Connect with us

Markets

Visualizing the Future of the Pharma Market

Published

on

Drug Market Outlook

Visualizing the Future of the Pharma Market

Around the world, people are living longer.

By 2050, there will be two billion people that are 60 years or older globally. Meanwhile, the amount of seniors (65+ years old) in the U.S. will double to 100 million by 2060.

To meet the needs of this aging population, we will continue to need larger quantities and more varieties of prescription drug treatments – an industry that is expected to skyrocket to $1.2 trillion in size by 2024.

Drug Sales, by Segment

Today’s infographic comes to us from Raconteur, and it highlights the most anticipated drug treatments and therapy areas for the pharmaceutical industry.

It starts by breaking down the massive pharma market into therapy segments, showing a forecast for the size and growth for each category.

Here is the data for the top 15 segments, sorted by projected worldwide prescription drug sales in 2024:

RankTherapy Area2017 sales2024 salesCAGR
#1Oncology$104B$233B+12.2%
#2Anti-diabetics$46.1B$59.5B+3.3%
#3Anti-rheumatics$55.7B$56.7B+0.2%
#4Vaccines$27.7B$44.6B+7.1%
#5Anti-virals$42.4B$39.9B-0.9%
#6Immunosuppressants$13.7B$38.1B+15.7%
#7Bronchodilators$27.2B$32.3B+2.5%
#8Dermatologicals$12.9B$30.3B+13%
#9Sensory Organs$21.6B$26.9B+3.2%
#10Anti-hypertensives$23B$24.4B+0.8%
#11Anti-coagulants$16.8B$22.9B+4.6%
#12MS Therapies$22.7B$21.5B-0.8%
#13Anti-fibrinolytics$12.7B$20.4B+7.1%
#14Anti-hyperlipidaemics$11.3B$16.4B+5.5%
#15Anti-anaemics$7.6B$15.7B+11%
Other$379B$567B+5.9%
Total$825B$1249B+6.1%

This data, which comes from a recent report from EvaluatePharma, helps showcase a few key insights.

Firstly, the oncology therapy area – which makes drugs that are used to treat various forms of cancer – is by far the largest in the pharma world with $107 billion in sales in 2017. It’s also projected to maintain its dominance going forward, growing at an impressive 12.2% CAGR to $233 billion by 2024.

Next, while sales in cancer-related drugs will be the most in absolute terms, the fastest growing treatment area is actually in immunosuppressants – a segment of drugs that make a body less likely to reject a transplanted organ, such as a liver, heart, or kidney. It’s projected that this segment will grow at 15.7% per year, eventually becoming the sixth largest pharma segment at $38.1 billion in 2024.

Lastly, while sales in the pharma market will be averaging 6.1% in annual growth as a whole, there are two major segments that will see negative annual growth going forward: Anti-virals (-0.9%) and MS Therapies (-0.8%).

The Battle Against Cancer

Currently, there are more drugs used for treating cancer than for any other type of disease or condition.

RankDisease or ConditionNumber of active drugs
#1Breast cancer727
#2Lung cancer544
#3Colorectal cancer503
#4Ovarian cancer434
#5Pancreatic cancer430
#6Type-2 diabetes407
#7Prostate cancer381
-Alzheimer's disease381

Unfortunately, even though many cancer drugs are available on the market already, the debilitating disease is still a leading cause of death. Existing drugs are used in treatments of chemotherapy or hormone therapy, but it’s clear that there is still plenty of room for progress to be made against the disease.

For these reasons – combined with the estimate that nearly 40% of Americans will be diagnosed with some form of cancer during their lifetimes – it’s no surprise to see that companies have yet even more cancer drugs in the pipeline:

RankTherapy areaNumber of drugs in pipeline
#1Anti-cancer5,212
#2Biotechnology4,751
#3Neurological2,604
#4Anti-infective2,238
#5Alimentary/metabolic2,237
#6Reformulations2,073
#7Musculoskeletal1,597
#8Dermatological929

As more drugs get approved from the above pipeline, it is projected that $1 of every $5 spent on prescription drugs in 2024 will be going towards cancer-related treatments.

Subscribe to Visual Capitalist

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Comments

Markets

How Total Spend by U.S. Advertisers Has Changed, Over 20 Years

This graphic visualizes the fluctuations in advertising spend in the U.S., along with its brutal decline of 13% as a result of COVID-19.

Published

on

Total Spend by U.S. Advertisers, Over 20 Years

With an advertising economy worth $239 billion in 2019, it’s safe to say that the U.S. is home to some of the biggest advertising spenders on the planet.

However, the COVID-19 pandemic has resulted in the major upheaval of advertising spend, and it is unlikely to recover for some time.

The graphic above uses data from Ad Age’s Leading National Advertisers 2020 which measures U.S. advertising spend each year, and ranks 100 national advertisers by their total spend in 2019.

Let’s take a look at the brands with the biggest budgets.

