Rajkot: According to a study, India will emerge as a leading global player in pharmaceutical industry by 2020, securing a place among the top five major global markets.
City-based Ikon Marketing Consultant (IMC), one of the leading marketing consulting firms in the country, has come out with a study on the pharma sector in India.
Describing the ongoing decade as a healthy one for pharma industry, Azaz Motiwala, IMC founder and principal consultant said the major driving factors in this decade are huge domestic demand and increased spending on drugs.
“The global pharma market is expected to grow at 7-8% over the next five years, reaching an anticipated $1.7 trillion in 2020,” Motiwala said, adding that India is going to rank among top 10 global players by 2015 itself.
According to him, Indian consumer currently spends nearly 1% of his total income on drugs and pharmaceuticals, which will not alter significantly in the current decade.
“However, with the rise in the per capita income, the spending is going to be triple (approximately $33) by 2020,” Motiwala said.
“Government’s long term vision of making quality healthcare affordable, at least 50% of country’s population should be covered by health insurance by 2020, against the current coverage of only 15% and the research indicates that the coverage should increase to 80% within next 10 years,” he added.
By 2020, nearly 650 million people will have health insurance cover, while private insurance coverage will grow by nearly 15% annually till 2020, he said.
“By 2020, the Indian healthcare industry is estimated to be worth $275.6 billion and currently 8% of India’s GDP is spent on healthcare, but the country needs to spend at least $80 billion more in the next 5 years to meet the targets,“ the research stated.
According to the study, in the current decade, the spread of diabetes will drive the growth of new therapies in India’s pharmaceutical market and by 2020, the disease will assume greater proportions by rising six times. Diabetes presently affects around 50 million Indians, killing about 4 million annually and as per official statistics.
“Treatment for chronic diseases like asthma, cancer, diabetes, heart ailments, osteoporosis and kidney ailments will likely to constitute more than half of the country’s pharma market by the end of the decade,” Motiwala said.
Five new areas, including patented products, consumer healthcare, biologics, vaccines and public health, will capture 45% of the market by the end of the decade to grow to a $14-18 billion industry by 2020.
Emerging sectors, such as bio pharmaceuticals, bio generics, bio similar and pharma packaging are going to contribute significantly, the study says.
According to the study, metros and tier-1 markets, which have been growing at 14-15% in the last 5 years, will drive growth in the industry. They account for 60% of the Indian pharmaceutical market today and look set to continue growing to a market size at $33 billion by the end of the decade, Motiwala said.
Rural markets, on the other hand, will constitute 25% by 2020 up from 20% currently.