Antibiotics Market, by Drug Class (Cephalosporins, Penicillin, Fluoroquinolones, Macrolide, Carbapenems, Aminoglycosides, Sulfonamide, Others), Spectrum (Broad-spectrum, Narrow-spectrum), Regional Analysis (North America, Europe, Asia Pacific, LAMEA): Global Opportunity Analysis and Industry Forecast, 2020–2027

The global antibiotics market forecast shall be $58,798.1 million by 2027, growing from $43,298.5 million in 2019 at a healthy CAGR of 4.0%. The Asia Pacific antibiotics market is expected to grow at a rate of 4.7% by registering a revenue of $19,932.6 million, over the projected period. Rising prevalence of infections and chronic diseases, supportive government policies, and acquisitions and collaborations by multiple manufacturers for the development of novel drugs are some of the major factors that are accelerating the APAC antibiotics drug market growth.

Antibiotics Market Analysis:

Antibiotics are medicines discovered in the early 20th century as an effective treatment to multiple bacterial infectious diseases, such as wound infections, bacterial pneumonia, and tuberculosis (TB). Antibiotics consists of a broad range of powerful drugs and are used to treat bacterial infections. Infected patients take antibiotics by mouth. Also, doctors can administer antibiotics by injection or apply them directly to the infected body part.

Impact Analysis of COVID-19 on the Global Antibiotics Market:

The outbreak of the novel coronavirus disease (COVID-19) has created a considerable impact on the global antibiotics market. In recent months, the consumption of antibiotics has astonishingly increased due to the need to avoid prolonged illnesses and longer hospital stays amid the COVID-19 pandemic. For instance, as per data published by the FDI (Fédération Dentaire Internationale) World Dental Federation in November 2020, there was an extensive surge in antibiotics prescribed to dental patients in England, amid the COVID-19 outbreak. Moreover, British Dental Journal (BDJ), one of UK's leading dental journal, has witnessed around 25% growth in the prescription of antibiotics by the dentists. Such facts & figures conclude that the demand for antibiotics has increased, in the pandemic, which has created favorable conditions for the global antibiotics market.

The growing prevalence of infectious diseases such as Pneumonia particularly in the developing economies may boost the antibiotics market

The global market for antibiotics is mainly attributed to the novel product innovations for the treatment of severe bacterial infections combined with a large number of clinical trials. In addition to this, the growing prevalence of infectious diseases like pneumonia, HIV/AIDS, tuberculosis, malaria is one of the major factors that will propel the global market growth, during the forecast period. For instance, according to the survey conducted by WHO (World Health Organization) in 2017, pneumonia disease accounted for around 15% of all deaths of children which are under 5 years old. Approximately, 8,08,694 children died in 2017, across the globe. Further, according to the recent analysis from UNICEF (United Nations Children's Fund), severe pneumonia leaves an approximately 4.2 million children (less the age 5) desperate for oxygen in 124 low- and middle-income countries each year. The above figures showcase that the demand for medications is expected to increase and ultimately drive the global antibiotics market.

Furthermore, substantial investments in R&D activities by biotech companies, availability and massive adoption of generic medicines, discovery of advanced molecules, and increasing expenditure in healthcare facilities will be some of the factors that will provide attractive opportunities to the global antibiotics market in the coming years.

To know more about global antibiotics market drivers, get in touch with our analysts here.

The high initial investment may restrain the growth of the global antibiotics industry 

Development of antibiotic resistance, particularly in the case of bacterial infections, is one of the major reasons negatively affecting the global antibiotics market. Furthermore, several factors including extensively rising drug approval costs, uncertain government regulatory policies, and fewer companies working in active research are also hampering the market growth.

Incorporation of novel computing technologies for antibiotic discovery may further create positive opportunities for the market

With significant increase in drug resistance in multiple bacteria, new antibiotics are essentially required worldwide. In recent years, technologies such artificial intelligence (AI), machine learning (ML) and deep learning have been providing a platform to develop novel antibiotics to fight against chronic bacterial infections. Machine-learning technology can help to discover new and innovative antibiotics that effectively work against infections such as tuberculosis. Moreover, in February 2020, a team of researchers at Massachusetts Institute of Technology, Cambridge announced that they have introduced halicin, the first discovered antibiotic with AI technology. This antibiotic is highly effective against bacteria such as Acinetobacter baumannii, Mycobacterium tuberculosis, Clostridium difficile, and Pseudomonas aeruginosa. Such recent advancements in the healthcare sector are further expected to offer lucrative market opportunities for the global antibiotics market, in the future.

To know more about global antibiotics market opportunities, get in touch with our analysts here.

Global Antibiotics Market, by Drug Class:

Fluoroquinolones sub-segment for the global antibiotics market will generate a revenue of $10,143.1 million by 2027 with a notable CAGR of 5.2% majorly because of the novel product innovations and their government approvals.

Source: Research Dive Analysis

The fluoroquinolones drug class will grow at a notable CAGR of 5.2% and is expected to register a revenue of $10,143.1 million by 2027, increasing from $6,823.1 million in 2019. 

Fluoroquinolones are extremely effective antibiotics with multiple beneficial pharmacokinetic properties such as large volume of distribution and broad-spectrum antimicrobial activity. Furthermore, novel product innovations and their government approvals is a key factor fueling the market growth of the sub-segment. For example, in March 2020, the U.S. Food & Drug Administration’s Center for Veterinary Medicine (FDA-CVM) made an announcement that it has granted approval for marbofloxacin based tablets, ‘Marboquin’. Marbofloxacin is a fluoroquinolone class of antibiotics. These tablets are developed for the treatment of infections in cats and dogs. Also, in June 2017, the U.S. FDA announced that they have given approval for Baxdela. Baxdela is a fluoroquinolone that exhibits activity against both gram-negative pathogens and gram-positive ones. Moreover, the antibiotic is highly effective over acute bacterial skin and skin structure infections (ABSSSI) especially in adults. These notable factors are further expected to upsurge the fluoroquinolones sub-segment growth, during the forecast period.

