Australia Pharmaceuticals Market Size (2024 - 2029)

Australia Pharmaceutical Market Analysis

The Australia Pharmaceuticals Market size is estimated at USD 13.21 billion in 2024, and is expected to reach USD 17.89 billion by 2029, growing at a CAGR of 6.25% during the forecast period (2024-2029).

The COVID-19 pandemic had a significant impact on the market studied in Australia. Many companies received approval for their vaccines against the Sars-CoV-2 virus and focused their research and development on therapeutics against COVID-19. For instance, in January 2021, the Therapeutic Goods Administration approved the COVID-19 vaccine developed by Pfizer and BioNTech. In addition, the Australian government signed nearly four agreements and invested around AUD 3.3 billion to support the supply of vaccines in the country. Furthermore, the country invested around AUD 363 million in research and development activities related to the prevention and treatment of COVID-19. Such developments accelerated market growth during a pandemic. Furthermore, the Australian Government has convened a large group of clinical experts to form the National COVID-19 Clinical Evidence Taskforce. The role of the taskforce is to create evidence-based Australian guidelines for the clinical care of people with COVID-19. The Therapeutic Goods Administration (TGA) approved Tixa Genmab and ciljevima (Evoshield) in December 2021 and Sotrovimab (Xevudy) in August 2021 for COVID-19 treatment. Hence, it is observed that the COVID-19 pandemic had a significant impact on the market studied.

The major factors likely to drive market growth during the forecast period are the growing burden of chronic diseases and the rising geriatric population, along with the rising investments in research and development expenditure for novel therapeutics in Australia. According to Australian Bureau of Statistics data updated in March 2022, over three-quarters, i.e., 78.6% of Australians, had at least one long-term health condition in 2021, while nearly half, 46.6% or 11.6 million, had at least one chronic condition. Thus, increasing chronic diseases and a high demand for pharmaceutical products are expected to promote market growth. Furthermore, the burden of diabetes has also increased in the country. As per the data in the International Diabetes Federation's 2021 report, there were about 1.5 million people with diabetes in Australia in 2021, and their number is expected to increase to 1.9 million by 2045. Thus, the demand for pharmaceuticals for diabetes treatment and management is expected to increase over the years in Australia, which is expected to boost growth in the pharmaceuticals market in the country.

Additionally, key strategies adopted by major market players, increased investment, and rising research and development activities will also contribute to market growth. For instance, in June 2022, diabetes-focused biotech player Dimerix entered into a partnership agreement with the Australian Centre for Accelerating Diabetes Innovations (ACADI) to conduct a clinical trial of its oral medical product DMX-200 in diabetic kidney disease patients. Positive results from such studies will boost their demand, hence boosting the pharmaceutical manufacturing process and thereby driving the market during the study period. Thus, the above-mentioned factors are expected to positively contribute to the market's growth over the study period.

However, strict regulatory guidelines for product approvals are expected to hinder market growth.

Australia Pharmaceutical Industry Segmentation

As per the scope of this report, pharmaceuticals are referred to as prescription and non-prescription drugs. These medicines can be bought by an individual with or without the doctor's prescription and are safe for consumption for various illnesses with or without the doctor's consent. The Australia Pharmaceuticals Market is segmented by ATC/Therapeutic Class (Alimentary Tract and Metabolism, Blood and Blood Forming Organs, Cardiovascular System, Dermatologicals, Genito Urinary System and Sex Hormones, Systemic Hormonal Preparations, Anti-infectives for Systemic Use, Antineoplastic and Immunomodulating Agents, Musculoskeletal System, Nervous System, Antiparasitic Products, Insecticides, and Repellents, Respiratory System, Sensory Organs, and Other Therapeutic Classes), Drug Type (Branded and Generic), and Prescription Type (Prescription Drugs (Rx) and OTC Drugs). The report offers the value (in USD million) for the above segments.