South Korea generic drugs market is projected to witness a CAGR of 7.84% during the forecast period 2024-2031, growing from USD 8.43 billion in 2023 to USD 15.42 billion in 2031. The market’s growth is supported by the rising efforts of the government to reduce the costs of generics, the expansion of the aging population, and the increasing expiration of patents.
The rapid expansion of the aging population in the country is expected to propel the requirement for different pharmaceutical products as the older population is more susceptible to diseases and requires frequent medical interventions. As per the estimates of the National Statistical Portal and microdata analysis of South Korea, in 2023, 6.31 million individuals were 70 or older. The older population often suffers from a wide range of chronic disorders, boosting the demand for multiple drugs for the management of those conditions. Thus, propelling the requirement for generics to meet the growing demand. The pharmaceutical industry is also focusing on the development of medications tailored to the requirements of the elderly demographic.
Furthermore, the rising expiration of patents in South Korea in the coming years is also expected to augment the production of generic drugs in the country. After the expiration of a patent, the pharmaceutical landscape witnesses a seismic shift, allowing the marketing and production of generic drugs, which are usually priced lower than brand-name drugs.
In order to encourage the utilization of generics, the government plans to reduce their costs and increase awareness among the general population about their quality and efficacy.
Government Intervention Supports Market Expansion
The rising efforts of the government to bolster the utilization of generics in the country and reduce their costs are propelling the South Korea generic drugs market growth. According to a report titled ‘Improvement Plan for the Generic Drug Pricing System,’ published by the Ministry of Health and Welfare, the difference in prices of generic and brand name drugs was minimal in South Korea, and the generic drug prices were ten times more than other major countries. The government is increasingly focusing on reducing the costs of generics and increasing incentives for consumers to boost their utilization, supporting the market’s expansion.
Read More: https://www.marketsandata.com/industry-reports/south-korea-generic-drugs-market
Increasing Prevalence of Chronic Diseases Boosts Market Demand
The rising cases of chronic diseases such as diabetes in the country is one of the major factors boosting the South Korea generic drugs market demand. As per the estimates of the Korean Medical Association, more than 6 million patients are living with diabetes mellitus in Korea, and approximately 15.83 are prediabetic. This increase is propelling the requirement for generic drugs in South Korea as they are more affordable than brand-name drugs. Generic drugs aid in improving patient compliance by decreasing out-of-pocket costs for them while providing the same efficacy at lower costs and generating savings for the healthcare system. Due to such benefits, the healthcare providers in the country are also encouraging the utilization of generics, providing lucrative growth opportunities to the market.
Patent Expiration Augments Market Growth
The expiration of patents for various drugs in the coming years is expected to provide lucrative growth opportunities to the market. About 44 patents are expected to expire in South Korea between 2024 and 2025, increasing the potential for the entry of generics. The expiration of patents is essential for preventing the development of monopolies and ensuring that large corporations are unable to corner the industry by pushing the competitors out by not allowing them to create similar drugs and securing a wide number of patents for themselves. Patents for various high-performing drugs such as Erivedge, Sustol, Incivek, and Yondelis are expiring in 2024, and drugs including Belrapzo, Bendeka, Otrexup, and Eucrisa, among others, are expiring in 2025.
Biosimilars Hold Major Market Share
The increasing approvals and launch of biosimilars are propelling the growth of the South Korean generic drugs market. In June 2024, Samsungbioepis Co., Ltd. announced the launch of Ustekinumab in South Korea at a 40% discount. The biosimilar, which is used for treating moderate to severe plaque psoriasis, received approval from the South Korean Ministry of Food and Drug Safety prior to the announcement. The increasing availability of such biosimilars at reduced prices is expected to enhance consumer convenience and provide lucrative growth opportunities for the market. The availability of the biosimilars at increased discounts is also expected to reduce the financial burden on patients, ensuring treatment adherence and disease management.
Future Market Scenario (2024-2031F)
As per the South Korea generic drugs market analysis, the market is expected to witness significant growth in the coming years. Direct government interventions for generic drugs with higher prices as compared to more than 20 listings and foreign countries, supportive usage incentives, and provision of information on high-quality generic drugs are expected to aid in reducing the prices of generics in South Korea. Furthermore, by piloting a reference pricing system, the country can also reduce the cost of generic drugs, propelling their adoption and providing lucrative growth opportunities to the market.
In the coming years, the government also plans on initiating reforms to the generic drug pricing system, as a lack of proper price competition within generic drugs is considered to be a threat to the national health insurance system’s financial stability. As part of the healthcare reform, they also plan on investing USD 7.48 billion (10 trillion won) in essential medical fields over the course of five years. This decision is also being analyzed as the reason for stabilizing health insurance finances with the help of price reductions of generic drugs.
Report Scope
“South Korea Generic Drugs Market Assessment, Opportunities and Forecast, 2017-2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of South Korea generic drugs market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
Contact
Mr. Vivek Gupta
5741 Cleveland street,
Suite 120, VA beach, VA, USA 23462
Tel: +1 (757) 343-3258
Email: info@marketsandata.com
Website: https://www.marketsandata.com/