INDIA: A study conducted by Ikon Marketing Consultants revealed that by 2020, India is expected to surface amongst the Top 5 global markets for pharmaceutical products thanks to increased consumer spending on drugs and enormous domestic demand. Founder and Principal Consultant of Ikon Marketing Consultants (IMC) Azaz Motiwala described the present decade to be a healthy one for the pharma industry and said, “The global pharma market is expected to grow at 7% to 8% over the next five years, reaching an anticipated $1.7 trillion in 2020.”
According to Motiwala, drugs and pharmaceuticals take away nearly 1% of earning from an Indian consumer, and this figure is not expected to undergo a vital change in the present decade. He said, “However, with the rise in the per capita income, the spending is going to be triple (approximately $33) by 2020.”
While health insurance is expected to cover nearly 650 million people by 2020, private insurance coverage will rise by nearly 15% annually. According to estimates, the Indian healthcare industry expected to be valued at nearly $275.6 billion by 2020.
The study reveals that the growth of new therapies in India’s pharmaceutical market will be heightened due to increased spread of diabetes in the present decade, and the disease prevalence is expected to rise 6-fold by 2020. According to official stats, nearly 50 million Indians are affected with Diabetes and around 4 million succumb to the disease annually.
Motiwala said, “Treatment for chronic diseases like asthma, cancer, diabetes, heart ailments, osteoporosis and kidney ailments will likely to constitute more than half of India’s pharma market by the end of the decade,”.
The study further states that industry growth with be benefitted by upcoming areas such as bio pharmaceuticals, bio generics, bio similar and pharma packaging.
According to the study, industry growth is expected to be driven by metros and Tier-1 markets that have been growing at the rate of 14-15 per cent in the last five years. Motiwala said that they account for 60 per cent of the Indian pharmaceutical market today and look set to continue growing to a market size of $33 billion by the end of the decade. Alternatively, by 2020, rural areas will comprise 25 per cent of the total market, a sizeable up from 20 per cent at present.