Global Pharmaceuticals & Medicine Manufacturing - Market Research Report (2013-2028)
New York, United States
Last Updated: October 2023
C1933-GLRevenue
$1.2tr
Past 5-Year Growth
Profit
$XXX.Xbn
Employees
2m
Businesses
17,183
Wages
$XXX.Xbn
Global Pharmaceuticals & Medicine Manufacturing industry analysis
Pharmaceutical manufacturers have benefited from an aging population in developed economies and a growing middle class in emerging economies, which has provided a larger customer base for companies in the Global Pharmaceuticals and Medicine Manufacturing industry. Many manufacturers have also tapped into regional demand for pharmaceuticals that may differ from developed markets and have expanded their global presence to tap into regional market needs and develop relationships with government entities that can accelerate drug approval or implement high reimbursement rates. The outbreak of COVID-19 presented drug manufacturers with new opportunities; however, only very few drug manufacturers were able to participate in developing COVID-19 vaccines and therapies globally.Patent cliffs have continued to hamper industry revenue. When blockbuster drugs lose patent exclusivity, the market is inundated with low-cost generic drugs. As manufacturers contend with more price-based competition from generics, many manufacturers respond by lowering their research and development (R&D) expenditures, limiting manufacturers' drug pipelines. Further exacerbating this, many governments and health insurance organizations have reduced their drug reimbursements to control healthcare costs, like implementing incentives for patients to use generic drugs, which reduces demand for some brand-name drugs. Nevertheless, industry revenue is anticipated to grow a CAGR of 0.4% to $1.2 trillion over the five years to 2023, including an increase of 2.5% in 2023 alone. However, patent cliffs and continued generics competition have limited an expansion of profitability across the industry.Moving forward, industry revenue is forecast to grow at a CAGR of 0.8% to more than $1.2 trillion over the five years to 2028 amid an anticipated persistence of global demand for industry products. Global research and development funding will continue to increase. Meanwhile, the global number of adults aged 65 and older will grow at a faster rate than the global population overall, contributing to higher demand for medicines. Notably, more pharmaceutical manufacturers will likely tailor their R&D and product portfolio to meet emerging markets' healthcare needs. New innovations are expected to lengthen patients' lifespans and promote a higher quality of life, bolstering revenue.
Trends and Insights
- COVID-19 pandemic presented pharmaceutical companies with new opportunities to bring vaccines and therapies to market. Some of the leading pharmaceutical giants, including Pfizer and J&J, saw revenue reach new highs.
- Pharmaceuticals used for treating specialized disease are the largest product market globally. These include medicines for the treatment of diabetes, HIV/AIDS, hypertension, blood coagulation and cancer.
- The European market is the largest production hub globally. Some of the largest pharmaceutical companies are located in Germany, France, the United Kingdom and Switzerland.
- Patented products experience little competition and can achieve substantial profit while they are exclusive. However, it can take decades to bring a drug to market and few chemicals receive exclusivity protections.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 0.4 % over the past five years, to reach an estimated $1.2tr in 2023.
Trends and Insights
The aging of the global population has underscored demand
- A globally aging population and a growing middle class in emerging economies have boosted demand for both brand-name and generic products.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The aging population will remain a foremost growth factor
- Demographic trends will continue to bolster revenue growth. The global number of adults aged 65 and older will grow at a faster rate than the overall population.
Biggest companies in the Global Pharmaceuticals & Medicine Manufacturing
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Pfizer Inc. | 58,457.0 | 15,441.0 | 26.4 | |
Johnson & Johnson | 54,374.2 | N/A | N/A | |
Novartis AG | 54,374.2 | N/A | N/A |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Mental health treatments, Cardiovascular and respiratory treatments and Pain and autoimmune treatments. Mental health treatments is the largest segment of the Global Pharmaceuticals & Medicine Manufacturing.
Trends and Insights
Specialized disease treatments
- The specialized disease treatments product segment primarily comprises diabetes, HIV/AIDS, hypertension, blood coagulation and cancer pharmaceuticals. With treatments for terminal and chronic illnesses like these, downstream demand is stable and often lifelong, thus producing significant returns on investment for drug manufacturers. Moreover, since these diseases have symptoms that may not coincide with symptoms of other more ubiquitous diseases, drug manufacturers cannot reconcile their vast research and development (R&D) expenditures over a larger consumer base, contributing to the high prices of these products.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Global Health Care Equipment Manufacturing
Complementors
- Global Cosmetics Manufacturing
- Global Life & Health Insurance Carriers
- Global Biotechnology
International industries
- Brand Name Pharmaceutical Manufacturing in the US
- Generic Pharmaceutical Manufacturing in the US
- Cell Therapy in the US
- Drug & Alcohol Test Kit Manufacturing in the US
- Intravenous (IV) Solution Manufacturing in the US
Table of Contents
About this industry
Industry definition
The industry comprises companies that manufacture biological, medicinal and pharmaceutical products in various forms, including ampoules, tablets, capsules, vials, ointments, powders, solutions and suspensions. The overall pharmaceutical market can be segmented into prescription-based, or ethical products, and over-the-counter medications. Industry products are predominantly distributed via wholesalers and are then sold via pharmacies or distributed in hospitals.
