In this article, we will be taking a look at the 5 countries with highest pharmaceutical spend per capita. If you wish to learn about the global pharmaceutical market, head straight to the 15 Countries With Highest Pharmaceutical Spend Per Capita.
5. Switzerland
Pharmaceutical Spending Per Capita: $803
Switzerland ranks among the top countries in pharmaceutical spending per capita, reaching $803 in 2022. Pharmaceutical spending encompasses prescription medicines, over-the-counter products, and other medical non-durable goods, excluding hospital consumption. The Swiss pharmaceutical industry employs approximately 47,500 individuals directly and an additional 63,000 in related roles. Local production growth in 2021 mirrored overall GDP growth, indicating the industry’s importance to the Swiss economy.
4. Korea
Pharmaceutical Spending Per Capita: $803
Korea stands fourth among the countries with highest pharmaceutical spend per capita, with expenditures reaching around $803 per capita in 2022, accounting for approximately 1.7% of the country’s GDP. In 2019, retail pharmaceutical spending per capita was $627, with prescribed medicines comprising $532 and over-the-counter medicines $95. Government or compulsory plans financed 60% of these expenditures, while out-of-pocket expenses covered 39%, with voluntary health insurance plans contributing 1%. The pharmaceutical industry relies heavily on domestic manufacturers, with about 80% of the supply sourced domestically, as the Ministry of Food and Drug Safety reported.
3. Canada
Pharmaceutical Spending Per Capita: $914
Canada is known for its high pharmaceutical spending per capita, reaching $914 U.S. dollars in 2022. Provincial variations are evident, with Ontario reporting an average of 1259 Canadian dollars per person in 2023. Prescription drugs constitute a significant portion of Canada’s pharmaceutical spending, with average individual expenditures of $681 in 2004, representing an 8% increase over the previous year.
2. Germany
Pharmaceutical Spending Per Capita: $1,042
Germany stands second among the countries with the highest pharmaceutical spend per capita globally, reaching $1,042 in 2022. Total health expenditure in Germany was 474.1 billion euros in 2021, translating to 5,699 euros per inhabitant, with pharmaceutical spending being a significant component. Germany’s pharmaceutical spending, at 615 euros per capita, is notably 60% above the EU average compared to other EU member states. Factors contributing to this high spending include differences in pharmaceutical prices, consumption rates, the role of hospitals in dispensing drugs, and the market penetration of generics.
1. United States
Pharmaceutical Spending Per Capita: $1,432
The United States is the country with top pharmaceutical Spending per capita, surpassing $1,400 in 2022. Retail prescription drug spending per capita has significantly increased, from $101 in 1960 to $1,147 in 2021 when adjusted for inflation, which indicates a substantial rise in prescription drug consumption. Per capita spending on prescription drugs has also increased rapidly, from $140 in 1980 to $1,073 in 2018, suggesting a growing reliance on prescription medications for various treatments. Recent data underscores a significant demand for retail prescription drugs in the U.S.
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