Global Pharmaceutical Industry Outlook, 2024

Global Pharmaceutical Industry Outlook, 2024

Growing Competitive Intensity is Driving Pharma Digitization, Building Unique Growth Opportunities

RELEASE DATE
22-Apr-2024
REGION
Global
Deliverable Type
Market Outlook
Research Code: PFDE-01-00-00-00
SKU: CM_2024_671
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Description

Frost & Sullivan identifies and defines the leading trends shaping the global pharmaceutical landscape in this analysis. The study period is 2021–2028, with 2023 as the base year and 2024–2028 as the forecast period. The geographic scope includes 5 regions: North America, Latin America (LATAM) and the Caribbean, Asia-Pacific (APAC), Europe, and the Middle East and Africa. Chemicals/Small molecules and biologics are the 2 segments covered.

Other information covered include:
• Pharmaceutical industry overview
• Revenue forecasts by segment
• The top 5 predictions for 2024 and beyond
• Macro and micro trends driving the industry’s future
• R&D expenditure and leading therapeutic areas
• Growth opportunities

After a plateaued growth in 2023 due to the biologics segment slowdown and a decrease in the uptake of COVID-19 vaccines and therapeutics, the industry will likely realign its growth to record a 5.9% CAGR between 2023 and 2028. Year-on-year (YoY) growth will remain low in developed economies, including the United States and Europe. In contrast, emerging economies in APAC, LATAM, and the rest of the world will register comparatively stronger single-digit YoY growth.

The recession and ongoing inflation will remain pressing challenges for the pharmaceutical industry in 2024, affecting returns on investment. Pharmaceutical companies will continue to shift toward regional rather than global suppliers to ensure geographic proximity and a smoother, more reliable supply chain.

There continues to be a strong focus on environmental, social, and governance commitments and supply-chain digitalization through lighthouse manufacturing techniques, decentralized clinical trial approaches, and the application of artificial intelligence. The industry is also witnessing a healthy mergers and acquisitions landscape, with several successful transactions recently. In addition, Frost & Sullivan expects a rebound in initial public offerings (IPOs), with 5 IPOs completed by February 2024.

Author: Aarti Siddhesh Chitale

Table of Contents

Highlights

Top Predictions for 2024

Why is it Increasingly Difficult to Grow?

The Strategic Imperative 8™

The Impact of the Top 3 Strategic Imperatives on the Global Pharmaceutical Industry

Segmentation and Scope

Key Industry Themes

Trend 1: Increasing M&As in Biopharma

Trend 1: Increasing M&As in Biopharma (continued)

Trend 2: Higher Focus on Precision Medicine

Trend 2: Higher Focus on Precision Medicine (continued)

Trend 3: More RWE Integration in Drug R&D

Key Trend 3: More RWE Integration in Drug R&D (continued)

Global Pharmaceutical Industry—R&D Expenditure Outlook

Global Drug Development Pipeline by Development Phase

Key Therapeutic Area Outlook

Key Therapeutic Area Outlook (continued)

Top 10 Trends for 2024

Top 10 Growth Opportunities

Global GDP Growth—Global Growth will See a Mild Slowdown from 3% in 2023 to 2.6% in 2024 as Major Economies Lose Momentum

Inflation and Interest Rates—Headline Inflation will Continue to Decline. H2 2024 will Shift Toward Rate Cuts for Advanced Economies

Currency Trajectory—The Dollar will Remain Strong in H1 2024. Emerging Market Currencies will Receive a Boost From Q3 2024

Oil Markets—OPEC+ will Cut Oil Production in Q1. Non-OPEC Production will Increase

Labor Market—Unemployment will See a Moderate Uptick. Positive Expectations Over Market Sentiment will Support Labor Hoarding

Critical Mineral Supplies—The Need for Economic Resiliency will Bolster Cross-border and Cross-industry Partnerships

North America—The Region will See an Economic Slowdown Amidst a Discretionary Spending Pullback and Elevated Interest Rates

Western Europe—The Region will See a Moderate Growth Pick-up as Inflation Headwinds Ease. Rebuilding Fiscal Buffers will Take Precedence