What's included in this industry?
Manufacturing patented prescription productsManufacturing generic prescription productsManufacturing over-the-counter productsCompanies
Pfizer Inc. Johnson & JohnsonNovartis AGPurchase this report to view all 4 major companies in this industry.
Related Terms
CONTRACT MANUFACTURING ORGANIZATIONS (CMOS)GENERICOVER-THE-COUNTER (OTC) PRODUCTSPRESCRIPTION PHARMACEUTICALRESEARCH AND DEVELOPMENT (R&D)OUTSOURCEORGAN. FOR ECON. CO-OPERATION AND DEVELOPMENTBOLT-ON ACQUISITIONPerformance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
COVID-19 pandemic presented pharmaceutical companies with new opportunities to bring vaccines and therapies to market. Some of the leading pharmaceutical giants, including Pf...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Pharmaceuticals used for treating specialized disease are the largest product market globally. These include medicines for the treatment of diabetes, HIV/AIDS, hypertension, ...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2023
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The European market is the largest production hub globally. Some of the largest pharmaceutical companies are located in Germany, France, the United Kingdom and Switzerland.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Business Locations Charts
- Share of global output by region in 2023
- Share of population compared to output in each region in 2023
- Data tables
- Share of global output by region in 2023
- Detailed analysis
- Geographic spread of the industry across Global, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Patented products experience little competition and can achieve substantial profit while they are exclusive. However, it can take decades to bring a drug to market and few ch...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Pfizer is the world’s largest pharmaceuticals company. The company’s revenue has surged with the introduction of COVID-19 vaccines and therapies.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Pfizer Inc. 's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Johnson & Johnson's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Novartis AG's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Pfizer Inc. , and factors influencing its performance in the industry
- Description and key data for Johnson & Johnson, and factors influencing its performance in the industry
- Description and key data for Novartis AG, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The sale price of pharmaceuticals varies across the world. In the United States, pricing is determined according to formulas for government health insurance plans, while Japa...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit varies by product segment, location and scale. Companies that can bring innovative therapies to market typically experience rising profit.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources globally include:
- United Nations Comtrade
- Organization for Economic Cooperation & Development
- World Bank
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Global Pharmaceuticals & Medicine Manufacturing industry in Global in 2024?
The market size of the Global Pharmaceuticals & Medicine Manufacturing industry in Global is $1.2tr in 2024.
How many businesses are there in the Global Pharmaceuticals & Medicine Manufacturing industry in 2023?
There are 17,183 businesses in the Global Pharmaceuticals & Medicine Manufacturing industry in Global, which has grown at a CAGR of 3.8 % between 2018 and 2023.
Has the Global Pharmaceuticals & Medicine Manufacturing industry in Global grown or declined over the past 5 years?
The market size of the Global Pharmaceuticals & Medicine Manufacturing industry in Global has been growing at a CAGR of 0.4 % between 2018 and 2023.
What is the forecast growth of the Global Pharmaceuticals & Medicine Manufacturing industry in Global over the next 5 years?
Over the next five years, the Global Pharmaceuticals & Medicine Manufacturing industry in Global is expected to grow.
What are the biggest companies in the Global Pharmaceuticals & Medicine Manufacturing market in Global?
The biggest companies operating in the Global Pharmaceuticals & Medicine Manufacturing market in Global are Pfizer Inc. , Johnson & Johnson and Novartis AG
What does the Global Pharmaceuticals & Medicine Manufacturing in Global include?
Manufacturing patented prescription products and Manufacturing generic prescription products are part of the Global Pharmaceuticals & Medicine Manufacturing industry.
Which companies have the highest market share in the Global Pharmaceuticals & Medicine Manufacturing in Global?
The company holding the most market share in Global is Pfizer Inc. .
How competitive is the Global Pharmaceuticals & Medicine Manufacturing industry in Global?
The level of competition is high and increasing in the Global Pharmaceuticals & Medicine Manufacturing industry in Global.
