Japan Pharmaceutical Market Size & Share Analysis - Growth Trends & Forecasts (2024-2029) (2024 - 2029)

Japan Pharmaceutical Market Analysis

The Japan Pharmaceutical Market size is estimated at USD 95 billion in 2024, and is expected to reach USD 99.40 billion by 2029, growing at a CAGR of 0.92% during the forecast period (2024-2029).

Factors such as the rising geriatric population, the growing prevalence of chronic diseases, and increasing R&D activities in the country are boosting the market's growth.

The significantly high percentage of chronic diseases such as cardiovascular diseases, diabetes, hypertension, cancer, and neurological diseases drive the market's growth. For instance, according to the article published by the National Library of Medicine in February 2023, the prevalence rates for various neurological conditions in Japan in 2022 were as follows: Parkinson's disease (PD) at 23.3%, epilepsy at 20.7%, stroke at 15.8%, dementia at 13.2%, immune-mediated neurological disease (IMMD) at 8.3%, spinocerebellar degeneration (SCD) at 8.1%, amyotrophic lateral sclerosis (ALS) at 3.9%, headache at 3.9%, and myopathy at 2.8%. Thus, the high percentage of people suffering from various disorders is anticipated to increase the demand for effective drugs, boosting the market's growth.

As reported in an April 2023 article by the Japan Medical Association Journal, the overall prevalence of allergic diseases in Japan stood at 62.2% across all age groups. The specific prevalence rates for 2022 were: bronchial asthma (BA) at 14.7%, atopic dermatitis (AD) at 15.6%, food allergies (FAs) at 15.2%, allergic rhinitis (AR) at 47.4%, allergic conjunctivitis (AC) at 19.5%, metal allergies (MAs) at 1.9%, and drug allergies (DAs) at 4.6%. Thus, the high prevalence of allergies is anticipated to increase the demand for drugs to treat them, which may further fuel the market's growth during the forecast period.

Japan’s growing population and the rising prevalence of chronic diseases significantly impact the country’s pharmaceutical market. For instance, according to the World Economic Forum updated in September 2023, Japan boasts a demographic in which over 10% of its populace was 80 years or above in 2023, solidifying its position as the nation with one of the most aged populations globally. In addition, as per the same source, nearly 1 in 3 Japanese citizens, equating to approximately 36.23 million people, were over 65 in the same year. This figure is expected to rise over the coming years, driving the need for more pharmaceuticals as aged individuals are more prone to various diseases such as cancers and cardiovascular diseases. 

However, government policies and drug pricing pressure are expected to hinder the market's growth during the forecast period.

Japan Pharmaceutical Market Trends

The Branded Drugs Sub-Segment is Expected to Hold a Significant Market Share Over the Forecast Period

Japan 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 a doctor's prescription and are safe for consumption to treat various diseases. 

The Japanese pharmaceutical market is segmented by therapeutic category and prescription type. By therapeutic category, the market is segmented into antiallergics, blood and blood-forming organs, cardiovascular system, dermatological, genito urinary system, respiratory system, sensory organs, and other therapeutic categories. By prescription type, the market is segmented into prescription drugs and OTC. Prescription drugs include branded drugs and generic drugs. The market size and forecasts are provided in terms of value (USD) for the above segments.