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Why Pharma Growth in Southeast Asia Will Continue to Outpace Global Markets in the Next Decade?

Updated: Sep 24

Global pharma markets are stagnating. Europe is constrained by price caps with flat growth, the US by reimbursement politics, and Latin America with economic instability. Yet one region is defying the slowdown — ASEAN. With 700 million people, dual demographics (both rising middle class and aging), and bold government policies, Southeast Asia is on track to become the world’s most dynamic healthcare growth engine over the next decade, projected to surpass USD 200 billion by 2030. ASEAN is no longer a “interesting” market — it’s a must have market. Investments are flowing, the policies are shifting, and first movers are already locking in positions.


Why Pharma Growth in Southeast Asia Will Continue to Outpace Global Markets in the Next Decade
Why Pharma Growth in Southeast Asia Will Continue to Outpace Global Markets in the Next Decade

Demographics and Demand: Dual Engine of Growth


ASEAN is unique in combining two demand drivers that elsewhere occur decades apart:


  • Rising Middle Class: A large population is driving demand for OTCs, nutraceuticals, and preventive health products. Rising middle classes across Indonesia, Vietnam, and the Philippines are pushing per-capita healthcare spend up. Take for example, 7 million Thai citizens have an average GDP double that of France, and 25 million Indonesian citizens have a GDP similar to France (39,000 USD/year).


  • "Super" Aging Society: Thailand already has more than 20% of its population above 60, while Vietnam’s elderly population will double by 2050, driving demand for chronic care, specialty drugs, and devices. This means they won't just be an "aging society', but what should be projected as "super" aging society.


Policy Shifts: Systemic Change, Not Incremental


ASEAN’s policy environment has flipped from fragmented to catalytic.


  • By 2030: policies target 50% domestic production of high-value pharmaceuticals, driving Vietnam to become a regional manufacturing hub. 

  • Indonesia’s TKDN policy ties tender eligibility to local content, forcing multinationals into JVs or local manufacturing. Global players without a footprint are losing bids.

  • Thailand mandates local BE studies for most OSDs — a challenge for generic entry, but highly rewarding for the right opportunities.

  • Philippines and Malaysia are moving towards price transparency, reducing distributor opacity and shifting margin dynamics.

  • ASEAN Pharmaceutical Regulatory Policy (APRP) pushes harmonization, meaning dossiers prepared in ACTD/CSDT format now may gain multi-country approvals in the future.


These aren’t “adjustments.” They are systemic market redesigns — reshaping who wins, who loses, and how fast.


Capital is Following Policy


  • WuXi Biologics is investing US$1.4B in a Tuas facility in Singapore, building ASEAN’s first large-scale biologics CRDMO hub.

  • AstraZeneca is committing US$1.5B in Singapore for an ADC (antibody-drug conjugate) facility — betting on Asia for the next wave of oncology manufacturing.

  • Marubeni acquired 60% of Sumitomo Pharma’s Asia sales arm, using it as a springboard to expand across ASEAN and China.

  • IFC (World Bank) is pushing vaccine and pharma manufacturing investment in ASEAN, funding local capacity to secure resilient supply chains.

  • ASEAN’s CDMO market is forecast to double from US$10.9B in 2021 to US$22.5B by 2028, at ~11% CAGR — among the fastest globally.


The message: ASEAN is no longer peripheral. It is where Big Pharma and institutional capital are placing billion-dollar bets.


ASEAN vs. Global Markets: The Growth Gap


ASEAN’s pharmaceutical market is projected to grow at 7–10% CAGR, far outpacing the 3–4% global average. This regional hub is strategically positioned at the crossroads of China, India, and the Pacific, and reinforced by free trade agreements like RCEP, ASEAN is fast becoming a global supply chain hub. The result: compounding demand and structural policy shifts that create a growth trajectory Western markets cannot match.


Final Word


Pharma growth in ASEAN is outpacing global markets because demographics, demand, regulation, and capital are converging in a way unmatched anywhere else. For CEOs, the message is clear: ASEAN is no longer optional. At MedExport Asia, we help companies take the opportunity into action — validating portfolios, navigating regulatory pathways, and building trusted partnerships on the ground. With us, you gain representation and execution across ASEAN without the cost or complexity of local infrastructure.

 
 
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