Europe Pharmaceutical Market To Reach $688.44 Billion By 2030

June 2025 | Report Format: Electronic (PDF)

Europe Pharmaceutical Market Growth & Trends

The Europe pharmaceutical market size is expected to reach USD 688.44 billion in 2030 and is projected to grow at a CAGR of 5.90% from 2025 to 2030, according to a new study conducted by Grand View Research, Inc. The market is driven by an increasing prevalence of diseases, a growing elderly population, and the approval and launch of novel products in the European region.

Overall, the pharmaceutical market in Europe is dominated by branded drugs; however, the generic drugs segment is anticipated to grow at the fastest rate over the forecast period. Loss of patent protection of key pharmaceutical products and increasing government initiatives to adopt generic drugs for the treatment are some of the key factors likely to boost generics demand in the coming years.

The capitalization opportunity is high for generic manufacturers in the European market as governments from each region are forming plans to meet the population’s demand and lower healthcare-associated expenditure of the country. The expiration of patent exclusivities and the building need for cost-effective treatments are fueling the penetration of biosimilars and generics.

Novel molecule entry in this market typically takes 12-13 years and an investment of over USD 2.5 billion. In 2019, the total R&D expenditure on pharmaceutical R&D was USD 44,881.92 million. Increased competition from growing economies, such as China and Brazil, has accelerated the European economic investment in research to maintain its dominance in the market.

Improvements in healthcare infrastructure are promoting the adoption of novel pharmaceuticals. Furthermore, an increase in drug launches in Europe is projected to propel the market growth. For instance, in 2020, 62 drugs were approved in Europe and 97 medicines received marketing approval in European countries. The highest number of drug approvals were observed in the oncology segment.

Key pharmaceutical companies offer strong branded drugs in multiple therapeutic segments. Increasing R&D efforts, the growing adoption of novel therapies, and strategic collaborations are likely to boost the penetration of branded drugs. Strong pipeline products in different therapeutic areas are likely to fuel the growth of branded drugs in Europe.

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Europe Pharmaceutical Market Report Highlights

Conventional drugs (small molecules) dominated the market, with the largest share of 54.74% in 2024. These drugs are typically chemically synthesized and designed to target specific biological pathways, often by binding to receptors or enzymes.
The branded segment dominated the market with a revenue share of 66.49% in 2024, driving both innovation and exclusivity. These branded drugs benefit from regulatory frameworks that support their development, ensuring safety and efficacy.
The prescription segment held the largest share in the market, with a revenue of 86.76% in 2024, driven by rising demand for chronic disease treatments, an aging population, and regulatory support
The cancer segment dominated the market with a revenue share of 18.06% in 2024. The rising prevalence, driven by aging populations, lifestyle changes, and environmental factors, is fueling substantial market growth
The oral route of administration proved to be a significant contributor to revenue, with a share of 57.53% in 2024. The oral segment remains a cornerstone of drug delivery, encompassing tablets, capsules, and novel formulations like orally disintegrating tablets (ODTs).

Europe Pharmaceutical Market Segmentation

Grand View Research has segmented the Europe pharmaceutical market report based on molecule, product, type, disease, route of administration, age group, distribution channel, and region:

Europe Pharmaceutical Molecule Outlook (Revenue, USD Billion, 2018 - 2030)