According to a recent report by Grand View Research, Inc., the global generic pharmaceuticals contract manufacturing market is projected to reach USD 90.95 billion by 2030, growing at a CAGR of 9.98% from 2025 to 2030. The market is primarily driven by the cost and time-saving advantages associated with outsourcing manufacturing processes. A large proportion of the global population suffers from chronic conditions. For example, the CDC reports that 6 out of 10 adults in the U.S. have at least one chronic illness, and 4 out of 10 suffer from two or more. Since chronic diseases often require long-term treatment, the high cost of medications has increased demand for more affordable generic alternatives.
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This trend is expected to support market growth in the post-pandemic period. Regulatory approvals for generic drugs have also improved significantly. In 2021, the FDA approved 93 generic drugs, and by October 2022, more than 95 generics had been approved. These regulatory advancements are anticipated to positively influence generic drug manufacturing and further fuel market expansion. In Japan, the government continues to implement initiatives aimed at strengthening the generic pharmaceuticals sector. Efforts include enhancing the supply chain of generics and encouraging healthcare institutions to increase their use.
These developments are likely to boost contract manufacturing organization (CMO) activities in the generic drug space in the coming years. Additionally, global spending on medicine is rising. A report by IQVIA from April 2021 highlights that global medicine expenditures, which were valued at USD 1,265 billion in 2020, are projected to grow to between USD 1,580 billion and USD 1,610 billion by 2025. This increase in spending, combined with the cost-efficiency of generics, is expected to further drive market demand.
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