Production value of pharmaceutical drugs Japan 2013-2022

The total production value of medical drugs in Japan amounted to approximately ten trillion Japanese yen in 2022. The figure increased compared to around 9.17 trillion yen in the previous year. Prescription drugs represent the staple products of the medical drug market, accounting for almost 92 percent of the annual production value.

Domestic pharmaceutical industry

Surpassed by only the United States and China, the pharmaceutical market in Japan is one of the largest worldwide. Major domestic key players include multinational businesses competing on a global scale. Following the acquisition of Shire, the Tokyo-based Takeda Pharmaceutical Co., Ltd. was forecasted to join the ranks as a leading pharmaceutical company worldwide.

While the industry is subjected to extensive regulatory stipulations and long approval processes, the Japanese government has been working on a simplified framework to accelerate research and development efforts in the country. The transformation of the market offers domestic and foreign competitors a variety of opportunities, with the challenges of an aging society becoming a key driver for future growth.

Demographic challenges turning to opportunities

The high life expectancy of the population raises new challenges for the healthcare system, coupled with an increasing demand for medical treatment. In particular generics, commonly used in the treatment of elderly patients, are growing in importance. In 2022, antineoplastic agents accounted for one of the largest shares of medical drug production in Japan.