Local pharma market may balloon to P759 billion by 2030

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March 22, 2026 | 12:00am

MANILA, Philippines — The country’s pharmaceutical market is expected to reach P759 billion by 2030, supported by investments in local drug manufacturing, according to research and analysis firm BMI.

“We forecast the pharmaceutical market to expand from P525 billion ($9.1 billion) in 2025 to P759 billion ($12.1 billion) by 2030,” BMI said in a report.

This would translate into a five-year compound annual growth rate of 7.6 percent in local currency terms and 7.2 percent in dollar terms.

Last year, the Philippines had a pharmaceutical trade deficit of $2.3 billion, reflecting the country’s substantial dependence on imported medicines.

BMI said the projected growth would be supported by investment commitments for local drug manufacturing as the government implements measures to further attract firms.

It cited the plans to introduce a green lane to expedite regulatory processes for pharmaceutical companies looking to establish a manufacturing facility in the Philippines.

The initiative seeks to provide streamlined review timelines, clearer documentation requirements and closer coordination between regulators and manufacturers, while ensuring safety and quality standards.

“By encouraging investment in local manufacturing, the initiative supports broader government goals of reducing import dependence, enhancing national health security and promoting sustainable industrial growth,” BMI said.

Despite promising pharmaceutical investment commitments, BMI said challenges remain in attracting and sustaining pharmaceutical research and development activities that could elevate the sector’s capabilities.

“The most fundamental obstacle is the considerable gap in both financial resources and skilled human capital necessary for advanced pharmaceutical research, which limits the country’s ability to move beyond basic manufacturing into higher-value innovation activities,” BMI said.

This is compounded by a regulatory landscape that creates significant barriers to market entry.

While the Food and Drug Administration (FDA) officially targets a 254-day timeline for drug approvals and certificate of product registration issuance, BMI said the actual process frequently extends to two to four years.

These delays discourage companies from prioritizing the Philippines as a market for new medication launches.

The lack of streamlined coordination mechanisms between key government bodies particularly the Intellectual Property Office and the FDA is another constraint.

“Structural constraints will continue to limit pharmaceutical manufacturing growth despite supportive policy measures,” BMI said.