ALTAPHARMA MARKET ANALYSIS

Global Altapharma Market is expected to reach US$ 398.6 Mn by 2030, from US$ 200.8 Mn in 2023, exhibiting a CAGR of 10.3% during the forecast period.

Altapharma includes pharmaceutical drugs and medicines that are used for diagnosis, treatment, cure, mitigation, or prevention of disease and for maintaining physical and mental health. The market growth is driven by increasing incidence of chronic diseases, rising geriatric population, and continuous research and development activities leading to new product launches.

Global altapharma market is segmented by product categories, application, age group, packaging types, packaging size, and distribution channel, and region. By product categories, the vitamins and minerals segment accounted for the largest market share in 2022. The high share of this segment can be attributed to the continuous launch of new vitamins and minerals products.

Global Altapharma Market- Regional Insights

• North America is expected to be the largest market for altapharma during the forecast period, accounting for over 40.5% of the market share in 2023. The growth of the market in North America is attributed to increasing inorganic activities such as acquisition by major market players in the region. For instance, on July 25, 2023, Biofarma S.r.l. a nutraceuticals company acquired U.S. Pharma Lab, Inc. a leading CDMO specialized in the custom development, manufacturing and distribution of innovative neutraceutical products including probiotics, vitamins, minerals, supplements, and premium dietary ingredients.
• Europe market is expected to be the second-largest market for altapharma, accounting for over 25.2% of the market share in 2023. The growth of the market in Europe is attributed to rising prevalence of chronic diseases and favorable government initiatives in the region.
• Asia Pacific market is expected to be the fastest-growing market for altapharma, with a CAGR of over 10.9% during the forecast period. The growth of the market in Asia Pacific is attributed to the large patient pool, increasing healthcare expenditure, and improving healthcare infrastructure in the region.

Figure 1. Global Altapharma Market Share (%), By Region, 2023

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Analysts View:

Global altapharma market is expected to witness growth due to increasing aging population worldwide and rising healthcare expenditures. The demand for various pharmaceutical drugs to treat chronic diseases and age-related illnesses among the geriatric population will propel the market growth. Furthermore, massive investments by major players to develop cutting-edge drugs for rare and orphan indications present tremendous opportunities in the industry.

However, stringent regulations for drug approval and high costs associated with drug R&D may hamper the market growth. The expiry of patents of blockbuster drugs and increasing adoption of generic drugs are key challenges faced by large pharmaceutical companies.

Global Altapharma Market- Drivers

• Increasing Prevalence of Chronic Diseases: Rising prevalence of chronic illnesses such as cardiovascular diseases, cancer, diabetes, neurological disorders, and autoimmune boosts demand for pharmaceutical products. For instance, in September 2020, according to an article published by Preventing Chronic Disease 51.8% of civilian, noninstitutionalized adults were diagnosed with at least 1 of 10 selected chronic conditions, in 2018. More specifically, the 24.6% of adults have 1 chronic condition, and 27.2% have more than two chronic conditions.
• Continuous R&D Activities and New Product Launches: Pharmaceutical companies are continuously launching new products to expand their product portfolios. For instance, in July 2022, Danone a food company launched the new Dairy & Plants Blend baby formula to meet parents’ desire for feeding options suitable for vegetarian, flexitarian and plant-based diets, while still meeting their baby’s specific nutritional requirements.
• Favorable Government Regulations: Supportive regulatory environment for conducting clinical trials and streamlined approval process for drugs are contributing to continued pharmaceutical innovation and new product launches. For example, the U.S. FDA has expedited the review process of generic drug applications in recent years. It had approved record numbers of generic drugs since 2020. This has intensified market competition and pushed down prices. As a result of such initiatives, the share of generic drugs in overall medicine consumption has increased substantially globally. As per WHO data, over 80% of all medicine provided in low and middle income countries in 2021 were generic formulations. In the U.S., generics now account for almost 90% of all prescriptions.
• Growth in Healthcare Expenditure: Rising healthcare spending on prescription drugs in developing countries is expected to boost pharmaceutical sales. For instance, in 2021, the U.S. spent US$ 4,255.1 billion on healthcare. This spending can be broken down into various categories such as hospital care, clinical services, prescription drugs, home health care, and other personal health care costs.

Global Altapharma Market- Opportunities

• Expanding Application of Biologics: Biologics are poised to offer tremendous opportunities for growth of the global pharmaceutical market in the coming years. With ongoing advances in biotechnology and bioscience, biologics have increasingly expanded beyond treating rare genetic disorders to target broader chronic and lifestyle-related diseases. Many biologics under research and development aim to offer tailored therapies for cancers, autoimmune conditions, cardiovascular diseases, neurological disorders and other common ailments.
• Rising Adoption of Precision Medicine: Rising adoption of precision medicine is poised to unlock tremendous opportunities in the altapharma market in the near future. Precision medicine, also referred to as personalized medicine, is an innovative approach that takes into account individual variability in people's genes, environment, and lifestyle for each person's treatment and prevention strategies. This advanced approach allows doctors and researchers to predict more accurately that treatment and prevention strategies will work best for each person.
• Growth Potential in Emerging Markets: Developing healthcare infrastructure and expanding patient base in emerging markets such as China, India, Brazil, and others is anticipated to further propel the market growth. Countries like India, Brazil, Indonesia, and others are among top 10 largest economies in world, and are expected to remain major drivers of global economic growth in coming years. With a combined population of over 4 billion people, majority under the age of 30, the emerging markets present massive patient pool and future customer base for healthcare products. As per IMF (International Monetory Fund) estimates in 2022, the emerging nations are projected to contribute over 70% of global GDP growth by 2030.

