Global Pharmaceutical Market Forecast and Segment Analysis for 2023

According to data from China Business Intelligence Network, the global pharmaceutical market comprises two key segments: chemical drugs and biopharmaceuticals. From 2018 to 2022, the total market size increased from USD 1.2667 trillion to USD 1.4747 trillion, reflecting a compound annual growth rate (CAGR) of 3.9%. This upward trend is expected to continue in the near term, with the global pharmaceutical market projected to exceed USD 1.5 trillion in 2023.

Segment Overview: Chemical vs. Biopharmaceuticals

Chemical drugs continue to dominate the global pharmaceutical market. In 2023, chemical drugs are expected to account for 74.2% of the market, while biopharmaceuticals will represent 25.8%. However, historical data reveals a gradual decline in the market share of chemical drugs and a steady increase in the share held by biopharmaceuticals. Projections suggest that by the end of 2023, chemical drugs will comprise 72.4% of the market, with biopharmaceuticals rising to 27.6%.

Growth of the Chemical Drug Market

Chemical drugs refer to pharmaceutical products developed through the extraction of active ingredients from natural minerals, animals, and plants, or through chemical and biological synthesis. In recent years, the global chemical drug market has maintained consistent growth. In 2018, the market was valued at USD 1.0056 trillion, expanding to USD 1.094 trillion by 2022. It is projected to reach USD 1.1277 trillion in 2023.

Biopharmaceutical Market Accelerates with Innovation

Biopharmaceuticals are a class of therapeutic, preventive, and diagnostic products developed using microbiology, chemistry, biochemistry, biotechnology, and pharmaceutical science. These drugs are known for their strong pharmacological activity and low toxicity. Driven by advances in technology, rising health awareness among populations, and the superior efficacy of biological therapies, the biopharmaceutical sector is experiencing rapid growth. In 2018, the global biopharmaceutical market was valued at USD 261.1 billion, growing to USD 380.7 billion by 2022. It is projected to reach USD 429.4 billion in 2023.

Conclusion

The global pharmaceutical industry is on a steady growth trajectory, with biopharmaceuticals emerging as a significant driving force behind market expansion. As innovation in biotechnology continues to evolve and healthcare demands rise globally, the industry is expected to diversify and scale rapidly in the years ahead.

Source: Frost & Sullivan, compiled by China Business Intelligence Network and China Commercial Industry Research Institute