Antibiotics are medications that kill or inhibit the growth of bacteria. They play an important role in the treatment of infectious diseases like pneumonia, meningitis, tuberculosis and several other life threatening diseases. The growing prevalence of infectious diseases across the world is resulting in increased demand for effective antibiotics. Overuse and misuse of antibiotics is leading to rise in antibiotic resistance which is a major public health concern. This represents significant market opportunity for the development of advanced antibiotics to combat drug resistance.
The global antibiotics market is estimated to be valued at US$ 53803.25 Mn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The growing prevalence of antibiotic resistant infections poses a serious public health threat and is considered to be one of the biggest challenges faced by healthcare systems worldwide. Development of novel antibiotics effective against drug resistant pathogens is expected to present lucrative growth opportunities for antibiotics manufacturers. Significant focus on research and development of advanced technologies to discover new class of antibiotics will be crucial to address the rising threat of antimicrobial resistance and sustain market growth over the coming years. Government support for R&D through funding and regulations is augmenting efforts to develop innovative drugs to overcome this major public health challenge.
Porter’s Analysis
Threat of new entrants: Entry barriers are high in antibiotics market due to capital intensive research and development process. Regulatory compliance is also a barrier.
Bargaining power of buyers: Buyers have moderate bargaining power as there are many suppliers in the market providing similar antibiotics. However, switching costs are low.
Bargaining power of suppliers: Suppliers have moderate to high bargaining power as ingredients and raw materials used have few substitutes. Suppliers can also threaten to integrate forward.
Threat of new substitutes: Threat is low as antibiotics have limited substitutes to treat bacterial infections. However, traditional medicines offer competition.
Competitive rivalry: Intense as rivalry exists among major players for market share and to create compliance with regulation.
SWOT Analysis
Strength: Rising diseases incidence and demand for new generation antibiotics. Strong pipeline of drugs under development.
Weakness: High capital requirements and stringent regulations delay product launches. Dependence on few suppliers for raw materials.
Opportunity: Emerging markets growth and increasing healthcare spends present wide scope. Collaborations for developing novel antibiotics against multidrug resistant bacteria.
Threats: Patent expiries of blockbuster drugs bring competition. Stronger regulations can delay approvals.
Key Takeaways
The Global Antibiotics Market Size is expected to witness high growth. The global antibiotics market is estimated to be valued at US$ 53803.25 Mn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030.
North America holds the largest share and is expected to continue dominating owing to high healthcare expenditures and advanced healthcare facilities. However, Asia Pacific is poised to grow at the fastest pace over the forecast period backed by growing middle class population, economic growth and government initiatives to strengthen healthcare access in countries like India and China.
Key players operating in the antibiotics market include Diageo plc, Brown-Forman, Pernod Ricard, Bacardi Limited, Suntory Holdings Limited, Asahi Group Holdings, Ltd., Anheuser-Busch InBev, E. & J. Gallo Winery, Constellation Brands, Inc., Treasury Wine Estates, Barefoot Cellars, and Kona Brewing Co. Major companies are engaged in strategic collaborations and new product development to strengthen portfolio and market position.
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