The Pharmaceutical Sector 2016-2020 – USA Dominates, But China Potential Is Huge!
With a population of 324M (4.4% of the world) and an average per capita spend of $1,050, the USA dominates the global pharmaceutical market at $340B spend with a third of global sales ($1,072B).
In comparison, China, with four times the population of the USA at 1.38B (18.6% of the global population), has only $125.6B spend, 12% of global sales. The average per capita spend in the USA is $1,050 compared to China’s $91, leaving huge scope for growth as China’s population develops in class and earnings.
If China reached USA levels of per capita spend, the China market could be worth a staggering $1,450B, more than the present spend worldwide! However, the present (2016) Chinese average annual salary of RMB62k is the equivalent of $9k, and only projected to rise to RMB90k ($13k) by 2020. This could increase the average per capita spend from $91 to $133. Combined with the population projection of 1.4B (low growth), this would result in a market worth approximately $186B in 2020, catching up with the USA, but still around half the value.