Price drives growth of Rs 1.4 trillion pharma market, hits a five-year high

The rapid growth of the trade generics market which accounts for a third of pharma volumes is another trend which is impacting volume as well as overall growth of the branded segment

For the first time in at least five years, price is the key factor driving the Rs 1.4 trillion Indian pharmaceutical market. For FY20, price accounted for over 55 per cent of the growth of the sector as compared to the last four years where it ranged from -15 per cent to 36 per cent. The other two components of its growth are volume and new product launches which accounted for 20-25 per cent each to the growth last fiscal.

Sector experts and analysts highlight multiple factors including premiumisation, growth of trade generics and product rationalization as reasons for the