Pharma market - Growth

Majority of the Pharma market’s growth is driven by the urban markets,that is, areas that are classified as metros or tier I cities Tier II to tier VI is classified as per urban, while rural is the bottom of the pyramid, which constitutes 67% of India’s population (600,000 villages).

As per IMS Health, per-urban markets account for 38% of total industry sales, being valued at US$3.4 billion, while rural markets account for 17% of total industry sales, being valued at
US$2 billion, in 2010.
 

Over the next ten years, rural markets will grow at a CAGR ranging from a conservative
15% to an aggressive 20%, reaching an expected valuation of between US$8 billion and US$12 billion, depending on the implementation of growth drivers.

The opportunity

Around 742 million people reside in rural areas. There is a significant gap between the number of people residingin villages that require treatment, and quality treatment and medicines reaching these villages. Accessibility of medication in rural areas is very poor, with less than 20% of the population
having access.

This gap represents a huge opportunity for pharmaceutical companies to expand, and we believe that these markets will be the future volume drivers of the industry.