Europe Pharmaceuticals Market Size, Share & Industry Analysis, By Type (Drugs {Prescription & OTC} and Vaccines {Bacterial & Viral}), By Disease Indication (Oncology, Diabetes, Infectious, Cardiovascular, Renal, Obesity, Autoimmune, Ophthalmic, Liver/Hepatology, Reproductive, Allergies), By Drug Type (Biologics & Biosimilars {Antibodies [Monoclonal Antibodies, Bispecific Antibodies, Antibody-Drug Conjugates] Vaccines, Others}), By Route of Administration, By Distribution Channel (Hospitals Pharmacies, Drug Stores & Retail Pharmacies, and Online Pharmacies), and Regional Forecast, 2025-2032

The Europe pharmaceuticals market size was worth USD 411.94 billion in 2024. The market is estimated to grow from USD 437.98 billion in 2025 to USD 728.20 billion by 2032, exhibiting a CAGR of 7.5% during the forecast period.

Europe has witnessed an increasing prevalence of chronic disease during the forecast period. Rising prevalence of chronic diseases, advancements in technology and continuous research and development are expected to drive the growth of the market in Europe.

Additionally, rising investment ventures in the region for technologically advancement in the field of pharmaceutical industry are expected to bolster the growth of the market in the forecasted years.

• For instance, in March, IO Biotech secured funding of USD 62.1 million in EIB venture debt to advance cancer vaccine research and development.

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Pharmaceutical Research & Development Expenditure for 2020 & 2022 (in million)

The European Federation of Pharmaceutical Industries and Associations reported expenditure of USD 50,876.6 million in 2022 for pharmaceutical research and development expenditure in Europe.

Europe Pharmaceuticals Market Trends

Adoption of Digital Health Technologies for Accelerated Drug Discovery is a Prominent Trend Observed

Increasing adoption of digital health technologies for accelerated drug discovery and clinical trials is a prominent trend observed in the field of pharmaceutical sector. These technologies enable the researchers to analyze vast datasets and predict the molecular characteristics more precisely, and to single out effective drug candidates more precisely. Also, they assist in hastening clinical trials through predictive modelling and analysis. These factors have led to increasing investments in R&D for the integration of these technologies by key players.

• For instance, in February 2025, the U.K. government announced research funding of USD 89.4 million along with a commitment to providing U.K. researchers with access to cutting edge computing resources. These projects are anticipated to harness the power of AI to develop treatments and diagnostics for diseases such as cancer and Alzheimer’s.

Europe Pharmaceuticals Market Growth Factors

Advancements In Therapies To Cater To The Aging Population To Boost Market Growth

The geriatric population in the European region is on the rise. This ageing population is at high risk of various chronic diseases such as diabetes, heart disease, arthritis, and Alzheimer’s. These factors have led to a focus on research and development, focusing on the advancement of treatment and its fast-track approvals by the EU regulatory body.

• For instance, in April 2025, the European Commission (EC) granted the amyloid-beta (Aβ) monoclonal antibody Leqembi (lecanemab) marketing authorization (MA) in the European Union (EU). This development makes the medicine the first therapy targeting an underlying cause of Alzheimer’s disease (AD).

Europe Pharmaceuticals Market Restraints

Stringent Regulation by EMA to Limit the Market Growth

The regulatory body approving various pharmaceutical products in Europe; EMA follows strict guidelines and stringent regulations. This may hamper the European pharmaceuticals market growth due to delayed product launches and delayed timelines. This also burdens the pharmaceutical companies with financial losses.

• For instance, in June 2023, Amylyx Pharmaceuticals received a negative opinion on its conditional marketing authorization application for AMX0035 for the treatment of ALS in the European Union. Despite approval by the U.S. FDA, EMA cited concerns about the lack of a significant slowing of functional loss, uncertainty around the mechanism of action, and limitations in the survival data.

Europe Pharmaceuticals Market Segmentation Analysis

By Type

Strategic Collaboration Among Key Companies Led to the Dominance of  the Segment

Based on the type segment, the market is divided into drugs and vaccines.

The drugs segment held the highest European pharmaceuticals market share in 2024. The drugs are further divided into prescription and OTC. The increasing prevalence of chronic and infectious diseases and aging population augments the dominant share of the segment. Also, advancements in medical research drive the growth of this segment.

Additionally, key operational entities are focusing on strategic collaboration with heightened focus on increasing research and development to bring new and improved treatments in the market is also bolstering the segment’s growth.