Global Antibiotics Market, by Spectrum:

The broad-spectrum antibiotics sub-segment will have significant market share and is expected grow exponentially owing to the increasing prevalence of multiple infections including TB, pneumonia, and malaria worldwide.

Source: Research Dive Analysis

The broad-spectrum antibiotics sub-segment of the global antibiotics market will have rapid growth and it is expected to surpass $52,366.7 million by 2027, with the rise from $38,018.1 million in 2019, at a healthy CAGR of 4.2%. The rising prevalence of infectious diseases, major development of innovative antibiotics, and extensively increasing healthcare expenditure in the countries like India, Brazil, and Singapore are some of the primary factors driving the sub-segment, in the forecast period. For instance, in March 2020, Indian government made an announcement that it will endorse common infrastructure facilities in 3 'Bulk Drug Parks' with the investment of around $1.35 billion in the coming 5 years. Furthermore, established as well as startup companies are also coming up with strategic investments in order to strengthen their footprint in the global marketplace. For example, in April 2020, three institutions namely Global Brain Corporation, Japan, University of Tokyo Edge Capital, Japan, and Acquipharma Holdings, South-Africa supported Bugworks Research Inc, a pioneer in novel broad-spectrum antibiotics, with the aid of $7.5 million financing, as announced by Bugworks Research Inc. Further, in November 2020, CARB-X, a global non-profit partnership, led by Boston University, announced that it is officially awarding up to $2.91 million to Evotec SE, a Germany-based drug discovery and development company, to fund the early development of innovative antibiotics. As per this agreement, Evotec SE has proposed to develop a new class of broad-spectrum antibiotics in order to discover treatment over multidrug-resistant bacterial infections. Such effective financial support is expected to foster the sub-segment growth, over the projected period.

Regional Insights:

Asia Pacific antibiotics market has shown a significant growth and it will reach up to $19,932.6 million by the end of 2027

Source: Research Dive Analysis

Asia-Pacific antibiotics market share is projected to increase at a CAGR of 4.7% by generating a revenue of $19,932.6 million by 2027. Asia-Pacific is expected to witness high growth rate in the upcoming years owing to supportive government strategies for antibiotics development. For instance, in 2018, Pfizer collaborated with Indian Council of Medical Research (ICMR) to develop and research new classes of antibiotics to tackle antimicrobial resistance in India. Such type of government support and initiatives will exponentially increase the market growth, which will eventually foster the Asia-Pacific antibiotic market, in the upcoming years.

North America market for antibiotics accounted $15,132.8 million in 2019 and it is estimated to generate a revenue of $19,950.2 million by the end of 2027.

Higher extent of prescribed antibiotics along with strict government & industry regulations for business processes are some of the factors propelling the antibiotics market growth in the region. Furthermore, the strong presence of leading antibiotics manufacturers including Abbott., Merck KGaA, and others will be one of the key factors for the North America’s antibiotics market growth in the near future. Also, these players are opting for effective strategies such as strategic collaborations and product launches to stronghold their presence into local as well as international market. For instance, in January 2018, Melinta Therapeutics, an American company, launched Baxdela (delafloxacin), which is an oral antibiotic for the treatment of bacterial infection skin structure infections and acute bacterial skin and skin structure infection (ABSSSI).  Such crucial factors and company developments show that the North America antibiotics market will have a dominating share in 2027.

Competitive Scenario in the Global Antibiotics Market:

The advanced technology development coupled with mergers & acquisitions are the frequent strategies followed by the significant market players

Source: Research Dive Analysis

Some of the significant antibiotics market players include Abbott., Sanofi, Merck KGaA, Bristol-Myers Squibb Company, Janssen Global Services, LLC, GlaxoSmithKline plc., Novartis AG, Bayer AG, Eli Lilly and Company., and Astellas Pharma Inc.

Antibiotics market players are focusing on merger & acquisition and advanced technological developments in order to acquire prominent position in the international market. For example, in July 2020, Novartis AG made an announcement that they are planning for joint investment with Austrian government to help strengthen the future of antibiotics manufacturing in Europe.

Porter’s Five Forces Analysis for Antibiotics Market:

• Bargaining Power of Suppliers: The availability of raw material suppliers is high in the global market, and these supplier companies are huge volume producers which eventually minimizes the bargaining power of suppliers.

Hence, the bargaining power of the supplier is LOW

• Bargaining Power of Buyer: Drug manufacturers hold patents for particular antibiotics. Therefore, the buyers cannot negotiate in drug pricing.

           Hence, the bargaining power of buyers is LOW

• Threat of New Entrants: There are high entry barriers owing to the costs associated with R&D innovations of new drugs. Moreover, patent and generic antibiotics require detail government regulation (i.e. FDA). Hence the threat of new entrants will be LOW.
• Threat of Substitutes: In recent years, doctors and therapists have been recommending traditional medicines and herbal products mainly because they are available with zero-side effects.

Thus, the threat of substitutes is MODERATE

• Competitive Rivalry in the Market: The competitive rivalry in the market players is rather intense, particularly between the giant-drug manufacturers like Sanofi, Abbott, and GSK. Such players are successfully launching their value-added products and services in the global market and strengthening the footprint in the marketplace.

Competitive rivalry in the market is HIGH