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Discovering Macro Trends in Pharmaceuticals

Discovering Macro Trends in Pharmaceuticals

The pharmaceutical industry has witnessed tremendous progress in the last few years. The roots of the pharmaceutical industry are from the middle ages when traditional remedies used to be given. Furthermore, with scientific advancements and the evolution of industrialization, there was an increase in the production of goods.

Moreover, in the current age, with the amalgamation of technology, there is less intervention from human beings in the manufacturing processes. Smarter machines are being developed and data storage, trend analysis, and data acquisition have become smoother. Here, we are going to know about various macro trends in the pharmaceuticals industry:

The macro trends are segmented into two parts: consumer-related and industry-related trends. The trends are shaping the future of the pharmaceutical domain.

Industry-related macro trends

Consumer-related macro trends

Increasing usage of technology

Consolidation/mergers/acquisitions

Consumerization

Reimbursement/margins

Aging population

Preferred networks

Exponentially rising population

Specialty drugs

Rising expectation

Labor market

 

Let us take an in-depth look at these macro trends:

  1. Rising expectation

Customer expectations are no longer simpler and direct. In the domain of cost, service, and timeliness, the customers are expecting a remarkable experience. According to an estimation, 83.1% of customers say that, they will come back to the brand if they are satisfied. Some of the parameters that the customers expect from the industries are-

  • Individualization

An optimized customer experience for each user by the pharmaceutical companies is expected by everyone. There is an emerging trend of personalization in the pharmaceutical industry. It has been estimated that approximately USD 140 billion dollars.

Moreover, in the coming time leveraging hyperinflation hyper-personalization will become a norm.

  • Trust

Accurate, credible, and products based on evidence are expected by the consumers.

  1. Rising usage of technology

The usage of artificial intelligence and big data analytics is rendering targeted consumer profiles. AI is utilized in every step of designing the drug procedure. This amalgamation decreases the health hazards related to the trials.

Utilizing tech to raise adherence such as sending texts and refilling the reminders is also becoming common.

The big data is not new to the pharmaceuticals industry and utilized in many tasks. A prominent example of this is used in drug discovery.

For instance, nanotechnology is going to get introduced into the body in order to deliver drugs, monitor or make repairs.

  1. Aging population

 

The data says that the world population that is aged above 60 years will be expected to get doubled from 12.1% to 22.1%. This aging population can be used as an asset for the pharmaceutical industry.

  1. Consumerism

Even in the pharmaceuticals, consumers increasingly want to remain involved in the decision-making about healthcare.

Pharma industries are engaging and empowering the customers to provide information and render patients the right choice to opt and control.

  1. Widespread chronic diseases

According to an estimation, approximately of 1 in 3 of all adults suffer from multiple chronic conditions. For instance, approximately 10.6% of the adult population ranging from 20-70 years has diabetes. Other than this, an estimation of 1.281 billion adults aged 30-79 years have hypertension.

  1. Reimbursement and margins

Introducing drug reimbursement and margins continue to remain in trend for the pharmaceutical industry.

For instance, when a pharmaceutical company launches a product, reimbursement would be used to establish that product in the market. The more products bought from the customers, the higher will be reimbursement amount.

There will be caps on the out of pocket spending, also, it will become easier for the patients to stay on the higher-cost therapies.

  1. Consolidation in the pharmaceuticals

The consolidation in the industry has been in process for a decade now and has accelerated with time. Some of the most famous acquisitions are written as follows:

Companies

Deal Value in billion

Warner-Lambert

87

Aventis SA

73

Actavis

65

Pharmacia

64

Wyeth

64

Genentech

46

 

  1. Preferred network

The specialty market continues to flourish rapidly and spending on the specialty drug rose 11.1% in the past years. There are various opportunities for getting retail pharmacies in specialty drugs.

  1. Utilization of the labor market

There is rising unemployment and it is becoming difficult across the globe. In the tight labor market, there can be a large pool of laborious people to engage and boost production and industry capabilities.

Other than this, in the pharmaceutical domain, some of the new trends are related to pharmaceutical packaging. The 3 trends in the packaging are written as follows:

  • Smart packaging
  • A greater emphasis on the sustainability
  • Increased personalized packaging
  • More emphasis on the safety measures

In a nutshell,

As we understand that macro trends are a bit pervasive as well as persistent in the global scenario. Some other macro trends are automation, urbanization, rapidly changing demography, climate change and sustainability.

All of these trends are going to shape the pharmaceutical industry in the coming times. Furthermore, the industry is estimated to achieve USD 1599 billion by the year 2030.

Other than this, there are tailwinds to the pharmaceuticals industry with the advent of the pandemic COVID-19. It holds a pool of opportunities for investors.


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swara-keni
Swara Keni

Head- Global Business Development

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