May 22, 2024
Europe Pharmaceutical Drugs Market

The Europe Pharmaceutical Drugs Market Driven by Rising Healthcare Expenditure

The pharmaceutical drugs market comprises medicines required for the diagnosis, treatment, mitigation or prevention of various diseases affecting humans. Pharmaceutical drugs are manufactured using a variety of chemical compounds and are intended for internal or external use as medication. Increasing prevalence of chronic diseases such as cancer, diabetes and cardiovascular diseases has generated high demand for pharmaceutical drugs across Europe. Pharmaceutical drugs provide relief from symptoms, aid recovery or slow progression of illness. The global healthcare spending has witnessed a significant rise over the past few years in Europe, presenting lucrative opportunities for pharmaceutical companies. Financial assistance from government bodies to develop novel and advanced therapeutics has further propelled market growth.

The global Europe Pharmaceutical Drugs Market is estimated to be valued at US$ 207.6 Bn  in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the key trends witnessed in the Europe pharmaceutical drugs market is increasing adoption of biologics. Biologics offer several advantages over conventional small-molecule drugs such as high specificity, lower toxicity and superior efficacy against complex diseases. Development of biosimilars has created cost-effective treatment alternatives and enabled market players to expand their product portfolios. Furthermore, ongoing clinical research aims to develop advanced biologics against conditions without optimal treatment options. This has spurred investments towards R&D of novel antibody drugs, gene therapies, vaccines and recombinant proteins. Rising demand for biologics will continue accelerating market revenues over the forecast period.

Porter’s Analysis
Threat of new entrants: The European pharmaceutical drugs market has moderate threat of new entrants due to the stringent regulatory policies and high R&D costs involved in new drug development.

Bargaining power of buyers: The bargaining power of buyers is high in this market as pharmaceutical drugs are necessities and buyers can switch to generic alternatives easily if pricing is not competitive.

Bargaining power of suppliers: Pharmaceutical companies have moderate bargaining power over API and raw material suppliers due to the dependence of suppliers on drug makers for business.

Threat of new substitutes: The threat of substitutes is moderate as new alternative treatment options can replace existing drug therapies for certain diseases over time.

Competitive rivalry: The competitive rivalry in the European pharmaceutical drugs market is high owing to the presence of numerous global and local players.

Key Takeaways

The Global Europe Pharmaceutical Drugs Market Size is expected to witness high growth.

Regional analysis: The Western Europe region currently dominates the European pharmaceutical drugs market and is expected to grow at a CAGR of 9% during the forecast period. Factors such as strong regional healthcare infrastructure and high per capita healthcare spending will support market growth.

Key players operating in the Europe Pharmaceutical Drugs market 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. These players are focusing on new product launches and geographical expansion to gain higher market shares.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it