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Basic Pharmaceutical Product Manufacturing in Germany - Market Research Report (2014-2029)

Clara-Camille Schneider Clara-Camille Schneider Frankfurt, Germany Last Updated: December 2024 WZ C21.10DE

Revenue

€1.7bn

2024

€1.7bn

Past 5-Year Growth

Profit

€XXX.Xm

Employees

7,230

Businesses

40

Wages

€XXX.Xm

Basic Pharmaceutical Product Manufacturing in Germany industry analysis

Since 2019, turnover in the basic pharmaceutical ingredients manufacturing industry has fallen by an average of 0.3% per year. Although demand in individual areas of the industry fell during the coronavirus pandemic, the pandemic led to a temporary growth spurt for the industry due to the high demand for the raw materials required for vaccines. Following the boom during the coronavirus pandemic, domestic sales have normalised again over the past two years. At the same time, research expenditure has risen sharply, even though Germany is becoming less attractive internationally and the number of clinical trials conducted in Germany continues to fall. < />As a result of the war in Ukraine, prices for energy, raw materials and primary products have risen significantly. For example, chemical goods became massively more expensive in the wake of the energy crisis in 2022. The energy-intensive industry was unable to compensate for this cost boom due to politically regulated price mechanisms, resulting in a deterioration in earnings. Earnings are additionally burdened by the SHI Financial Stabilisation Act, which has been in force since November 2022.Producer prices have fallen over the course of 2023, a trend that will continue in 2024 and have a positive impact on sector-specific profits. Turnover growth of 1.1% is expected in 2024, meaning that industry turnover is likely to reach a value of 1.7 billion euros. Production growth and, fuelled by the German pharmaceutical strategy, rising investments are expected in the sector. The positive sales trend, which is also due to positive demand stimuli from abroad, will enable high levels of investment, which will primarily be channelled into research and development and high-tech facilities and enable innovative methods such as gene and cell therapies as well as drugs for rare diseases. < />Investing in in-house high-tech production and products is necessary to remain internationally competitive. Over the next five years, industry turnover is expected to grow by an average of 3.5% per year and reach 2.1 billion euros in 2029. Value creation in the industry is expected to continue to rise, which in turn will be accompanied by an increase in employment. At the same time, there are high barriers to market entry in the sector, which is why the number of companies is likely to increase only slowly in the coming years. At the same time, increasing antibiotic resistance is forcing pharmaceutical companies to invest more in the development of new active ingredients. If the resistance of pathogens continues to increase, many drugs are at risk of losing their effectiveness.

Trends and Insights

  • The significant increase in wholesale prices is making German manufacturers less competitive. In addition, healthcare policy decisions regarding mandatory discounts and pricing systems are having a negative impact on industry players' willingness to invest and research activities.
  • Acyclic and cyclic amides and their derivatives are the highest-selling product segment. Demand for amides in pharmaceutical production is expected to continue to rise in the coming years.
  • The southern region has the largest share of companies in the sector. Investments and expenditure on research and development activities are particularly high in Baden-Württemberg.
  • Smaller companies could increasingly leave the market in future or enter into collaborations with large manufacturers. The increasing complexity of basic research and the spread of antibiotic-resistant bacteria are causing research costs to rise. Small manufacturers often do not have the necessary financial resources to cope with these additional costs on their own.

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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 0.3 % over the past five years, to reach an estimated €1.7bn in 2024.

Trends and Insights

The new SHI Financial Stabilisation Act will place an even greater burden on pharmaceutical manufacturers' earnings

  • Many industry players are also active as pharmaceutical manufacturers. The SHI Financial Stabilisation Act, which came into force in November 2022, is putting pressure on the earnings situation of pharmaceutical manufacturers.
  • Additional trends and insights available with purchase
Basic Pharmaceutical Product Manufacturing in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

The EU Parliament has spoken out in favour of the planned directive on the treatment of urban wastewater

  • Under the planned wastewater directive, EU countries are to have the pharmaceutical industry finance the installation and operation of a fourth purification stage in wastewater treatment plants to a large extent.

Biggest companies in the Basic Pharmaceutical Product Manufacturing in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
F. Hoffmann-La Roche AG
266.4
Bayer AG
253.0
Boehringer Ingelheim Pharma GmbH & Co. KG
204.9

To view the market share and analysis for all 8 top companies in this industry, view purchase options.

Products & Services Segmentation

Basic Pharmaceutical Product Manufacturing in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Acyclic and cyclic amides and their derivatives, Heterocyclic compounds and Natural and synthetic provitamins and vitamins. Acyclic and cyclic amides and their derivatives is the largest segment of the Basic Pharmaceutical Product Manufacturing in Germany.

