Europe Generic Drugs Market Size and Forecast (2021 - 2031) Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Molecule Type (Antidepressants, Antihistamines, Analgesics, Antibiotics, Antivirals, Diuretics, and Other Molecule Types

The European generic drugs market is on a trajectory of significant growth, projected to reach approximately USD 114,032.33 million by 2031, up from USD 77,959.65 million in 2024. This growth translates to a compound annual growth rate (CAGR) of 5.8% from 2025 to 2031, indicating a robust demand for generic medications across the continent.

Executive Summary and Market Analysis

The generic drugs sector in Europe is set for substantial expansion, driven by a combination of factors including a well-established healthcare system, an aging demographic, and increasing investments in innovative therapies. Europe is a central hub for pharmaceutical and biotechnology companies that are actively engaged in developing treatments for chronic conditions such as diabetes and cancer. According to the World Health Organization (WHO), as of July 2024, around 64 million adults and approximately 300,000 children and adolescents in the WHO European Region are living with diabetes, with a significant portion of these cases remaining undiagnosed. This scenario underscores the urgent need for affordable treatment options, particularly generics. Projections suggest that by 2045, one in ten Europeans may be affected by diabetes, highlighting the critical demand for cost-effective solutions. Additionally, cancer remains a pressing health issue, with the WHO reporting over 4.47 million new cancer cases and nearly 2 million cancer-related deaths in Europe in 2022. As the population ages and the prevalence of chronic diseases rises, the demand for affordable alternatives is expected to intensify.

Strategic Insights

Market Segmentation Analysis

The European generic drugs market can be segmented based on molecule type, indication, type, and distribution channel:

Molecule Type: The market is categorized into antidepressants, antihistamines, analgesics, antibiotics, antivirals, diuretics, and others. In 2024, the antibiotics segment held the largest market share.
Indication: The market is divided into segments including metabolic diseases, cancer, immunology, respiratory disorders, cardiovascular disorders, neurology disorders, rare diseases, and others. The cancer segment was the largest contributor in 2024.
Type: The market is bifurcated into prescription and over-the-counter (OTC) drugs, with the prescription segment dominating in 2024.
Distribution Channel: The market is segmented into hospital pharmacies, retail pharmacies, and online pharmacies, with hospital pharmacies holding the largest share in 2024.

Market Outlook

A significant opportunity for growth in the generic drugs market is emerging from the digital transformation of healthcare systems and the expansion of public procurement platforms, particularly in developing and middle-income countries. As governments and insurers increasingly adopt value-based care models and focus on cost containment, there is a rising demand for high-quality, low-cost alternatives to branded medications. This trend presents opportunities for generic manufacturers to integrate into national health supply chains, secure bulk tenders, and establish long-term contracts.

Moreover, the rise of e-pharmacies and telemedicine platforms is creating new retail channels for generic drugs, especially in underserved and remote areas. Companies that invest in digital distribution, ensure compliance with local regulations, and engage in public-private partnerships can leverage these trends to expand their market presence and build trust in generics as first-line treatment options.

Country Insights

The European generic drugs market includes key countries such as the UK, Germany, France, Italy, Spain, and the Rest of Europe, with the Rest of Europe accounting for the largest market share in 2024. Countries like Norway, Denmark, Sweden, Poland, Ukraine, Romania, Belgium, and the Czech Republic are notable players in the generic drugs market within this region. These countries are experiencing steady growth due to increasing healthcare demands, cost-containment policies, and a rising burden of chronic diseases. They benefit from strong healthcare infrastructure, growing investments in biotechnology, and active collaborations between public institutions and private sector entities.

As national healthcare budgets face increasing pressure, generic drugs are being recognized as a strategic solution to ensure affordable and sustainable access to medications. Countries such as the Netherlands and Belgium, which are pivotal in the EU's pharmaceutical landscape, are increasingly advocating for the use of generics and biosimilars to manage treatment costs while maintaining high care standards. The rising prevalence of chronic diseases, particularly cancer and hepatitis, is a key driver of demand for cost-effective treatment options, with generic oncology drugs becoming increasingly vital in national health systems.

Local companies are also enhancing their innovation capabilities in low-cost drug development. For instance, AstriVax Therapeutics in Belgium, while primarily focused on vaccine development, exemplifies the region's scientific prowess. Although not directly involved in generics, companies like AstriVax highlight the strong biotech environment that could be leveraged for the development of generic biologics and biosimilars in the future.

Company Profiles

Key players in the European generic drugs market include Teva Pharmaceutical Industries Ltd, Viatris Inc, Dr. Reddy's Laboratories Ltd, Novartis AG, Sun Pharmaceutical Industries Ltd, AbbVie Inc, AstraZeneca Plc, Sanofi SA, Aurobindo Pharma Ltd, and Glenmark Pharmaceuticals Ltd, among others. These companies are employing various strategies such as expansion, product innovation, and mergers and acquisitions to enhance their product offerings and increase market share. Show more