World Pharma Market To Grow 6.7% CAGR To 2000

By the year 2000, the world pharmaceutical market will reach a value of $379 billion (at manufacturers' selling prices), reflecting a compound annual growth rate of 6.7% during the period 1996-2000, according to a new report from the IMS Pharma Strategy Group, which covers virtually every market worldwide, or some 230 countries from Afghanistan to Zimbabwe. For 1995, the world market was valued at $284 billion.

Over the 1991-1995 period, the highest level of growth was evident in the Southeast Asian market, which grew by 10.2% CAGR, led by the buoyant economies of South Korea, Taiwan and Vietnam. Overall, the world drug market showed higher-than-average growth for the previous five-year period in 1995, 13.6%, partly due to governments relaxing cost controls in 1993-1994.

Growth is expected to be significantly slower in 1996 (2.9%) due to increased government cost-containment measures, including the introduction of reference pricing in most European countries.