World Vaccine Market Nears $28 Billion

World Vaccine Market Nears $28 Billion

Revenues earned by manufacturers of vaccines worldwide reached $27.6 billion in 2015, up from $24.7 billion in 2014 as sales in all segments expanded.   This according to our most recent study Kalorama Information’s report: Vaccines 2016:World Market Analysis    Kalorama finds that sales of pediatric vaccines constitute the larger market according to the report, accounting for 57.6% of the total vaccines market.. In 2015, global sales of pediatric vaccines exceeded $16.8 billion, increasing by 15.8% over 2014 sales of $14.5 billion on rising sales of Prevnar pneumococcal vaccine. 

Key issues in the global vaccine market today include product safety and refusal to immunize, obesity, pricing pressure, supply shortages, increasing vaccine development efficiency, and innovations in vaccine delivery systems and production. 

In recent years, some segments of the public have become increasingly concerned about the risks associated with vaccines, which has lead to some parents choosing not to vaccinate their children.  Since vaccination is such a common and memorable event, any illness following immunization may be attributed to the vaccine. While some of these reactions may be caused by the vaccine, many of them are unrelated events that occur after vaccination by coincidence. News and reports of vaccine-related illness tend to exacerbate the public’s fears and result in higher rates of non-immunization. In response, the American Academy of Pediatrics launched a Refusal to Vacinate form in 2013 designed to educate parents about the impact of refusing to vaccinate their children and to document such refusals. Nonetheless, data from the National Foundation for Infectious Diseases (NFID) indicates that 50,000 Americans continue to die each year from vaccine-preventable diseases.

Aside from being associated with a broad range of serious co-morbidities including arthritis, asthma, cancer, cardiovascular disease, diabetes, gastrointestinal disease, hypertension, kidney disease, pain and sleeping disorders, obesity has recently been linked to reduced effectiveness of vaccines. In a recent study of 22 obese teenagers conducted at Baylor College of Medicine in Texas, researchers found that the standard one-inch injection needle spurred only a weak response to hepatitis B vaccine while a 1.5 inch needle provided a higher antibody count. As longer needles are not routinely used for vaccinations and many healthcare professionals are not aware of the limitations of shorter needles, this presents a potentially significant public health risk due to the likelihood of similar limitations with other vaccines and rising rates of obesity.

Pricing pressure on vaccines continues to rise with the introduction of new, higher priced vaccines and other pharmaceutical products. Recent research suggests that about three quarters of Americans think that rising drug prices are a pressing issue, and legislative or other action is needed to keep prices affordable. These and other initiatives are expected to exert downward pricing pressure on vaccines, particularly in the developing world markets. In response, manufacturers are seeking ways to lower production costs.