The Middle East—Economic Diversification will Drive Non-oil Growth to Limit the Pullback From a Slowdown in Global oil Markets

Asia—Emerging Economies will Drive Growth Momentum. Fiscal Measures will Support CHINESE Economic Recovery

High Inflation and Global Recession

High Inflation and Global Recession (continued)

Intensification of Supply Chain Resilience Strategies

Intensification of Supply Chain Resilience Strategies (continued)

Sustainability Across the Pharma Value Chain

Sustainability Across the Pharma Value Chain (continued)

Global Pharmaceutical Industry—Historic Sales and Forecast

Segment Performance—Historic Sales and Forecast

Segment Performance—Historic Sales and Forecast (continued)

Revenue Forecast by Region

Revenue Forecast Analysis by Region

Regional Regulatory Trends—North America

Regional Regulatory Trends—Europe

Regional Regulatory Trends—Europe (continued)

Regional Regulatory Trends—APAC

Regional Regulatory Trends—APAC, LATAM, the Caribbean, the Middle East, and Africa

Prediction 1

Prediction 2

Prediction 3

Prediction 4

Prediction 5

Small Molecules Snapshot—2024

Small-molecule Companies to Watch

Biologics Snapshot—2024

Biologics Companies to Watch

Growth Opportunity 1: Scale Precision Oncology in Asia-Pacific Through Public-private Partnership Models

Growth Opportunity 1: Scale Precision Oncology in Asia-Pacific Through Public-private Partnership Models (continued)

Growth Opportunity 2: Target Undruggable Proteins with Emerging Biotech Platforms

Growth Opportunity 2: Target Undruggable Proteins with Emerging Biotech Platforms (continued)

Growth Opportunity 3: Develop Agile Partnership Models for Drug Discovery and Development

Growth Opportunity 3: Develop Agile Partnership Models for Drug Discovery and Development (continued)

Best Practices Recognition

Frost Radar

Benefits and Impacts of Growth Opportunities

Next Steps

Take the Next Step

List of Exhibits

Legal Disclaimer

Frost & Sullivan identifies and defines the leading trends shaping the global pharmaceutical landscape in this analysis. The study period is 2021 2028, with 2023 as the base year and 2024 2028 as the forecast period. The geographic scope includes 5 regions: North America, Latin America (LATAM) and the Caribbean, Asia-Pacific (APAC), Europe, and the Middle East and Africa. Chemicals/Small molecules and biologics are the 2 segments covered. Other information covered include: Pharmaceutical industry overview Revenue forecasts by segment The top 5 predictions for 2024 and beyond Macro and micro trends driving the industry s future R&D expenditure and leading therapeutic areas Growth opportunities After a plateaued growth in 2023 due to the biologics segment slowdown and a decrease in the uptake of COVID-19 vaccines and therapeutics, the industry will likely realign its growth to record a 5.9% CAGR between 2023 and 2028. Year-on-year (YoY) growth will remain low in developed economies, including the United States and Europe. In contrast, emerging economies in APAC, LATAM, and the rest of the world will register comparatively stronger single-digit YoY growth. The recession and ongoing inflation will remain pressing challenges for the pharmaceutical industry in 2024, affecting returns on investment. Pharmaceutical companies will continue to shift toward regional rather than global suppliers to ensure geographic proximity and a smoother, more reliable supply chain. There continues to be a strong focus on environmental, social, and governance commitments and supply-chain digitalization through lighthouse manufacturing techniques, decentralized clinical trial approaches, and the application of artificial intelligence. The industry is also witnessing a healthy mergers and acquisitions landscape, with several successful transactions recently. In addition, Frost & Sullivan expects a rebound in initial public offerings (IPOs), with 5 IPOs completed by February 2024. Author: Aarti Siddhesh Chitale
More Information
Deliverable Type Market Outlook
Author Aarti Siddhesh Chitale
Industries Chemicals and Materials
No Index No
Is Prebook No
Podcast No
WIP Number PFDE-01-00-00-00