The Japan generic drug market has witnessed strong growth over the past several years. This can be attributed to the favorable initiatives taken by the Government to minimize healthcare spending and reduce brand loyalty among physicians.

Both physicians and patients in Japan prefer branded drugs owing to the perceived inferiority of generics and a lack of incentives for their substitution. In line with this, the Ministry of Finance in Japan has introduced modifications in the prescription form as well as fee changes for pharmacists and prescribers. Apart from this, the Japanese Government is aiming to reduce brand loyalty among physicians by initiating several administrative and educational programs and by revising the reimbursement pricing for regular pharmaceutical products.

According to the latest report by IMARC Group, titled “Japan Generic Drug Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2019-2024”, the Japan generic drug market reached a value of US$ 13.4 Billion in 2018, growing at a CAGR of nearly 9% during 2011-2018. Although Japan is one of the largest pharmaceutical markets across the globe, the generic penetration rate in the country is lower as compared to other developed regions such the US and Europe.

Source: Japan Generic Drug Market to Reach US$ 23.5 Billion by 2024​