U.K. Pharmaceuticals Market Size, Share & Industry Analysis, By Type (Drugs & Vaccines), By Disease Indication (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), By Drug Type (Biologics & Biosimilars, & Small Molecules/Conventional Drugs), By Route of Administration (Oral, Parenteral, Topical, & Inhalation), By Age Group, By Distribution Channel, & Country Forecast, 2025-2032

The U.K. pharmaceuticals market size was worth USD 44.74 billion in 2024 and is projected to grow from USD 48.45 billion in 2025 to USD 92.21 billion by 2032, exhibiting a CAGR of 9.63% during the forecast period.

The market is anticipated to grow due to easy access to healthcare services in the region, coupled with universal healthcare provided by the government and the increasing prevalence of various chronic diseases in the country.

Along with these factors, the government support and strategic collaboration with various operational entities in the region to attract investment are anticipated to boost the pharmaceutical industry growth.

• For instance, in October 2024, Lilly collaborated with the U.K. government to invest USD 301.9 million in the life sciences sector to combat health challenges. Such strategic collaborations propel the market growth.

U.K. Pharmaceuticals Market Trends

Increased Accessibility Due to Inclination toward Generics is a Prominent Trend

One of the prominent trends influencing the U.K. pharmaceutical market is the increasing launch of generics in the region. With the expiration of various market exclusivity patents of essential drugs, the market adoption of generics to reduce healthcare spending is on the rise. The government policies are also encouraging the use of generics to aim for affordability.

• For instance, in June 2025, the U.K. signed a free trade agreement with India to eliminate duties on generic medicines and medical devices.

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In 2025, the European Federation of Pharmaceutical Industries and Associations reported that the U.K. market sales share of generics was 30.5% in 2023.

Key takeaways

• On the basis of segmentation by type, the drugs segment accounted for around 94% of the U.K. pharmaceuticals market in 2024.
• Based on disease indication segmentation, the oncology segment is projected to grow at a CAGR of 11.0% over the forecast period.
• By drug type segmentation, biologics & biosimilars accounted for around 41.7% of the U.K. pharmaceuticals market in 2024.
• The oral segment under the route of administration segmentation was worth USD 24.18 billion in 2024.
• By age group segmentation, the adults segment is projected to grow at a CAGR of 9.7% over the forecast period.

U.K. Pharmaceuticals Market Growth Factors

Robust Research Ecosystem in Collaboration with Academic Institutes to Provide Innovative Avenues for Growth

One of the major factors contributing to the growth of the U.K. market is the robust research ecosystem in the country to promote research and development. The market has witnessed various collaborations among research academies and pharmaceutical and biotechnology companies for drug discovery, bridging the gap between industries and promoting interdisciplinary collaboration to pool resources.

• For instance, in July 2025, the Queen's University Belfast entered a strategic collaboration with Boehringer Ingelheim to develop treatments for eye disease. The partnership strengthened the Queen’s reputation as a leading university in the U.K. for the commercialization of research. Such factors are anticipated to drive the market growth in the U.K. during the forecast period.

U.K. Pharmaceuticals Market Restraints

High Statutory Cost to Discourage Investors May Hamper Market Growth

In the U.K., the Voluntary Scheme or VPAG mandates companies to pay the Department of Health and Social Care (DHSC) a quarter to a third of their revenue from the sales of branded medicines into the NHS. This additional tax is further utilized for numerous research and development programs. With an inclination toward the launch of generics, the U.K. market is witnessing a reduction in the prices of branded drugs, hampering the U.K. pharmaceuticals market growth.

• For instance, in June 2025, the U.K. government doubled the rates of statutory schemes for branded medicines that pharmaceutical companies are mandated to repay on the sales of newer products in the second half of 2025 to 31.3%. Such government regulations discourage the key companies as they adversely impact their revenue-generating potential.

U.K. Pharmaceuticals Market Segmentation Analysis

By Type

New Product Launches and Vaccination Drives by Government to Fuel the Growth of the Vaccines Segment

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

The vaccines segment is estimated to grow at the highest CAGR over the forecast period. The vaccines segment is further bifurcated into viral and bacterial. The rise in demand for vaccines in the country for the protection and prevention of various chronic and infectious diseases is expected to propel the segmental growth over the forecast period.

Additionally, to cater to this demand, many operational entities in the market are focusing on new product launches and vaccination programs to protect people against numerous contagious diseases.

• For instance, in August 2025, England launched the first gonorrhea vaccination program to combat the rising incidence of the sexually transmitted infection (STI). The region offered these vaccines free of cost through sexual health clinics to eligible individuals. Such developments are expected to drive the growth of the vaccine segment over the forecast years.

By Disease Indication

Oncology Segment Led the Market in 2024 Owing to Surging Prevalence of Various Cancer Types

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 dominated the U.K. pharmaceutical market in 2024. The dominance is attributed to the rising prevalence of various types of cancer and an increasing number of new product launches. These factors boost the demand for oncology therapeutics and support market growth. Additionally, various companies are streamlining their resources toward research and development for new product launches followed by approval from regulatory bodies.

