Demographic factors and the state of the population are indicators that influence and shape the pharmaceutical market. The aging of the population, the increase in chronic diseases, health awareness and global health crises are certainly an incentive for pharmaceutical companies to market the highest quality and most effective drugs. Placing a new drug on the market is a complex, time-consuming and challenging process. This paper explores the specifics of the pharmaceutical market and the key challenges the pharmaceutical market is facing globally and analyzes the market in the Republic of Croatia. The pharmaceutical market includes research, development, production and distribution of medicines. At the global level, the market is highly regulated and competitive, while in the Republic of Croatia the pharmaceutical industry adapts to the standards of the European Union and faces challenges such as smaller market size and the complexity of regulatory requirements. Nowadays, the key challenges are the aforementioned regulatory requirements, financial risks and the increasing frequency of generic drugs after the expiration of the patent for original drugs. In the Republic of Croatia, generic drugs make up a significant part of the market, which increases the availability of the necessary drugs. The pharmaceutical sector is considered to be the origin of innovation due to the development of personalized medicine, biotechnology, digital medicine and nanotechnology. Marketing strategies are key to the success of new drugs, which requires education and information for health workers and patients. In order to achieve competitiveness on the market, pharmaceutical companies need to implement price positioning strategies. Companies can identify targeted market segments and adapt their marketing strategies to suit the needs of various consumers.