Africa Generic Pharmaceutical Market (By Type: Simple Generics, Specialty Generics; By Route Of Administration; By Product; By Application; By Distribution Channel) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2023-2032

The Africa generic pharmaceutical market was valued at USD 6.48 billion in 2022 and it is predicted to surpass around USD 9.94 billion by 2032 with a CAGR of 4.37% from 2023 to 2032.

Key Pointers

• Based on type, the simple generics segment held a major market share of 65% in 2022 owing to safety and cost-effectiveness. 
• On the other hand, biosimilars are anticipated to witness the fastest CAGR of 6.72% over the forecast period. 
• In terms of application, the cardiovascular diseases segment held the largest revenue share of 17% in 2022. 
• In terms of product, the small molecule segment held the largest revenue share of 90% in 2022.
• Based on route of administration, the oral segment held the largest revenue share of approximately 65% in 2022.
• The injectable segment is anticipated to grow at the fastest CAGR of 8.04% over the forecast period.
• In terms of distribution channels, the hospital pharmacies segment dominated the market in 2022 with the largest revenue share of over 46%.

Report Scope of the Africa Generic Pharmaceutical Market

The market is poised to experience significant growth opportunities driven by several factors. With a growing population and increasing healthcare needs, there is a rising demand for affordable medicines. However, limited healthcare budgets in the region have created challenges in accessing expensive branded drugs. In this context, generic pharmaceuticals have found a favorable environment to flourish and play a crucial role in addressing the healthcare affordability challenges across Africa.

Moreover, the potential for high-volume sales is a key advantage of drugs in this market. The large patient population, combined with the prevalence of chronic diseases like cardiovascular disorders, diabetes, and infectious diseases, offers a substantial market for generic medicines. These drugs not only cater to the immediate healthcare demands but also contribute to making essential medications accessible to a wider population.

As the region's healthcare landscape continues to evolve, the regional generic pharmaceutical market is poised to play a pivotal role in providing cost-effective healthcare solutions and improving overall health outcomes for the population.

Some of the generic pharmaceutical companies in Africa are Aspen Holdings, Cipla South Africa, and Lupin Limited among others. These companies have increased their focus on manufacturing affordable medicines for various therapeutic areas, catering to the needs of African patients. Their commitment to providing high-quality and affordable medicines has positioned them as a trusted provider of generic drugs. They have been successful in offering cost-effective alternatives for essential medicines, such as ARVs for HIV/AIDS treatment.

Alternatively, the market also presents certain challenges. Regulatory complexities and varying compliance requirements across different regional countries can pose hurdles to market entry and expansion. Companies need to navigate these regulatory frameworks, which may involve delays and additional costs in obtaining product registrations & approvals

Type Insights

Based on type, the simple generics segment held a major market share of 65% in 2022 owing to safety and cost-effectiveness. The rising FDA-approved simple generics coupled with strategic initiatives by key players have led to growing sales and distribution of simple generics. For instance, in September 2020, the Africa Medical Supplies Platform and Novartis announced a new collaboration for medicines supply from the company’s pandemic response portfolio to the Caricom countries & AU member states. The company’s 15 generic and OTC medicine portfolio from the Sandoz division will be sold to the government through the Africa Medical Supplies Platform to 55 African & 15 Caricom-eligible countries.

On the other hand, biosimilars are anticipated to witness the fastest CAGR of 6.72% over the forecast period. The segment is driven by factors such as the increasing number of patients with chronic and life-threatening diseases and patent loss of biologics over the coming years. Among the biosimilars, several patents drugs are likely to expire in the coming years which certainly opens up new opportunities for biosimilars and increases industry competition. In addition, fewer companies develop biosimilars, which is one of the factors for the rapid demand of the segment. In addition, improved treatment outcomes with biosimilars and increased life expectancy are likely to boost the demand within the forecast period.

