Germany Pharmaceutical Market

Germany Pharmaceutical Market Overview:

The Germany pharmaceutical market size reached USD 64.7 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 119.4 Billion by 2033, exhibiting a growth rate (CAGR) of 6.50% during during 2025-2033. The market is expanding due to the growing aging population, increasing healthcare expenditure, adoption of generic drugs, and expansion of biopharmaceuticals. Germany is the largest pharmaceutical market in Europe and ranks fourth globally, following the US, China, and Japan.

Germany Pharmaceutical Market Trends:

Growing Aging Population 

According to the National Library of Medicine report of 2023, 18.6 million people living in Germany are 65 years of age and older, including 6.1 million who are 80 years and older in 2022. With an increasing aging population, there is a need to focus on geriatric medicine in Germany. Many pharmaceutical companies are developing tailored drugs as per the specific needs of older adults like formulation that are easier to swallow, produce fewer side effects, and account for age-related changes in the kidney or liver. In addition, as people are aging, they are more likely to develop chronic conditions and age-related diseases, such as cardiovascular disease, diabetes, arthritis, and neurodegenerative disorders. The high number of people with these conditions in the aging population underlines the need for pharmaceuticals to treat symptoms, delay progression, and enhance quality of life. In line with this, there is a growing knowledge about the importance of prevention in healthy aging and age-related diseases. Pharmaceutical companies are investing in research and production of preventive drugs and vaccine that reduces the risk of chronic condition like osteoporosis, dementia and cancers. This demographic shift is also significantly influencing the Germany pharmaceuticals market.

Rising Healthcare Expenditure

As per the Federal Statistical Office (Destatis) report of 2023, in Germany, the health expenditure rose to 474.1 billion euros in 2021. As healthcare expenditure is rising, it tends to be a corresponding increase in the demand for healthcare services, including medications. People are more likely to seek medical treatment and prescription drugs when they have greater access to healthcare services, which boosts pharmaceutical sales. In addition, increasing healthcare expenditure is leading to the expansion of access to healthcare services for the population. When more people have access to healthcare, they are more likely to receive diagnosis for medical conditions and prescribed medications to manage those conditions. This increasing access is driving the demand for pharmaceutical products in the country. Furthermore, high healthcare expenditure is leading to the rise in investment in research and development (R&D) activities by pharmaceutical companies. This investment fuels innovations in drug discovery and development, leading to the introduction of new pharmaceutical products that address unmet medical needs, thereby supporting the growth of the market. The German Pharmaceutical Industry Association has been instrumental in advocating for continued R&D investment to support these advancements.

Increased Focus on Biotech-Driven Therapies

Biotechnology is taking a stronger hold in the German pharmaceutical sector. Companies are investing heavily in genetic engineering, mRNA platforms, and precision medicine, particularly after the success of BioNTech’s COVID-19 vaccine. There’s a growing preference for biologics in areas like oncology, neurology, and autoimmune disorders. This shift is pushing both established firms and startups to form partnerships with research institutes and tech firms. The federal government has also been encouraging biotech innovation through grants and simplified regulatory pathways. As these treatments gain wider reimbursement support and clinical acceptance, biotech is no longer seen as an emerging segment. It’s becoming a standard approach for next-generation drug development in Germany. These developments are strongly shaping the Germany biopharmaceuticals market.

Surge in Non-Prescription Drug Sales

Germany is seeing notable growth in its over-the-counter (OTC) pharmaceutical segment. Consumers are increasingly turning to self-care and preventive health solutions, leading to higher sales of vitamins, herbal supplements, and pain relief products. This trend is reinforced by greater health awareness and easier access to information online. Pharmacies and online platforms are expanding their OTC offerings, and brands are investing in direct-to-consumer strategies. Meanwhile, an aging population and longer life expectancy are creating ongoing demand for non-prescription treatments for chronic conditions and minor ailments. Retailers are also benefiting from fewer restrictions on advertising compared to prescription drugs, making this segment highly competitive and profitable.

Germany Pharmaceutical Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on type and nature.

Type Insights:

• Pharmaceutical Drugs
  • Cardiovascular Drugs
  • Dermatology Drugs
  • Gastrointestinal Drugs
  • Genito-Urinary Drugs
  • Hematology Drugs
  • Anti-Infective Drugs
  • Metabolic Disorder Drugs
  • Musculoskeletal Disorder Drugs
  • Central Nervous System Drugs
  • Oncology Drugs
  • Ophthalmology Drugs
  • Respiratory Diseases Drugs
• Biologics
  • Monoclonal Antibodies (MAbS)
  • Therapeutic Proteins
  • Vaccines

The report has provided a detailed breakup and analysis of the market based on the type. This includes pharmaceutical drugs (cardiovascular drugs , dermatology drugs, gastrointestinal drugs, genito-urinary drugs, hematology drugs, anti-infective drugs, metabolic disorder drugs, musculoskeletal disorder drugs, central nervous system drugs, oncology drugs, ophthalmology drugs, and respiratory diseases drugs) and biologics (monoclonal antibodies (MAbS), therapeutic proteins, and vaccines).

Nature Insights:

• Organic
• Conventional

A detailed breakup and analysis of the market based on the nature have also been provided in the report. This includes organic and conventional.

Region Insights:

• Western Germany
• Southern Germany
• Eastern Germany
• Northern Germany

The report has also provided a comprehensive analysis of all the major regional markets, which include Western Germany, Southern Germany, Eastern Germany, and Northern Germany.

German Pharmaceutical Companies:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Germany Pharmaceutical Market News:

• March 2025: Isotopia launched Isoprotrace in Germany, a radiopharmaceutical used for PET imaging of prostate cancer. DSD Pharma will distribute it exclusively across hospitals and clinics nationwide. The kit enables quick preparation of Gallium-68 Gozetotide injections targeting PSMA-positive lesions. This partnership also includes Lutetium-177 Chloride n.c.a., expanding their cancer diagnosis and treatment offerings in Germany’s nuclear medicine market.
• October 2024: LEO Pharma launched Anzupgo (delgocitinib) cream in Germany for adults with moderate to severe chronic hand eczema unresponsive to corticosteroids. This marks the product’s global debut, following European Commission approval. Germany becomes the first country to offer the treatment. Chronic hand eczema causes intense itching and pain, often disrupting daily life and work. Anzupgo targets the underlying inflammation and skin barrier issues linked to the condition.
• May 22, 2024: Boehringer Ingelheim and OSE Immunotherapeutic expand their collaboration to develop first-in-class treatments for cancer and cardio-renal-metabolic diseases.
• March 14, 2024: Bayer and Aignostics GmbH announced a strategic collaboration on several artificial intelligence (AI)-powered approaches with applications in precision oncology drug research and development.

Germany Pharmaceutical Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Germany pharmaceutical market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Germany pharmaceutical market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Germany pharmaceutical industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.