Pharma Market Size, Share, Growth, and Industry Growth by Type (Prescription-Based Drugs and Over-The-Counter Drugs) By Application (Hospital Pharmacies, Retail Pharmacies/ Drug Stores, and Others) Regional Forecast To 2034

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PHARMA MARKET OVERVIEW

The global Pharma Market size stood at USD 719.49 billion in 2025, growing further to USD 2021.61 billion by 2034 at an estimated CAGR of 12.16% from 2025 to 2034.

The United States Pharma Market size is projected at USD 237.93477 billion in 2025, the Europe Pharma Market size is projected at USD 185.19628 billion in 2025, and the China Pharma Market size is projected at USD 190.73634 billion in 2025.

The global COVID-19 pandemic has been unprecedented and staggering, with pharma experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels.  The sudden spike in CAGR is attributable to demand returning to pre-pandemic levels once the pandemic is over.

Pharma industry develops, discovers, and produces pharmaceutical drugs which is use for medication purpose. The medicines aim to cure diseases.

A rise in demand for drug and increased prevalence of disease globally is estimated to drive market growth. Growing R&D activities coupled with mergers & acquisition in the pharmaceutical sector is anticipated to fuel market growth. Increased investment by market players and single-use disposable solution is predicted to fuel market progress. Increased adoption of artificial intelligence (AI) and rapid adoption of open transfer manufacturing techniques are predicted to fuel market progress. Further, increased prevalence of chronic condition such as diabetes, cancer, and other dieses. Growing number of disease and increased awareness about women healthcare is estimated to fuel market growth in the forthcoming years. On the contrary, fluctuation of raw materials prices to harm market growth in the coming years. Further, high demand for several clinical test to approve is anticipated to restrict market progress.

KEY FINDINGS

COVID-19 IMPACT

Increased Need for Vaccines & Medicines to Fuel Market Growth 

The global COVID-19 pandemic affected several businesses in 2020. Pharma market witnessed a positive growth due to high demand for vaccines and coronavirus medicines. Increased number of clinical trial activities and growing healthcare investment to surge market growth. Huge R&D investment and growing sales of drugs & vaccines coupled with high prioritized to treat respiratory diseases expand market growth.

On the contrary, lockdown restrictions hampered supply and chain and distribution.  

LATEST TRENDS

Increased R&D Activities among Pharmaceutical Companies to Fuel Market Growth

Increased R&D activities in the pharmaceutical companies and growing geriatric population is estimated to surge market progress. Huge demand to treat diseases and advanced research methods and clinically tested medicines are predicted to fuel market progress. Increased investment by market players and single-use disposable solution is predicted to fuel market progress. Increased adoption of artificial intelligence (AI) and rapid adoption of open transfer manufacturing techniques are predicted to fuel market progress. Further, increased prevalence of chronic condition such as diabetes, cancer, and other dieses. Growing number of disease and increased awareness about women healthcare is estimated to fuel market growth in the forthcoming years.

• Vaccine supply dominance: India manufactures over 60 % of global vaccine volumes and supplies 6 billion doses annually, valued at around US $77 billion in 2023—representing ~5 % of total pharma market value.

• Rise of weight‑loss therapeutics: According to Research, the global weight‑loss drug market is projected at US $150 billion, and India’s obesity prevalence was ~25 % by 2021, set to reach 11 % obesity rate by 2034.

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PHARMA MARKET SEGMENTATION

By Type

Based on type, the market is divided into prescription-based drugs and over-the-counter drugs.

Prescription-based drugs are expected to be the top part of the segmentation type.

By Application

Based on the application, the market is divided into hospital pharmacies, retail pharmacies/ drug stores, and others.

Retail pharmacies/ drug stores are expected to be the top part of application segmentation.

DRIVING FACTORS

Adoption of New Technology and High Demand for Prescription-Based Drugs to Stimulate Market Growth

Huge adoption of new technology in the healthcare sector and high demand for prescription-based drugs is estimated to fuel market growth. Increasing number of patients prefer to have doctor prescribed drugs and rise in demand for drugs to cure diseases are anticipated to surge market growth. Growing awareness and prevalence of chronic diseases such as diabetes, cancer, and others and huge availability of treatment options is estimated to foster market growth in the forthcoming years. Increased patient population globally is projected to boost market growth. High concern to treat cardiovascular diseases is anticipated to surge market growth.

Government Regulations and Easy Availability of Medicines to Foster Market Growth

Increased government regulation to develop cost-effective medicines. Increased investment by government to develop new products and increased number of hospitalizations is predicted to fuel market growth. Increased adoption of medicines to treat disease is anticipated to fuel market growth. Huge technological advancements in drug development process and huge customer base is predicted to drive market growth in the forthcoming years.

• According to our reports, more than 14,080 Jan Aushadhi stores were operational by mid‑2024, with annual generic drug sales reaching ₹1,470 crore.

• As per report, India recorded year‑on‑year pharma growth of 7.8 % in April 2025, attributed to government‑driven affordability and innovation initiatives

RESTRAINING FACTORS

Fluctuation of Raw Material Prices to Harm Market Growth

Fluctuation of raw materials prices to harm market growth in the coming years. Further, high demand for several clinical test to approve is anticipated to restrict market progress.

• According to research reports, over 800 essential medicines had prices increased by ~10.8 %, impacting affordability and supply at consumer level.

• According to research, a high share of out‑of‑pocket spending in low‑income populations for long‑term drug treatment remains a financial barrier to access.

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PHARMA MARKET REGIONAL INSIGHTS

Large Number of Strategic Pharma Partnerships in North America to Drive Market Share

North America is estimated to dominate pharma market share owing to large number of strategic pharma partnerships and rise in disease incidence. Huge customer base in the region and well-established companies are estimated to drive market growth. Adoption of new technology and a rise in demand for drug and increased prevalence of disease globally is estimated to drive market growth. Growing R&D activities coupled with mergers & acquisition in the pharmaceutical sector is anticipated to fuel market growth.

Asia Pacific is anticipated to account for second-largest position due to adoption of new technologies. Increased investment by market players and single-use disposable solution is predicted to fuel market progress. Increased adoption of artificial intelligence (AI) and rapid adoption of open transfer manufacturing techniques are predicted to fuel market progress. Further, increased prevalence of chronic condition such as diabetes, cancer, and other dieses. These factors are estimated to fuel market growth in the forthcoming years.  

KEY INDUSTRY PLAYERS

Leading Players Adopt New Strategies to Stay Competitive

The report covers information about the list of market players and their latest development in the industry. The information includes mergers, partnerships, acquisitions, technological developments, and production lines. Other aspects examined for this market include complete research on companies producing and introducing the latest products, regions they conduct their operations in, automation, technology adoption, generating the most revenue, and making a difference with their products.

• Sun Pharma: According to research, Sun Pharma contributes to India’s generics exports, with US generics revenue making up ~40% of Dr. Reddy’s—Sun is a major contributor within that landscape.

• Sanofi Nigeria / Sanofi: Sanofi is ranked #3 in the Access to Medicine Index 2024 with a score of 3.52.

List of Top Pharma Companies

• Sun Pharma
• Sanofi Nigeria
• Zolon Healthcare Limited
• Bayer
• Hoffmann-La Roche
• Johnson & Johnson
• Pfizer
• Merck & Co.
• Sanofi
• Mopson Pharmaceutical Limited
• Abbott Laboratories
• Merck
• GlaxoSmithKline
• AbbVie
• Novartis

REPORT COVERAGE

This research profiles a report with general studies that explain the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by examining the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, and others. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.