Pharmerging Market Report 2025

The pharmerging market size has grown rapidly in recent years. It will grow from $2.04 trillion in 2024 to $2.25 trillion in 2025 at a compound annual growth rate (CAGR) of 10.6%. The growth in the historic period can be attributed to higher healthcare expenditure, increasing prevalence of chronic diseases, expansion of the middle-class population, growing urbanization, and greater awareness of health and wellness.

The pharmerging market size is expected to see rapid growth in the next few years. It will grow to $3.33 trillion in 2029 at a compound annual growth rate (CAGR) of 10.3%. The growth in the forecast period can be attributed to rising demand for specialty medicines, expanding government healthcare initiatives, increasing healthcare awareness and literacy, and greater penetration of e-commerce in pharmaceuticals. Key trends in the forecast period include development of personalized medicine solutions, integration of digital health platforms, innovations in drug delivery systems, advancements in health financing models, and incorporation of supply chain technologies.

Rising healthcare spending is contributing to the expansion of the pharmerging market. Healthcare expenditure refers to the overall financial investment in medical services, treatments, healthcare facilities, research, and public health programs aimed at maintaining or enhancing health outcomes. This rise in spending is largely driven by an aging population that requires more frequent medical attention, treatments, and long-term care services. Increased healthcare expenditure supports the development of the pharmerging market by improving access to healthcare, enabling the expansion of infrastructure, and promoting the broader availability of cost-effective medications. For example, in December 2024, the Centers for Medicare & Medicaid Services, a US federal agency, reported that national health expenditures grew by 7.5 percent to reach $4.9 trillion in 2023, accounting for 17.6 percent of the gross domestic product. Furthermore, from 2023 to 2032, national health expenditures are projected to grow at an average annual rate of 5.6 percent, with the share of health spending in the gross domestic product expected to rise from 17.3 percent in 2022 to 19.7 percent in 2032. This upward trend in healthcare spending is fueling the growth of the pharmerging market.

Companies in the pharmerging market are focusing on the development of advanced treatments such as combination drug therapies to manage complex diseases and improve patient outcomes. Combination therapies involve the use of two or more active pharmaceutical ingredients within a single treatment plan to enhance therapeutic effects and target multiple aspects of a disorder simultaneously. For example, in June 2024, Akums Drugs and Pharmaceuticals Limited, an India-based contract development and manufacturing company, introduced Rabeprazole and Levosulpiride sustained-release capsules, a formulation approved by the Drug Controller General of India for the treatment of gastroesophageal reflux disease and other gastrointestinal disorders. The capsules combine Rabeprazole, which reduces stomach acid production, with Levosulpiride, which enhances stomach and intestinal movement to prevent acid reflux. This dual approach provides effective relief by addressing both acid suppression and improved gastrointestinal motility.

In November 2022, Biocon Limited, a biopharmaceutical company based in India, acquired the global biosimilars business of Viatris Inc. for an undisclosed amount. Through this acquisition, Biocon aims to reinforce its global standing in the biosimilars segment by expanding its presence, increasing access to affordable therapies, and accelerating growth through product launches and a broader international footprint. Viatris Inc. is a US-based pharmaceutical company focused on delivering affordable medication solutions in pharmerging regions.

Major players in the pharmerging market are Pfizer Inc., Roche Holding AG, AbbVie Inc., Sanofi S.A., Bristol-Myers Squibb, AstraZeneca PLC, Novartis AG, GlaxoSmithKline plc, Eli Lilly and Company, GE Healthcare Technologies Inc., Alembic Ltd., Intas Pharmaceuticals Ltd., Sun Pharmaceutical Industries Limited, Aurobindo Pharma Limited, Dr. Reddy’s Laboratories Ltd., Cipla Limited, Aspen Pharmacare Holdings Limited, Zydus Lifesciences Limited, Lupin Limited, and Beximco Pharmaceuticals Ltd.

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

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sudden escalation of U.S. tariffs and the consequent trade frictions in spring 2025 are severely impacting the pharmaceutical companies contend with tariffs on APIs, glass vials, and lab equipment inputs with few alternative sources. Generic drug makers, operating on razor-thin margins, are especially vulnerable, with some reducing production of low-profit medicines. Biotech firms face delays in clinical trials due to tariff-related shortages of specialized reagents. In response, the industry is expanding API production in India and Europe, increasing inventory stockpiles, and pushing for trade exemptions for essential medicines.

Pharmerging describes the strategy of pharmaceutical companies expanding into emerging markets to achieve growth and reach new patient populations. It emphasizes capturing opportunities in countries with rapidly developing healthcare systems and rising demand for medicines.

The primary product types in pharmerging are pharmaceuticals, medical devices, diagnostics, biotechnology, and generics. Pharmaceuticals are substances or products used for diagnosing, treating, preventing, or managing diseases and medical conditions. They are applied for various indications such as lifestyle diseases, cancer, autoimmune disorders, infectious diseases, and others, and are available in multiple formulations including solid oral, liquid oral, injectable, topical, and others. Their applications span therapeutic, diagnostic, preventive, and research and development areas, and they are distributed through hospitals and clinics, retail pharmacies, online marketplaces, wholesale distributors, and direct-to-consumer channels.

The pharmerging market research report is one of a series of new reports that provides pharmerging market statistics, including pharmerging industry global market size, regional shares, competitors with a pharmerging market share, detailed pharmerging market segments, market trends and opportunities, and any further data you may need to thrive in the pharmerging industry. This emerging 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 pharmerging market consists of revenues earned by entities by providing services such as contract research and manufacturing services (CRAMS), diagnostic testing and healthcare services, distribution and retail pharmacy operations, and the supply of medical devices and equipment. The market value includes the value of related goods sold by the service provider or included within the service offering. The pharmerging market also includes sales of over-the-counter (OTC) medicines, vaccines, biologics and biosimilars, and personal care and wellness products. 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 and 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.

This product will be delivered within 3-5 business days.