Market Trends of Estonia Pharmaceutical Industry
The Anti-diabetic Segment is Expected to Register Significant Growth During the Forecast Period
Estonia faces a growing diabetes burden, which is estimated to drive the demand for pharmaceutical drugs for the treatment and management of this health condition in the country. For instance, according to the data accessed from the IDF in May 2024, around 83.9 thousand people had diabetes in 2021, and the number is estimated to increase to 87.5 thousand by 2030.
Similarly, the Tervisekassa Health Fund based in Estonia in May 2024, stated that approximately 5,600 people are diagnosed with type 2 diabetes in Estonia every year, which accounts for one in sixteen people in the country and the highest prevalence of type 2 diabetes is among people aged 70–79 years. As per the same source, prescription medicines cost around EUR 350 (USD 378.4) per patient every year in Estonia. Thus, the significant number of people who have diabetes in the country, coupled with high prescription medicine costs, is projected to drive the demand for effective anti-diabetes drugs during the forecast period.
Furthermore, the high sales of anti-diabetic drugs in the country signifies the high demand for pharmaceuticals. For instance, according to the data released by the Republic of Estonia (Agency of Medicines) in April 2023, approximately 73,792 prescribed daily doses (DDD) per 1,000 people were sold in 2022, underscoring the growing demand for these medications. This substantial consumption indicates a prevalent and increasing incidence of diabetes, driving the need for continuous supply and availability of anti-diabetic drugs, thereby propelling pharmaceutical companies to invest more in developing, producing, and distributing these medications to meet the rising demand.
Therefore, factors such as the rising prevalence of diabetes in the country and the high demand for anti-diabetic drugs indicated by high DDD/1,000 people/day are projected to drive the growth of the anti-diabetic segment during the forecast period.
The Branded Drugs Segment is Expected to Register Fastest Growth During the Forecast Period
The branded drug segment in the market studied is expected to experience significant growth due to the demand for innovation, marketing efforts, the reference pricing system, and patient preferences.
The surging sales of branded drugs in the country are projected to drive segment growth during the forecast period. For instance, according to the Estonian State Agency of Medicines, in March 2024, the government recorded consistent growth in the consumption of pharmaceutical products. There was a significant increase in sales volumes across various drug categories, highlighting the rising demand for branded prescription medications. This increasing consumption clearly indicates a robust pharmaceutical market, with a strong preference for established branded drugs due to their perceived efficacy and trust among healthcare providers and patients.
In addition, the price differences of drugs in Estonia compared to other countries are also likely to drive the growth of the segment during the forecast period. For instance, as per an article published by a news agency in January 2024, there are notable price differences between drugs in Estonia and its neighboring countries, and this price disparity often makes Estonia an attractive market for branded pharmaceutical companies looking to capitalize on higher margins. Patients and healthcare providers in Estonia are willing to pay a premium for branded medications, often perceived to offer better quality and reliability. This willingness to invest in branded drugs fuels market growth and encourages pharmaceutical companies to maintain a strong presence in Estonia.
Therefore, the surging sales of branded drugs in the country are projected to drive the growth of the branded prescription drugs segment during the forecast period.
