Branded Generics Market Share, Size and Growth Analysis By 2029

The global market for branded generics is anticipated to grow significantly, reaching approximately US$ 414.99 billion by 2028, up from US$ 235.86 billion in 2022. This growth represents a compound annual growth rate (CAGR) of 9.9% from 2022 to 2028.

The expansion of the branded generics market is primarily driven by the increasing adoption of branded generics and various government initiatives aimed at promoting their use. The growing acceptance of branded generics among healthcare professionals and providers is also a notable trend that is expected to shape the future of this market.

According to a report by the Association for Accessible Medicines, around 3.9 billion generic prescriptions were filled in 2016. This statistic highlights the potential for growth in branded generics, particularly for major pharmaceutical companies. The HSRII report indicates that the United States holds the title of the largest pharmaceutical market globally, valued at US$ 325 billion, which constitutes one-third of the worldwide pharmaceutical market. In terms of sales volume, generics make up 84%, while they account for 28% of sales value. The increased utilization of branded generics is attributed to the cost savings they provide within the healthcare system, allowing for investments in future medications. For instance, in 2016, the average savings from generic medicines amounted to US$ 4.9 billion per state compared to the costs of equivalent branded drugs. Medicaid savings were approximately US$ 744 million, with state Medicaid savings averaging US$ 1.5 billion per state. Such factors are propelling the demand for branded generics, thereby enhancing market growth during the forecast period.

Moreover, government initiatives aimed at promoting branded generics are further accelerating their adoption, which in turn stimulates overall market growth. A report from the Scientific Electronic Library Online (SciELO) emphasizes that promoting branded generics is a fundamental aspect of national pharmaceutical policies, which ultimately helps to lower drug costs and improve healthcare access. For example, the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) was initiated by the Indian government in November 2008 to ensure the availability of quality generic medicines at affordable prices. This initiative has led to the establishment of dedicated outlets, known as Janaushadhi Kendras, which provide generic medications at lower costs. By 2021, there were 8,012 such centers operational across India. Additionally, a report from the Food and Drug Administration (FDA) indicates that as more branded generics receive approval, prices tend to decrease. The presence of multiple generic options for the same medication fosters competition in the marketplace. For instance, having just one generic competitor can lead to price reductions of up to 30%, while five competing generics can result in price drops of nearly 85%.

The global branded generics market is categorized based on therapeutic applications, distribution channels, drug classes, and formulation types. In terms of therapeutic applications, the market is divided into segments such as oncology, cardiovascular diseases, diabetes, neurology, gastrointestinal disorders, dermatological conditions, analgesics and anti-inflammatory drugs, among others. The 'others' segment is projected to hold the largest market share from 2022 to 2028, although the oncology segment is expected to exhibit the highest CAGR during the forecast period. Generic drugs are extensively utilized in supportive care during chemotherapy for cancer patients. The Indian Council for Medical Research (ICMR) estimates that the number of cancer patients in India will rise from 26.7 million in 2022 to 29.8 million by 2025. As of February 26, 2021, the Pharma Intelligence Center reported that there are 1,351 generic drugs available in India for various cancer treatments, with a significant number targeting hematological malignancies such as blood cancer and leukemia. Due to the high costs associated with branded medications, many patients in developing countries, including India, rely on affordable generic alternatives. Consequently, generic drug manufacturers are producing medications at prices often less than 10% of the original brand costs. It has been observed that prescriptions for generic brands are three times more common than those for branded drugs, with potential savings of up to 80% per prescription. The regulatory environment in India is conducive to ensuring the availability of quality generic products, which contributes to the growth of this segment and is expected to bolster the branded generics market during the forecast period. The 'others' segment includes treatments for infectious diseases, musculoskeletal disorders, respiratory conditions, and oral health issues. According to the Centers for Disease Control and Prevention, approximately 100,000 individuals in the US were affected by various infectious diseases in 2018. The prevalence of infectious and respiratory diseases, which are often treated with generics, is a significant factor driving the growth of the 'others' segment, contributing substantially to the branded generics market during the forecast period.

Opportunities in the Global Branded Generics Market

The global branded generics market presents opportunities for product differentiation. The pharmaceutical sector is highly regulated, and as a result, the returns on research and development investments have diminished. One effective strategy to address these challenges is through product differentiation, which can help reduce development costs and enhance profitability. Product differentiation involves creating innovative products based on existing ones by improving features, performance, or efficacy. This approach strengthens product pipelines and lifecycle management. Since generic drugs contain the same active pharmaceutical ingredients as their branded counterparts, variations in color, shape, taste, inactive ingredients, preservatives, and packaging can lead to increased demand for branded generics worldwide. Thus, differentiation in the final product is expected to create lucrative growth opportunities for competitive players in the branded generics market.

Furthermore, leading companies in the market are focusing on providing low-cost branded generics to maintain competitiveness. This can be achieved by strategically sourcing raw materials from emerging markets and forming partnerships with suppliers. These factors collectively support the growth of the branded generics market during the forecast period.

The report on the global branded generics market references primary and secondary sources, including the Pan-Canadian Pharmaceutical Alliance, Canadian Generic Pharmaceutical Association, Centers for Disease Control and Prevention, US Food and Drug Administration, International Finance Corporation, and Indian Brand Equity Foundation.