Germany Pharmaceutical Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Germany Pharmaceutical Market Analysis

The Germany Pharmaceutical Market size is estimated at USD 64.80 billion in 2024, and is expected to reach USD 87.54 billion by 2029, growing at a CAGR of 6.20% during the forecast period (2024-2029).

Germany is one of the world's most influential nations for clinical studies. It is the pioneer in industry-led clinical trials in Europe and the second highest in the world. The availability of advanced research, vast production tradition, and instant market access to pharmaceuticals are among the key factors driving the market growth in the country.

Other factors contributing to the growth of the German pharmaceutical market include the rising incidence of chronic diseases, such as cardiovascular diseases and cancer, the rise in the geriatric population, and surging healthcare expenditures. The availability of better healthcare resources in Germany is expected to drive market growth during the forecast period. For instance, according to the data released by the OECD in November 2023, the per capita healthcare expenditure in Germany was around UD 8,011, significantly higher than the OECD average of USD 4,986. According to the same source, there are approximately 4.5 healthcare professionals per 1,000 people in Germany, compared to the OECD average of 3.7. Thus, the better healthcare resources in the country compared to the OECD average are projected to lead to significant investments in the pharmaceutical industry during the forecast period.

In addition, the rising number of people living with various chronic and infectious diseases in the country is projected to drive the demand for various pharmaceutical drugs for treatment, thereby driving market growth. For instance, according to the data updated by the Global Hepatitis Organization in August 2023, approximately 37% of the people were living with diagnosed hepatitis B (HBV) in Germany in 2022. Thus, the high proportion of people living with diagnosed HBV in the country is likely to create a massive demand for anti-infectives during the forecast period.

The increasing government initiatives regarding immunization are projected to drive market growth during the forecast period. For instance, in January 2022, the Robert Koch Institute launched the Standing Vaccination Committee (STIKO) vaccination recommendations. The primary goal of the STIKO vaccination was to vaccinate children up to 24 months of age in Germany with the pneumococcal conjugate vaccine to reduce morbidity from invasive pneumococcal diseases (IPD) and resulting consequences such as hospitalization, disability, and death. This initiative is projected to significantly boost vaccination rates among infants and toddlers in Germany, thereby driving market growth.

Moreover, the country's rising number of drug approvals is also expected to drive market growth. For instance, in October 2022, Merck received the EC approval for its expanded indication for VAXNEUVANCE to include active immunization for preventing invasive diseases, pneumonia, and acute otitis media caused by Streptococcus pneumoniae in newborns, children, and adolescents (6 weeks to less than 18 years).

Therefore, factors such as the rising healthcare expenditure, surging number of patients with chronic and infectious diseases, active involvement of government organizations in the country to promote immunization, and the increasing number of drug approvals are projected to drive the growth of the German pharmaceutical market during the study period. However, stringent regulatory scenarios in the country are likely to restrain market growth during the forecast period.

Germany Pharmaceutical Market Trends

The Anti-diabetic Segment is Projected to Register Significant Growth During the Forecast Period

Germany Pharmaceutical Industry Segmentation

As per the scope of this report, pharmaceuticals are referred to as prescribed and non-prescription drugs. These medicines can be bought by an individual with or without a doctor's prescription and are consumed to treat various diseases. The report also covers the in-depth analysis of qualitative and quantitative data.

The German pharmaceutical market is segmented by therapeutic category and drug type. By therapeutic category, the market is segmented into anti-infectives, cardiovascular, gastrointestinal, anti-diabetic, respiratory, dermatological, musculoskeletal system, nervous system, and other therapeutic categories. By drug type, the market is segmented into prescription drugs and OTC drugs. By prescription drugs, the market is segmented into branded drugs and generic drugs. For each segment, the market size and forecast are provided in terms of value (USD).