Generic drugs are bioequivalent drugs that contain active pharmaceutical ingredients that are identical to branded drugs in dosage form, strength, route of administration, quality and efficacy. Generic drugs are used to treat a variety of conditions and diseases such as infections, cancer, cardiovascular diseases and others. They are therapeutically equivalent to branded drugs with the same efficacy and safety profile but are available at a lower cost since they do not involve huge expenditures on research and development.

The global generic drugs market is estimated to be valued at US$ 439.37 bn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity
Growing geriatric population and rising healthcare costs across the globe has increased pressure to reduce healthcare expenditure. The increased use of generic drugs can significantly reduce healthcare costs as they are substantially cheaper than their branded counterparts which creates a major market opportunity. Adoption of generic drugs can help save billions of dollars in healthcare expenditure globally and hence various initiatives are being taken by governments and healthcare organizations to promote their use.

Porter's Analysis
Threat of new entrants: The generic drugs market requires large capital investments for R&D and manufacturing facilities. Existing players have strong brand recognition which makes it difficult for new players to enter.

Bargaining power of buyers: Buyers have significant bargaining power due to the availability of substitute products from various manufacturers. They can negotiate on price and drive competition between players.

Bargaining power of suppliers: The presence of numerous suppliers of Active Pharmaceutical Ingredients (API) and other raw materials limits their bargaining power.

Threat of new substitutes: Biosimilars are emerging as substitutes but high development costs limit their threat currently.

Competitive rivalry: The market is dominated by a few large players leading to high competition on the basis of price and quality.

SWOT Analysis
Strengths: Low manufacturing costs. Established distribution network of major players.

Weaknesses: High R&D costs. Increased regulatory barriers and compliance costs. Reliance on few API suppliers increases supply chain risks.

Opportunities: Growth in emerging markets. Shift towards generics due to patent expiries.

Threats: Price control regulations. Intense competition and pricing pressures. Delays in product approvals.

Key Takeaways
The global generic drugs market is expected to witness high growth over the forecast period aided by the increasing preference towards low-cost drugs amidst rising healthcare costs. North America currently dominates the market owing to initiatives to promote generics along with patent expiration of major blockbuster drugs in the US. The global Generic Drugs Market is estimated to be valued at US$ 439.37 bn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030.

Regional analysis: Asia Pacific region is expected to grow at the fastest pace led by China and India on account of rising incomes, increasing healthcare access, and supportive government initiatives. Growing generics acceptance in China driven by generic substitutions and volume-based procurement policies support market growth.

Key players: Key players operating in the generic drugs market are Mylan N.V., Novartis International AG, Pfizer, Inc., Allergan Plc, Sun Pharmaceuticals, Fresenius Kabi, Sanofi, Endo International, Lupin Ltd., Abbott Healthcare, AstraZeneca Plc, and Novo Nordisk.