Pharmaceuticals - Nigeria

Nigeria

The revenue in the Pharmaceuticals market of Nigeria is estimated to reach US$1,765.00m in 2024.
The largest segment in this market is Oncology Drugs, which is projected to have a market volume of US$285.80m in the same year.
The annual growth rate (CAGR 2024-2029) is expected to be 5.99%, leading to a market volume of US$2,361.00m by 2029.
In comparison to other countries, United States is forecasted to generate the highest revenue of US$630.30bn in 2024.
Nigeria's pharmaceutical market is experiencing a surge in demand for locally produced generic drugs.

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.

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Analyst Opinion

The pharmaceuticals market in Nigeria has been experiencing significant growth in recent years, driven by various factors such as an increasing population, rising healthcare expenditure, and the government's efforts to improve the healthcare infrastructure.

Customer preferences: Nigerians have become more aware of their healthcare needs and are increasingly seeking access to quality healthcare services. This has led to a growing demand for pharmaceutical products that can address their healthcare needs. Additionally, there has been a shift towards the use of generic drugs, driven by their lower cost compared to branded drugs.

Trends in the market: One of the notable trends in the Nigerian pharmaceuticals market is the increasing focus on local manufacturing. The government has been implementing policies to encourage local production of pharmaceuticals to reduce the country's dependence on imported drugs. This has led to the emergence of local pharmaceutical companies that are competing with multinational pharmaceutical companies. Another trend is the increasing use of technology in the pharmaceutical industry, with the adoption of electronic health records and telemedicine.

Local special circumstances: The Nigerian pharmaceuticals market is characterized by a fragmented distribution system, with a large number of small-scale distributors. This has led to challenges in ensuring the quality and safety of pharmaceutical products, with counterfeit drugs being a major concern. Additionally, the lack of adequate healthcare infrastructure in some parts of the country has limited access to healthcare services, including pharmaceutical products.

Underlying macroeconomic factors: The Nigerian pharmaceuticals market is influenced by various macroeconomic factors such as population growth, urbanization, and healthcare expenditure. The country's population is projected to continue growing, which will drive demand for pharmaceutical products. Additionally, the increasing urbanization rate is expected to lead to a higher prevalence of lifestyle diseases, further boosting demand for pharmaceutical products. The government's commitment to increasing healthcare expenditure is also expected to drive growth in the pharmaceuticals market. However, the market is also affected by challenges such as inadequate healthcare infrastructure, regulatory issues, and political instability.

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.