The Europe pharmaceutical drugs market consists of prescription and over-the-counter drugs used to treat various diseases and medical conditions. Pharmaceutical drugs are used to cure life-threatening diseases like cancer, diabetes, respiratory disorders, neurological conditions, cardiovascular diseases, and other chronic ailments. Rise in chronic diseases due to sedentary lifestyle and increasing elderly population is driving the demand for pharmaceutical drugs in the region.
Europe Pharmaceutical Drugs Market is estimated to be valued at US$ 207.6 Bn in 2024 and is expected to exhibit a CAGR of 10 % over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Europe pharmaceutical drugs are Bank of China, China Development Bank, European Investment Bank, Natixis, Societe Generale, Iberdrola, Banco Santander, Abu Dhabi Islamic Bank, KfW, BNP Paribas, UniCredit, Credit Agricole, DBS Bank, Standard Chartered, NatWest Group.
The demand for pharmaceutical drugs is growing in Europe region due to expansion of healthcare services, rising per capita income, and awareness about treatment of various diseases. Various governments are taking initiatives to improve healthcare infrastructure and ensure availability of quality drugs at affordable prices which is augmenting the growth of pharmaceutical drugs market.
Pharmaceutical companies are expanding their production facilities and distribution networks globally especially in developing countries of Eastern Europe and Asia Pacific to tap the market potential. Mergers and acquisitions of small drug manufacturers by large pharmaceutical companies is also a major trend witnessed in the market.
Market key trends
One of the major trends witnessed in Europe Pharmaceutical Drugs Market Demand is the shift towards specialized drugs. Pharmaceutical companies are investing heavily in research and development of specialized drugs for rare diseases, personalized medicine and orphan drugs. These specialized drugs though have a small patient pool but command high prices helping companies earn higher profit margins.
Porter’s Analysis
Threat of new entrants: New entrants face high costs for meeting regulatory standards and establishing distribution channels.
Bargaining power of buyers: Buyers have high bargaining power as they make bulk purchases and can source from other global suppliers.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to less switching costs for buyers and availability of substitutes from other producers.
Threat of new substitutes: Pharmaceutical products face threat of new substitutes from generic drugs and alternative medicines.
Competitive rivalry: Intense competition exists among existing producers for market share and profits.
The value of the Europe pharmaceutical drugs market is concentrated in Western Europe. Countries like Germany, United Kingdom, France, Italy and Spain collectively account for over 60% of the total market value in Europe due to their large population size and strong healthcare infrastructure.
Central and Eastern Europe is the fastest growing region for the Europe pharmaceutical drugs market. Countries like Poland, Czech Republic, Hungary and Romania are witnessing higher growth compared to Western Europe driven by rising income levels, increasing health awareness and expanding medical insurance coverage in these nations.