• For instance, in March 2025, F. Hoffmann-La Roche Ltd collaborated with Zealand Pharma to develop and commercialize petrelintide as a potential foundational therapy for people with overweight and obesity.

By Disease Indication

Based on disease indication, the market is segmented into oncology, diabetes, infectious, cardiovascular, neurology & psychiatry, respiratory, renal, obesity, autoimmune, ophthalmic, gastrointestinal, dermatology, hematology/blood, liver/hepatology, genetic, hormonal/endocrine, women’s health, reproductive, allergies, and others.

The oncology segment is expected to account for the dominant market share in the upcoming years. The high segmental share is attributed to the increasing prevalence of cancer in Europe. It was one of the leading causes of death in the EU.

• For instance, in 2021, the European Union reported that cancer was the second leading cause of death in the EU, with 1.1 million deaths, which equated to 21.6% of the total number of deaths in the EU.

Various key companies are focusing on new product launches and their subsequent approvals by the European Commission to combat the increasing prevalence of cancer.

• For instance, in January 2025, the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency granted marketing authorizations for three new cancer drugs: Datroway (datopotamab deruxtecan) to treat advanced breast cancer, Tivdak (tisotumab vedotin) for recurrent or metastatic cervical cancer, and Dyrupeg (pegfilgrastim) for neutropenia following chemotherapy.

The diabetes segment accounts for a considerably large proportion of the European pharmaceuticals market and is projected to grow at a higher rate in the Europe pharmaceuticals market. The growth of the segment is due to increasing obesity, lifestyle modification, consumption of highly processed foods leading towards reduced insulin sensitivity, and an increasing number of diabetic population.

Additionally, to provide innovative treatment for diabetes, many established players are streamlining their resources towards strategic collaboration and research initiatives for new product launches.

• For instance, in June 2025, the European Patients’ Academy of Therapeutic Innovation (EUPATI) partnered with the International Diabetes Federation Europe (IDF Europe).  The partnership aimed to strengthen public health policy across Europe and raise public awareness of diabetes.
• Similarly, in February 2025, Biocon launched liraglutide products in the U.K.  These are generic versions of Novo Nordisk’s Victoza, to treat type 2 diabetes.

The infectious respiratory disease segment is expected to grow with a stable CAGR during the forthcoming years. The growth of the segment is attributed to the rising prevalence of these diseases. To combat them, various key players are launching novel, effective vaccines to drive the growth in the segment.

• For instance, in April 2024, Pfizer received marketing approval from the European Commission for EMBLAVEO (aztreonam-avibactam), indicated for the treatment of adult patients with complicated intra-abdominal infections (cIAI), hospital-acquired pneumonia (HAP), including ventilator-associated pneumonia (VAP), and complicated urinary tract infections (cUTI), including pyelonephritis.

The obesity segment is projected to be the fastest growing segment across the forecast period, with a growth rate of 15.93%

By Drug Type

Based on the drug type segment, the market is divided into biologics & biosimilars and small molecules/conventional drugs.

The biologics and biosimilar segment accounted for a major share in the European pharmaceutical market in 2024. The segment is further divided into antibodies and vaccines. The high market share of biologics can be attributed to various benefits such as lower cost and high efficiency, and selective strategic collaborations and partnerships among key players to drive the market growth further.  

• For instance, in May 2025, Alvotech partnered with Advanz Pharma to expand its commercial partnership to cover three biosimilar candidates, Ilaris (canakinumab), for the treatment of inflammatory diseases, and Kesimpta (ofatumumab), for the treatment of relapsing forms of multiple sclerosis, in addition to a third undisclosed biosimilar candidate.

By Route of Administration

Based on the route of administration, the market is divided into oral, parenteral, topical, inhalation, and others.

The parenteral segment held the most significant share in 2024. The parenteral route of administration demonstrates various benefits such as targeted application, faster absorption, and controlled release. Due to these factors, the segment is expected to grow with a significant CAGR in the forecasted period.

These benefits also attract various key players for development and new product launches with the parenteral route of administration that exhibit faster and precise results.

• For instance, in July 2025, the European Commission granted marketing authorization to Yeytuo (lenacapavir) for pre-exposure prophylaxis (PrEP) to reduce the risk of sexually acquired human immunodeficiency virus type 1 (HIV-1) infection in adults and adolescents. Yeytuo will facilitate PrEP uptake and compliance because it only has to be administered twice a year via a subcutaneous injection.

By Age Group

Based on the age group, the market is divided into pediatric and adult.

