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The World Market for Pharmaceutical Goods Excluding Medicaments: A 2018 Global Trade Perspective

This series was created for international firms who rely on foreign markets for a substantial portion of their business or who might be threatened by international competition. The estimates given in this report were created using a methodology developed by and implemented under the direct supervision of Professor Philip M. Parker, the INSEAD Chair Professor of Management Science. The methodology relies on historical figures across countries. The figures should be seen as market estimates, as opposed to historical records, as these are projected for a specific year of trade.

1 Methodology

1.1 Our Approach

This report was created for strategic planners, international executives and import/export managers who are concerned with the market for pharmaceutical goods excluding medicaments. With the globalization of this market, managers can no longer be contented with a local view. Nor can managers be contented with out-of-date statistics that appear several years after the fact. I have developed a methodology, based on macroeconomic and trade models, to estimate the market for pharmaceutical goods excluding medicaments for those countries serving the world market via exports or supplying from various countries via imports. I do so for a specific year based on a variety of key historical indicators and econometric models.

On the demand side, exporters and strategic planners approaching the world market face a number of questions. Which countries are supplying pharmaceutical goods excluding medicaments? What is the dollar value of these imports? How much do the imports of pharmaceutical goods excluding medicaments vary from one country to another? Do exporters serving the world market have similar market shares across the importing countries? Which countries supply the most exports of pharmaceutical goods excluding medicaments? Which countries are buying their exports? What is the value of these exports and which countries are the largest buyers?

In what follows, Chapter 2 begins by summarizing the regional markets for imported and exported pharmaceutical goods excluding medicaments. The total level of imports and exports on a worldwide basis, and those for each region, is based on a model which aggregates across over 150 key country markets and projects these to a specific year. From there, each country represents a percent of the world market. This market is served from a number of competitive countries of origin. Based on both demand and supply-side dynamics, market shares by country of origin are then calculated across each country market destination. These shares lead to a volume of import and export values for each country and are aggregated to regional and world totals. In doing so, we are able to obtain maximum likelihood estimates of both the value of each market and the shares that countries are likely to receive in a specific year. From these figures, rankings are calculated to allow managers to prioritize markets. In this way, all the figures provided in this report are forecasts that can be combined with internal information for strategic planning purposes.

After the worldwide summary in Chapter 2 of both imports and exports, Chapter 3 details the exports of pharmaceutical goods excluding medicaments, for each individual country. Chapter 4 does the same, but for imports of pharmaceutical goods excluding medicaments for all countries in the world. In all cases, the total dollar volume and percentage share values by major trading partner are provided. Combined, Chapters 3 and 4 present the complete picture for imports and exports of pharmaceutical goods excluding medicaments to and from all major countries in the world. Of the countries considered, if a country is not reported here it is therefore estimated to have only a negligible level of trade in pharmaceutical goods excluding medicaments (i.e. their market shares are close or equal to zero percent). "Pharmaceutical Goods Excluding Medicaments" as a category is defined in this report following the definition given by the United Nations Statistics Division Classification Registry using the Standard International Trade Classification, Revision 3 (SITC, Rev. 3). The SITC code that defined "pharmaceutical goods excluding medicaments" is 5419.

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The World Market for Pharmaceutical Goods Excluding Medicaments: A 2018 Global Trade Perspective
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