Global Altapharma Market- Trends

• Shift towards Biopharmaceuticals: Biopharmaceuticals are witnessing rising adoption over conventional drugs owing to their high efficacy and specificity. The trend of increasing focus on biopharmaceuticals has significantly impacted the altapharma market in recent years. Many major pharmaceutical companies that traditionally focused on small-molecule drugs are now actively pursuing opportunities in biologics such as monoclonal antibodies, recombinant proteins, and gene and cell therapies. Biopharmaceuticals often provide targeted treatment options with fewer side effects than conventional drugs.
• Rise of OTC Medications: Increasing availability and demand for OTC medications such as analgesics, cough/cold products, and others for treatment of minor illnesses is contributing to market growth. Acquisitions in OTC brands have also increased. For instance, in 2022, Johnson & Johnson a pharmaceutical company spent US$ 16.6 billion acquiring Tylenol-maker McNeil Nutritionals, to expand its consumer healthcare segment.
• Growing Use of Digital Health Solutions: Digital therapeutics, telehealth and mHealth solutions are improving patient engagement, medication adherence and health outcomes. Growing use of digital health solutions is significantly influencing the global altapharma market. This trend allows altapharma brands to market natural medicines and remedies for common minor ailments directly to consumers through such online channels. According to a study by CDC in 2021, the number of digital health users in the U.S. grew from around 25 million in 2016 to over 75 million in 2021. This rapid growth in virtual care presents a significant opportunity for alternative pharmaceutical products and services to reach more patients and form an important part of mainstream medical care delivered through digital means.

Global Altapharma Market- Restraints 

• Stringent Regulatory Requirements: Complex regulatory frameworks for drug approval often lead to increased R&D costs and longer approval timelines, and thus, hampering the market growth. For instance, in the U.S., the average time taken by the FDA to review and approve a New Drug Application is 10-12 years. Companies have to invest heavily in R&D and clinical trials even before knowing if their drug will be approved. According to a study by Tufts Center for the Study of Drug Development, the average out-of-pocket cost to develop and gain approval for a new prescription medicine in the U.S. is estimated to be US$ 2 .6 billion. The stringent regulations in the European Union follow similar guidelines of safety and efficacy testing through clinical trials as mandated by the FDA in the US.
• Pricing Pressure: Pricing regulations and rising instances of reimbursement cuts are compelling pharma companies to reassess product pricing and R&D investments. For example, in the U.S., the Centers for Medicare and Medicaid Services publishes drug pricing benchmarks each quarter, and if prices rise faster than inflation the manufacturers may need to pay rebates. This directly impacts companies' revenue and ability to invest in research and development of new drugs.

Figure 2. Global Altapharma Market Share (%), By Product Categories, 2023

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Global Altapharma Market- Recent Developments

New product launches

• In February 2022, Amway India a goods manufacturing company launched nutrition supplement in trendy, tasty, convenient and simplified format like flavourable gummies and mouth dissolving jelly strips under its flagship brand nutrilite
• On March 23, 2023, ChildLife Essentials a dietary supplements company launched new organic liquid elderberry supplement for kid’s immune health. This formula is specifically designed to support kids' immune health and promote overall wellness.
• In December 2021, Danone a food company launched Protinex Diabetes Care to address the nutritional needs of Indians with diabetes. This product provides adequate protein and fiber, which are important nutrients in managing blood sugar levels.

Acquisitions and Partnerships

• In November 2020, Unilever a consumer packaged goods company acquired SmartyPants Vitamins a U.S.‐based vitamin, mineral & supplement company. This acquisition increased Unilever’s portfolio of brands (Horlicks, OLLY, Equilibra and Liquid I.V) in the functional nutrition and supplement segment.
• In November 2020, New Mountain Capital, LLC a investment firm acquired Natrol, a leading vitamins, minerals and supplements brand that focuses on sleep, mood & stress and brain health

Top companies in Global Altapharma Market

• Amway Corp.
• Nestlé
• Braun SE
• Abbott Nutrition
• Baxter
• Perrigo Company PLC
• Fresenius Kabi
• Reckitt Benckiser
• Sun Pharmaceutical Industries Ltd.
• Herbalife Nutrition Ltd.
• GNC Holdings, LLC
• Nordic Naturals
• Danone
• Otsuka Pharmaceutical Factory, Inc.
• Usana Health Sciences Inc.
• Nature Made
• OPTIMUM NUTRITION

Definition: Global altapharma market refers to the global market for pharmaceutical drugs and medicines. It encompasses prescription medicines, over-the-counter drugs, generic drugs, biologics, biosimilars and various other pharmaceutical preparations used for therapeutic, preventive, curative, palliative or diagnostic purposes in human and animal healthcare. The global pharma market has witnessed steady growth over the past decade driven by rising prevalence of chronic diseases, aging population, continued R&D and new product launches. North America, Europe and Asia Pacific are the largest regional markets, while biosimilars, biologics, oncology drugs, and CNS drugs remain key product segments. The market is highly competitive with presence of many established players as well as emerging companies.