Generic Drugs Market

Global Generic Drugs Market Overview

The Generic Drugs Market was valued at USD 437.90 Billion in 2024. The Generic Drugs Market industry is projected to grow from USD 469.34 Billion in 2025 to USD 1,148.55 Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 9.36% during the forecast period (2025-2035).

The increasing incidences of chronic diseases across the globe and rising strategic initiatives by market players and rising demand for affordable medications are driving the growth of the Generic Drugs Market.

As per the Analyst at MRFR, the escalating prevalence of chronic diseases worldwide is acting as a significant catalyst for the expansion of the global generic drug market. With conditions like cancer, neurology, cardiovascular diseases, inflammatory diseases, and others on the rise, there's an amplified demand for cost-effective treatment options, compelling patients and healthcare providers to turn towards generic medications. 

Generic drugs, being bioequivalent to their brand-name counterparts but more affordable, offer a viable solution for managing chronic illnesses without burdening healthcare budgets. This burgeoning demand for generics is not only driven by patients seeking affordable therapies but also by healthcare systems and governments striving to contain healthcare expenditure while ensuring widespread access to essential medications.

 FIGURE 1: GENERIC DRUGS MARKET VALUE (2019-2035) USD BILLION

 Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Generic Drugs Market Opportunity

INVESMTENT ON RESEARCH & DEVELOPMENT (R&D) FOR GENERIC MEDICINE  

Increased investment in research and development (R&D) for generic medicines is poised to significantly fuel the growth of the Generic Drugs Market. Such investments enable the development of innovative formulations, novel delivery systems, and enhanced manufacturing processes, driving down production costs and improving product quality. Additionally, R&D investments facilitate the development of generic versions of complex drugs, including biologics and specialty medications, expanding the market reach and addressing unmet medical needs. PFB, some examples of investment in generic medicine segment to boost and expand the market:

2020: Teva Pharmaceutical Industries Ltd. (Israel) invested nearly USD 1,000 million in R&D and had more than 1,160 generic products in the pipeline. This investment benefits patients all over the world by increasing access to affordable medicines.

2023: Sun Pharmaceutical Industries (India) reported that its increasing R&D investment will expand its generic product portfolio in the near future. Moreover, the company also stated that R&D investment will continue to be 7 to 8 percent of its sales in the next year, i.e., in 2024. 

Ultimately, robust R&D efforts in the generic medicine sector will foster innovation, boost competition, and further drive down prices, ensuring wider accessibility of essential medications and catalyzing the market's expansion.

Generic Drugs Market Segment Insights

Generic Drugs System by Indication Insights

Based on indication, the Generic Drugs Market is segmented into central nervous system, cardiovascular, urology, oncology, respiratory, and others. The oncology segment dominated the market in 2024, while the cardiovascular segment is projected to be the fastest-growing segment during the forecast period, 2025–2035. The oncology segment emerged as the dominant indication in the Generic Drugs Market in 2024, accounting for the highest market share. 

This dominance is primarily attributed to the increasing global cancer burden, rising awareness about cancer treatment options, and the growing availability of low-cost generic oncology drugs. The high cost of branded oncology medications has created significant demand for cost-effective alternatives, making generic versions a crucial component in cancer care, especially in low- and middle-income countries.

Key factors driving the segment’s prominence include:

A surge in cancer incidence, with high prevalence of breast, lung, colorectal, and prostate cancer globally.

Expiration of patents on major branded oncology drugs, opening the market for biosimilars and small-molecule generics.

Furthermore, pharmaceutical companies are increasingly focusing on developing high-quality generic oncology products that meet international regulatory standards, ensuring safety, efficacy, and widespread accessibility. As cancer remains one of the leading causes of death globally, the oncology segment is expected to retain its dominance in the generic drug space over the coming years.

Generic Drugs System by Route of Administration Insights

Based on route of administration, the Generic Drugs Market is segmented into oral, tropical, parenteral, and others. The oral segment dominated the market in 2024, while the parenteral segment is projected to be the fastest-growing segment during the forecast period, 2025–2035. The oral segment remains the largest contributor to the Generic Drugs Market and held a dominant share in 2024. Oral drug delivery is favored due to its ease of administration, patient compliance, cost-effectiveness, and non-invasiveness. This route is widely adopted for the administration of various therapeutic classes such as antibiotics, antidiabetics, antihypertensives, and analgesics.

Key factors driving the dominance of the oral segment include:

High patient preference for tablets, capsules, and syrups due to convenience.

Lower production and formulation costs compared to injectable or topical drugs.

Extensive use in chronic disease management, where long-term medication adherence is essential.

Availability of bioequivalent generic alternatives for a wide range of branded oral formulations.

Moreover, the segment benefits from strong regulatory support for generic oral drug approvals, especially under ANDA pathways (Abbreviated New Drug Applications) in major markets like the U.S. and Europe. The growing elderly population and expanding access to healthcare in emerging economies further strengthen the segment’s market presence.

Generic Drugs System by Distribution Channel Insights

Based on the distribution channel, the Generic Drugs Market is segmented into hospital pharmacy, online pharmacy, and retail pharmacy. The online pharmacy segment dominated the market in 2024, while the retail pharmacy segment is projected to be the fastest-growing segment during the forecast period, 2025–2035. The online pharmacy segment accounted for the largest share of the Generic Drugs Market in 2024, driven by the rapid digital transformation of the healthcare ecosystem and increasing consumer preference for convenient access to medications. The segment’s growth is underpinned by the rising penetration of e-commerce platforms, improved digital literacy, and wider smartphone and internet usage, especially in urban and semi-urban areas.

Key factors contributing to the segment’s dominance include:

Convenience of doorstep delivery and 24/7 availability of medicines.

