Global output and sales growth pick up in 2024
Global pharmaceuticals output growth slowed to just 0.5% in 2023 - after a whopping 17.3% increase in 2021 and 6.8% in 2022. This spike was driven by the massive production of Covid vaccinations. In 2024, we expect global output and sales to increase by 4.6% and 5.1% respectively, mainly driven by the Asia Pacific region. Vaccine production will continue to support growth, although at a lower level than in previous years.
Producers of speciality products, medicines for chronic conditions and generic drugs will find opportunities for growth among ageing populations. Producers of medication for weight-loss are facing growth predictions of more than USD 75 billion by 2030. Improving access to healthcare within emerging markets will also support pharmaceuticals’ output and sales.
Potential constraints ahead
High inflation and interest rates have been impacting household spending power, leading to lower demand for products such as over-the counter medicines. The need to reduce fiscal deficits and government debt levels is also likely to affect public healthcare spending. Some markets including the EU, US and UK are imposing new or revised drug pricing regulations in a bid to lower state healthcare costs. This is meeting some resistance from the industry, which argues regulated pricing could impact their ability to invest in R&D.
That said, in general the industry has robust equity, solvency and liquidity. Most pharmaceuticals and biotech businesses are able to enjoy good access to external financing to help sustain high R&D expenditures.
Please download the report below to read more about the sector´s outlook in the Americas, Asia-Pacific and Europe.