The revenue generated by the pharmaceutical industry is increasing rapidly, and it is expected to reach over $120 billion by the year 2030.
Healthcare plays a pivotal role in establishing a healthy survival of humans. This sector has established its name since Stone Age and has tremendously modified itself with the evolving population. India is a prominent and rapidly growing existence in the pharma sector. It is one of the largest producers of medicines in terms of volume and value as well.
The pharmacology industry has grown in harmony with the medical field, providing the necessary medication, drugs, and consumables. They are closely intertwined and play a crucial role in the overall healthcare segment. The pharma industry has seen its share of trials and tribulations due to the changing Government regulations, global trade fluctuations, newer and stronger disease strains, etc. Despite this scenario, the segment has successfully grown at an almost steady rate.
The revenue generated by the pharmaceutical industry is increasing rapidly, and it is expected to reach over $120 billion by the year 2030. The industry is undergoing momentous expansion in the avenues of research, formulation, marketing, sales channels, and consumer support. An extensive segment provides employment opportunities and livelihood for the masses. Over 2.7 million personnel are currently employed in the pharma industry and their allied sectors.
The industry is an essential part of the trade and wellness ecosystem as it contributes to the overall revenue of the country and also ensures the health of the citizens. The trends play a crucial role in the progression of the sector.
Here are some pharma industry trends for 2020:
Influence of Artificial Intelligence
It is a strenuous task to sort and analyse the information gathered in this industry manually. The data might contain sensitive information about the medicine and its effects on various patient stereotypes. It might also provide essential data regarding the research and development avenue. The Artificial Intelligence application will aid product development, consumer experience and customised patient treatment and tracking possible.
Streamlining the supply chain process
The pharma industry has multiple vendors and service providers between the manufacturing unit and the end-user. Every unit plays a crucial role in the supply chain process. It determines the timely delivery of the product and also has a direct impact on the cost factors. Companies are identifying effective and standardised procedures to streamline the supply chain. Nowadays, technology has a huge role to play in streamlining and organising it. With increased tech-support, planning inventory and its management has become easier, it has also resulted in cost-savings and reduced manpower intervention.
Trend towards Generic Medicines
What are generic medicines? The drugs are developed with the exact formulation of the prescribed medicines but are not associated with any brand. All leading pharmaceutical companies develop their unique version of the medication and market them under their brand name. This system has led to increased competition among companies. This forces the brands to undertake innovative promotion techniques to capture the attention of the end-user or consumer. This also leads to a steady and gradual increase in the price of the product that forces the patients to spend more to procure the medicine.
This makes drugs unattainable to people from lower economic backgrounds. The generic medication breaks all these stereotypes and focuses on providing medicines to consumers at affordable prices. The consumers have become aware of these drugs and are choosing them instead of branded versions. This market is predicted to grow in the coming year, and the importance of generic medicine is bound to increase.
Implementation of Technology in all avenues
It has become highly improbable to survive without the influence of technology. The pharma industry trend of 2020 emphasis the use of technology in all channels of the segment. Experts are in the process of identifying and testing the infusion of these advancements in a different division. This would minimise the risk of error in the manufacturing and marketing aspects.
The term e-commerce has reached every nook and corner of the earth. A study states that India has over 451 million internet users. The retail pharmacy segment has been relatively late to join the e-commerce wagon. However, the younger generation has shown support to this channel, and the consumer base of the portals is steadily increasing. There were some issues connected with this avenue owing to Government regulations and privacy concerns. However, the companies are taking the necessary steps to resolve these problems with the support of the authorities. 2020 is expected to increase the sales of medicines through eCommerce portals largely.
Stringent government Regulations
The government and the regulatory authorities have implemented stringent protocols to bring order in the industry. In the last few years, the pharma and healthcare regulators have been actively implementing stricter rules and guidelines across the manufacturing, retail, sale, storage of drugs, etc.
Development of specialised drugs
The advancement in the health care segment allows physicians to identify the root cause of diseases with precision. The pharmacology industry is actively developing specialised drugs to combat the problem. This would also lead to a low volume high-quality production system that would reduce the damage to the environment and provide effective healthcare solutions.
This is a booming market, and newer medications are expected to be launched in the upcoming years. The stem-cells based medication is also booming and in the future will help in recovering earlier and better.
The general public is extremely conscious about their health. They are in the process of making lifestyle changes to rejuvenate and maintain their wellness quotient. This segment, known as preventive or predictive medicine, has gained considerable popularity. It focuses on the development of drugs that can prevent illness even before it arises.
Digitalisation of the segment
The pharmaceutical industry is an extensive market that contains multiple information about business and consumers. The data is highly sensitive and requires careful scrutinisation. The digitalisation of the segment would ensure the safety of the data and also minimise the risk of errors in the system. This is an on-going process, and newer technologies are regularly upgraded.
Ensuring high-quality production process
The quality and affordability of the product have been driving forces that determine the success of the company and the industry. The pharma industry revolves around these aspects. It is gradually migrating to high quality and economical production processes.
The industry trends define the current condition of the segment and lay the foundation for the future. This motivates the various stakeholders to strive hard to progress in their chosen field. The pharma industry focusses on the development of quality and affordable products to the masses.
The Indian pharmaceutical segment has partly achieved this goal as they are the leading producers of generic medicine. In addition to the presence of prominent multinational companies, the generic market caters to over 50% of the global demand for these drugs.
This article is written by Arushi Jain, Founder of Stayhappi.