Market Trends of Japan Pharmaceutical 3PL Industry
Generics drugs market growing in the country
The generic drug market in Japan is growing at a rapid pace, with more and more drug companies starting up in the past few years. Japanese generics are now one of the fastest-growing segments in the pharmaceutical industry, as rising life expectancy and an aging population put pressure on existing suppliers to find new solutions. Japan is a country known for its high technology and strong market competition. It also has one of the highest healthcare expenditures per capita in the world.
Comparing Japan to other developed markets like the US and EU, generic medicine penetration has always been lower in Japan. Since the turn of the century, however, the number of people taking generic drugs has grown quickly due to a change in government policy.
In response to the country's aging population and the rising cost of branded drugs, the government passed a law to cut medical spending and move money from low-cost generics to innovative products. By September 2020, the government set a goal of 80% generic medicine penetration, although it only achieved roughly 2% of that aim. In the Japanese prescription medicine market as of September 2021, generics held a share of roughly 79%.
Generics were a good market for businesses and individuals who wanted brand-name drugs at cheap prices. When making generic versions of more expensive brands, pharmaceutical companies tried to make them taste, look, smell, and even feel like the more expensive brands. These copycat versions were named after the most popular drug names from major manufacturers, so customers could hardly tell the difference between a generic and its branded counterpart.
Pharmaceutical imports growing in the country
Japan is an export market for American pharmaceuticals and the third-largest pharmaceutical market in the world. The healthcare sector was marketed by the Government of Japan ("GOJ") since 2013 as a growth driver under the nation's economic revival and growth strategy. The pharmaceutical industry in Japan, along with the healthcare industry, has recently attracted new interest. This increased interest in Japan's healthcare industry is partly due to the COVID-19 pandemic, which highlighted the value of innovative healthcare goods. The requirement to strengthen Japan's drug discovery environment is a significant additional factor driving interest in the country's pharmaceutical industry. About 20% of all pharmaceutical imports into Japan are made up of American products, including those produced locally by American businesses and those that have been licensed to Japanese producers.
Through 2025, the pharmaceuticals market in Japan is expected to contract at a rate of 0.2-1.2% per year, while the global pharmaceuticals market is anticipated to expand at a rate of 4.4%. A concomitant fall in Japan's off-patent drug market is one of the factors contributing to the expected decline in the country's pharmaceutical sector. However, it is anticipated that the Japanese market for patented drugs, where U.S. corporations' goods shine, will continue to expand throughout this time.