Competitive pricing and frequent discounts on generic drugs.

Rising adoption during and post-COVID-19 pandemic, which accelerated the shift toward online healthcare services.

Availability of teleconsultation and e-prescription services, enabling a seamless digital medication fulfillment process.

In developed markets like the U.S., Europe, and parts of Asia-Pacific, major online pharmacy players are expanding their footprints through strategic partnerships with drug manufacturers and logistics providers. Meanwhile, in emerging economies, regulatory support and digital health initiatives are further enabling access to generic medicines via online channels. Despite regulatory and trust-related challenges in some regions, the online pharmacy segment is expected to maintain its leadership in the near term due to its scalable and user-friendly distribution model.

FIGURE 2: GENERIC DRUGS MARKET SHARE BY DISTRIBUTION CHANNEL 2024 AND 2035 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Generic Drugs System Regional Insights

Based on region, the Generic Drugs Market has been segmented into North America, Europe, Asia-Pacific, and the Rest of the World. North America accounted for the largest market share in 2024 and is anticipated to reach USD 487.36 billion by 2035. However, Asia-Pacific is projected to grow at the highest CAGR of 11.10% during the forecast period. Major demand factors driving the North America market are North America held the largest share of the Generic Drugs Market in 2024 and is projected to reach approximately USD 487.36 billion by 2035. 

This dominant position is driven by the region’s well-established healthcare infrastructure, supportive regulatory frameworks, and high adoption rates of generic medicines across both retail and institutional settings. The U.S. contributes significantly, with its large patient population, increasing chronic disease burden, and efforts to reduce healthcare expenditure using generic alternatives.

In addition, the rising focus on biosimilars, medication affordability reforms, and the push from insurers and pharmacy benefit managers (PBMs) to substitute branded drugs with generics are reinforcing market growth. With an increasing emphasis on cost-containment in healthcare, North America is expected to maintain its leadership in the Generic Drugs Market throughout the forecast period.

FIGURE 3: GENERIC DRUGS MARKET VALUE BY REGION 2024 AND 2035 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Further, the countries considered in the scope of the Application Tracking System Market are the US, Canada, Germany, France, the UK, Spain, Italy, Rest of Europe, China, India, Japan, South Korea, Australia, Rest of Asia Pacific, Middle East, Africa, South America and others.

Global Generic Drugs Key Market Players & Competitive Insights

Many global, regional, and local vendors characterize the Generic Drugs Market. The market is highly competitive, with all the players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, product quality, reliability, and government regulations. Vendors must provide cost-efficient, high-quality products to survive and succeed in an intensely competitive market.

The major competitors in the market are Sun Pharmaceutical Industries Ltd, Lupin Pharmaceuticals, Inc, Endo International Plc, Urobindo Pharma, Aspen Holdings, Cipla Ltd, Novartis Ag, Teva Pharmaceutical Industries Ltd, Fresenius Se & Co. KGAA, Viatris Inc are among others. The Generic Drugs Market is a consolidated market due to increasing competition, acquisitions, mergers and other strategic market developments and decisions to improve operational effectiveness.

Key Companies in the Generic Drugs Market include

• Sun Pharmaceutical Industries Ltd
• Lupin Pharmaceuticals, Inc
• Endo International Plc
• Urobindo Pharma
• Aspen Holdings
• Cipla Ltd
• Novartis Ag
• Teva Pharmaceutical Industries Ltd
• Fresenius Se & Co. KGAA
• Viatris Inc

Generic Drugs Market Industry Developments

January 2025: Lupin announced that it received tentative approval from the U.S. Food and Drug Administration (USFDA) to market a generic HIV medication in the U.S. The approval, granted under the U.S. President's Emergency Plan for AIDS Relief (PEPFAR), covers Abacavir, Dolutegravir, and Lamivudine tablets. The product is a generic equivalent of ViiV Healthcare Company's Triumeq PD tablets for oral suspension.

March 2024: Par Pharmaceutical, Inc., an operating subsidiary of Endo International plc, introduced a generic version of the ibuprofen-famotidine pills a generic version of Amgen's (US) (formerly Horizon Therapeutics) DUEXIS..

November 2023: The U.S. Food and Drug Administration (FDA) has approved Aurobindo Pharma final permission to produce and distribute Deflazacort tablets in dosages of 6 mg, 18 mg, 30 mg, and 36 mg. AstraZeneca AB's (UK) reference-listed drug (RLD) Onglyza Tablets, 2.5 mg, and 5 mg, is bioequivalent and therapeutically equivalent to these tablets.

February 2023 : The US FDA has approved generic lenidomide capsules manufactured by Sun Pharma. 2.5 mg, 20 mg, and tentative approval for 10 mg, 15 mg, and 25 mg. Revlimid Capsules, 5 mg, 10 mg, 15 mg, 25 mg, and 2.5 mg, 20 mg are used as the reference product for each product approval. Cancers of different kinds are treated with lenidomide. It functions by inhibiting or halting the growth of cancerous cells. Additionally, it is used to treat anemia in people with certain bone marrow/blood a (myelodysplastic syndromes, or MDS). 

Generic Drugs Market Segmentation

Generic Drugs by Indication Outlook

• Central Nervous System (CNS)
• Cardiovascular
• Urology
• Oncology
• Respiratory
• Others

Generic Drugs by Route of Administration Outlook

• Oral
• Topical
• Parenteral
• Others

Generic Drugs by Distribution Channel Outlook

• Hospital Pharmacy
• Retail Pharmacy
• Online Pharmacy
•  

Generic Drugs Regional Outlook

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • UK
  • Spain
  • Italy
  • Rest of Europe
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Rest of Asia-Pacific
• Rest of the World
  • Middle East
  • Africa
  • South America