Generic medicine market to top P400 billion by 2030

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February 17, 2026 | 12:00am

MANILA, Philippines — The value of the country’s generic medicine market is expected to reach over P400 billion by 2030, amid rising health care costs, according to research and analysis firm BMI.

“We project the segment will grow at an 8.8 percent local currency CAGR (compound annual growth rate) (8.5 percent in US dollar terms) from 2025 to 2030, reaching P409 billion ($6.9 billion),” the Fitch Solutions unit said in a report.

It also expects the share of generic medicines in the country’s total pharmaceutical sales to increase to 54 percent by 2030 from 51 percent last year.

As health care costs go up, BMI said that the government is expected to step up efforts to promote local generic medicines and its production to reduce costs and strengthen supply chains.

Data from the Philippine Statistics Authority showed that the country’s health expenditure reached P1.4 trillion in 2024, up by 18.6 percent year-on-year.

“The emphasis on cost-effectiveness will accelerate generic medicine adoption, intensifying competition for originator brands while creating opportunities for cost-competitive manufacturers,” BMI said.

Reforms such as mandating generic names on all medicine packaging, as well as reducing generic drug approval timelines are also expected to accelerate the adoption of generic medicines.

BMI said that the government’s push for affordable health care solutions is likely to challenge innovative drugmakers looking to expand in the Philippines.

While the government seeks to attract investments from pharmaceutical firms to reduce costs and dependence on foreign firms, BMI said complex specialty drugs, patented biologics and advanced oncology treatments are likely to remain imported due to high capital requirements and established global manufacturing economies of scale.

In addition, it said the country still faces gaps in financial resources and skilled talent for pharmaceutical research and development.

Another barrier to pharmaceutical investments is the delay in drug approvals, with the targeted 254 days frequently extending to two to four years.

“Poor coordination between the Intellectual Property Office [of the Philippines] and FDA (Food and Drug Administration) compounds these challenges, creating legal uncertainty around patent disputes and generic market entry,” BMI said.