In this article, we will be covering the top 16 medicine producing countries in the world. If you want to skip our detailed analysis of the pharmaceutical industry and emerging trends, go directly to the Top 5 Medicine Producing Countries in the World.
The global pharmaceutical industry is forecasted to grow from $1.4 billion in 2022 to over $2 billion by the end of 2028. This expansion would reflect a compound annual growth rate (CAGR) of 5.7% during the forecast period. The growth is expected to be driven by developing countries belonging to Asia, Africa, and Latin America. These countries are experiencing healthy growth in population along with improved access to healthcare. Some countries in Asia, such as India and China, are also among the top Active Pharmaceutical Ingredients (API) manufacturing countries. On the other hand, North American and European markets have matured and will experience low growth during this period. The United States of America (USA) has the distinction of being the largest producer of medicines in the world. Some experts even consider it the best country for the pharmaceutical industry due to the advancements in technology taking place in the country. Interestingly, the USA also leads the list of top pharmaceutical-importing countries, highlighting its significant role in the global pharmaceutical market.
Consumption of medicine doses is expected to rise to around 3.4 trillion in 2027, which would reflect an 8% increase from the levels in 2022. Furthermore, the emergence of biosimilars, primarily due to exclusivity losses, is expected to provide the pharmaceutical industry with a tailwind of $140.7 billion in the next five years. The International Federation of Pharmaceutical Manufacturers & Associations (IFPMA) believes that the biopharmaceutical industry is responsible for a total contribution of $1.84 trillion to the global economy and provides employment to 5.5 million around the world in the fields of research and development (R&D), manufacturing, distribution, and other functions. According to the Geneva, Switzerland-based trade association, there are over 9,000 compounds that are currently under production worldwide. The pharmaceutical industry is a research-intensive industry as compared to other high-tech industries. The R&D spending of the pharmaceutical industry is 8.1 times higher than the R&D spending of the aerospace and defence industry, 7.2 times higher than the R&D spending of the chemical industry, and 1.2 times higher than the spending of the software and computer services industry. Since 2015, the pharmaceutical industry has spent more than $1 trillion on the development of new drugs.
The industry needs to continue investing actively because new threats are emerging daily. According to IFPMA, Antimicrobial Resistance (AMR) in the form of drug-resistant superbugs could cause an annual economic loss of $3 trillion globally down the line. Every year, AMR is responsible for 1.27 million deaths globally and plays a part in the deaths of five million people globally. According to experts, this number could double by 2050. In addition to this, tuberculosis (TB) has the power to cause an economic loss of $1 trillion by the end of this decade. Meanwhile, any form of pandemic influenza can cause a yearly economic loss of $500 billion. These examples only highlight the importance of research and development in the pharmaceutical industry.
There are a number of notable companies operating in the industry, such as Moderna, Inc. (NASDAQ:MRNA), Pfizer Inc. (NYSE:PFE) and Merck & Co., Inc. (NYSE:MRK). You can also take a look at the 25 Biggest Pharmaceutical Companies in the World here. Pfizer Inc. (NYSE:PFE) became the first company in the history of the pharmaceutical industry to achieve annual sales of $100 billion in 2022. This was due to the positive impact of the COVID-19 vaccine on the top line of the New York-based company, as it contributed $37.8 billion during the 12 months. Meanwhile, Brunswick, New Jersey-based Johnson & Johnson (NYSE:JNJ) was close behind in second position with an annual revenue of $94.94 billion in 2022. The company was also favourably impacted by its COVID-19 vaccine.
Top 16 Medicine Producing Countries in the World
Photo by Myriam Zilles on Unsplash
Our Methodology
To shortlist the top 16 medicine-producing countries in the world, we collated the pharmaceutical production by country data using notable sources such as the Observatory of Economic Complexity (OEC) and the Pharmaceutical Industry and Global Health Report. This list includes nine of the top 10 medicine-exporting countries in the world. We have ranked the countries in ascending order of their medicine production values in 2021.
Top 16 Medicine Producing Countries in the World
16. Netherlands
2021 Medicine Production: $15,919,402,838
Population: $17,134,870
Medicine Production per Capita: $929
The Netherlands hosts some major pharmaceutical corporations like Janssen Pharmaceuticals (a subsidiary of Johnson & Johnson), MSD (Merck Sharp & Dohme), Novartis, and Takeda. The country has a well-established generic drug industry that sells medications at lower prices than brand-name drugs. The Dutch Medicines Evaluation Board (CBG) is the public body that is responsible for overseeing the pharmaceutical industry in the Netherlands. The CBG works in close contact with the European Medicines Agency (EMA) in approving and regulating the pharmaceutical industry.
