The global generic drugs market revenue was around US$ 416.5 billion in 2023 and is estimated to reach US$ 839.5 billion by 2032, growing at a compound annual growth rate (CAGR) of 8.1% during the forecast period from 2024 to 2032.
The contents of generic medications are identical to those of their reference branded equivalents. Moreover, generic pharmaceuticals are less expensive than name-brand ones. About 85% less money is spent on generic medications than on branded ones. The FDA grants the branded drug developer a patent and exclusivity protection, enabling them to benefit for several years from their creativity and research. There are no generics that can rival the brand at this time. Nonetheless, a streamlined FDA approval procedure enables generic medications to reach the market after the patent expires. The same requirements for efficacy, safety, and quality must be met by generic drugs as by brands.
Factors Influencing Market Growth
- The rising cost of branded medicines and the increase in healthcare expenditure are increasing the demand for generic drugs, contributing to market growth.
- The increase in research activities for developing enhanced generic drugs is increasing the demand for generic drugs, thus expanding the market.
- The rise in hospital admissions, the increase in the number of surgeries, and the surge in awareness toward the advantages of generic drugs are increasing the demand for generic drugs, driving market growth.
- Concerns related to the quality of generic drugs may hamper market growth.
Impact of COVID-19
COVID-19 negatively impacted the market. A demand spike brought on by early panic buying and rising healthcare costs resulted in shortages and price increases. Global lockdowns, however, caused supply chain disruptions that resulted in a shortage of raw materials and a slowdown in production. Governments gave priority to pressing needs, expediting approvals while arousing concerns about quality control. Some generics saw price increases as a result of these factors, while others remained affordable. In the end, COVID-19 revealed gaps in the market, emphasizing the necessity of strong supply chains, clear laws, and global cooperation to guarantee long-term access to reasonably priced and high-quality drugs in the future.
Regional Insights
Asia-Pacific is expected to witness the highest CAGR during the forecast period. this is due to the existence of highly populated nations like China and India, which raises the likelihood of developing a variety of chronic and deadly illnesses as well as the number of tactics and trends used by market participants, such as product development, approval, collaboration, and agreement.
Leading Competitors
- Amneal Pharmaceuticals, Inc.
- Hikma Pharmaceuticals PLC
- Lupin
- Sun Pharmaceutical Industries Ltd
- Novartis AG, Cipla Ltd
- GlaxoSmithKline plc
- Aurobindo Pharma
- Viatris Inc.
- Teva Pharmaceutical Industries Limited
- Other Prominent Players

Segmentation Analysis
The global generic drugs market segmentation focuses on distribution channel, therapeutic application, route of administration, and region.
Segmentation based on Distribution Channel
- Hospital pharmacies
- Retail pharmacies
- Online providers

Segmentation based on Therapeutic Application
- Cardiovascular
- Infectious Diseases
- Cancer
- Diabetes
- Others

Segmentation based on Route of Administration
- Oral
- Injections
- Others

Segmentation based on Region

- North America
- The U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Netherlands
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Singapore
- Rest Of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa