Global pharmaceutical industry and market

​After a long period of strong US market dominance, the UK, and Europe as a whole, are facing increasing competition from emerging economies, such as China, Brazil and India.

From 2003–2007, the UK was ranked as the fifth or sixth nation in the worldwide pharmaceutical market, but has since fallen to 10th position. China has remained one of the strongest growing countries in the world throughout the recession.

Figure 1 – Global pharmaceutical top markets, 2012 and 2010

The UK places itself amongst the top 10 of global pharmaceutical markets, but has slipped from sixth in 2007 to ninth position in 2012.
2012​ ​ 2010
Country​ Rank​ $ (Mill)​ Growth
(%)​
Rank $ (Mill)​ Growth (%)​
USA 1 326,892 -1 1 319,552 6
Japan ​ 2 112,067 0​ 2 96,355 7
China ​ 3 81,698​ 22 3 54,865 21
Germany​ 4 42,333 -6 4 42,181 2
France ​ 5 36,674 -8 5 38,529 -5
Brazil ​ 6 29,112 ​ -6​ 7 26,259 38
Italy 7 26,231 ​ -8 6 26,639 -2
Canada ​ 8 21,877 -2 9 21,655 13
UK ​ 9 21,635 0 10 20,297 2
Spain ​​ 10 19,935 -12​ 8 22,220 -2

Figure 2 – Global pharmaceutical market forecast, 2009-2014

The value of the global pharmaceutical market is expected to grow by 5–7% in 2011 to US$880 billion, compared with a 4–5% pace in 2010, according to IMS Health. The breakdown of these figures by geographical area is shown in the graph below.
Graph showing the global pharmaceutical market forecast, 2009-2014

Figure 3 – Market share for products launched in the last five years, 2012

The chart below is a measure of uptake for new medicines. Although the UK has traditionally been seen as an early launch market, the share of the market attributable to products launched in the previous five years is lower than most comparable countries.

Figure 4 – Medicines expenditure per person in various countries, annual average 2011

The UK’s medicines expenditure per head is less than in other comparable countries. The UK medicines expenditure per head was £226 in 2011 compared to, for example, the equivalent of £375 on average in Sweden that same year.
Graph showing medicines expenditure per person in various countries, annual average 2011
Sources:

Figure 5 – Medicines expenditure as a percentage of GDP 2012

The UK spends less on medicines than other comparable countries. The graph below shows medicines expenditure as a percentage of GDP.

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