2019’s Biggest Advertising Spenders

Much of the top 10 biggest advertising spenders are in the telecommunications industry, but it is retail giant Amazon that tops the list with an advertising spend of almost $7 billion.

In fact, Amazon spent an eye-watering $21,000 per minute on advertising and promotion in 2019, making them undeniably the largest advertising spender in America.

Explore the 100 biggest advertisers in 2019 below:

RankCompanyTotal U.S. Ad Spend 2019Industry
#1Amazon$6.9BRetail
#2Comcast Corp.$6.1BEntertainment
#3AT&T$5.5BTelecommunications
#4Procter & Gamble$4.3BConsumer Goods
#5Walt Disney$3.1BEntertainment
#6Alphabet$3.1BTechnology
#7Verizon Communications$3.1BTelecommunications
#8Charter Communications$3.0BTelecommunications
#9American Express$3.0BFinancial Services
#10General Motors$3.0BAutomotive
#11JPMorgan Chase$2.8BFinancial Services
#12Walmart$2.7BRetail
#13L’Oréal$2.3BBeauty
#14T-Mobile U.S.$2.3BTelecommunications
#15Berkshire Hathaway$2.3BVarious
#16Nestlé$2.3BFood & Beverages
#17Ford$2.3BAutomotive
#18Expedia Group$2.2BTravel & Hospitality
#19Capital One Financial$2.2BFinancial Services
#20Fiat Chrysler Automobiles$2.0BAutomotive
#21Samsung$2.0BElectronics
#22Pfizer$1.9BPharmaceuticals
#23Progressive$1.8BInsurance
#24PepsiCo$1.7BFood & Beverages
#25Bank of America$1.7BFinancial Services
#26LVMH$1.6BRetail
#27Target$1.6BRetail
#28McDonald’s$1.6BFood & Beverages
#29Booking Holdings$1.6BTravel & Hospitality
#30GlaxoSmithKline$1.5BPharmaceuticals
#31Johnson & Johnson$1.5BPharmaceuticals
#32Anheuser-Busch InBev$1.5BFood & Beverages
#33Toyota$1.5BAutomotive
#34Merck & Co.$1.5BLogistics
#35Nike$1.5BRetail
#36AbbVie$1.4BPharmaceuticals
#37Honda$1.4BAutomotive
#38Unilever$1.4BConsumer Goods
#39ViacomCBS$1.4BEntertainment
#40Macy’s$1.3BRetail
#41State Farm$1.2BInsurance
#42Kohl’s$1.2BRetail
#43Home Depot$1.1BRetail
#44Wells Fargo$1.1BFinancial Services
#45Yum Brands$1.1BFood & Beverages
#46Netflix$1.1BEntertainment
#47U.S. Government$1.0BGovernment
#48Estée Lauder$994MBeauty
#49Nissan$990MAutomotive
#50Wayfair$932MRetail
#51Diageo$918MFood & Beverages
#52Sanofi$889MPharmaceuticals
#53Discover Financial Services$883MFinancial Services
#54Mars$880MFood & Beverages
#55Eli Lilly$864MPharmaceuticals
#56Kroger$854MRetail
#57Allstate$854MInsurance
#58Molson Coors$822MFood & Beverages
#59Apple$818MTechnology
#60Microsoft$816MTechnology
#61Coca-Cola$816MFood & Beverages
#62DISH Network$815MEntertainment
#63Lowe’s$811MRetail
#64Kraft Heinz$782MFood & Beverages
#65Volkswagen$780MAutomotive
#66IAC$775MEntertainment
#67Best Buy$772MRetail
#68Intuit$760MTechnology
#69Uber$756MTechnology
#70Constellation Brands$749MFood & Beverages
#71Sony$746MTechnology
#72Cox Enterprises$715MEntertainment
#73Citigroup$691MFinancial Services
#74Adidas$688MConsumer Goods
#75LendingTree$688MFinancial Services
#76Amgen$685MTechnology
#77Gilead Services$683MPharmaceuticals
#78Facebook$671MTechnology
#79Lions Gate$668MEntertainment
#80Marriott International$667MTravel & Hospitality
#81EssilorLuxottica$665MConsumer Goods
#82J.C. Penney$644MRetail
#83Liberty Mutual$640MInsurance
#84Daimler$640MAutomotive
#85Hyundai$627MAutomotive
#86Walgreens$621MRetail
#87Dell$618MTechnology
#88IBM$606MTechnology
#89Reckitt Benckiser$593MConsumer Goods
#90Keurig Dr Pepper$593MFood & Beverages
#91Restaurant Brands International$589MFood & Beverages
#92Inspire Brands$589MFood & Beverages
#93Clorox$581MConsumer Goods
#94Novartis$579MPharmaceuticals
#95eBay$562MRetail
#96Gap$562MRetail
#97Takeda$541MPharmaceuticals
#98Kia Motors$534MAutomotive
#99Coty$531MBeauty
#100Subarau$532MAutomotive

The report offers several ways of looking at this data—for example, when looking at highest spend by medium, Procter & Gamble comes out on top for traditional media spend like broadcast and cable TV.

