Europe Generic Market

Europe Generic Market: Global Size, Trends, Competitive, and Historical & Forecast Analysis, 2020-2030: Amplifying Need of Cost Saving Healthcare Measures Among European Population Creating a Space for Generics Market, Strategic Collaborations and New Drug Launches Propel Europe's Generic Market Growth, Growing Aging Population and Need for Generic Drugs Fuel the Market Growth in Europe, Implementation of Generic Medicine Policy Accelerates the Market Growth.

According to BrandEssence research, the market size is projected to reach approximately US$ 140.80 billion by 2030, with a compound annual growth rate (CAGR) of around 6.5%. Key markets include Germany, the United Kingdom, France, Italy, and Spain, which together account for a significant share of the overall market.

The European generic market is a crucial part of the healthcare industry, offering affordable alternatives to branded drugs. Generic medications contain the same active ingredients as their branded medicines and function identically, though they might differ in appearance and non-active ingredients. This sector is propelled by rising healthcare needs, the expiration of patents on major drugs, and favorable regulatory policies designed to lower healthcare costs and improve access to necessary treatments. Generic drugs are typically less expensive because the manufacturers do not bear the high costs associated with the development and marketing of new drugs.

The cost-effectiveness of medicines is indeed a significant factor driving the growth of the generics market in Europe. Generic medicines are typically sold at lower prices compared to their branded counterparts, making them more affordable for both healthcare systems and patients. For example, Pfizer offers a LIPITOR Savings Card for its generic version of LIPITOR. Eligible patients can pay as little as US$ 4 for each 30-day supply of brand-name LIPITOR, potentially saving up to US$ 1,800 annually. Several reasons contribute to the higher costs of non-generic medications, including production costs, patent protections, consumer demand, and marketing and advertising expenses. Over the past decade, these factors have driven up the prices of non-generic medicines, making them increasingly unaffordable for many families, especially after the COVID-19 pandemic. Given that healthcare is a necessity, generic medicines provide a viable alternative and a solution to reduce medical expenses.

Additionally, generic medicines play a crucial role in European healthcare systems and in supporting public health by generating budgetary savings. For instance, according to the National Institutes of Health, the prices of medicines dropped by 61% in 14 European countries following patent expiries, thanks to the market access of generic medicines.

Another driving factor in the growth of the European generic market is the increasing level of mergers, acquisitions, collaborations, investments, and product launches among industry players. For example, in 2023, Kelso Pharma, a growing UK-based specialty pharma business, took its first step in its planned European expansion strategy by agreeing to acquire the Italian pharma company Velit Biopharma. Velit brings with it a robust portfolio and a rich pipeline of niche and generic products that Kelso can leverage through Velit's existing platform. Additionally, in 2023, Kelso Pharma, the growing UK-based specialty pharma business, announced its first product launch with the release of Acepiro® (Acetylcysteine) 600 mg effervescent tablets to the UK prescription medicine market.

These strategic moves significantly impact the market positively by fostering innovation, expanding market reach, and enhancing operational efficiencies. This increased cooperation among pharmaceutical companies not only strengthens their competitive position but also contributes to the overall growth and dynamism of the generic market in Europe.

Moreover, the market is characterized by a mix of large multinational firms and smaller specialized companies. Leading players include Teva Pharmaceutical Industries Ltd., Sandoz (a Novartis division), Mylan NV, and STADA Arzneimittel AG. These companies leverage extensive distribution networks, strong R&D capabilities, and strategic partnerships to maintain their market positions.

Furthermore, despite driving factors, the European generics market faces several challenges. Intense competition leads to significant pricing pressure, affecting profit margins. Complex and varying regulatory requirements across Europe can delay new drug approvals. Market consolidation through mergers reduces competition, and reliance on global supply chains, especially for active pharmaceutical ingredients (APIs), increases disruption risks. Additionally, misconceptions about the efficacy and safety of generics among healthcare providers and patients can hinder acceptance. Addressing these issues is crucial for the market's sustained growth and stability.

Moreover, Germany is recognized for its dominance in the European generic drug market. This leading position is due to several factors, one of which is its strong pharmaceutical industry. Germany boasts a robust pharmaceutical sector that encompasses both brand-name and generic drug manufacturers. For example, in 2024, Stada Arzneimittel AG initiated discussions with potential buyers as the owners of the German generic drug maker consider a possible sale, which could value the company at approximately US$ 8.7 billion.

Market Segmentation:

By Therapeutic Area:

• Oncology
• Central Nervous System
• Systemic Anti-Infectives
• Gastrointestinal
• Cardiovascular
• Musculoskeletal
• Others

By Generic Drug Class:

• Statins
• Antihypertensives
• Antidiabetics
• Antibiotics
• Antidepressants
• Analgesics
• Anticonvulsants
• Hormones
• Others

By Product Class:

• Oral Solids
• Biologics
• Inhalers
• Injectables
• Ophthalmicscope
• Others

By Generic Drug Category:

• Traditional Generic
• Branded Generic

By Distribution Channel:

• Retail Pharmacies
• Hospital Pharmacies
• Online Pharmacies

Key Players:

• Reddy’s Laboratories Ltd
• Fresenius Kabi AG
• Hikma Pharmaceuticals PLC
• Niche Generics Ltd.
• Sandoz
• Apotex Inc.
• Mylan N.V.
• Stada Arzneimittel AG
• Pfizer
• Cipla Ltd
• Others

Analyst Comment: Substantial investments from key stakeholders and government entities in the research and development (R&D) of generics medication, coupled with awareness campaigns, are driving the growth of the Europe generic market on a global scale which is projected to reach US$ 140.80 billion in 2030.”

