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The prescription drugs market size is projected to reach US$ 2,350.12 billion by 2031 from US$ 1,440.79 billion in 2024. The market is expected to register a CAGR of 7.3% during 2025–2031. The growth of personalized and precision medicine is likely to bring new trends in the prescription drugs market in the coming years.
Prescription Drugs Market Analysis
The increasing prevalence of chronic disorders and the rising development and adoption of innovative and specialty drugs boost the prescription drugs market. Additionally, increasing awareness of various conditions and the development of new drugs are expected to contribute to market growth in the near future. Moreover, new product developments, launches, approvals, and expansions are expected to create ample opportunities in the coming years.
Prescription Drugs Market Overview
North America is projected to dominate the prescription drugs market with the largest share during the forecast period. Further, Asia Pacific is expected to register a significant CAGR owing to the aging population, which increases the demand for chronic disease management and long-term medication use. With rising incidences of lifestyle-related diseases, the need for effective prescription drugs has surged. Additionally, improving healthcare infrastructure and increasing access to medical facilities in developing countries such as India, China, and Southeast Asian nations have expanded the reach of prescription medications to previously underserved populations. Rising disposable incomes and expanding middle-class populations have improved affordability and willingness to spend on healthcare, including prescription drugs. Governments in Asia Pacific have prioritized healthcare reforms and increased healthcare expenditure, encouraging better insurance coverage and reimbursement policies that support pharmaceutical consumption.
Technological advancements and the growth of pharmaceutical research and development have led to the innovation of targeted therapies, attracting more patients and physicians to prescribed medicines. The growing awareness and adoption of modern healthcare practices, coupled with urbanization and lifestyle changes, have further contributed to the increased demand for prescription drugs. Moreover, the rise of digital health platforms and telemedicine has improved patient access to healthcare providers, facilitating better diagnosis and prescription compliance.
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Prescription Drugs Market: Strategic Insights
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We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Prescription Drugs Market: Strategic Insights
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Prescription Drugs Market Drivers and Opportunities
Increasing Prevalence of Chronic Disorders
The increasing aging population and changing lifestyle contribute to a few common long-term health conditions. As per the World Health Organization (WHO), the prevalence of chronic lifestyle diseases is expected to increase by 57% by the end of 2026. With the increasing urbanization, people are more inclined toward a sedentary lifestyle, which results in rheumatoid arthritis, diabetes, and other disorders. Diabetes is one of the major global health issues of the 21st century. According to the International Diabetes Federation (IDF), there were 589 million adults living with diabetes globally in 2024, and it is expected to reach 853 million by the end of 2050. The increase in disease prevalence is expected to be 35% during the forecast period.
Other chronic conditions, such as multiple sclerosis, Crohn’s disease, neurological disorders, and cardiovascular disorders, require various drugs for the long-term management of the chronic conditions. As per the WHO, cardiovascular disorders are one of the leading causes of death, accounting for 17.9 million deaths worldwide every year. Moreover, the nature of chronic diseases often requires the use of multiple medications and advanced therapies, including biologics and specialty drugs that are sold on prescription, which are typically more expensive and generate higher revenues for pharmaceutical companies. Additionally, the development of new treatments is incentivized by the unmet clinical needs of patients with rare diseases, leading to increased investment in research and development by major pharmaceutical firms. Therefore, the increasing prevalence of chronic disorders and unmet clinical needs drives the prescription drugs market.
Strategic Initiatives by Market Players Create Ample Opportunities for Market Growth
Various players in the prescription drugs market focus on product approvals, launches, and strategic collaborations to develop effective products required to treat and manage chronic disorders. Subsequently, several recent developments have taken place in the prescription drugs market. A few are mentioned below:
- In May 2025, Bio-Thera Solutions, Ltd. received FDA approval for Starjemza Injection. It is a human interleukin-12 and -23 antagonist interchangeable biosimilar to Stelara, used to treat Crohn's disease, plaque psoriasis, ulcerative colitis, and psoriatic arthritis.
- In November 2024, Sunshine Biopharma Inc. launched a new generic prescription drug called Ursodiol, also known as ursodeoxycholic acid (UDCA). It is indicated for the management of cholestatic liver diseases, including primary biliary cirrhosis (PBC).
- In June 2024, Teva launched an authorized generic of Victoza (liraglutide injection 1.8 mg) in the US. It is recommended to improve glycemic control in adults and pediatric patients aged 10 years and older living with type 2 diabetes mellitus; it also reduces the risk of cardiovascular events in type 2 diabetes patients.
- In April 2024, ImmunityBio, Inc. received FDA approval for ANKTIVA plus Bacillus Calmette-Guérin (BCG) for the treatment of patients with BCG-unresponsive non-muscle invasive bladder cancer (NMIBC) with carcinoma in situ (CIS), with or without papillary tumors.
- In October 2022, Pfizer Inc. completed the acquisition of Biohaven Pharmaceutical Holding Company Ltd to add a breakthrough calcitonin gene-related peptide portfolio, including NURTEC ODT, to address the needs of migraine patients worldwide.
- In January 2022, Cosette Pharmaceuticals acquired US sales and distribution rights to eight prescription medications from Daiichi Sankyo Company and its affiliates. The products include Benicar, Benicar HCT, Azor, Tribenzor, Welchol, Welchol Oral Suspension, Effient, and Evoxac.
Therefore, increasing product launches, approvals, and strategic collaborations are expected to create ample opportunities for the growth of the prescription drugs market in the coming years.
Prescription Drugs Market Report Segmentation Analysis
Key segments that form the foundation of the prescription drugs market analysis are product type, drug type, route of administration, therapeutic area, and distribution channel.
