Generic Drugs Market Report 2031 by Segments, Geography, Dynamics, Recent Developments, and Strategic Insights

The generic drugs market size is projected to reach US$ 714.08 billion by 2031 from US$ 527.16 billion in 2024. The market is expected to register a CAGR of 4.6% during 2024–2031. The rising popularity of biosimilars is likely to bring new trends in the generic drugs market in the coming years.

Generic Drugs Market Analysis

The factors driving the Global Generic Drugs market include the presence of Government Policies and Regulatory Support for Generics and Patent Expiry and Loss of Market Exclusivity. Moreover, increasing government initiatives to promote the use of generic drugs are expected to create future growth opportunities in the market.

Generic Drugs Market Overview

North America is expected to dominate the generic drugs market during the forecast period, and Asia Pacific is expected to register significant growth owing to rising healthcare needs, cost-conscious government policies, and increasing demand for affordable treatment options. China and India lead in manufacturing, Japan and South Korea focus on innovation, while Australia sees growing biotech investments, collectively fuelling market expansion. Likewise, Europe is experiencing strong growth in the market. Stringent EU regulations, rising biologics adoption, and increasing pharmaceutical manufacturing drive market demand. Germany leads in innovation, with a presence of strong research and development activities in the UK and France, and Italy and Spain expand their production. South and Central America and the Middle East & Africa are also expected to show steady growth due to improving healthcare infrastructure, government support for generics, and increasing access to essential medicines, making them emerging hotspots in the global generic drugs landscape.

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Generic Drugs Market: Strategic Insights

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Generic Drugs Market Drivers and Opportunities

Patent Expiry and Loss of Market Exclusivity

According to Living Media India Limited 2025, the expiration of patents on branded drugs significantly drives the pharmaceutical generic drug market. Generic manufacturers can produce and sell bioequivalent versions at significantly lower prices after the patent expiry, creating vast market opportunities. For instance, during 2025–2026, key drugs such as Keytruda (developed by Merck for cancer immunotherapy), which generated over US$ 25 billion in sales in 2024, and Ozempic (produced by Novo Nordisk for diabetes and anti-obesity treatment), are set to lose their patents. This initiative will develop new opportunities for generic pharmaceuticals and biosimilars. Other high-revenue drugs, such as Eliquis (Bristol-Myers Squibb's blood thinner) and Cosentyx (Novartis' immunology drug), will face similar patent expirations, further expanding the opportunity for generics.

Several blockbuster drugs are expected to lose their patents in 2024, creating even more space for generic alternatives. Notable drugs include:

• Abilify Maintaina (Otsuka Pharmaceutical), an injectable antipsychotic with US$ 15.5 billion in sales in 2022, is set to lose its patent by October 2024.
• Xarelto (Janssen Pharmaceuticals), a leading anticoagulant, is scheduled to lose its patent in August 2024.
• Farxiga (AstraZeneca), a blockbuster anti-diabetic drug generating ~US$ 4.3 billion annually, will lose its patent in 2024.
• Lynparza (AstraZeneca), used in cancer treatment, with sales of ~US$ 2.7 billion, is also set to lose its patent in 2024.
• Symbicort (AstraZeneca), a respiratory drug, will lose its patent in November 2024.
• Entresto (Novartis), a heart failure treatment generating US$ 2.5 billion in 2022, will lose its patent in May 2024.
• Latuda (Sunovion Pharmaceuticals), an antipsychotic with US$ 1.8 billion in sales, will lose its patent in February 2024.
• Xifaxan (Salix Pharmaceuticals), a gastrointestinal drug with sales of US$ 1.6 billion, will lose its patent in June 2024.
• Cabometyx (Exelixis), used to treat advanced renal cell carcinoma, will lose its patent in September 2024.

These pharmaceuticals collectively generated substantial global revenue and created opportunities for generic manufacturers to develop more cost-effective alternatives. Between 2023 and 2029, patents for over 100 critical drugs, including cancer, diabetes, and cardiovascular drugs, will expire, accounting for more than US$ 300 billion in global annual sales. This loss of exclusivity will significantly expand the market share for generics and biosimilars, reducing healthcare costs worldwide. The influx of generics is expected to reshape the global pharmaceutical landscape by providing more affordable treatment options.

India is expected to be notably impacted by these dynamics, where generics already account for a large portion of the pharmaceutical market, owing to the high demand for affordable medications. The expiration of patents for high-revenue drugs is anticipated to drive a shift in market dynamics, increasing the affordability and accessibility of healthcare. According to The Indian Express Ltd., 2025, the expiration of patents for these blockbuster drugs will create a surge in generics and biosimilars, providing a substantial growth opportunity for generic drug manufacturers.

