The Europe pharmaceutical market size was exhibited at USD 285.35 billion in 2023 and is projected to hit around USD 496.74 billion by 2033, growing at a CAGR of 5.7% during the forecast period 2024 to 2033.
| Report Coverage | Details |
| Market Size in 2024 | USD 301.61 Billion |
| Market Size by 2033 | USD 496.74 Billion |
| Growth Rate From 2024 to 2033 | CAGR of 5.7% |
| Base Year | 2023 |
| Forecast Period | 2024-2033 |
| Segments Covered | Product, Type, Therapeutic Category, Region |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Key Companies Profiled | F. Hoffmann-La Roche Ltd.; Bristol-Myers Squibb Company; AstraZeneca plc; Novartis AG; Johnson & Johnson Services, Inc.; Gilead Sciences, Inc.; GlaxoSmithKline plc.; Merck & Co., Inc.; Pfizer Inc.; Sanofi; Boehringer Ingelheim GmbH |
The growth can be attributed to the increasing healthcare expenditure, a surge in R&D investments, and the emergence of biologics and biosimilars. Furthermore, supportive regulatory framework and reimbursement policies improve the adoption of pharmaceuticals in this region, thus facilitating market growth. The impact of COVID-19 has been variable on the industry. It has adversely affected drug prescription and uptake rate owing to the decreased rate of diagnosis of diseases, such as cancer. For instance, the uptake of biologics and novel medicines witnessed a decline in 2023, which can be attributed to a decline in primary care drug prescriptions. The decline in drug sales is worsened by the shortage of drugs owing to disruptions in the supply chain.
Europe has key pharmaceutical companies, world-class research institutes, and hospitals that provide a better environment for developing clinical and therapeutic innovations for rare and life-threatening diseases. Cell and gene therapies and immunotherapies are the fastest-growing areas in terms of research & development activities, and these segments also received the highest investments to continue research activities. As per therapeutic areas, oncology and central nervous system disorders received the highest funding for developing novel therapies.
Technological advancements not only influence the development and discovery of drugs but various aspects of the supply chain as well. This includes features such as reducing manpower, increasing safety, and reducing the time that a product spends in the supply chain. The use of technologies, such as AI and robotics, can facilitate a reduction in resources spent on production as well as supply chain. Moreover, heightened focus on the supply chain during the pandemic has improved its overall strength.
The reimbursement scenario is highly variable and complicated in Europe, specifically for generic medications. Every country has published its own set of rules regarding reimbursement, which makes the penetration of generics uneven across the region. Countries with advanced healthcare systems offer the essential medication at low or no costs to the population, ensuring UHC, i.e., Universal Health Coverage. However, the financial burden on healthcare systems providing coverage is high.
The role of hospitals is evolving gradually in Europe as they form the largest part of its healthcare system. They have specialized healthcare systems, which are usually used by patients with chronic conditions of cancer. The healthcare system is looking at standardization. However, this move is opposed by German hospitals. The primary care system has improved in France, Germany, Finland, Portugal, Switzerland, and Belgium over the years, while in the U.K., Italy, Spain, Denmark, Sweden, Greece, Netherlands, and Norway, it has remained constant.
The branded segment accounted for the largest revenue share of over 68.0% in 2023 owing to the presence of key drug manufacturers and clinical-based pharmaceutical companies in the region. Increasing R&D efforts, the growing adoption of novel therapies, and strategic collaborations are likely to boost the penetration of these drugs. Strong pipeline products in different therapeutic areas are likely to boost the growth of branded drugs in Europe. Key pharmaceutical companies are significantly investing in small clinical-based biopharmaceutical companies developing novel treatment options for prevalent chronic conditions. However, the emergence of generics and biosimilars has heralded a significant shift in the overall pharmaceutical market in Europe.
The generic segment is projected to witness the fastest growth over the forecast period. The presence of a large number of local and international generic drug manufacturers in the region makes the European market highly fragmented and competitive. Moreover, the shift in the preference of European countries’ governments from branded drugs to commodity generics is likely to increase their demand.
Oncology held the largest share of over 17.0% in 2023 and is expected to grow at the fastest rate over the forecast period. The increasing incidence of cancer, coupled with the growing geriatric population, is expected to positively impact the market growth. Furthermore, the constantly rising demand for high-quality drugs due to strengthened economies and improved healthcare infrastructure is estimated to boost the market growth over the forecast period.
The high growth of central nervous system therapeutics is mainly attributed to the rising prevalence of neurological conditions, favorable government initiatives, and increasing focus of key players to introduce novel and effective treatment options to address unmet needs in this space. In CNS therapeutics, multiple sclerosis, Alzheimer’s disease, Parkinson’s disease, epilepsy, and psychotic disorders are major conditions that held a significant market share in 2023.
The prescription segment accounted for the largest revenue share of over 86.0% in 2023. This is attributed to prescription medicines being covered under healthcare insurance in the European region for the majority of health conditions. For instance, the reimbursement rate of biologics and biosimilars is 100% in most European nations. The healthcare authorities of major countries are shifting focus from biologics to biosimilars owing to their cost-effectiveness.
The OTC segment is projected to expand at the fastest rate over the forecast period owing to the improved consumer knowledge regarding OTC products for minor ailments, such as vomiting and GERD. Moreover, the accessibility to OTC products is convenient owing to the presence of retail pharmacies that provide these pharmaceuticals without prescription. Digestive health is one of the top categories for uptake of OTC pharmaceuticals. Consumers are becoming increasingly aware of their external and internal health factors. More people are taking measures to ensure proper maintenance of their gastrointestinal health. Popular OTC products such as antacid liquids and tablets are witnessing an increased uptake. This surge in the digestive health segment reflects the interest of consumers in digestive health.
Western Europe held the largest revenue share of over 80.0% in 2023 and is expected to maintain its lead over the forecast period. This is attributed to the multinational pharmaceutical companies significantly investing in Western Europe due to favorable regulatory environments and greater ability to produce high-value medicines. Moreover, overall, the Western European region has the largest patient base in the region, with significant diagnosis and treatment rates, which is expected to aid the market growth.
The Central and Eastern Europe region is projected to exhibit a lucrative growth rate over the forecast period. Central Europe is more developed compared to Eastern Europe and most pharmaceutical companies have a strong presence in Central Europe. Countries such as Switzerland, Austria, Poland, and Hungary have a large number of pharmaceutical companies that serve globally. Poland is the largest pharmaceutical market in the region and the country significantly invests in R&D, followed by Slovenia, Hungary, and Romania.
This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the Europe pharmaceutical market
Product
Type
Therapeutic Category
Regional
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Additional Countries (Apart
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