Prescription Drugs Market Report 2025

This prescription drug market report delivers an in-depth analysis of the market’s key characteristics, including size, growth potential, and segmentation. It provides a detailed breakdown of the market across major regions and leading countries, highlighting historical data and future growth projections. The report also examines the competitive landscape, market share insights, emerging trends, and strategic developments shaping the market.

The prescription drug market size has grown rapidly in recent years. It will grow from $1.28 trillion in 2024 to $1.43 trillion in 2025 at a compound annual growth rate (CAGR) of 10.9%. The growth in the historic period can be attributed to the rising number of clinical trials, increasing availability of over-the-counter (OTC) products, rising need for daily prescriptions, rising healthcare costs, and increasing prevalence of several chronic disorders.

The prescription drug market size is expected to see rapid growth in the next few years. It will grow to $2.14 trillion in 2029 at a compound annual growth rate (CAGR) of 10.7%. The growth in the forecast period can be attributed to a rising number of clinical trials, increasing availability of over the counter (OTC) products, rising need for daily prescriptions, rising healthcare costs, and increasing prevalence of several chronic disorders. Major trends in the forecast period include demand for biologic drugs, advances in genomics and data analytics, awareness of mental health issues, expansion of digital health, and a shift toward preventive medications.

The anticipated increase in drug production is expected to drive the growth of the prescription drug market in the future. Drug production involves the structured process of creating pharmaceutical products, including their formulation, testing, and packaging, to ensure quality, safety, and effectiveness. Expanding drug production is essential to meet the rising global demand for medications, tackle public health challenges, and ensure timely access to treatments for various medical conditions. Enhanced drug production can improve the availability, affordability, and innovation within the prescription drug market, ultimately benefiting patients and the healthcare system by improving access to essential medications and supporting better health outcomes. For instance, in June 2023, the European Federation of Pharmaceutical Industries and Associations (EFPIA), a Belgium-based organization representing the pharmaceutical sector, reported significant production growth in the European pharmaceutical industry, with production rising from $352.48 billion in 2021 to $369.95 billion in 2022. Thus, the growth in drug production is expected to propel the development of the prescription drug market.

Major companies in the prescription drug market are focusing on developing alternatives to Victoza (liraglutide) or similar GLP-1 receptor agonist therapies to offer improved options for managing type 2 diabetes. Victoza is a brand-name medication containing liraglutide, a GLP-1 receptor agonist used primarily to treat type 2 diabetes in adults and children aged 10 and older. For example, in June 2024, Teva, an Israel-based pharmaceutical company, launched an authorized generic version of Victoza (liraglutide injection 1.8mg), providing a more affordable alternative while maintaining the same formulation, efficacy, and quality as the original branded drug. This launch is intended to increase access to essential diabetes treatments, offering cost-effective solutions for managing type 2 diabetes and reducing cardiovascular risks associated with the condition.

In November 2022, Alcon Inc., a Switzerland-based pharmaceutical company, acquired Aerie Pharmaceuticals Inc. for an undisclosed amount. This acquisition enhances Alcon's position in the pharmaceutical sector by broadening its portfolio of commercial products and expanding its pipeline of developmental drugs. Aerie Pharmaceuticals Inc., based in the US, specializes in prescription medications for patients with glaucoma and optic nerve diseases.

Major companies operating in the prescription drugs market are Pfizer Inc., Johnson & Johnson Private Limited, F. Hoffmann-La Roche Ltd., Merck & Co. Inc., AbbVie Inc., Allergan plc, Bayer AG, Novartis AG, Sanofi SA, Bristol-Myers Squibb Company, AstraZeneca Plc, GlaxoSmithKline plc, Takeda Pharmaceutical Company Limited, Eli Lilly and Company, Boehringer Ingelheim International GmbH, Gilead Sciences Inc, Amgen Inc., Viatris Inc., Teva Pharmaceutical Industries Ltd., Astellas Pharma Inc., Biogen Inc., Sun Pharmaceutical Industries Ltd., Dr. Reddy's Laboratories Ltd., Hikma Pharmaceuticals PLC, Lupin Limited.

North America was the largest region in the prescription drugs market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the prescription drugs market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the prescription drugs market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Prescription drugs are medications that can only be obtained with a valid prescription from a licensed healthcare provider. These drugs are used to diagnose, treat, manage, or prevent various medical conditions under professional supervision, ensuring their appropriate use and reducing the risk of misuse or adverse effects.

Prescription drugs are categorized mainly into branded and generic types. Branded prescription drugs are marketed under a proprietary, trademarked name assigned by the pharmaceutical company that develops and patents the drug. They can be administered through various routes, including oral, topical, parenteral, and others. These drugs are used in a range of therapy areas, such as oncology, immunology, ophthalmology, respiratory, dermatology, gastroenterology, urology, gynecology, endocrinology, and more. The primary end users include hospitals, specialty clinics, homecare settings, and others.

The prescription drugs market research report is one of a series of new reports that provides prescription drugs market statistics, including prescription drugs industry global market size, regional shares, competitors with an prescription drugs market share, detailed prescription drugs market segments, market trends and opportunities, and any further data you may need to thrive in the prescription drugs industry. This prescription drugs market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The prescription drugs market consists of sales of bronchodilators, corticosteroids, combination inhalers, antibiotics, mucolytics, and biologics. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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