Pharmaceutical Preparations Manufacturing in Germany - Market Research Report (2014-2029)
Frankfurt, Germany
Last Updated: July 2024
WZ C21.20DERevenue
€62.5bn
Past 5-Year Growth
Profit
€X.Xbn
Employees
134k
Businesses
272
Wages
€XX.Xbn
Pharmaceutical Preparations Manufacturing in Germany industry analysis
In the last five years, turnover in the pharmaceutical product manufacturing sector has fallen by an average of 1.8% per year. Although sales fell during the coronavirus pandemic, the pharmaceutical industry was less affected by the impact of the pandemic than other sectors of the German chemical industry. On the one hand, the industry suffered less from a structural weakness in demand at home and abroad, and on the other hand, pharmaceutical supply chains remained intact despite pandemic-related shocks. Since then, the German pharmaceutical industry has recorded production growth. The production of vaccines against the coronavirus is likely to have been an important growth driver.Chemical goods have become massively more expensive in the wake of the energy crisis. The high prices for energy and primary products have pushed up input costs further over the past two years. Procurement risks arose, among other things, from price increases and the lack of upstream deliveries from the chemical industry, which cut back on production as a result of the high energy costs. The increased costs could not be passed on in full and had a negative impact on earnings. In addition to a decline in demand for vaccines, the economic policy framework, above all the SHI Financial Stabilisation Act, has had a negative impact on the business of industry players over the past two years. Despite the difficult framework conditions, research expenditure has increased, with the development and production of biopharmaceuticals playing an increasingly important role. In 2024, industry turnover is expected to reach 62.5 billion euros, which corresponds to growth of 1.7% compared to the previous year. The producer price for pharmaceutical products is likely to gradually fall again this year. This will enable industry players to generate higher profits again as manufacturing costs fall. At the same time, production growth and rising investments are expected in 2024.Due to the extension of the price moratorium on pharmaceuticals until 2026 provided for in the new savings law, manufacturers are unable to pass on the inflation-related price increases. In addition, the higher manufacturer discounts act as an additional cost burden and dampen the willingness to invest in the German location. There is growth potential for the industry in the context of digitalisation and the associated development of new business areas. The advancing ageing of society as a result of demographic change, which favours demand for pharmaceutical products, is an advantage. By 2029, the industry's turnover is expected to grow by an average of 2.9% per year and is therefore likely to reach 72.1 billion euros. At the same time, the competitive pressure in the industry will intensify further with the market entry of international competitors, including technology companies such as Google, Amazon and Samsung, as well as domestic start-ups, for example from the biotech sector.
Trends and Insights
- The production of vaccines against the coronavirus has been a key sales driver in recent years. The number of vaccine offers will increase and further applications for EU authorisation are currently being processed. At the same time, competition from foreign offerings is likely to intensify.
- The industry generates the majority of its sales with drugs without antibiotics or hormones. The share of sales of these products has declined in recent years as prices have fallen due to the introduction of numerous low-cost generics.
- In the southern region, there are important industry clusters in the Rhine-Main area and in the Rhine-Ruhr metropolitan region. However, the lack of space will make the region less attractive in the long term.
- The industry is significantly characterised by international competition. Manufacturers from Asia and the USA are increasingly pushing into the market and players from other European countries are also trying to profit from the German industry.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 1.8 % over the past five years, to reach an estimated €62.5bn in 2024.
Trends and Insights
The new SHI Financial Stabilisation Act will place an even greater burden on pharmaceutical manufacturers' earnings
- 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
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Rising life expectancy will lead to an increased demand for various medications
- Against the backdrop of demographic change, the industry has good growth prospects. One reason for this is the ageing of society, which increases the need for medicines. Chronic illnesses such as Alzheimer's disease, heart disease and visual impairment occur more frequently with increasing age.
Biggest companies in the Pharmaceutical Preparations Manufacturing in Germany
| Company | Market Share (%)
2024 | Revenue (€m)
2024 |
|---|---|---|
F. Hoffmann-La Roche AG | 9,945.0 | |
Novartis Deutschland GmbH | 6,723.1 | |
Boehringer Ingelheim Pharma GmbH & Co. KG | 5,130.4 |
To view the market share and analysis for all 8 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Medicines without antibiotics or hormones, Medication from antibiotics and Antisera, vaccines and other blood components. Medicines without antibiotics or hormones is the largest segment of the Pharmaceutical Preparations Manufacturing in Germany.
