Pharmaceuticals - Eastern Africa

Eastern Africa

The Pharmaceuticals market in Eastern Africa is expected to achieve a revenue of US$2,503.00m by the year 2024.
Within this market, the largest market is Oncology Drugs, which is projected to reach a market volume of US$314.00m in 2024.
It is anticipated that the revenue will exhibit an annual growth rate (CAGR 2024-2029) of 1.95%, resulting in a market volume of US$2,757.00m by 2029.
When compared globally, United States is expected to generate the highest revenue, reaching US$630.30bn in 2024.
Eastern Africa's pharmaceutical market is experiencing a surge in local production, driven by increased government support and investment.

Key regions: United States, China, Germany, Japan, Europe

Definition:
The Pharmaceuticals market covers remedies used to cure, treat, prevent, and diagnose diseases. These small molecule drugs or biologic medical products may be called drugs, medications, or medicines. Prescription drugs and over-the-counter (OTC) drugs are both included. Next generation therapies are also part of the Pharmaceuticals market and include gene therapy, cell therapy, and nucleic acid therapy. Cell therapies involve the use of living cells to replace or repair damaged tissues within the patient's body, or to modify cells to perform specific functions. Gene therapies focus on altering a patient’s genetic material to regulate the production of certain proteins. Nucleic acid therapies use short strands of DNA or RNA to inhibit the production of harmful proteins associated with diseases and promote the generation of therapeutic proteins. Depending on the regulations in each country, these products are provided by pharmacies, hospitals, physicians, and/or drug stores, and/or they can be bought elsewhere. They may be administered in the form of pills, capsules, gels, ointments, injections, infusions, lozenges, or aerosols/sprays.

Structure:
The market is subdivided into Oncology Drugs, Anti-Diabetes Drugs, Anti-Rheumatic Drugs, Vaccines, Dermatological Drugs, Antiviral Drugs, Immunosuppressants, Bronchodilator Drugs, Sensory Organ Drugs, Anti-Hypertensive Drugs, Anti-Coagulants, Anti-Fibrinolytic Drugs, Multiple Sclerosis Drugs, Lipid-Lowering Agents and Other Pharmaceuticals. The Pharmaceuticals market is organized in markets that cover drugs used in specific medical fields, i.e., medicines for a specific disesase or a certain type of medicine. They include original brands, biosimilars, generics, and orphan drugs.The Oncology Drugs market covers pharmaceutical products specifically developed for the treatment and management of various cancers. The Anti-Diabetes Drugs market covers medications designed to manage blood glucose levels and improve insulin sensitivity in individuals with diabetes. The market Anti-Rheumatic Drugs includes pharmaceuticals specifically developed to alleviate symptoms, reduce inflammation, and modify the progression of rheumatic diseases. The Dermatological Drugs market covers pharmaceuticals formulated to treat and manage a wide range of skin conditions such as eczema, acne, and rosacea. The Antiviral Drugs market includes medications designed to treat viral infections and reducing the severity and duration of symptoms. The Immunosuppressants market covers pharmaceuticals that suppress the immune system's activity. The Bronchodilator Drugs market covers pharmaceuticals designed to relax and widen the airways in the lungs. The Sensory Organ Drugs market covers pharmaceuticals targeting the treatment of disorders and conditions affecting sensory organs such as the eyes, ears and nose. The Anti-hypertensive Drugs market covers pharmaceuticals designed to lower blood pressure levels. The Anti-Coagulants Drugs market covers pharmaceuticals developed to prevent the formation of blood clots or to dissolve existing clots. The Anti-Fibrinolytics Drugs market covers pharmaceuticals designed to inhibit the breakdown of blood clots. The Multiple Sclerosis Drugs market covers pharmaceuticals aimed at managing and modifying the course of multiple sclerosis. The Lipid-Lowering Agents market covers pharmaceuticals developed to reduce levels of cholesterol and other lipids in the blood. The Other Pharmaceuticals market provides information on additional specialties that are not covered by the main markets.

Additional information:
Market values represent the revenues generated by manufacture prices paid to primary vendors, either directly or through distribution channels (excluding VAT). Reported market revenues include spending by consumers (B2C), companies (B2B), and governments (B2G).

Company examples: Novartis, Roche, Pfizer, Merck & Co, Johnson & Johnson, AbbVie, Sanofi.

Market

Region

Region comparison

Currency

Analyst Opinion

The demand for pharmaceuticals in Eastern Africa has been on the rise in recent years.

Customer preferences: The majority of customers in Eastern Africa prefer generic drugs due to their affordability. However, there is a growing demand for branded drugs among the middle class who are willing to pay a premium for quality and reliability.

Trends in the market: Kenya is the largest pharmaceutical market in the region, accounting for more than 50% of the total market share. The country is experiencing a surge in demand for over-the-counter drugs, driven by the growing middle class and increasing health awareness. Tanzania and Uganda are also witnessing a steady growth in the pharmaceutical market, with a rise in demand for vaccines and other essential medicines. Ethiopia, on the other hand, has a nascent pharmaceutical industry with a limited number of local manufacturers.

Local special circumstances: The pharmaceutical market in Eastern Africa is highly fragmented, with a large number of small and medium-sized players. The lack of a well-established regulatory framework and inadequate infrastructure are major challenges for the industry. Counterfeit drugs are also a significant problem in the region, which has led to a loss of revenue for legitimate players and posed a threat to public health.

Underlying macroeconomic factors: The rising population and increasing urbanization in Eastern Africa are driving the demand for pharmaceuticals. The region is also witnessing a rise in non-communicable diseases, such as diabetes and cardiovascular diseases, which require long-term treatment and medication. The governments in the region are making efforts to improve healthcare infrastructure and increase access to essential medicines, which is expected to boost the pharmaceutical market further. However, the high cost of research and development, coupled with the lack of a conducive business environment, are challenges for the growth of the pharmaceutical industry in Eastern Africa.

Methodology

Data coverage:

Data encompasses B2B, B2G, and B2C spend. Figures are based on drug revenues allocated to the country where the money is spent. Monetary values are given at manufacturer price level excluding VAT.

Modeling approach / Market size:

Market sizes are determined by a top-down approach, based on a specific rationale for each market. As a basis for evaluating markets, we use financial information of the key players by market. Next, we use relevant key market indicators and data from country-specific associations, such as industry associations. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, forecasts are based on historical developments, current trends, and key market indicators, using advanced statistical methods. The main driver is healthcare expenditure. Expiring patents and new drugs in the pipeline are also considered.

Additional notes:

Data is modeled in US$ using current exchange rates. The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. This market comprises prescription drugs and all OTC drugs covered in the Statista OTC Pharmaceuticals market. However, in the OTC Pharmaceuticals market, revenues are based on end-consumer prices.