- Based on product type, the prescription drugs market is bifurcated into branded and generics. The branded segment held a larger market share in 2024 and is expected to register a higher CAGR during 2025–2031.
- By drug type, the prescription drugs market is bifurcated into small molecule and biologics and biosimilar. The small molecule segment held a larger share of the market in 2024. The biologics and biosimilar segment is expected to register a higher CAGR in the market during 2025–2031.
- In terms of therapeutic area, the prescription drugs market is segmented into oncology, cardiovascular diseases, neurological diseases, metabolic diseases, respiratory diseases, immunology, and others. The oncology segment dominated the market in 2024 and is anticipated to register the highest CAGR during 2025–2031.
- By route of administration, the prescription drugs market is segmented into oral, injectable, topical, and others. The oral segment held the largest share of the market in 2024, and is expected to register the highest CAGR in the market during 2025–2031.
- In terms of distribution channel, the prescription drugs market is segmented into hospital pharmacies, retail pharmacies, and online pharmacies. The hospital pharmacies segment dominated the market in 2024 and is anticipated to register the highest CAGR during 2025–2031.
Prescription Drugs Market Share Analysis by Geography
The geographical scope of the prescription drugs market report is mainly divided into five regions: North America, Asia Pacific, Europe, and Middle East & Africa, and South & Central America. North America held a significant share of the market in 2024. The prescription drugs market in North America is driven by the aging population. As the baby boomer generation grows older, the prevalence of chronic diseases such as diabetes, cardiovascular disorders, and cancer has increased, thereby boosting the demand for prescription medications.
Advancements in pharmaceutical research and biotechnology have also played a critical role. Innovations in drug development, including biologics and personalized medicine, have expanded treatment options, enhancing efficacy and safety. The introduction of novel therapies for previously untreatable conditions propelled the market growth.
Another major contributor is the strong healthcare infrastructure in North America, supported by substantial investments in healthcare facilities, insurance coverage, and pharmaceutical distribution networks. The widespread availability of healthcare services and better patient awareness about disease management have increased prescription drug consumption. Additionally, regulatory support from agencies such as the US Food and Drug Administration (FDA) facilitates quicker approval processes for innovative drugs, enabling faster market entry. Furthermore, government initiatives aimed at expanding healthcare coverage, such as the Affordable Care Act in the US, have increased access to prescription drugs for a broader population.
Also, the rise in lifestyle-related diseases and increased prevalence of mental health disorders have created a sustained demand for therapeutic drugs. The COVID-19 pandemic also emphasized the importance of pharmaceutical interventions, accelerating investments in drug development and distribution.
Prescription Drugs Market Report Scope
Prescription Drugs Market News and Recent Developments
The prescription drugs market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the market are listed below:
- ESTEVE plans to invest 100 million euros in a new manufacturing plant at its Celrà industrial center in Girona, aiming for completion by 2026. The expansion will enhance the production capacity for active pharmaceutical ingredients and add ~100 new jobs, raising the workforce to ~470. The project includes new production and service buildings, with the installation of 150 cubic meters of reaction volume, resulting in a 45% increase in production capacity at Celrà and a 15% boost in the company’s overall capacity. (Source: ESTEVE, Company Website, June 2025)
- Roche will invest US$ 50 billion in the US in the next five years. These investments further strengthen Roche’s significant US footprint with 13 manufacturing and 15 research and development sites across the Pharmaceutical and Diagnostics Divisions, and are expected to create more than 12,000 new jobs, including ~6,500 construction jobs, as well as 1,000 jobs at new and expanded facilities. (Source: F. Hoffmann-La Roche Ltd , Company Website, April 2025)
- Pfizer Inc. received the U.S. Food and Drug Administration (FDA) approval for the supplemental Biologics License Application (sBLA) for ADCETRIS (brentuximab vedotin) in combination with lenalidomide and a rituximab product. This treatment is for adult patients with relapsed or refractory large B-cell lymphoma (LBCL), including various forms of diffuse large B-cell lymphoma (DLBCL), following two or more lines of systemic therapy. It is intended for those who are not eligible for autologous hematopoietic stem cell transplantation (auto-HSCT) or CAR T-cell therapy. (Source: Pfizer Inc., Company Website, February 2025)
Prescription Drugs Market Report Coverage and Deliverables
The “Prescription Drugs Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Prescription drugs market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Prescription drugs market trends, as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST and SWOT analysis
- Prescription drugs market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the prescription drugs market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
The prescription drugs market is estimated to register a CAGR of 7.3% during the forecast period.
The prescription drugs market is estimated to reach a value of US$ 2,350.12 billion by 2031.
Johnson & Johnson; Pfizer Inc; Merck & Co Inc; Eli Lilly and Co; ESTEVE; AstraZeneca Plc; Sanofi SA; GSK Plc; F. Hoffmann-La Roche; Novartis AG; AbbVie Inc; Teva Pharmaceutical Industries Ltd are among the key players operating in the prescription drugs market.
North America dominated the market in 2024.
The increasing prevalence of chronic disorders and the increasing development and adoption of innovative and specialty drugs are the most influential factors responsible for the market growth.
The List of Companies - Prescription Drugs Market
- Johnson & Johnson
- Pfizer Inc
- Merck & Co Inc
- Eli Lilly and Co
- ESTEVE
- AstraZeneca Plc
- Sanofi SA
- GSK Plc
- F. Hoffmann-La Roche
- Novartis AG
- AbbVie Inc
- Teva Pharmaceutical Industries Ltd
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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