The United States pharmaceuticals market comprises companies engaged in research and development, manufacturing, marketing, and selling drugs. Pharmaceuticals include prescription drugs and over-the-counter medications. Prescription drugs must be ordered by a physician and dispensed with proper documentation. Some major uses of prescription pharmaceuticals include treating conditions like high blood pressure, infections, mental illnesses, diabetes, cancer, and more.

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

Market Dynamics:

The United States pharmaceuticals market is expected to witness high growth owing to rising generic drug approvals by the Food and Drug Administration (FDA). Generic drugs are identical or bioequivalent to a brand name drug in dosage form, safety, strength, route of administration, quality, and intended use. However, they are generally cheaper than the branded versions. In 2021, over 1360 generic medicines were approved by the FDA, including some blockbuster drugs facing patent expiries. The rising availability of low-cost generics is a major driver for increasing access to treatment and reducing healthcare costs, thereby boosting the overall market growth during the forecast period.

SWO Analysis :

Strength:
- The United States pharmaceutical market is the largest in the world due to the country's advanced healthcare infrastructure and presence of major pharmaceutical companies. The strong R&D capabilities and availability of funds for pharmaceutical research provide major growth opportunities.
- The market is dominated by major players with strong brand presence and a wide distribution network. Their financial strength allows them to invest heavily in new drug development.
- Growing elderly population and increasing incidence of chronic diseases such as cancer, diabetes, etc. are leading to high demand for pharmaceutical drugs in the country.

Weakness:
- Rising healthcare costs and high drug prices remain a major concern in the US. Stricter regulations and pricing controls can negatively impact revenues of pharmaceutical companies.
- Growing preference for generic drugs poses price competition challenges for branded formulations. Generic versions often erode sales and market share of established brands once they lose patent exclusivity.

Opportunity:
- Increasing focus on precision medicine and cell and gene therapies provide opportunities to address previously untreatable diseases. Major players are investing heavily in these areas of research.
- Adoption of e-prescriptions and telehealth gained pace during the pandemic and are likely to continue growing, enhancing access to care. This will support market growth.

Threats:
- Entry of biosimilars and approval of abbreviated new drug applications pose pricing and competition challenges for innovator biologics losing exclusivity.
- Political and economic uncertainties along with currency fluctuations make forecasts unpredictable. Stringent import and export regulations can also impact the supply chain.

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 Pharmaceutical Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The global United States pharmaceuticals Market is estimated to be valued at US$ 599.47 billion in 2024 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023 to 2030.

Regional Analysis:

The North American region, led by the United States, dominates the global pharmaceutical market with the largest share currently. The United States accounts for over 40% of global pharmaceutical industry revenue. Advantages include presence of major pharma players, large healthcare spending, and prioritization of new drug development.

Key Players:
Key players operating in the United States Pharmaceuticals market are Pfizer, Johnson & Johnson, Merck & Co, UnitedHealth Group, AbbVie, Amgen, Gilead Sciences, Roche, Eli Lilly, AstraZeneca, Bristol-Myers Squibb, Novartis, and Sanofi. Pfizer maintains its leadership position with strong presence across various therapeutic categories.