July 17, 2024
United States pharmaceuticals market

The United States Pharmaceuticals Market Is Expected To Be Flourished By Growing Demand For Generic Medicines

The United States pharmaceuticals market comprises companies involved in research, development, manufacturing, and marketing of prescription or over-the-counter medicines meant for human use. Some key products in the market include antibiotics, steroids, anti-cancer drugs, vaccines, pain relievers, antidepressants, and drugs for treatment of diabetes, asthma, HIV/AIDS, and cardiovascular diseases. The increased prevalence of chronic diseases due to changing lifestyle and an aging population has augmented the demand for pharmaceutical products in the country.

The United States pharmaceuticals was valued at US$ 599.47 billion in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023-2030, as highlighted in a new report published by CoherentMI.

Market Dynamics

Growing demand for generic medicines: Generic drugs are exact copies of brand-name drugs and are regulated for safety, efficacy and manufacturing quality by the U.S. Food and Drug Administration (FDA). Generic drugs are significantly less costly than their branded counterparts and provide significant cost savings for both consumers and the overall healthcare system. With many blockbuster drugs going off-patent over the forecast period, the demand and consumption of lower-cost generics is expected to increase significantly, thereby driving the market growth.

Increasing prevalence of chronic diseases: According to the United States Centers for Disease Control and Prevention, approximately half of all American adults suffer from at least one chronic disease, with one in four adults suffering from two or more chronic diseases. Some of the major chronic diseases prevalent in the country include heart disease, cancer, chronic lower respiratory diseases, stroke, diabetes, and Alzheimer’s disease. The rising occurrence of these conditions is fueling the demand for pharmaceutical drugs in the country.

Segment Analysis

The United States pharmaceuticals market is dominated by the prescription drugs sub-segment which holds more than 70% share. This is because prescription drugs provide treatment for chronic diseases like cancer, diabetes, cardiovascular ailments etc. which have high prevalence among the American population. Branded prescription drugs dominates over generic prescription drugs due to their clinical efficacy and novel drug delivery mechanisms providing improved patient outcomes.

PEST Analysis

Political: The US government plays an influential role in pharmaceutical pricing through Medicare and Medicaid reimbursement. It also regulates drug approval process through the US FDA.
Economic: Rising healthcare costs and increased burden of chronic diseases is driving higher spending on pharmaceuticals. Growth in per capita healthcare expenditure provides opportunities for market players.
Social: Awareness about benefits of prescription drugs and availability of private and public insurance is increasing the affordability of medications. However, misuse of opioids remains a concern.
Technological: Biologics and orphan drugs are areas of active research. Emerging areas like gene therapy, regenerative medicines, pharmacogenomics and 3D printing offer potential for new product development.

United States Pharmaceuticals Market Segmentation

By Product Type

  • Prescription Drugs
  • Generic Drugs
  • OTC Drugs
  • Biologics
  • Biosimilars

By Therapy Area

  • Oncology
  • Diabetes
  • Autoimmune Diseases
  • Neurological Disorders
  • Cardiovascular
  • Infectious Diseases
  • Others (Respiratory, Gastrointestinal, etc.)

By Distribution Channel

  • Hospital Pharmacies
  • Retail Pharmacies
  • Online Pharmacies
  • Others

By Route of Administration

  • Oral
  • Parenteral
  • Topical
  • Others

By End-User

  • Hospitals
  • Clinics
  • Homecare
  • Others

Key Takeaways

The United States Pharmaceuticals Market Size is expected to witness high growth over the forecast period of 2023-2030 backed by rising geriatric population, growing incidence of chronic diseases and new product approvals.

Regional Analysis

The Northeast region dominates the US pharmaceuticals market with the highest per capita spending led by states like New York and New Jersey. It is followed by the West region comprising states like California and Washington. Urbanization and population density contributes to higher healthcare infrastructure and spending in these regions.

Key Players

Key players operating in the United States pharmaceuticals market are Johnson & Johnson, Pfizer, AbbVie, Merck, Bristol-Myers Squibb, Amgen, Eli Lilly, Novartis. Johnson & Johnson leads the market with its diverse portfolio of pharmaceuticals, medical devices and consumer healthcare products. Pfizer has a significant presence in important therapeutic segments like oncology, inflammation & immunology through key drugs like Ibrance and Eliquis.


  • What are the main factors influencing the United States pharmaceuticals Market?
  • Which companies are the major sources in this industry?
  • What are the market’s opportunities, risks, and general structure?
  • Which of the top United States pharmaceuticals Market¬†¬† companies compare in terms of sales, revenue, and prices?


1. Source: CoherentMI, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it