Antibiotics market is estimated to be valued at USD 55.33 Bn in 2024 and is expected to exhibit a CAGR of 5.1% over the forecast period (2024-2031). The market is expected to witness significant growth owing to the rising prevalence of infectious diseases and the growing number of new product approvals for antibiotics by regulatory authorities. Furthermore, antibiotic resistance has emerged as a key concern globally which will drive research and development activities in this market.
Market Dynamics:
Rising prevalence of infectious diseases across the globe remains a key driver for the global antibiotics market. Infectious diseases, such as pneumonia, tuberculosis, and HIV/AIDS, continue to impose significant disease burden. For instance, according to the World Health Organization (WHO), lower respiratory infections caused over 4 million deaths globally in 2019. Growing resistance to existing antibiotics has heightened the need for the development of novel drugs. Moreover, regulatory agencies are encouraging the development of new antibiotics class to address antibiotic resistance by providing R&D incentives and priority review. The U.S. Food and Drug Administration (FDA) has approved 10 new antibiotics between 2010 and 2020 under its Generating Antibiotic Incentives Now (GAIN) Act. This focus on antibiotic innovation is expected to fuel the market growth over the forecast period.
Growing Prevalence of Bacterial Infections is Driving the Demand for Antibiotics
The increasing prevalence of bacterial infections across the world is one of the key drivers of growth in the global antibiotics market. Various diseases like pneumonia, tuberculosis, skin infections, sexually transmitted diseases, etc. are caused due to bacterial invasion in the body. According to the World Health Organization (WHO), infectious diseases account for around 17 million deaths annually, with bacteria being one of the major causative agents. The demand is especially high in developing countries where public health conditions are still catching up. As awareness and healthcare access improves globally, more cases are being diagnosed and treated, thereby increasing the uptake of antibiotic drugs.
Increasing Healthcare Expenditure is Expanding Access to Antibiotics
Rising healthcare expenditure in major developing and developed economies is another important market growth driver. Higher investments in healthcare infrastructure and research & development are allowing more efficient diagnosis and treatment of bacterial infections. Countries are spending more on public health programs and government-sponsored insurance schemes which enhance affordability and coverage of antibiotics. Moreover, growing disposable incomes are enabling people to spend more on medical treatments out-of-pocket. All these factors contribute to improving access to antibiotic drugs across wide population bases globally. This expanding access to antibiotics for a larger patient pool is fueling market revenues.
Growing Resistance to Existing Antibiotics is a Key Restraint
Repeated misuse and overuse of antibiotics have led to bacteria acquiring resistance against most available treatment options at an alarming rate. This reduces the effectiveness of existing antibiotics and makes available treatment protocols inadequate in many cases. Developing new drugs and treatment regimens has become critical to stay ahead of the resistance curve. This drug resistance drastically curtails the usable lifespan and viable market potential of established antibiotic products.
Stringent Regulations Delay the Approval and Commercialization of New Drugs
Developing new antibiotics is a highly regulated process due to safety and efficacy concerns. Antibiotics have unique mechanisms of bacterial resistance which requires very careful clinical evaluation. Regulatory authorities have made approval processes for new antibiotic entities stringent, prolonged, and costly. This deters investments in antibiotic R&D and delays the entry of new drugs in the market. The rigorous and lengthy clinical trials coupled with high failure rates discourage research initiatives. Tight regulations thus pose a challenge to the influx of innovative products that can address the unmet needs and replace older drugs to which resistance has grown. This restraint hampers the overall market growth potential.
New Infections Emerging from Resistance Developments
An emerging market opportunity lies in developing treatments for newer bacterial infections that are appearing as a consequence of growing antimicrobial resistance (AMR). As superbugs acquire resistances, antibiotics that were previously effective become redundant and new pathogens can cause infections. Some examples are methicillin-resistant Staphylococcus aureus (MRSA), vancomycin-resistant enterococci (VRE), drug-resistant strains of tuberculosis, and multi-drug resistant Gram negative bacteria causing difficult-to-treat nosocomial infections. This creates the need for novel drugs with new mechanisms of action that can battle these evolving bugs. Companies are investigating the potential in this opportunistic segment.
Collaborations for Novel Drug Discovery
Another lucrative opportunity for market players is via strategic collaborations involving different stakeholders to expedite antibiotic innovation. Pharmaceutical companies are signing agreements with biotechs, academia, and government research agencies to leverage diverse skills, technologies, and resources towards antibiotic R&D. This includes funding early stage research, conducting joint screening programs, molecule optimization efforts, and clinical trials. Such collaborations can help discover and develop entirely new classes of drugs much faster by pooling knowledge and capabilities. They can accelerate advancement towards viable treatment options for drug-resistant infections. This represents a promising avenue to bolster the market pipeline in the coming years.
Link: https://www.coherentmarketinsights.com/market-insight/antibiotics-market-5325
Key Development
- In July 2023, Orchid Pharma, a pharmaceutical company based in India, entered into a technology transfer agreement with a biotechnology company for its fermentation based on the "7ACA" project in the production-linked incentive scheme
- In April 2023, Baxter International Inc., a healthcare company, launched ZOSYN in the U.S. (piperacillin and tazobactam) Injection
- In May 2021, Sandoz, a Novartis AG division, announced plans to further strengthen its Europe-based antibiotics manufacturing network by further expanding production capabilities in Kundl, Austria and in Palafolls, Spain. By modernizing and simplifying its manufacturing setup, Sandoz will improve its ability to consistently deliver high-quality medicines to patients, while remaining cost-competitive in the global market.
Key Players: Abbott , Sanofi, Novartis AG, Bayer AG, GSK plc, AstraZeneca, Noreva Biotech, Emcure Pharmaceuticals, Torrent Pharma, Sun Pharmaceutical Industries Ltd., Mylan N.V., F. Hoffmann-La Roche Ltd., Merck & Co. Inc., Otsuka Pharmaceutical Co., Ltd., and Pfizer Inc.
