Pharma and Health Care Market Size, Share, Growth, And Industry Analysis, By Type (Bottle, Blister and Others), By Application (OTC Drugs and Prescription Drugs), Regional Insights and Forecast From 2025 To 2033

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PHARMA AND HEALTH CARE MARKET OVERVIEW

The global pharma and health care market was valued at USD 1401.44 billion in 2024 and is expected to grow to USD 1457.5 billion in 2025, reaching USD 2001.21 billion by 2033, with a projected CAGR of 4% from 2025 to 2033.

Pharmaceuticals (pharma) and healthcare are two interconnected fields that involve the development, manufacturing, distribution, and administration of drugs, medical devices, and other treatments and therapies to prevent, diagnose, and treat illnesses and diseases. Pharmaceuticals are substances that are used to diagnose, cure, treat, or prevent disease. They are developed through a complex process that involves research and development, clinical trials, and regulatory approvals. Pharmaceutical companies develop drugs that are then sold to healthcare providers and patients.

Healthcare, on the other hand, is the broader field that encompasses the prevention, diagnosis, and treatment of diseases and illnesses, as well as the promotion of overall health and well-being. Healthcare providers include doctors, nurses, pharmacists, and other medical professionals who work in hospitals, clinics, and other healthcare facilities. Healthcare services can be provided through a variety of settings, including primary care, specialty care, and hospital-based care.

PHARMA AND HEALTH CARE MARKET KEY FINDING

• Market Size and Growth: Global pharma and health care market was valued at USD 1401.44 billion in 2024 and is expected to grow to USD 1457.5 billion in 2025, reaching USD 2001.21 billion by 2033, with a projected CAGR of 4% from 2025 to 2033.

• Key Market Driver: In 2022, the global pharmaceutical industry’s R&D activities directly employed over 1.1 million researchers, underscoring innovation‑driven expansion.

• Major Market Resraint: Total employment supported by the industry dipped from 68 million jobs in 2017 to 67 million in 2022 due to inflation, rising labour costs, and supply‑chain disruptions.

• Emerging Trends: Small molecules made up 64% of FDA novel‑drug approvals in 2024 (32 of 50), up from 57% in 2022 and 62 % in 2023.

• Regional Leadership: North America led global regulatory activity with the FDA approving all 50 novel drugs in 2024, reinforcing its dominant position.

• Competitive Landscape: The International Federation of Pharmaceutical Manufacturers & Associations (IFPMA) represents over 90 leading companies, reflecting a highly consolidated market.

• Market Segmentation: Of the 50 novel approvals in 2024, 32 (64%) were small molecules, 16 (32%) were proteins/biologics, and 2 (4%) were oligonucleotides.

• Recent Development: Oncology remained the top focus area with 15 novel approvals (30%) in 2024, including the first-ever FDA‑approved NASH therapy.

COVID-19 IMPACT

Pandemic Hamper the Demand of Pharma and Health Care to Market Growth 

The COVID-19 pandemic has led to a surge in demand for drugs, vaccines, and medical supplies. Pharmaceutical companies have been working around the clock to develop vaccines and treatments for COVID-19, as well as to ensure a steady supply of other essential drugs.  The pandemic has led to changes in the way healthcare is delivered. Telemedicine has become more widespread, with many healthcare providers offering virtual consultations to reduce the risk of transmission of the virus. Additionally, many non-urgent medical procedures have been postponed prioritizing COVID-19 patients. 

LATEST TRENDS

Increasing Demand for Personalized medicine to Support Market Growth 

Personalized medicine is an approach to healthcare that involves tailoring medical treatment to the individual characteristics of each patient. This includes genetic testing, which can help identify the specific genetic factors that contribute to a patient's disease, and the development of targeted therapies that are designed to work specifically for those patients. Digital health involves the use of digital technologies to improve healthcare delivery and outcomes. This includes the use of telemedicine, mobile health apps, wearable health devices, and other digital tools that allow patients to monitor their health and communicate with healthcare providers remotely.

• According to the U.S. Health Resources and Services Administration, 96% of HRSA‑funded health centers utilized telehealth services to deliver primary care in 2023.

• According to the U.S. Food and Drug Administration, its Center for Drug Evaluation and Research approved 55 novel new molecular entities in 2023, the highest annual total since the program’s inception.

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PHARMA AND HEALTH CARE MARKET SEGMENTATION

By Type

According to type, the pharma and health care market can be segmented into bottles, blisters, and others.

In terms of type, the blister type is anticipated to be the largest segment during the forecast period.  

By Application

Based on application, the pharma and health care market can be divided into OTC drugs and prescription drugs.

In terms of application, the prescription drugs market is projected to hold the largest pharma and health care market share through 2033.  

DRIVING FACTORS

Technological Advancements and Demographic Changes Will Boost Market Growth

Changes in demographics, such as an aging population, can drive demand for healthcare services and pharmaceuticals that treat age-related diseases and conditions. Advances in technology, such as digital health and artificial intelligence, are driving innovation in the pharmaceutical and healthcare industries, allowing for more targeted and personalized treatments. 