Here are some driving factors:

Amplifying Need of Cost Saving Healthcare Measures Among European Population Creating a Space for Generics Market

Rising healthcare costs in European countries have necessitated the adoption of cost-saving measures, with the use of generic medicines being one of the most significant strategies. Generic drugs are less expensive compared to brand-name drugs, making them more affordable for consumers and easing the financial burden on healthcare systems. This shift towards generics has been driven by increased healthcare expenditures, pushing more customers towards these cost-effective alternatives.

The impact of the COVID-19 pandemic has further accelerated the shift towards generic drugs and products. In the European region, Poland has demonstrated a 55% acceptance rate for generics, followed by Austria at 48%, with the Netherlands showing the lowest acceptance at 13%. Patient preferences for cost-effective treatment options, coupled with improved access to generics through pharmacies and healthcare providers, have significantly contributed to the growth of the market.

Generic medicines play a crucial role in European healthcare systems by generating substantial budgetary savings and improving access to treatment. Following patent expirations, medicine prices dropped by 61% in 14 European countries due to the introduction of generics. Furthermore, for products with a single generic producer, the Average Manufacturer Price (AMP) is 39% lower than the brand AMP before generic competition, compared to a 31% reduction using invoice prices.

In summary, rising healthcare costs, the economic impact of COVID-19, patient preferences for affordable treatments, and the efforts of healthcare providers and policymakers have created a favorable environment for generic drugs in Europe. This has led to increased utilization and demand for generics, making healthcare more accessible and sustainable while significantly contributing to cost-saving measures for the European population.

Strategic Collaborations and New Drug Launches Propel Europe's Generic Market Growth

Collaboration and the launch of new drugs are key factors driving the generic market in Europe. Market players in Europe are increasingly collaborating with international companies to expand their product reach and portfolio. A notable example is the collaboration between Sun Pharmaceutical Industries Limited and Philogen S.p.A. On May 30, 2023, they announced a licensing agreement to commercialize Philogen's specialty product, Nidlegy™ (Daromun), in Europe, Australia, and New Zealand. Nidlegy™, currently in Phase III clinical trials, is an innovative anti-cancer biopharmaceutical developed for treating melanoma and non-melanoma skin cancers.

This partnership exemplifies how European market players are working with global companies to introduce new and advanced treatments, thereby broadening the scope and availability of generics.

Additionally, regulatory support plays a crucial role in driving the generic market. For instance, on April 23, 2021, the CHMP recommended marketing authorizations for two generic medicines: Abiraterone Krka (abiraterone acetate) for treating adult men with metastatic prostate cancer and Celsunax (ioflupane (123I)) for detecting the loss of functional dopaminergic neuron terminals in the striatum. Such regulatory endorsements facilitate the entry of generics into the market, making them more accessible and affordable for patients.

In summary, strategic collaborations and new drug launches are pivotal in driving the growth of the generic market in Europe. European companies' collaborations with international firms, supported by favorable regulatory actions, significantly enhance the reach, diversity, and acceptance of generic medicines, ultimately contributing to more cost-effective and accessible healthcare solutions.

Growing Aging Population and Need for Generic Drugs Fuel the Market Growth in Europe

The aging population across Europe is driving a significant shift in the pharmaceutical landscape, particularly in the demand for generic drugs. The demographic transition towards an older population is accompanied by an increase in the prevalence of chronic diseases and age-related ailments, such as cardiovascular diseases, diabetes, and osteoporosis. This trend necessitates a higher demand for affordable medications to manage these health conditions, positioning generic drugs as a crucial component of healthcare strategies.

According to the World Health Organization (WHO) European Region data, the population aged 60 and older is growing rapidly. In 2021, there were 215 million people in this age group, and this number is projected to rise to 247 million by 2030 and exceed 300 million by 2050. On January 1, 2023, the European Union (EU) population was estimated at 448.8 million people, with more than one-fifth (21.3%) aged 65 years and over. This substantial proportion of elderly individuals underscores the pressing need for cost-effective treatments, which generics can provide.

The aging population in Europe is significantly driving the demand for generic drugs, as the increasing prevalence of chronic diseases and age-related ailments necessitates affordable medication options. Pharmaceutical companies are adapting their product portfolios and marketing strategies to meet the needs of elderly consumers, fostering both innovation and competition in the market. The growing number of older adults compels manufacturers to develop a broader range of generic medications tailored to this demographic, enhancing the availability and accessibility of essential treatments.

Government healthcare policies aimed at cost containment further support the demand for generics, as they offer a cost-effective alternative to branded medications. These policies help manage healthcare budgets more effectively, ensuring the elderly population has access to necessary treatments despite fiscal constraints.

Overall, the aging population is a pivotal driver of growth in the European generics market, promoting innovation and competitive dynamics among pharmaceutical companies while benefiting the healthcare system and elderly individuals.

Implementation of Generic Medicine Policy Accelerates the Market Growth

The policy made by European Union (EU) towards generic drugs and its prescribing has benefited the market in recent years. In United Kingdom prescribing the generic drugs have been common practice. In the landscape of the European generic market, the streamlined process facilitated by the centralized procedure for Marketing Authorization stands as a pivotal market driving factor. This procedure, administered by the European Medicines Agency (EMA), offers pharmaceutical companies a singular pathway to seek approval for generic drugs across all EU member states. By enabling manufacturers to submit a single application to the EMA, it ensures consistency and efficiency in the evaluation and approval process throughout the European Union. These government policies and incentives drive the utilization and growth of the generic drugs market.