May 26, 2024
United States Pharmaceuticals Market

The Rapidly Aging United States Population Is Driving Growth In The United States Pharmaceuticals Market

The pharmaceutical industry in the United States plays a pivotal role in developing innovative new medicines to improve patient health and quality of life. A rapidly growing aging population in the country suffering from chronic diseases such as cancer, diabetes, and heart disease has increased demand for prescription drugs over the last decade. Pharmaceutical products such as vaccines, prescription drugs, and over-the-counter medications help prevent and treat medical conditions effectively. The United States remains one of the most attractive pharmaceutical markets globally due to high healthcare expenditure and availability of advanced treatment options.

The United States Pharmaceuticals Market was valued at US$ 599.47 billion in 2024 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023 to 2030, as highlighted in a new report published by CoherentMI.

Market Key Trends:

The pharmaceutical market in the United States is witnessing increased adoption of newer therapies such as biologics, cell therapies, and gene therapies due to advances in medical technology and biosimilar drugs. Biologics have revolutionized the treatment of autoimmune diseases and cancer. Cell therapies utilizing stem cells offer potential treatments for various conditions. Gene therapies are also emerging as novel treatments for inherited disorders. However, these newer therapies often come with a high price tag which is a challenge for healthcare payers. Increased investment in R&D by pharmaceutical companies to develop these newer therapies is one of the main drivers of the market growth. Adoption of digital health tools is another key trend in the United States pharmaceutical industry, helping patients effectively manage chronic diseases remotely.

Porter’s Five Forces Analysis :

Threat of new entrants: The threat of new entrants in the United States pharmaceutical market is moderate. Developing and launching new drugs requires huge capital investments and going through stringent regulatory approvals. Bargaining power of buyers: The bargaining power of buyers is high in this market. Pharmaceutical companies negotiate discounts and rebates with insurance providers, pharmacy benefit managers, and wholesale distributors.

Bargaining power of suppliers: Suppliers of raw materials and API ingredients have moderate bargaining power. Large pharmaceutical companies source ingredients from multiple suppliers globally.

Threat of new substitutes: The threat of substitution is low as new drugs take over a decade to develop and test for safety and efficacy. However, alternative medicines like generics or biosimilars pose a threat.

Competitive rivalry: Competition is high among major players as they invest heavily in R&D to develop novel drugs for new therapeutic areas and diseases. Maintaining patents and exclusivity is crucial.

United States Pharmaceuticals Market Segmentation:

  • By Product Type
    • Prescription Drugs
    • Generic Drugs
    • OTC Drugs
    • Biologics
    • Biosimilars
  • By Therapy Area
    • Oncology
    • Diabetes
    • Autoimmune Diseases
    • Neurological Disorders
    • Cardiovascular
    • Infectious Diseases
    • Others (Respiratory, Gastrointestinal, etc.)
  • By Distribution Channel
    • Hospital Pharmacies
    • Retail Pharmacies
    • Online Pharmacies
    • Others
  • By Route of Administration
    • Oral
    • Parenteral
    • Topical
    • Others
  • By End-User
    • Hospitals
    • Clinics
    • Homecare
    • Others

Key Takeaways:

The  United States Pharmaceutical Market Size is expected to witness high growth over the forecast period. It is currently the largest pharmaceutical market globally, accounting for over a third of worldwide spending. The market is highly innovative with major players continuously investing in developing novel drug therapies. The global United States Pharmaceuticals Market is estimated to be valued at US$ 599.47 billion in 2024 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023 to 2030.

Regional Analysis: The Western region dominates the US pharmaceutical market with the highest prescription drug spending. California, Texas and Florida generate the highest sales. The Northeast and Midwest regions also contribute significantly due to growing elderly population demanding various medications.

Key Players: Key players operating in the United States pharmaceutical market are Johnson & Johnson, Pfizer, Merck & Co., Bristol-Myers Squibb, and AbbVie. These major players invest aggressively in drug R&D and marketing to grow their market share. Small biotech companies also contribute novel therapies through partnerships with large pharmaceutical companies.

*Note:
1. Source: CoherentMI Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it