The pharmaceutical industry is rising on account of a high burden of diseases globally. According to Cancer Tomorrow, in 2020, 19.3 million people are estimated to have cancer, and by 2040, this number is projected to rise to 30.2 million. In terms of diabetes, the International Diabetes Federation states that ~463 million adults were living with diabetes in 2019, and this number is expected to rise to ~700 million by 2045. The rise in the prevalence of diseases is expected to improve the demand for pharmaceuticals contributing to the market growth.
The aging population further increases the risk of chronic diseases. As per the WHO, the people aged 60 and above accounted for 1 billion in 2020, and this number is estimated to rise to 2.1 billion by 2050. The surge in the geriatric population is further expected to increase the disease burden leading to the rise in the demand for pharmaceuticals.
The recent pandemic events have also strengthened the pharmaceutical industry. The pandemics like COVID-19, MERS, Ebola, and H1N1 have increased the focus on pandemic preparedness, which has led to the demand for flexible manufacturing equipment. Owing to the pandemic, various public organizations had taken initiatives to cut the prices of drugs to make the medicines affordable for the people. Such initiatives are further expected to increase the demand for pharmaceuticals leading to the rise in demand for pharmaceutical equipment.
The patent's expiration is expected to increase the demand for generic drug production. Each year, many pharmaceutical drug patents expire, creating favorable opportunities for the generics' growth. Lucentis by F. Hoffmann-La Roche AG (Switzerland), Bystolic by AbbVie (U.S.), Vascepa by Amarin Corporation (Ireland), Northera by H. Lundbeck A/S (Denmark), and Narcan by Emergent BioSolutions Inc (U.S.) are some of the drugs expected to lose U.S. patent in 2021. Thus, the launch of several generic drugs in the market is expected to increase the forecast demand for pharmaceutical processing and packaging equipment.
The rise in R&D investments in the pharmaceutical industry is expected to drive the commercialization of new drugs into the market. According to the IFPMA, pharmaceutical R&D investments in the countries like the U.S., Europe, and others have increased significantly. As of 2020, the number of drugs in development for immunology, neurology, cancer, and infectious diseases is estimated at ~6,900. Thus, the continuation of this trend is expected to improve the demand for new pharmaceutical equipment in the forecast
Thus, the high prevalence of diseases, surge in the geriatric population, significant investment for R&D for drug developments, and development of generic drugs due to patent expiration are expected to improve the pharmaceutical industry and thereby is likely to boost the growth of the pharmaceutical processing and packaging equipment market.