• For instance, in June 2025, Medicines and Healthcare Products Regulatory Agency (MHRA) approved the U.K.’s first anti-PD-1 monoclonal antibody, Serplulimab, for the treatment of the aggressive form of lung cancer.

The cardiovascular segment is projected to account for a significant share of the U.K. pharmaceutical market. This share is due to the rising prevalence of heart diseases in the country owing to an unhealthy lifestyle. These factors augment the demand for pharmaceutical products for cardiovascular diseases and further drive the growth of the segment.

• For instance, in January 2025, the British Heart Foundation reported that more than 7.6 million people are living with heart or circulatory diseases in the U.K. These factors drive the growth of the segment.

By Drug Type

Biologics & Biosimilars Segment Leads with Regulatory Approvals by Governing Bodies to Launch Biosimilars

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

In addition to providing affordable medications and reducing prices, the U.K. pharmaceutical market is witnessing the launch of various biosimilars. These biosimilars are chemically identical to biologics and follow the same mechanism of action. These factors reduce the research and development cost. Such factors favor the growth of the segment.  

• For instance, in May 2025, Biocon Biologics Ltd received marketing authorization for YESINTEK, a biosimilar of Ustekinumab indicated for the treatment of moderate to severe plaque psoriasis. Adults with active psoriatic arthritis or moderately to severely active Crohn’s disease by Medicines and Healthcare Products Regulatory Agency (MHRA).

Such developments are anticipated to reinforce the leading position of the biologics and biosimilars segment in the U.K. pharmaceutical market.

By Route of Administration

Approvals for Oral Route of Administration Propelled the Segmental Growth in 2024

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

The oral segment dominated the U.K. pharmaceuticals market share in 2024. The oral route of administration demonstrates various benefits such as longer shelf life, reduced costs, easy administration, and increased medicinal adherence. Due to these factors, the segment is expected to grow at a significant CAGR over the forecast period. These benefits also attract various key players for innovative product development and new product launches with the oral route of administration, which is easy to administer.

• For instance, in July 2025, KalVista Pharmaceuticals, Inc., received marketing authorization for EKTERLY by the MHRA of the U.K. for the treatment of hereditary angioedema (HAE) attacks in adolescents aged 12 years and older and adults. EKTERLY is the only oral on-demand treatment for HAE approved in the U.K. Such developments are expected to boost the segmental growth.

By Age Group

Regulatory Approvals by Key Governing Bodies to Boost the Growth of the Adults Segment

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

The adult segment is expected to account for a dominant market share. The major share allocated to the segment can be attributed to the rising prevalence of various infectious diseases, cancer, and cardiovascular diseases among the adults in the region. To cater to the increasing demand in the segment, various key companies are focusing on new product development, followed by regulatory approvals from governing bodies.

• For instance, in October 2024, the MHRA approved the medicine sugemalimab (Eqjubi) for the treatment of adult patients with a ‘non-small cell lung cancer’. Such developments are anticipated to drive the segmental growth.

By Distribution Channel

Access to Better Medication Pushed the Dominance of the Hospital Pharmacies Segment in 2024

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

The hospital pharmacies segment is anticipated to hold a dominant share of the market. These pharmacies provide better access to medication, leading to an increasing demand for this distribution channel. Such rising demand has influenced technological advancements for better stock management to enable efficient distribution.

• For instance, in February 2022, Wales implemented a new digital hospital pharmacy system, which has helped improve the accuracy of computerized dispensing and medicines stock management. These developments improve access to primary care for patients and support the growth of the segment.

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The British Heart Foundation reported Heart and Circulatory Disease Statistics in 2024 and stated that England witnessed 964,400 patient admissions for all heart and circulatory diseases.

List of Key Companies in the U.K. Pharmaceuticals Market

Novartis AG, Sanofi, and AstraZeneca are the prominent players in the U.K. market. The other companies with a considerable presence in the market include 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 and vaccines. They are also employing strategic activities such as collaborations, mergers, and acquisitions, which are expected to increase their market share.

LIST OF KEY 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

• February 2025: The Medicines and Healthcare Products Regulatory Agency (MHRA) approved the live chikungunya vaccine (brand name IXCHIQ) to offer adults protection against chikungunya disease, caused by CHIKV, the chikungunya virus.
• February 2025: Biocon Limited launched a GLP-1 peptide, Liraglutide, for diabetes and obesity in the U.K. The drug-device combination was marketed in the country under the brand names Biolide for chronic weight management (gSaxenda) and Liraglutide Biocon for diabetes (gVictoza).

REPORT COVERAGE

The U.K. 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 market analysis includes information about the increasing prevalence of key diseases, technological advancements, shifting trends experienced by the industry, and new product launches. Besides this, the report also offers insights into the latest pharmaceutical industry trends and the impact of various factors on the demand for pharmaceuticals.

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Report Scope & Segmentation