Pharmaceuticals - Europe

Europe

In 2024, the projected revenue in the Pharmaceuticals market in Europe is expected to reach US$196.50bn.
The largest market within this market is Oncology Drugs, which is projected to have a market volume of US$34.26bn in 2024.
Over the period from 2024 to 2029, the revenue is expected to show a compound annual growth rate (CAGR) of 4.53%, resulting in a market volume of US$245.20bn by 2029.
When compared globally, United States is projected to generate the highest revenue, with US$630.30bn in 2024.
Germany's pharmaceutical market is experiencing a surge in research and development, with a focus on innovative therapies and personalized medicine.

Key regions: United States, China, Germany, Japan, Europe

Definition:
The Pharmaceuticals market covers remedies used to cure, treat, prevent, and diagnose diseases. These small molecule drugs or biologic medical products may be called drugs, medications, or medicines. Prescription drugs and over-the-counter (OTC) drugs are both included. Next generation therapies are also part of the Pharmaceuticals market and include gene therapy, cell therapy, and nucleic acid therapy. Cell therapies involve the use of living cells to replace or repair damaged tissues within the patient's body, or to modify cells to perform specific functions. Gene therapies focus on altering a patient’s genetic material to regulate the production of certain proteins. Nucleic acid therapies use short strands of DNA or RNA to inhibit the production of harmful proteins associated with diseases and promote the generation of therapeutic proteins. Depending on the regulations in each country, these products are provided by pharmacies, hospitals, physicians, and/or drug stores, and/or they can be bought elsewhere. They may be administered in the form of pills, capsules, gels, ointments, injections, infusions, lozenges, or aerosols/sprays.

Structure:
The market is subdivided into Oncology Drugs, Anti-Diabetes Drugs, Anti-Rheumatic Drugs, Vaccines, Dermatological Drugs, Antiviral Drugs, Immunosuppressants, Bronchodilator Drugs, Sensory Organ Drugs, Anti-Hypertensive Drugs, Anti-Coagulants, Anti-Fibrinolytic Drugs, Multiple Sclerosis Drugs, Lipid-Lowering Agents and Other Pharmaceuticals. The Pharmaceuticals market is organized in markets that cover drugs used in specific medical fields, i.e., medicines for a specific disesase or a certain type of medicine. They include original brands, biosimilars, generics, and orphan drugs.The Oncology Drugs market covers pharmaceutical products specifically developed for the treatment and management of various cancers. The Anti-Diabetes Drugs market covers medications designed to manage blood glucose levels and improve insulin sensitivity in individuals with diabetes. The market Anti-Rheumatic Drugs includes pharmaceuticals specifically developed to alleviate symptoms, reduce inflammation, and modify the progression of rheumatic diseases. The Dermatological Drugs market covers pharmaceuticals formulated to treat and manage a wide range of skin conditions such as eczema, acne, and rosacea. The Antiviral Drugs market includes medications designed to treat viral infections and reducing the severity and duration of symptoms. The Immunosuppressants market covers pharmaceuticals that suppress the immune system's activity. The Bronchodilator Drugs market covers pharmaceuticals designed to relax and widen the airways in the lungs. The Sensory Organ Drugs market covers pharmaceuticals targeting the treatment of disorders and conditions affecting sensory organs such as the eyes, ears and nose. The Anti-hypertensive Drugs market covers pharmaceuticals designed to lower blood pressure levels. The Anti-Coagulants Drugs market covers pharmaceuticals developed to prevent the formation of blood clots or to dissolve existing clots. The Anti-Fibrinolytics Drugs market covers pharmaceuticals designed to inhibit the breakdown of blood clots. The Multiple Sclerosis Drugs market covers pharmaceuticals aimed at managing and modifying the course of multiple sclerosis. The Lipid-Lowering Agents market covers pharmaceuticals developed to reduce levels of cholesterol and other lipids in the blood. The Other Pharmaceuticals market provides information on additional specialties that are not covered by the main markets.

Additional information:
Market values represent the revenues generated by manufacture prices paid to primary vendors, either directly or through distribution channels (excluding VAT). Reported market revenues include spending by consumers (B2C), companies (B2B), and governments (B2G).

Company examples: Novartis, Roche, Pfizer, Merck & Co, Johnson & Johnson, AbbVie, Sanofi.

Market

Region

Region comparison

Currency

Analyst Opinion

The Pharmaceuticals market in Europe has been developing rapidly in recent years, with several trends and developments shaping the industry.

Customer preferences: In Europe, customers are increasingly demanding personalized medicines that are tailored to their specific needs. This trend is driven by advancements in technology, which allow for more precise diagnosis and treatment of diseases. Furthermore, customers are also seeking out natural and organic products, which are perceived to be safer and more environmentally friendly.

Trends in the market: In Germany, the Pharmaceuticals market is dominated by generic drugs, which account for the majority of sales. This is due to the country's strict regulations on drug pricing, which has led to a highly competitive market. In France, the market is characterized by a large number of small and medium-sized enterprises, which specialize in niche areas such as rare diseases and oncology. The UK, on the other hand, has a highly centralized market, with a few large companies dominating the industry.

Local special circumstances: In Italy, the Pharmaceuticals market is heavily regulated by the government, which sets the prices of drugs. This has led to a highly fragmented market, with many small companies competing for market share. In Spain, the market is characterized by a high level of innovation, with many companies investing heavily in research and development. This has led to the country becoming a hub for biotech startups.

Underlying macroeconomic factors: The Pharmaceuticals market in Europe is influenced by several macroeconomic factors, including population demographics, healthcare spending, and government policies. With an aging population, there is a growing demand for drugs that treat chronic conditions such as diabetes and heart disease. Furthermore, as healthcare spending continues to rise, governments are looking for ways to control costs, which has led to increased regulation of drug pricing. Finally, with the UK's exit from the EU, there is uncertainty about the future of drug regulation in Europe, which could have significant implications for the industry.

Methodology

Data coverage:

Data encompasses B2B, B2G, and B2C spend. Figures are based on drug revenues allocated to the country where the money is spent. Monetary values are given at manufacturer price level excluding VAT.

Modeling approach / Market size:

Market sizes are determined by a top-down approach, based on a specific rationale for each market. As a basis for evaluating markets, we use financial information of the key players by market. Next, we use relevant key market indicators and data from country-specific associations, such as industry associations. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, forecasts are based on historical developments, current trends, and key market indicators, using advanced statistical methods. The main driver is healthcare expenditure. Expiring patents and new drugs in the pipeline are also considered.

Additional notes:

Data is modeled in US$ using current exchange rates. The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. This market comprises prescription drugs and all OTC drugs covered in the Statista OTC Pharmaceuticals market. However, in the OTC Pharmaceuticals market, revenues are based on end-consumer prices.