing factors.
Simultaneously, supply side drivers such as specialty medicine, patent expiry, generic drugs and over-the-counter medications present additional opportunities for growth within the sector. The global middle class is projected to reach 5.3 billion by 2030.
The generic drug market meanwhile was worth $390.6 billion in 2020 and will reach $574.6 billion by 2030, while the market size is expected to reach $796.8 billion by 2028, expanding at a CAGR of 6.2% till 2028.
Source: Qatar News Agency