U.S. Pharmaceuticals Market Size, Share & Industry Analysis, By Type (Drugs and Vaccines), By Disease Indication (Oncology, Diabetes, Infectious, Cardiovascular, Neurology & Psychiatry, Respiratory, Renal, Obesity, Autoimmune, Ophthalmic, Gastrointestinal, Dermatology, Hematology/Blood, Liver/Hepatology, Genetic, Hormonal/Endocrine, Women’s Health, Reproductive, Allergies, and Others), By Drug Type (Biologics & Biosimilars, and Small Molecules), By Route of Administration (Oral, Parenteral, Topical, Inhalation, & Others), By Age Group, By Distribution Channel, and Regional Forecast, 2025-2032

The U.S. pharmaceuticals market size was valued at USD 792.35 billion in 2024. The market is projected to grow from USD 847.51 billion in 2025 to USD 1,467.93 billion in 2032, exhibiting a growth at a CAGR of 8.16% during the forecast period.

The U.S. pharmaceutical market is expected to witness significant growth during the forecast period. The rising prevalence of diseases, the presence of high-end healthcare infrastructure, active reimbursement policies, and increasing focus on research and development for innovative drug development are boosting market growth in the country.

• For instance, in August 2023, Johnson & Johnson Services, Inc. announced the approval of AKEEGA by the U.S. Food and Drug Administration (FDA) for the treatment of metastatic castration resistance prostate cancer in individuals with BRCA1 or BRCA2 mutations.

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The estimated number of new cancer cases in the U.S. for both sexes is around 2,001,140 in 2024.

U.S. Pharmaceuticals Market Trends

Rising Need for Targeted Therapies is a Key Industry Trend

The increasing demand for targeted therapies and the rising number of genetic disorders are shifting focus toward the launch of personalized medicine and targeted therapies, marking a significant U.S. pharmaceutical market trend.

Moreover, many key pharmaceutical companies are investing heavily to develop and receive regulatory approvals for gene therapies, offering promising patient outcomes.

• For instance, in January 2024, Vertex Pharmaceuticals Incorporated announced that the U.S. Food and Drug Administration (FDA) had approved CASGEVY, a CRISPR/Cas9 gene-edited cell therapy. It is used for the treatment of sickle cell anemia and transfusion-dependent beta thalassemia (TDT) in patients aged 12 years and older.

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As per the European Federation of Pharmaceutical Industries and Associations, around USD 77,336.6 million has been spent on R&D expenditure in the U.S.

Key takeaways

• The U.S. Pharmaceuticals Market is projected to be worth USD 1,467.93 billion in 2032.
• In the type segmentation, drugs accounted for around 95% of the U.S. pharmaceutical market in 2024.
• In the drugs segmentation, prescription is projected to grow at a CAGR of 8.23% in the forecast period.
• In the disease indication segmentation, oncology accounted for around 18.5% of the U.S. pharmaceutical market in 2024.
• The oral segment under the route of administration segmentation was worth USD 428.20 billion in 2024.
• In the age group segmentation, the adult segment is projected to grow at a CAGR of 8.2% in the forecast period.

U.S. Pharmaceuticals Market Growth Factors

Increasing Prevalence of Chronic and Infectious Diseases to Boost Market Growth

The rising prevalence of chronic diseases such as cardiovascular, neurological, cancer, diabetes, and others, along with increasing infectious diseases such as bacterial and viral diseases, has increased the demand for effective specialty drugs and vaccinations.

• For instance, as per the American Cancer Society, approximately 2,001,140 new cancers are expected in the U.S. in 2024. Such a large number of people affected by cancer is expected to boost demand for pharmaceuticals and drive the U.S. pharmaceuticals market

U.S. Pharmaceuticals Market Restraints

Clinical Trial Failure to Hamper Market Growth

Failure of clinical trials is a significant restraint on market growth. Such failures lead to significant damage to a company’s reputation, financial losses, and reduced innovation, thereby hampering market expansion.

• For instance, in July 2025, the AstraZeneca Phase 3 CARES clinical trial for Anselamimab in AL Amyloidosis failed to meet its primary endpoint goal. Such failures can lead to significant losses and impact market growth.

U.S. Pharmaceuticals Market Segmentation Analysis

By Type

Based on type segment, the market is divided into drugs and vaccines.

The drugs segment held the highest U.S. pharmaceuticals market share in 2024. The segment is further subdivided into prescription drugs and OTC. The increasing prevalence of chronic and infectious diseases, along with aging populations, supports the dominant share of the segment. Additionally, advancements in medical research are driving its growth.

Additionally, increasing the focus of key players in the market on research and development (R&D) to bring new and improved treatments to market is also bolstering the segment’s growth.

• For instance, in March 2024, Gilead Sciences, Inc. announced that the U.S. Food and Drug Administration (FDA) had approved the supplemental new drug application (sNDA) for Vemlidy (tenofovir alafenamide) 25 mg tablets as a once-daily treatment for pediatric patients suffering from chronic hepatitis B virus (HBV) infection.

By Disease Indication

Based on disease indication, the market is segmented into oncology, diabetes, infectious, cardiovascular, neurology & psychiatry, respiratory, renal, obesity, autoimmune, ophthalmic, gastrointestinal, dermatology, hematology/blood, liver/hepatology, genetic, hormonal/endocrine, women’s health, reproductive, allergies, and others.

The diabetes segment accounts for the leading portion of the U.S. pharmaceutical market and is projected to grow at a higher rate during the forecast period. The growth of the segment is due to increasing obesity, lifestyle modification, and consumption of highly processed foods, which reduce insulin sensitivity and contribute to the increasing diabetic population. These factors are expected to increase the demand for adequate therapeutic measures, thereby propelling the segment’s growth in the market.