On the digital front, Expedia Group is the biggest spender on desktop search, while Amazon tops the list for internet display ads.

The Rise and Fall of Advertising Spend

Interestingly, changes in advertising spend tend to fall closely in step with broader economic growth. In fact, for every 1% increase in U.S. GDP, there is a 4.4% rise of advertising that occurs in tandem.

The same phenomenon can be seen among the biggest advertising spenders in the country. Since 2000, spend has seen both promising growth, and drastic declines. Unsurprisingly, the Great Recession resulted in the largest drop in spend ever recorded, and now it looks as though history may be repeating itself.

Total advertising spend in the U.S. is estimated this year to see a brutal decline of almost 13% and is unlikely to return to previous levels for a number of years.

The COVID-19 Gut Punch

To say that the global COVID-19 pandemic has impacted consumer behavior would be an understatement, and perhaps the most notable change is how they now consume content.

With more people staying safe indoors, there is less need for traditional media formats such as out-of-home advertising. As a result, online media is taking its place, as an increase in spend for this format shows.

But despite marketers trying to optimize their media strategy or stripping back their budget entirely, many governments across the world are ramping up their spend on advertising to promote public health messages—or in the case of the U.S., to canvass.

The Saving Grace?

Even though advertising spend is expected to nosedive by almost 13% in 2020, this figure excludes political advertising. When taking that into account, the decline becomes a slightly more manageable 7.6%

Moreover, according to industry research firm Kantar, advertising spend for the 2020 U.S. election is estimated to reach $7 billion—the same as Amazon’s 2019 spend—making it the most expensive election of all time.

Can political advertising be the key to the advertising industry bouncing back again?

Subscribe to Visual Capitalist

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Continue Reading

Technology

Visualized: A Breakdown of Amazon’s Revenue Model

Here’s a look at the different parts of Amazon’s revenue model, and how much money each business segment makes.

Published

on

Visualized: A Breakdown of Amazon’s Revenue Model

Amazon has evolved into more than just an online store. While ecommerce makes up a significant portion of the company’s overall sales, its diverse revenue model generates billions through various business segments.

This visualization provides an overview of the different parts that make up Amazon, showing each business unit’s net sales from June 2019 to 2020.

A Diverse Revenue Model

With a market cap of $1.7 trillion, Amazon is currently the most valuable retailer in the world. The company is expected to account for 4.6% of total U.S. retail sales by the end of 2020—but the tech giant is more than just a one-trick pony.

A key factor in the company’s success is its diversification into other areas. Here’s a breakdown of Amazon’s revenue mix:

Business SegmentNet Sales (June 2019 - 2020)
Online stores$163 B
Third-party selling services$63 B
Amazon Web Services$40 B
Subscription services$22 B
Physical stores$17 B
Other$17 B
Total Revenue$322 billion

While Amazon is truly more than an online store, it’s worth noting that online sales account for a significant amount of the company’s overall revenue mix. Over the period of June 2019 to 2020, product sales from Amazon’s website generated $163 billion, which is more than the company’s other business units combined.

A significant day for online sales is Prime Day, which has grown into a major shopping event comparable to Black Friday and Cyber Monday. In 2020, Prime Day is projected to generate almost $10 billion in global revenue.

While ecommerce makes up a large portion of Amazon’s overall sales, there are many other segments that each generate billions in revenue to create immense value for the tech giant. For instance, enabling third-party sellers on the platform is the company’s second-largest unit in terms of net sales, racking up $63 billion over the course of a year.

This segment has shown tremendous growth over the last two decades. In 2018, it accounted for 58% of gross merchandise sales on Amazon, compared to just 3% in 2000. While third-party sellers technically outsold Amazon itself, the company still makes money through commission and shipping fees.

Amazon is Not Alone: Diversification is Common

Amazon isn’t the only major tech company to benefit from diverse revenue streams.

Other tech giants generate revenue through a range of products, services, and applications—for instance, while a healthy portion of Apple’s revenue comes from iPhone sales, the company captures 17% of revenue from a mix of services, ranging from Apple Pay to Apple Music. Microsoft is another example of this, considering it owns a wide range of hardware, cloud services, and platforms.

While there are several reasons to build a diverse business portfolio, a key benefit that comes from diversification is having a buffer against market crashes. This has proven to be particularly important in 2020, given the economic devastation caused by the global pandemic.

The Sum of its Parts

Despite varying levels of sales, each business unit brings unique value to Amazon.

For instance, while Amazon Web Services (AWS) falls behind online sales and third-party sellers in net sales, it’s one of the most profitable segments of the company. In the fourth quarter of 2019, more than half of Amazon’s operating income came from AWS.

In short, when looking at the many segments of Amazon, one thing is clear—the company is truly the sum of its parts.

Subscribe to Visual Capitalist

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Continue Reading

Subscribe

Join the 200,000+ subscribers who receive our daily email

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Popular