Global Pharmerging Market Grows Steadily at a CAGR of 2.5%

Introduction

The pharmerging market refers to pharmaceutical markets in rapidly developing economies where healthcare spending is increasing significantly. These countries, typically classified into Tier 1, Tier 2, and Tier 3 based on economic scale, exhibit high pharmaceutical demand due to expanding healthcare infrastructure, rising incomes, and government-led healthcare reforms. The pharmerging market is experiencing rapid expansion, fueled by increasing disease burden, improving healthcare accessibility, and strong policy-driven initiatives.

Market Dynamics

Rapid expansion of universal healthcare coverage drives the global market

The rapid expansion of universal healthcare coverage in pharmerging markets is significantly enhancing access to medical services and pharmaceuticals. Governments are implementing policies to extend healthcare services to underserved populations, thereby increasing the demand for medications.

• For instance, in April 2024, the World Bank Group announced a goal to help countries provide affordable healthcare to an additional 1.5 billion people by 2030, focusing on expanding services to remote areas and reducing financial barriers.

Such initiative exemplifies the global commitment to achieving universal health coverage, further driving the pharmaceutical market growth in emerging economies.

Development of low-cost biosimilars for chronic diseases creates tremendous opportunities

The development of low-cost biosimilars for chronic diseases offers a promising solution to the high cost of biologic therapies in pharmerging markets. Biosimilars provide comparable efficacy to original biologics at a reduced cost, increasing accessibility for patients.

• For instance, in September 2023, Abbott announced plans to commercialize several biosimilar molecules in key emerging markets, including Latin America, Southeast Asia, the Middle East, and Africa.

Such initiative aims to broaden access to advanced treatments for conditions such as cancer and autoimmune disorders, addressing the growing demand for affordable healthcare solutions in these regions.

Regional Analysis

North America holds a leading position in the global pharmerging market due to its strong pharmaceutical R&D ecosystem, high adoption of biologics and biosimilars, and advanced regulatory pathways that accelerate drug approvals. The region benefits from extensive government funding for healthcare initiatives, a well-established biopharmaceutical manufacturing infrastructure, and a robust network of CROs supporting clinical trials.

Moreover, increasing collaborations between pharmaceutical giants and emerging biotech firms drive innovation, while favorable reimbursement policies and expanding patient assistance programs enhance market accessibility, solidifying North America's dominance in the pharmerging landscape.

Key Highlights

• The global pharmerging market was valued at USD 1.78 trillion in 2024. It is estimated to reach USD 2.23 trillion by 2033, growing at a CAGR of 2.5% during the forecast period (2025–2033).
• Based on product, the global pharmerging market is segmented into pharmaceuticals and other healthcare verticals. The pharmaceuticals segment is the largest revenue contributor to the market and is projected to exhibit a market share of 69.9% in 2024.
• Based on country economy, the global pharmerging market is segmented into Tier-1, Tier-2, and Tier-3. The Tier-1 segment is the largest revenue contributor to the market.
• Based on indication, the market is segmented into cardiovascular diseases, lifestyle diseases, cancer & autoimmune diseases, infectious diseases, and others. The infectious diseases segment is the largest revenue contributor.
• North America is the highest shareholder in the global market.

Competitive Players

1. Sanofi
2. Pfizer Inc.
3. AstraZeneca
4. GlaxoSmithKline
5. F.Hoffmann-La Roche Ltd.
6. GE Healthcare
7. Eli Lilly and Company
8. Medtronic
9. Abbott
10. Johnson and Johnson
11. Biocon
12. Dr. Reddy’s Laboratories Ltd.
13. Sun Pharmaceutical Industries Ltd.
14. Takeda Pharmaceutical Company Limited

Recent Developments

• In June 2024, Eli Lilly and Company announced a collaboration with OpenAI to utilize generative AI technology for discovering novel antimicrobials targeting drug-resistant pathogens, aiming to address the growing issue of antimicrobial resistance.

Segmentation

1. By Product
   1. Pharmaceutical
   2. Branded Drugs
   3. Generic Drugs
   4. Other Healthcare Verticals
2. By Country Economy
   1. Tier-1
   2. Tier-2
   3. Tier-3
3. By Indication
   1. Cardiovascular Diseases
   2. Lifestyle Diseases
   3. Cancer & Autoimmune Diseases
   4. Infectious Diseases
   5. Others
4. By Regions
   1. North America
   2. Europe
   3. Asia-Pacific
   4. Central & South America
   5. The Middle East and Africa