Trends and Insights
The proportion of sales of medicinal products without antibiotics or hormones remains high
- Medicines that do not contain antibiotics or hormonal substances are used to treat a variety of diseases. These products consist of many different active ingredients and primarily utilise salts, acids, vitamins or other substances to develop their effect. These include various ointments, drops or other liquids used for treatment, as well as acetylsalicylic acid, which is used in Aspirin, or the substance diclofenac, which is contained in Voltaren.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Basic Pharmaceutical Product Manufacturing in Germany
- Biotechnology Research & Development in Germany
Complementors
- Basic Pharmaceutical Product Manufacturing in Germany
- Dispensing Chemists in Germany
- Biotechnology Research & Development in Germany
- Hospitals in Germany
International industries
- Brand Name Pharmaceutical Manufacturing in the US
- Brand-Name Pharmaceutical Manufacturing in Canada
- Pharmaceutical Product Manufacturing in Australia
- Veterinary Pharmaceutical and Medicinal Product Manufacturing in New Zealand
- Pharmaceutical Preparations Manufacturing in the UK
Table of Contents
About this industry
Industry definition
This sector is involved in the manufacture of medicines, vaccines, various pharmaceuticals and homeopathic products. This also includes chemical contraceptives, radioactive substances for in vivo diagnostics and biotechnological products. In addition, there is the production of dressing materials and the preparation of botanical materials for further processing in the pharmaceutical sector.
What's included in this industry?
Medicines without antibiotics or hormonesMedication from antibioticsAntisera, vaccines and other blood componentsDiagnostic reagentsMedication made from hormonesCompanies
F. Hoffmann-La Roche AGNovartis Deutschland GmbHBoehringer Ingelheim Pharma GmbH & Co. KGPurchase this report to view all 8 major companies in this industry.
Related Terms
BIOPHARMACEUTICALS/BIOLOGICSBIOSIMILARSOTC DRUGSBIOINFORMATICSGENERICAHOMEOPATHYIndustry Code
WZ 21.20 - Pharmaceutical Preparations 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 production of vaccines against the coronavirus has been a key sales driver in recent years. The number of vaccine offers will increase and further applications for EU aut...
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
The industry generates the majority of its sales with drugs without antibiotics or hormones. The share of sales of these products has declined in recent years as prices have ...
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
In the southern region, there are important industry clusters in the Rhine-Main area and in the Rhine-Ruhr metropolitan region. However, the lack of space will make the regio...
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
The industry is significantly characterised by international competition. Manufacturers from Asia and the USA are increasingly pushing into the market and players from other ...
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
Novartis wants to focus on the development of innovative medicines and therapies for rare diseases and cancer in future. The Sandoz business unit, which produces generics and...
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 Novartis Deutschland GmbH'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 Novartis Deutschland GmbH, 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 industry is highly regulated and is subject to the German Medicinal Products Act and the Act on the Reorganisation of the Pharmaceutical Market and is monitored by the Fed...
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 largest cost block in the industry. In recent years, there has been an increase in material costs, which can be explained by an increase in the p...
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)
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.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Pharmaceutical Preparations Manufacturing industry in Germany in 2024?
The market size of the Pharmaceutical Preparations Manufacturing industry in Germany is €62.5bn in 2024.
How many businesses are there in the Pharmaceutical Preparations Manufacturing in Germany industry in 2024?
There are 272 businesses in the Pharmaceutical Preparations Manufacturing industry in Germany, which has grown at a CAGR of 2.5 % between 2019 and 2024.
Has the Pharmaceutical Preparations Manufacturing industry in Germany grown or declined over the past 5 years?
The market size of the Pharmaceutical Preparations Manufacturing industry in Germany has been declining at a CAGR of 1.8 % between 2019 and 2024.
What is the forecast growth of the Pharmaceutical Preparations Manufacturing industry in Germany over the next 5 years?
Over the next five years, the Pharmaceutical Preparations Manufacturing industry in Germany is expected to grow.
What are the biggest companies in the Pharmaceutical Preparations Manufacturing market in Germany?
The biggest companies operating in the Pharmaceutical Preparations Manufacturing market in Germany are F. Hoffmann-La Roche AG, Novartis Deutschland GmbH and Boehringer Ingelheim Pharma GmbH & Co. KG
What does the Pharmaceutical Preparations Manufacturing in Germany include?
Medicines without antibiotics or hormones and Medication from antibiotics are part of the Pharmaceutical Preparations Manufacturing industry.
Which companies have the highest market share in the Pharmaceutical Preparations Manufacturing in Germany?
The company holding the most market share in Germany is F. Hoffmann-La Roche AG.