The adult segment is expected to account for a leading share in Europe. The major share allocated to the segment can be attributed to the rising prevalence of cardiovascular diseases in the region among the adult segment, novel product launches, and consequent regulatory approvals.

• For instance, in January 2024, UCB received marketing approval from the European Commission (EC) for RYSTIGGO (rozanolixizumab) as an add-on to standard therapy for the treatment of generalized myasthenia gravis (gMG) in adult patients who are anti-acetylcholine receptor (AChR) or anti-muscle-specific tyrosine kinase (MuSK) antibody positive1.

By Distribution Channel

Based on distribution channel, the market is divided into hospitals, pharmacies, drug stores & retail pharmacies, and online pharmacies.

The hospital pharmacy segment is anticipated to hold the dominant proportion of the market share. The hospital pharmacies are the first point of contact for healthcare service providers for treating chronic diseases. This factor result in an increasing demand for hospital pharmacies, leading to the launch of new facilities. Also, an increasing number of hospital pharmacies supports the high share of the segment.

• For instance, in January 2021, Alphega Pharmacy launched its latest concept pharmacy in France.  The pharmacy offers specialty advice and care for a wide range of and bring services and traditional pharmacy at one stop destination. These developments heighten access to customers and assist in segmental growth.

The online pharmacies segment is projected to grow at the highest CAGR of 7.84%, across the forecast period.

By Country

Based on country, the market is segmented into the U.K., Germany, France, Spain, Italy, Scandinavia, and the rest of Europe.

Germany is expected to account for a majority European pharmaceuticals market share due to the high prevalence of infectious and cardiovascular diseases. The robust infrastructure and increasing healthcare expenditure reinforce the high market share of the country.

• For example, in 2022, the European Union reported that Germany had the highest expenditure of USD 528,871.2 million on healthcare. Such factors are expected to influence the European pharmaceutical market.

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The European Commission reported the healthcare spending of various countries in Europe in 2022. It reported that Germany has the highest healthcare expenditure among the EU countries.

List of Key Companies in the Europe Pharmaceuticals Market

Novartis AG, Sanofi, and AstraZeneca are the prominent players in the Europe pharmaceuticals market. The other companies with a considerable presence in the market includes Novo Nordisk A/S, F. Hoffmann-La Roche Ltd, and other small & medium-sized market players. These companies are making strategic moves, such as conducting research and development activities for the development of innovative pharmaceutical drugs, vaccines, and employing strategic activities such as collaborations, mergers, and acquisitions, which are expected to increase their market share.

LIST OF KEY EUROPE PHARMACEUTICALS COMPANIES PROFILED

• Merck & Co., Inc. (U.S.)
• Pfizer Inc. (U.S.)
• Johnson & Johnson (U.S.)
• AbbVie Inc. (U.S.)
• AstraZeneca (U.K.)
• Hoffmann-La Roche Ltd (Switzerland)
• Novartis AG (Switzerland)
• Bristol-Myers Squibb Company
• Eli Lilly and Company (U.S.)
• Sanofi (France)
• Novo Nordisk A/S(Denmark)
• GSK plc. (U.K.)
• Amgen Inc. (U.S.)
• Gilead Sciences, Inc. (U.S.)
• Takeda Pharmaceutical Company Limited (Japan)

KEY INDUSTRY DEVELOPMENTS

• April 2025: AbbVie Inc. received marketing authorization by the European Commission for RINVOQ, a JAK inhibitor for the treatment of giant cell arteritis (GCA) in adult patients. RINVOQ is the first and only oral JAK inhibitor approved in the EU, as well as Iceland, Liechtenstein, and Norway, for the treatment of adult patients with GCA.
• June 2020: Sandoz launched generic tacrolimus capsules known as Dailiport, which are indicated for the prophylaxis of transplant rejection in adult kidney or liver allograft recipients in Germany, the U.K., Netherlands, Finland, Sweden, Estonia, Latvia, and Slovakia, and as Conferoport in Italy and Spain

REPORT COVERAGE

The Europe pharmaceuticals market report provides a detailed analysis of the market. It focuses on market dynamics and key industry developments, such as mergers and acquisitions. Additionally, the Europe pharmaceuticals market analysis includes information about the increasing prevalence of key diseases, technological advancements, shifting trends experienced by the industry new product launches. Besides this, the report also offers insights into the latest industry trends and the impact of various factors on the affecting the demand for pharmaceuticals.

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Report Scope & Segmentation