Global Pharmaceutical Industry Overview

• In 2023, 284 pharmaceutical companies realized revenue growth and 390 pharmaceutical companies achieved profitability, accounting for 57.6% and 79.27% respectively. Innovative drug and medical device companies are performing brightly, and the momentum of going overseas is flourishing. As an important part of the pharmaceutical industry, the drug industry involves R&D, production, sales and other links, which is directly related to people's health, and is characterized by high technology, high investment, high risk and high return.

 Market Scale and Growth

• The global pharmaceutical market size continues to expand and is expected to maintain steady growth in the coming years. It grew from USD 204.8 billion in 2015 to USD 379.5 billion in 2022, with a CAGR of 9.21%. China's pharmaceuticals market size also shows a rapid growth trend and is expected to expand further in 2024.

 Market Structure

• The pharmaceuticals market is segmented by raw material source and production process, which mainly includes the categories of chemical drugs, biological drugs and traditional Chinese medicines. Chemical drugs serve as the mainstay of the market, followed by biological drugs and traditional Chinese medicines. In terms of sales channels, the proportion of the out-of-hospital market has been increasing year by year, and the importance of the out-of-hospital market is growing with the development of prescription outflow.

 Future Development Trends

• Digital transformation, green and sustainable development, internationalization, innovation-driven, diversified products and services, regulation by laws and regulations, and increasing demand for personalization are the key trends for the future development of the pharmaceutical industry. Innovative drug delivery systems, precision medicine drugs, and chronic disease treatment drugs are among the areas showing greater market potential and growth prospects.

 Market Forecast

• The global pharmaceutical market size is expected to exceed the USD 20,000 billion mark by 2028, showing strong growth momentum. China's pharmaceutical end-use market is expected to reach $196.24 billion by 2024.

Industry Challenges and Winning Characteristics

• Challenges faced by pharmaceutical companies include developing tailored medicines for small patient populations, ensuring supply chain security, environmental, social and governance (ESG) efforts, pricing pressures, and transitioning to omni-channel sales and marketing. The Roland Berger study identifies winners in the pharmaceutical industry that share common characteristics of high revenue growth and high profitability, including business leadership, strategic alignment, financial position, and proven ability to execute plans.