Economic Factors and Development will Fuel Market Growth 

Economic factors, such as changes in healthcare policy and reimbursement, can have a significant impact on the pharmaceutical and healthcare industries. Changes in government policies and regulations can affect the availability and affordability of healthcare services and pharmaceuticals. Public health concerns, such as pandemics and outbreaks of infectious diseases, can drive demand for drugs, vaccines, and medical supplies, as well as influence healthcare policy and research priorities.

• According to ClinicalTrials.gov, the U.S. government’s registry held over 444,000 clinical study records from 221 countries as of mid‑2024, underscoring the scale of ongoing research driving product pipelines.

• According to the U.S. National Institutes of Health, its FY 2024 budget was set at $48.1 billion to support biomedical and public health research, fostering innovation across pharmaceutical and healthcare sectors.

RESTRAINING FACTORS

Regulatory Barriers and Rising Healthcare Costs Will Limit Market Growth

Regulatory barriers, such as long approval times for new drugs and medical devices, can limit innovation and slow down the development of new treatments. Rising healthcare costs can place a strain on patients, payers, and healthcare providers. This can limit access to care and put pressure on the pharmaceutical industry to keep prices low.

• According to the World Health Organization, the global health workforce stock now exceeds 70 million, yet there remains a shortage of 14.7 million health and care workers worldwide as of 2023.

• According to the U.S. FDA, it received 1,605 notifications of potential drug shortage situations from 159 manufacturers in calendar year 2023 under Section 506C(a), reflecting the ongoing challenges in ensuring uninterrupted drug supply.

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PHARMA AND HEALTH CARE MARKET REGIONAL INSIGHTS

The North America Region will Dominate Market Due to Strong Demand of Healthcare System

The North American pharmaceutical industry is one of the largest in the world, driven by a large population and a high demand for healthcare services. The United States is the largest market for pharmaceuticals globally, with a highly developed healthcare system and a strong focus on innovation. Canada also has a significant pharmaceutical industry, with a focus on generic drug manufacturing.

The European pharmaceutical industry is highly regulated, with strict requirements for drug approval and pricing. The industry is dominated by a few large multinational companies, with a strong focus on research and development. Healthcare systems across Europe vary significantly, with some countries offering universal healthcare coverage while others rely on private insurance.

KEY INDUSTRY PLAYERS

Adoption Aluminum Recycling Services by Key Players Influencing Market Development

The top key players in the market are Johnson & Johnson, Novartis, Roche, AbbVie, Merck & Co. Most of the top players hold the pharma and health care market share. In addition, the strategies to develop new technologies, capital investment in R&D, improve product quality, acquisitions, mergers, and compete for the pharma and health care market growth in the competition help them to perpetuate their position and value in the market. Besides, collaboration with other companies & extensive possession of market shares by the key players stimulates the pharma and health care market.

• Johnson & Johnson (U.S.): According to the U.S. Food and Drug Administration, Johnson & Johnson’s Janssen COVID‑19 vaccine Phase III trial enrolled 43,783 participants randomized 1:1 to vaccine or placebo, demonstrating the scale of its late‑stage clinical development.

• Novartis (Switzerland): According to ClinicalTrials.gov, Novartis’s managed access program for alpelisib treated 65 patients with PIK3CA‑related overgrowth syndrome (PROS) for at least 24 weeks as of November 2019, highlighting its commitment to rare‑disease therapies.

List of Top Pharma And Health Care Companies

• Johnson & Johnson (U.S.) 
• Novartis (Switzerland)
• Roche (Switzerland)
• AbbVie (U.S.)
• Merck & Co. (U.S.)
• Bristol Myers Squibb (U.S.)
• GlaxoSmithKline (UK.)
• Pfizer (U.S.)
• Sanofi (France)
• Takeda (Japan)
• AstraZeneca (UK.)
• Bayer (Germany)
• Eli Lilly & Co. (U.S.)
• Gilead Sciences (U.S.)
• Amgen (U.S.)
• Novo Nordisk (Denmark)
• Teva (Israel)
• Boehringer Ingelheim (Germany)
• Biogen (U.S.)
• Astellas (Japan)

REPORT COVERAGE

This report examines an understanding of the pharma and health care market’s size, share, growth rate, segmentation by type, application, key players, and previous and current market scenarios. The report also collects the market’s precise data and forecasts by market experts. Also, it describes the study of this industry’s financial performance, investments, growth, innovation marks, and new product launches by the top companies and offers deep insights into the current market structure, competitive analysis based on key players, key driving forces, and restraints that affect the demand for growth, opportunities, and risks.

Furthermore, the post-COVID-19 pandemic’s effects on international market restrictions and a deep understanding of how the industry will recover, and strategies are also stated in the report. The competitive landscape has also been examined in detail to provide clarification of the competitive landscape.

This report also discloses the research based on methodologies that define price trend analysis of target companies, collection of data, statistics, target competitors, import-export, information, and previous years’ records based on market sales. Moreover, all the significant factors which influence the market such as small or medium business industry, macro-economic indicators, value chain analysis, and demand-side dynamics, with all the major business players have been explained in detail. This analysis is subject to modification if the key players and feasible analysis of market dynamics change.