15. South Korea
2021 Medicine Production: $17,584,789,936
Population: 51,269,180
Medicine Production per Capita: $343
South Korea has a strong presence in the field of generic drug manufacturing, with a rich history dating back to the late 1800s. The country has been able to develop a strong generic drug industry that manufactures high-quality and cost-effective medicines. Generic drug manufacturers from Korea have been able to expand their presence to numerous countries globally. The Korean pharmaceutical industry is monitored by the Ministry of Food and Drug Safety (MFDS).
14. Canada
2021 Medicine Production: $19,306,222,642
Population: 37,742,150
Medicine Production per Capita: 512
Canada has the 11th biggest pharmaceutical industry in the world based on its consumption. According to the figures presented by the Government of Canada, 81.3% of the sales of medicines are made through brand-name products. The country is at fourteenth place on our list of the top medicine producing countries in the world.
13. Brazil
2021 Medicine Production: $22,365,648,869
Population: 212,559,420
Medicine Production per Capita: $105
Brazil has the biggest government-operated healthcare system in the world, known as Sistema Único de Saúde (SUS). The institution provides complete and free healthcare services to the entire population of the Latin American country. The country has a strong generic drug manufacturing capability that provides cost-effective alternatives to brand-name medications. The Brazilian government encourages the use of generics through policies such as the "Popular Pharmacy" program, which offers subsidized medications.
12. Spain
2021 Medicine Production: $27,923,732,190
Population: 46,754,780
Medicine Production per Capita: $597
Spain has a well-developed pharmaceutical industry, which employs over 57,000 people. Pharmaceutical products were the fourth most exported product from the country in 2020. The country's pharmaceutical industry is regulated by the Spanish Agency of Medicines and Medical Devices (AEMPS), which ensures that all drugs manufactured, imported, and sold in the country fulfil all the strict standards related to safety, efficacy, and quality.
11. United Kingdom
2021 Medicine Production: $32,007,338,621
Population: 67,886,010
Medicine Production per Capita: $471
The United Kingdom considers the pharmaceutical industry as an important part of its economy. The sector gives employment to 66,000 people in the UK. The regulations of the pharmaceutical industry fall under the purview of the Medicines and Healthcare Products Regulatory Agency (MHRA). One of the biggest economies in the world has a publicly funded healthcare system known as the National Health Services (NHS), which is a leading purchaser of pharmaceutical products in the UK.
10. Belgium
2021 Medicine Production: $34,008,713,028
Population: 11,589,620
Medicine Production per Capita: $2,934
Belgium has the distinction of being the fourth biggest exporter of pharmaceutical goods in the world, behind Germany, Switzerland, and the USA. The pharmaceutical industry in the country employs more than 30,000 people, and every year the industry spends $1.64 billion (€1.5 billion) on R&D. This is equivalent to 40% of all private investment made in the Western European country.
9. India
2021 Medicine Production: $43,562,711,993
Population: 1,380,004,390
Medicine Production per Capita: $32
India is the second most populous country in the world. There is a presence of over 3,000 drug companies and around 10,500 manufacturing facilities in India. The country is amongst the biggest provider of generic drugs in the world. Furthermore, India has the highest number of pharmaceutical manufacturing facilities that meet the guidelines of the US Food and Drug Administration (FDA).
8. Italy
2021 Medicine Production: $44,319,364,776
Population: 60,461,830
Medicine Production per Capita: $733
Italy is a reliable manufacturing hub for pharmaceutical products in Europe. The industry offers employment to 66,500 people in Italy across 170 facilities. The country has worked on enhancing its exports, and it has seen its exports jump by 65% since 2015. The pharmaceutical industry in Italy operates under the regulatory framework of the Italian Medicines Agency (AIFA). The country is at eighth place on our list of the top medicine producing countries in the world.
7. France
2021 Medicine Production: $46,207,658,167
Population: 65,273,510
Medicine Production per Capita: $708
France has a strong domestic and export-oriented pharmaceutical industry that can achieve strong margins despite pressure from the general public to lower prices. The country has the fourth biggest market in terms of pharmaceutical consumption. The French pharmaceutical industry is heavily regulated, especially for reimbursable drugs, which are responsible for 30% of all sales. The country is trying to enhance its production capabilities further and lower its reliance on China and India for active pharmaceutical ingredients (API).
6. Switzerland
2021 Medicine Production: $55,805,808,749
Population: 8,654,620
Medicine Production per Capita: $6,448
Switzerland is amongst the biggest exporter of pharmaceutical goods in the world. Leading companies like Novartis AG (NYSE:NVS) and Roche Holding AG (OTC:RHHBY) are headquartered in Switzerland. Some of the other notable companies operating in the pharmaceutical industry include Moderna, Inc. (NASDAQ:MRNA), Pfizer Inc. (NYSE:PFE), and Merck & Co., Inc. (NYSE:MRK). The industry is responsible for contributing 5% to the GDP of the country and employs 135,000 people directly and indirectly.
