The size of the European generic drugs market is estimated to value USD 105.34 billion by 2028 and USD 74.76 billion in 2023, growing at a CAGR of 7.10% during the forecast period.
The rising cost of branded medicines across Europe is surging the European generic drugs market. The cost of manufacturing medicines has increased due to COVID-19 and then the Ukraine-Russia war; while the market prices remain the same, the European generic drugs market is expected to grow in the coming years. As per research, inflation has risen to more than 9%, while raw material prices have increased by 50% to 160%. So, the demand for generic drugs will have an upward trend in the coming years.
The prevalence of chronic diseases is escalating the growth rate of the European generic drugs market. Due to the increasing population of elderly people with chronic diseases, the burden of chronic ailments requires more healthcare spending, ultimately propelling the European Generic drugs market growth. According to a study, nearly one-third of the population over the age of 15 have two or more chronic non-communicable diseases and more than one-third of the people aged 65 and over are affected due to multiple chronic conditions.
Advancements in the creation of generic biologics, or biosimilars, can allow businesses to enter specialized markets and give less-priced alternatives to pricey biologic medicines. Multiple government initiatives and financial packages are being implemented to encourage the use of generic drugs. In July 2023, a revised package of pharmaceutical legislation was provided by the European Commission to expand the reach of medicines across all European Union member states and reduce the period for market exclusivity of new drugs. The launch of government policies and developments in generic biologics are ascribed to boost the European generic drugs market demand in the coming years.
The European authorities have some stringent laws for the approval of generic drugs, which increases the expense of bringing generic drugs to market. This factor is attributed to restraining the growth rate of the European generic drugs market. Problems related to intellectual property, like patent lawsuits and navigating patent landscapes, is limiting the market share from expanding. For instance, in Germany, drugs are bought through a tendering system and medicine distribution is determined by the country's insurance fund. Furthermore, the disruption in the supply of active pharmaceutical ingredients (APIs) could hinder market growth in the short term.
The insufficient amount of information regarding generic pharmaceuticals is one of the issues in the European generic drugs market. According to a survey, among all the medicines dispensed, generic drugs have a dominant share of more than 65 percent; however, less than one-third of all pharmaceutical expenditure is spent on generic drugs. Thus, a lack of specific marketing campaigns for spreading awareness among the public is required. These challenges are affecting the market growth rate in the region.
Impact of COVID-19 on the European generic drugs market:
COVID-19 highlighted the problems because of declining manufacturing in Europe and irregularities in the supply chain to deal with health emergencies. It has shifted the focus towards boosting indigenous and regional manufacturing of pharmaceutical products, including generic drugs. However, the European Union is also planning to grant new antibiotic companies an additional year of exclusivity in the EU for another medicine, with a limited number of "exclusivity vouchers" estimated to cost 500 million euros each, which might significantly hamper the growth of the European generic drugs market in the future.
This report on the European generic drugs market report has been segmented and sub-segmented into the following categories:
Europe Generic Drugs Market - By Type:
The branded generic drugs segment held the leading share of the European generic drugs market in 2022. The rising prevalence of chronic illnesses in Europe, along with an aging population vulnerable to these diseases, is expected to bolster the growth of this segment. Branded generic drugs have the same active ingredients and therapeutic effectiveness as brand-name equivalents but with a brand-like name and packaging. However, with rising healthcare expenses, the demand for pure generic drugs is expected to grow as they offer quality medicine at a cost-effective solution.
Europe Generic Drugs Market - By Application:
The central nervous system segment is expected to have the highest market share in the European generic drugs market. As per a study, more than half of the European population (approx. 60%) suffers from a neurological disease. A study says that about 60% of Europeans are afflicted with a neurological illness. The cardiovascular segment is also expected to grow further during the forecast period. Research claims that the main cause of death in the European Union is cardiovascular disorders.
Europe Generic Drugs Market - By Country:
The UK generic drugs market held a prominent share in the European generic drugs market due to the lower prices of generic drugs as compared to the other European countries. Chemists in UK hospitals frequently prescribe generic versions of prescription drugs, making it more common for most medications to be prescribed by their generic names.
The German generic drugs market is predicted to account for a substantial share of the European generic drugs market during the forecast period. With a yearly growth rate of over 5 percent and a total revenue of more than 56 billion euros in 2021, a steady upward trend in the market growth rate is expected in the future.
The Italian generic drugs market is anticipated to grow during the forecast period due to the high inflation rate. However, the current regulatory framework in Italy hinders the development of a generic drugs market.
The French generic drugs market is likely to have significant growth opportunities during the forecast period. Because their manufacturer's price excluding taxes (PFHT) does not cover the initial costs of research, generic medications are priced in France at 60% of the price of name-brand drugs.
The Spanish generic drugs market is likely to have significant growth opportunities during the forecast period. The Spanish government is encouraging the use of generic drugs that comprise over 40 percent of units prescribed but only 21 percent of total pharma expenses.
KEY MARKET PLAYERS:
A few of the notable companies dominating the European Generic Drugs Market profiled in the report are Ranbaxy Laboratories, Ltd, Actavis, Mylan, Inc., Industries, Ltd., Dr. Reddy’s Laboratories, Par Pharmaceutical, Inc., Sandoz International GmbH, Hospira, Inc., Apotex, Inc., Watson Pharmaceuticals, Ltd., Teva Pharmaceutical and others.
RECENT HAPPENINGS IN THE MARKET:
The growing healthcare costs, patent expirations for branded drugs, and government initiatives to promote generic drug usage are some of the major factors propelling the growth of the generic drugs market in Europe.
Countries like Germany, France, and the United Kingdom have some of the largest generic drugs markets in Europe.
The need for research and development, market competition, and increasing regulatory hurdles are predicted to further challenge the growth of the Europe generic drugs market.
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