Trends and Insights

Demand for acyclic and cyclic amides and their derivatives remains high

  • Acyclic and cyclic amides and their derivatives form the strongest-selling product segment.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The pharmaceutical raw materials manufacturing industry comprises the production of various substances that are required for the manufacture of pharmaceutical preparations. This includes, among other things, the processing of blood and the production of chemically pure sugar. The industry definition does not include the performance of research work in the field of biotechnology.

What's included in this industry?

Acyclic and cyclic amides and their derivativesHeterocyclic compoundsNatural and synthetic provitamins and vitaminsGlands and human or animal bloodNatural and synthetic hormones

Companies

F. Hoffmann-La Roche AGBayer AGBoehringer Ingelheim Pharma GmbH & Co. KG

Purchase this report to view all 8 major companies in this industry.

Related Terms

GENE SILENCINGDEOXYRIBONUCLEIC ACID (DNA)GEN

Industry Code

WZ 2008

WZ 21.10 - Basic Pharmaceutical Product Manufacturing in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

The significant increase in wholesale prices is making German manufacturers less competitive. In addition, healthcare policy decisions regarding mandatory discounts and prici...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Acyclic and cyclic amides and their derivatives are the highest-selling product segment. Demand for amides in pharmaceutical production is expected to continue to rise in the...

In this chapter

  • Products & Services
  • Major Markets
  • International Trade

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level
  • Total imports, level and trend
  • Total exports, level and trend
  • Trade Balance

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024
  • International trade, including imports by country and exports by country

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services
  • Recent trends in import and export volumes, country of origin or destination, and expected future trends

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The southern region has the largest share of companies in the sector. Investments and expenditure on research and development activities are particularly high in Baden-Württe...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Smaller companies could increasingly leave the market in future or enter into collaborations with large manufacturers. The increasing complexity of basic research and the spr...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Bayer is focused on long-term market trends in the areas of health and nutrition and endeavours to bring innovative and sustainable solutions to the market. Numerous projects...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of F. Hoffmann-La Roche AG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Bayer AG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Boehringer Ingelheim Pharma GmbH & Co. KG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 5 additional companies

Detailed analysis

  • Description and key data for F. Hoffmann-La Roche AG, and factors influencing its performance in the industry
  • Description and key data for Bayer AG, and factors influencing its performance in the industry
  • Description and key data for Boehringer Ingelheim Pharma GmbH & Co. KG, and factors influencing its performance in the industry
  • Description, key data and performance trends for 5 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The SHI Financial Stabilisation Act represents a burden for the earnings situation of companies in the sector. The austerity law includes an increase in manufacturer discount...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

The cost of materials is the biggest cost factor in the industry. The procurement costs for human substances such as blood, especially the coveted blood plasma, are particula...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Basic Pharmaceutical Product Manufacturing industry in Germany in 2024?

The market size of the Basic Pharmaceutical Product Manufacturing industry in Germany is €1.7bn in 2024.

How many businesses are there in the Basic Pharmaceutical Product Manufacturing in Germany industry in 2024?

There are 40 businesses in the Basic Pharmaceutical Product Manufacturing industry in Germany, which has grown at a CAGR of 1.6 % between 2019 and 2024.

Has the Basic Pharmaceutical Product Manufacturing industry in Germany grown or declined over the past 5 years?

The market size of the Basic Pharmaceutical Product Manufacturing industry in Germany has been declining at a CAGR of 0.3 % between 2019 and 2024.

What is the forecast growth of the Basic Pharmaceutical Product Manufacturing industry in Germany over the next 5 years?

Over the next five years, the Basic Pharmaceutical Product Manufacturing industry in Germany is expected to grow.

What are the biggest companies in the Basic Pharmaceutical Product Manufacturing market in Germany?

The biggest companies operating in the Basic Pharmaceutical Product Manufacturing market in Germany are F. Hoffmann-La Roche AG, Bayer AG and Boehringer Ingelheim Pharma GmbH & Co. KG

What does the Basic Pharmaceutical Product Manufacturing in Germany include?

Acyclic and cyclic amides and their derivatives and Heterocyclic compounds are part of the Basic Pharmaceutical Product Manufacturing industry.

Which companies have the highest market share in the Basic Pharmaceutical Product Manufacturing in Germany?

The company holding the most market share in Germany is F. Hoffmann-La Roche AG.

How competitive is the Basic Pharmaceutical Product Manufacturing industry in Germany?

The level of competition is moderate and increasing in the Basic Pharmaceutical Product Manufacturing industry in Germany.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • Pharmaceutical Preparations Manufacturing in Germany
  • Biotechnology Research & Development in Germany

Complementors

  • Pharmaceutical Preparations Manufacturing in Germany
  • Medical Laboratories in Germany

International industries

  • Basic Pharmaceutical Product Manufacturing in the UK
  • Basic Pharmaceutical Product Manufacturing in Ireland
  • Pharmaceutical Raw Material Manufacturing in China

View all industries in Germany

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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