Application Insights

In terms of application, the cardiovascular diseases segment held the largest revenue share of 17% in 2022. The prevalence of cardiovascular diseases and rising demand for medication have boosted the requirement for the market. According to the World Heart Federation, more than 1 billion people in Africa contribute to the global burden of cardiovascular disease. Therefore, this factor has led to the rise in the use of drugs for treating medical conditions associated with diseases such as blood clots, arrhythmias, coronary artery disease, high or low blood pressure, high cholesterol, heart failure, and stroke.

In addition, cancer is anticipated to witness moderate growth over the forecast period. The segment is driven by the increasing prevalence of cancer, the aging population, and the rising availability of generic medicines for cancer have fueled the segment revenue. According to WHO, in 2020, the number of new cancer cases in Africa was 1,109,209 for both sexes. The frequent cancer types occurring in the region are breast, cervix uteri, prostate, liver, and colorectum. Therefore, growing cancer incidence has led to the rapid demand for generic pharmaceuticals thereby supporting the growth of the market.

Product Insights

In terms of product, the small molecule segment held the largest revenue share of 90% in 2022 and is expected to maintain its dominant position throughout the forecast period. The segment is driven by key factors such as the rising number of pharmaceutical companies that are focusing on small molecule drug development pipelines with increased research and development activities. These molecules are easier to manufacture as compared to large molecules. In addition, low cost, availability, and accessibility of products to the patients drive the segment growth. This factor has led to the development of small molecule manufacturing with advanced technological capabilities.

Large molecules are anticipated to grow at a stable growth rate during the forecast period. The effectiveness of large molecules to treat various chronic illnesses such as autoimmune diseases, cancer, and genetic disorders has led to a rise in sales of products. However, due to high costs and time-consuming nature of manufacturing and frequent price volatility on the higher side may affect the segment growth.

Route of Administration Insights

Based on route of administration, the oral segment held the largest revenue share of approximately 65% in 2022 owing to it being the most common and easiest route of administration. In addition, its convenience, effectiveness, and safety, along with low cost drive the segment growth. In addition, the growing pipeline of oral medication, research, and development activities has boosted the market growth.

The injectable segment is anticipated to grow at the fastest CAGR of 8.04% over the forecast period owing to the increasing popularity of generic pharmaceuticals in chronic diseases such as HIV, cancer, respiratory diseases, cancer, and diabetes. For instance, in May 2023, Cipla announced the manufacturing of a generic version of the prophylaxis, long-acting cabotegravir at Benoni or Durban. The product is an affordable version of an HIV-prevention drug that will be made available in South Africa.

Distribution Channel Insights

In terms of distribution channels, the hospital pharmacies segment dominated the market in 2022 with the largest revenue share of over 46%. The growth can be attributed to several factors, such as the availability of a wide range of drugs, affordable drugs, rapid dramatic changes in demand for hospital pharmacies, and growing pharmacy competition. In addition, the presence of pharmacies within the hospitals has increased pressure on both external and internal product offerings, which have contributed to the growth.

In addition, the retail pharmacies segment is projected to witness moderate growth during the forecast period. The growing retail pharmacies through offline and online modes drive the market growth. In January 2022, mPharma raised USD 35 million to build a chain of community pharmacies across Africa. The easy accessibility, flexibility, and convenience provided by pharmacies drive the segment growth.

Africa Generic Pharmaceutical Market Segmentations:

By Type 

• Simple Generics
• Specialty Generics
• Biosimilars

By Application 

• Central Nervous System Disorders
• Respiratory Diseases
• Hormones & Related Diseases
• Gastrointestinal Diseases
• Cardiovascular Diseases
• Infectious Diseases
• Cancer
• Diabetes
• Others

By Product 

• Small Molecule
• Large Molecule

By Route of Administration 

• Oral
• Injectable
• Inhalable
• Others

By Distribution Channel 

• Retail Pharmacies
• Hospital Pharmacies
• Others