The Generic Drug Market around the World & Outlook for India

Generic Drug Market around the World! We bring to you the Generic breakdown across various developed and developing markets.

Generic drugs are drugs that are sold under the name that is not trademarked. The cost of generic drugs is lower than branded drugs, because they require very low to negligible R&D and marketing costs. The increase in medical expenses is an important issue in many countries such as The United States, Japan, EU Region, Brazil, China, Mexico, South Africa and Indonesia. The promotion of generic medicines has been demanded by governments of various countries to solve these issue of increasing drug costs.


Brazil is the largest generics market in South America. Generics were made mandatory in the country after the year 1999. Generics are at-least 35% cheaper than branded drugs, and have manufactured with stringent quality control. Generics represent 21% of the market.  The Generics law was passed in Brazil due to its federal programs the Brazilian government is the largest purchaser of medicines.


China is the second largest pharmaceutical market in the world representing approximately 31% of the Global pharmaceutical market growth. Mostly, all prescriptions in China are generic in nature. Generics make up 86% of the overall number of prescriptions and 75% of the prescriptions in value. China prefers populist health care; therefore, has incentivised cheaper in some cases generic medicines in favour of much more expensive in some cases branded drugs.

South Africa

In South Africa, Generic market share accounts for 50% of the number drugs sold in the country and has been growing at 10% every year. The price differential between Generics and Branded drugs is at 72% that evolves to a tremendous saving. Doctors in South Africa are more and more eager to prescribe generic drugs due to the advent of better quality of drugs and benefits in lower costs for patients.


Generics market in Mexico has been growing at 13% over the last few years. Generics represent 71% of the overall drug volume. The Generics market has been pushed by the government to keep healthcare costs low and modernize the incentive based health care system in the country.


Indonesia revamped its healthcare system to bring about universal healthcare system to bring about Healthcare for all. The universal healthcare system provides coverage for Generic drugs but not branded drugs; therefore, generics are widely recognized by Indonesians. Generics have grown at a rate of 16% over the last few years and represent 48% of the total drug volume in the country.

United States

Increasing healthcare costs continue to be a major concern for everyone in the United States. In the United States, the largest healthcare market in the world by value, more than 80% of prescriptions are filled in generic drugs. Approximately 3.8 billion of the full 4.3 billion prescriptions distributed within the U.S were filled using generic drugs.


The Japanese government, observing increasing costs of branded drugs has adopted healthcare policy changes to cut medical expenses. In 2013, Japanese government introduced an action for increasing generic medicine usage my medical practitioners. Due to these policies the share of generic drugs, today, has risen to 56.2% in Japan.


The generics market in Australia is comparatively smaller compared to other developed countries. It is predicted, that about 30% of prescriptions distributed are generic. Generic substitution rates in Australia are lower than in most comparable countries; therefore, the government is working towards promoting the use of generic medicines.


The UK has used medicine budgets to regulate pharmaceutical cost and to raise generic prescribing by physicians. In the UK, generic medicine prices are the lowest in the world. Prescribing generic medicines is a standard practice in hospitals in UK. Overall, 83% of prescriptions written by doctors in the UK are generic in nature.

Outlook for India

India is the 4th largest pharmaceutical market in the World. All these countries have patent laws for newer drugs. These laws are much more streamlined compared to India. In India the process is a painful and lengthy.

We believe that Generic drug development and penetration across the Indian market is a lengthy process. It would take at-least 5 years to achieve substantial market usage.

We believe that Generic development in India for the Indian market is in nascent stages. However, the quality of Generic drugs in India still lags the quality of branded drugs. Therefore, doctors would have to prescribe the Generic as well as the Branded drugs to comply legally.

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