• For instance, in May 2024, as per the data published by the National Diabetes Statistics Report, around 38.4 million people have diabetes in the U.S.

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The estimated total diabetes percentage for people more than 65 years age is 29.2%.

By Drug Type

Based on drug type, the market is segmented into biologics & biosimilars and small molecules/ conventional drugs.

The biologics & biosimilars segment is expected to dominate the U.S. pharmaceuticals market during the forecast period, owing to high research and development expenditure and activities focused on launching advanced pharmaceuticals. Moreover, key companies are increasingly developing and introducing biologics for chronic and rare diseases, which is expected to boost segment growth.

• For instance, in June 2025, Hummingbird Bioscience granted a license to Percheron Therapeutics Limited to develop, manufacture, and commercialize HMBD-002. It is a monoclonal antibody therapy aimed at treating various cancers by targeting and blocking VISTA.

By Route of Administration

Based on route of administration segment, the market is divided into oral, parenteral, topical, inhalation, and others.

The oral segment is expected to hold a leading share of the market. The growth of the segment is supported by the ease of administration and widespread adoption of oral drugs by patients. Additionally, cost-effectiveness in manufacturing and the availability of generic and branded oral formulations boost the segment’s growth.

• For instance, in June 2023, AGEPHA Pharma USA, LLC, announced that the U.S. Food and Drug Administration (FDA) had approved LODOCO (Colchicine 0.5 mg tablet) as the first anti-inflammatory atheroprotective cardiovascular treatment.

By Age Group

By age group, the market is bifurcated into pediatric and adult.

The adult segment is expected to hold the maximum share of the market, driven by the increasing prevalence of adult diseases and the rising demand for pharmaceutical drugs and vaccines. Moreover, the approval and launch of new drugs and vaccines for adults in the U.S. are further bolstering the segment’s growth.

• For instance, in October 2024, Pfizer Inc. announced that the U.S. Food and Drug Administration (FDA) had approved ABRYSVO (Respiratory Syncytial Virus Vaccine) for the prevention of lower respiratory tract disease caused by RSV in individuals aged 18 to 59 years of age.

By Distribution Channel

By distribution channel, the market is segmented into hospital pharmacies, drug stores & retail pharmacies, and online pharmacies.

The drug stores and retail pharmacies segment held a dominant portion of the market. Rising patient preferences for retail pharmacies are driving the segment’s growth due to easier accessibility and convenience. In addition, the presence of a wide variety of drugs for different diseases available in these settings is expected to further boost market growth.

Furthermore, many key pharmaceutical players are expanding their product offerings for uninsured patients in the U.S., supporting the segment’s growth.

• For instance, in March 2025, Novo Nordisk launched NovoCare Pharmacy, a direct-to-patient service offering all dose strengths of Wegovy (semaglutide). This drug was offered at a reduced price of USD 499/month for uninsured or eligible commercially insured patients without obesity drug coverage. This initiative aimed to improve access to obesity treatment.

List of Key Companies in the U.S. Pharmaceuticals Market

Pfizer Inc., AbbVie Inc., and GSK plc are the prominent players in the U.S. pharmaceuticals market. These companies maintain robust product portfolios with extended indication areas, along with pursuing strategic activities such as collaborations and mergers to offer advanced offerings in the market.

Other companies with a considerable presence in the market include Amgen Inc., Gilead Sciences, Inc., Takeda Pharmaceutical Company Limited, and several small & medium-sized market players. These companies are undertaking strategic moves, such as conducting research and development for novel drugs and vaccines, and focusing on the launch of generic drugs, which are expected to help increase their market share.

LIST OF KEY COMPANIES PROFILED

• Merck & Co., Inc. (U.S.)
• Pfizer Inc. (U.S.)
• Johnson & Johnson (U.S.)
• AbbVie Inc. (U.S.)
• AstraZeneca (U.K.)
• Hoffmann-La Roche Ltd (Switzerland)
• Novartis AG (Switzerland)
• Bristol-Myers Squibb Company (U.S.)
• Eli Lilly and Company (U.S.)
• Sanofi (France)
• Novo Nordisk A/S (Denmark)
• GSK plc. (U.K.)
• Amgen Inc. (U.S.)
• Gilead Sciences, Inc. (U.S.)
• Takeda Pharmaceutical Company Limited (Japan)

KEY INDUSTRY DEVELOPMENTS

• March 2025: Alnylam Pharmaceuticals, Inc. announced a supplemental New Drug Application (sNDA) from the U.S. Food and Drug Administration for its RNAi therapeutic, AMVUTTRA, used for the treatment of cardiomyopathy.
• March 2025: GSK plc announced that the U.S. Food and Drug Administration (FDA) had approved Blujepa (gepotidacin), an oral antibiotic used for the treatment of urinary tract infections caused by Escherichia coli, Klebsiella pneumoniae, Citrobacter freundii complex, Staphylococcus saprophyticus, and Enterococcus faecalis in adult females and pediatric patients.

REPORT COVERAGE

The U.S. pharmaceuticals market report provides a detailed analysis of the market. It focuses on market dynamics and key industry developments, such as mergers and acquisitions. Additionally, it includes information about the prevalence of key diseases in the U.S., pipeline analysis of new drugs and vaccines. Furthermore, it will focus on new product launches, reimbursement, and regulatory scenarios. Besides this, the report also offers insights into the latest pharmaceutical industry trends and the impact of various factors on the demand for pharmaceuticals.

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Report Scope & Segmentation