Indonesian pharma market set to top US$10bn by 2018, says Frost & Sullivan

Published: 9-Jul-2014

Significant opportunities for branded generics


Indonesia's pharmaceutical market is among the top three in terms of growth in the ASEAN region, and is expected to surpass US$10bn in 2018, according to a new study by Frost & Sullivan.

The report, Healthcare Industry – Business Opportunities, Indonesia, 2014–2018, finds that Indonesia also has the highest proportion of over-the-counter drug sales in the ASEAN region, at 40% of the pharmaceutical market, indicating the propensity of Indonesian consumers to self medicate.

Rhenu Bhuller, Senior Vice President, Healthcare at Frost & Sullivan, says the middle income local population are increasingly preferring branded generics to lower-cost unbranded drugs, which is creating significant opportunities for companies manufacturing branded generics.

Going forward, universal healthcare will generate demand in a new population group by providing access to those that never could have afforded it before. This will further drive demand for generics. Bhuller says generics manufacturers will therefore need to develop strategies to market their off patent generic products to the bottom of the pyramid to play the 'high volume, low margin game'.

Meanwhile, the medical devices market in Indonesia is expected to grow at 12.5% yearly from 2013 to 2018, and should surpass $1bn in 2018. Bhuller said that business opportunities exist in surgical equipment, diagnostics and medical imaging equipment and diagnostics for suppliers.

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