Global Antibiotic Market was valued at USD 45.1 billion in 2018 and is expected to grow at the CAGR of 4.7% within the forecasted time period of 2019-2024 because of increasing global bacterial infections.
- Definition / Scope
- Market Overview
- Market Risks
- Top Market Opportunities
- Market Drivers
- Market Restraints
- Industry Challenges
- Technology Trends
- Pricing Trends
- Regulatory Trends
- Market Size and Forecast
- Market Outlook
- Distribution Chain Analysis
- Key Market Players
- Strategic Conclusion
Definition / Scope
Antibiotics are medicines which are used to prevent and treat bacterial infections such as urinary tract, respiratory, skin, ear infections, etc. It is also known as antibacterials and antimicrobials, which are either produced from natural or synthetic substances. They are broad-spectrum and narrow-spectrum antibiotics taken in either oral or intravenous form. On the basis of the chemical structure, the antibiotics are of following types:
- Beta-Lactam and Beta-lactamase Inhibitors
Global Antibiotic Market is in the growth stage. Its market size was valued at USD 45.1 billion in 2018, increased from USD 39.6 billion in 2013. It is expected to grow at the CAGR of 4.7% within the forecasted time period of 2019-2024 because of increasing global bacterial infections. It will reach USD 63.34 billion by 2026.
North America holds the largest share of the market i.e. 33.5% and was valued at USD 15.1 billion in 2018. While Latin America, the Middle East, and Africa is expected to grow at the highest CAGR of 3.5% during 2019-2024.
Demand for beta-lactam and beta-lactamase inhibitors class of antibiotics is high among healthcare providers because of its broad-spectrum activity. Broad-spectrum antibiotics are expected to grow at a rate of 2.4% from 2019-2024
Advancement in new technologies such as DNA technology, genomics will facilitating the growth and sustainability of the antibiotics market.
Globally, nearly 30% of the antibiotics prescription is unnecessary as they are prescribed for non-bacterial infections. Because of this, irrational use of antibiotics leading to its resistance. About 2 million people are affected by antibiotic resistance causing almost 23000 deaths annually.
Carbapenem-resistant infections are increasing and responsible for almost 9,000 resistant infections. Each year 246000 cases of STI are resistant against cephalosporins(the best drug to treat STIs). This incidence influences the demand for antibiotics and will risk the growth of its market.
Top Market Opportunities
- Emergence and reemerging infectious disease
Globally, almost 30 new infectious diseases have been emerged out over the past three decades. Almost 26 emerging and reemerging infectious disease of bacterial origin were identified. Some of them were hamburger disease, lung infection, endocarditis, sepsis, etc. Its emerging nature will drive the demand for antibiotics.
- Discovery of advanced prospect molecule and novel combination therapies
In order to address the emerging issue of pathogenic resistance towards antibiotics, new molecules and combination therapies are introduced in the aspects of disease treatment. For instance, the combination of fluoroquinolone with macrolide has been successful to treat the HIV infection.
Almost 37 promising molecules were discovered and investigated in 2016. Advancement in development of novel antibiotics will create significant opportunities for the treatment of emerging disease through the evidence-based use of antibiotics therapy.
- Increasing prevalence of the infectious disease
Globally, bacterial diseases such as TB, leprosy, sepsis are increasing every year and almost 12102 outbreaks were recorded. Among this, 48% of outbreaks were from the diseases of bacterial origin (TB, campylobacterosis).
The existing situation of some of the bacterial infectious diseases is discussed in the table below. This rising trend of cases will drive the demand for the production and use of the antibiotics.
- Increased consumption of antibiotics in low and middle-income countries
Globally, the use of antibiotics has been increased by 65% from 21.1 billion to 34.8 DDD billion especially in low and middle-income countries over the past 15 years. It is driving the growth of the antibiotics market.
- High New drug development and approval cost and procedure
Almost 14% of all the drugs tested in clinical trials were approved from the FDA. In order to develop new drugs, almost USD 2.6 billion are used. Within the time period of ten years of study, the cost has almost increased by 145 percent but the success rate of clinical trials of drugs has declined to almost half.
This situation might demotivate the market players to develop the new innovative ideas in drug development, which in turn will restraints the sustainability of the antibiotics market.
