Over the five years to 2020, pharmaceutical manufacturers have benefited from an aging population in developed economies and a growing middle class in emerging economies, boosting demand for both brand-name and generic products.

In 2020, according to IBISWorld estimates, generic pharmaceuticals are expected to capture 27.2% of industry revenue. In contrast, biopharmaceuticals, including biosimilars, are projected to comprise 13.5% of revenue. The remaining 59.3% of revenue is expected to derive from inorganic chemical compounds or traditional pharmaceutical treatments.

Due to most products in the Global Pharmaceuticals and Medicine Manufacturing industry being considered medically necessary for patients, the industry is less exposed to the state of the overall global economy. With that said, however, when consumers across the world have low disposable income, many patients will switch from brand-name pharmaceuticals to generic to cut down on their healthcare costs. Furthermore, patent expirations can cause large declines in industry revenue during years of immense patent cliffs.