Increasing Government Initiatives to Promote Generic Drugs Provides Ample Opportunities for Market Growth

Government initiatives to promote the use of generic drugs represent a major opportunity in the global pharmaceutical market. Many governments, particularly in high-income countries, are increasingly recognizing that the financial benefits of generic drugs reduce overall healthcare spending. These initiatives lower medication costs for both governments and patients and foster broader access to essential treatments. For instance, as per GlobalData (2024), several countries offer financial incentives to healthcare providers prescribing generic alternatives over brand-name drugs. These incentives may include subsidies, tax rebates, or bonuses based on the volume of generics prescribed. Additionally, in countries such as the US, the Medicare and Medicaid programs often encourage the use of generics, thereby increasing their adoption in public healthcare systems.

In Europe, regulatory measures have been put in place to ensure that generic drugs are more accessible. For example, in countries such as Germany and France, government policies mandate that pharmacists offer a generic version of a medication if one is available unless the prescribing physician specifically requests the brand-name drug. This automatic substitution approach has been successful in increasing generic uptake and reducing drug costs for patients and health systems alike. In emerging markets, such as India and Brazil, governments have also introduced policies to promote the use of generics to combat rising healthcare costs. Many of these countries have established national programs to provide essential medicines at affordable prices, often relying on generic drug manufacturers to meet public health demands. The support for generic drug use is not just limited to developed economies. For example, as per the Institute for Human Data Science (2023), the government of India has launched the Jan Aushadhi Scheme, which provides generic medicines through public outlets at significantly lower prices. This program alone is transforming the accessibility of healthcare for millions of people.

As government support for generics grows, the opportunity for pharmaceutical companies, especially those producing generics, continues to expand. This is particularly true in markets where healthcare budgets are tight and cost-saving measures are necessary to ensure that populations have access to medications.

Generic Drugs Market Report Segmentation Analysis

Key segments that contributed to the derivation of Generic Drugs market analysis are Molecule Type, Indication, Type, and Distribution Channel.

• Based on molecule type, the generic drugs market is segmented into Antidepressants, Antihistamines, Analgesics, Antibiotics, Antivirals, Diuretics, and Others. The Antibiotics segment held the largest share of the market in 2024 and is expected to register the largest CAGR in the market during 2025–2031.
• By indication, the generic drugs market is segmented into Metabolic Diseases, Cancer, Immunology, Respiratory Disorder, Cardiovascular Disorder, Neurology Disorder, Rare Diseases, and Others. The Cancer segment held the largest share of the market in 2024, and cardiovascular disorder segment is expected to register the highest CAGR in the market during 2025–2031.
• As per type, the generic drugs market is bifurcated into Prescription and OTC Drugs. The prescription segment dominated the market in 2024 and is expected to register a higher CAGR in the market during 2025–2031.
• In terms of distribution channel, the generic drugs market is segmented into Hospital Pharmacies, Retail Pharmacies, and Online Pharmacies. The Hospital Pharmacies segment dominated the market in 2024, and the Hospital Pharmacies segment is anticipated to register the highest CAGR during 2025–2031.

Generic Drugs Market Share Analysis by Geography

The geographical scope of the generic drugs market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.

North America held a significant share of the market in 2024, driven by rising healthcare costs, a growing population, surging patent expirations of branded drugs, and increasing demand for affordable treatment options. The US, Canada, and Mexico are the key contributors, with the US holding the largest market share. By 2030, one in five Americans will be over 65, increasing the need for cost-effective treatments for chronic conditions such as diabetes, hypertension, and arthritis. Government support and regulatory pathways also strengthen the market. Agencies such as the US FDA have accelerated approval pathways for generic drugs, ensuring faster access without compromising safety or efficacy. This has made it easier for manufacturers to bring generics to market. Moreover, the focus on healthcare cost containment is growing. Payers and policymakers promote the use of generics to reduce overall spending. According to the Association for Accessible Medicines, generics accounted for 90% of prescriptions dispensed in the US and 18% of drug spending in 2023. The market is also seeing increased competition and consolidation. Market players are expanding portfolios through partnerships and acquisitions to gain scale and meet rising demand.

Generic Drugs Market Regional Insights

The regional trends and factors influencing the Generic Drugs Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Generic Drugs Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Generic Drugs Market Report Scope

Generic Drugs Market Players Density: Understanding Its Impact on Business Dynamics

The Generic Drugs Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Generic Drugs Market are:

1. Teva Pharmaceutical Industries Ltd
2. Viatris Inc
3. Dr. Reddy's Laboratories Ltd
4. Novartis AG
5. Sun Pharmaceutical Industries Ltd
6. AbbVie Inc

Disclaimer: The companies listed above are not ranked in any particular order.

Generic Drugs Market News and Recent Developments

The Generic Drugs market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the generic drugs market are listed below:

• In 2024, AbbVie Launched PRODUODOPA (foslevodopa/foscarbidopa) for People Living with Advanced Parkinson's Disease in the European Union
• In 2024, Sanofi India and Emcure Pharmaceuticals Announce Exclusive Cardiovascular Distribution Partnership

Generic Drugs Market Report Coverage and Deliverables

The “Generic Drugs Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Generic Drugs market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Generic Drugs market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• Generic Drugs market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, prominent players, and recent developments for the Generic Drugs market and detailed company profiles