- Side effects associated with antibiotics
Most of the antibiotics cause side effects such as diarrhea, nausea, vomiting, and cramps. It is affecting the compliance the patients towards the antibiotic use, which in turn create the risk for the growth of the antibiotic market.
- Expiration of patency of drugs
After the expiration of patency of the innovated drugs, the competitor pharmaceutical companies have the right to manufacture the drugs with the same composition and pharmacological activities. Almost 80% of the antibiotics are generic.
Because of this, the price of the product is reduced. It is quite challenging for pharmaceutical companies to ensure the quality of the antibiotics with the constant cost of raw materials at the reduced price of the final product.
New technological changes are introduced in the production of antibiotics because of the rising prevalence of antibiotic resistance and new emerging bacterial infections. Some of the technologies changes are highlighted as follows:
- Efflux Pump Inhibitors
It incorporates the potentiation approach to broaden the spectrum and increase the potency of the gram-positive agent in order to act effectively against gram-negative infections. It also helps to increase the internal concentration of the antibiotics.
- Catechol linked cephalosporin
This antibiotic is transported into gram-negative cells to enhance the bactericidal activity even at low concentration by removing the permeability barrier for antibiotic uptake.
It is used to select the potential antibacterial targets upon the bacterias in order to enhance the destroying and killing capacity of the antibiotics.
- Recombinant DNA technology
It is used to clone and express the large fragments of non-culturable bacterial genomes. This technology joins the DNA molecules of two different species and is inserted into the host bacterias to produce the new genetic combinations with a view to address the antibiotic resistance.
- Hyperthermophilic composting
It is the industrial-scale process which heats compost mixture at high temperature to kill antibiotic-resistant bacterias.
The price of the antibiotics differs on the basis of its chemical structure, brand names, dosage form, and spectrum activity. The average prices of some of the widely used antibiotics are discussed as below:
The antibiotics market is regulated by the food and Drug Administration/department of the concerned country. It is responsible for the development of regulations, policies, and acts related to the approval of antibiotics and issues of the antibiotics market. Some of the regulations are highlighted below:
Market Size and Forecast
The market size of the global antibiotic market was valued at USD 45.1 billion in 2018. It is expected to grow at the CAGR of 4.7% within the forecasted time period of 2019-2024 because of increasing global bacterial infections.
- North America holds the largest share of the market i.e. 33.5% and was valued at USD 15.1 billion in 2018.
- Europe accounts for 26.3% share in 2018 and is expected to grow at the rate of 3.9% It was valued at USD 11.86 billion in 2018.
By Dosage Form
Oral mode of administration accounts for the largest share of 37.6% in 2018. The market value od oral antibiotics was valued at USD 16.95 billion in 2018.
By the chemical structure of drugs
- Demand for beta-lactam and beta-lactamase inhibitors class of antibiotics is high among healthcare providers because of its broad-spectrum activity. It holds the largest market share of 43.3% and its market size was valued at USD 1961.92 million in 2018.
The global antibiotic market is expected to grow at the CAGR 4.7% within the forecasted time period of 2019-2026. It is estimated to reach USD 56.4 billion in 2024. Broad-spectrum antibiotics are expected to grow at a rate of 2.4% within the time period of 2019-2024
On the basis of the geography, Latin America, Middle East, and Africa is expected to grow at the highest CAGR of 3.5% during 2019-2024.
Distribution Chain Analysis
In terms of distribution channel, antibiotics are available at hospital pharmacies, retail pharmacies, and online pharmacies. The retail pharmacies account for 38.8% of the market in 2018.
Key Market Players
The key market players of the global antibiotic market are AstraZeneca plc, Bristol-Myers Squibb Co, Menarini Group, Allergan Plc, and Teva Pharmaceutical Industries Ltd. Short profile of these market players are discussed as:
The global antibiotic market is growing at a rate of 4.7% because of the rising emergence and re-emergence of bacterial infections. However, the irrational use of antibiotics has caused antibiotic resistance, which will create the risk for the growth and sustainability of this market.
The market players should be focused on the development of innovative novel drugs and the molecular formula with the ability to address the increasing resistance.
- DDD= Defined Daily Dose
- USD= United States Dollar