According to The Insight Partners' research, the Europe generic drugs market was valued at US$ 77,959.65 million in 2024 and is expected to reach US$ 1,14,032.33 million by 2031, registering a CAGR of 5.8% from 2025 to 2031. Government policies and regulatory support for generics and digital transformation of healthcare systems and expansion of public procurement platforms are among the critical factors attributed to the Europe generic drugs market expansion.
Governments are actively encouraging the adoption of generics to reduce healthcare costs and increase access to medications. This has been particularly important in countries with high healthcare expenditures, where generics provide a critical way to curb rising costs. Regulatory bodies such as the European Medicines Agency (EMA) have made strides in reducing barriers to the approval of generics, supporting their growth and availability. This regulatory support ensures that patients in the EU can access generic versions of critical medications at significantly lower prices, particularly in therapeutic areas, including oncology, cardiovascular diseases, and chronic conditions. Countries such as Germany and the UK have also implemented cost-reduction measures that directly encourage the prescription of generics over branded drugs, creating a more cost-efficient healthcare system.
Regulatory bodies in emerging markets, such as the World Health Organization (WHO), have established stringent standards for the approval of generics, ensuring that these drugs meet international quality benchmarks. This has increased trust in generics globally, encouraging governments and increasing the dependability of healthcare systems on them. In addition to government policy, the global healthcare push toward universal health coverage (UHC) has further strengthened the generic drugs market. As countries work toward achieving UHC, they are turning to generics as a cost-effective solution to provide essential medicines to a growing number of people. This is particularly important in lower-income countries where healthcare budgets are limited, and the availability of affordable generics allows governments to extend coverage to more of their populations. Furthermore, price controls and public health programs favor the use of generics, driving the shift away from expensive branded drugs. As healthcare systems grapple with the financial burden of rising drug costs, generics balance quality care with affordability. This driver of regulatory and policy support ensures that the availability and adoption of generics will continue to expand, contributing to more affordable global healthcare. Therefore, the favorable government policies and regulatory supports boosts generic drugs market growth.
On the contrary, intense price competition and thin profit margins hamper the growth of Europe generic drugs market.
Based on molecule type, the Europe generic drugs market is segmented into antidepressants, antihistamines, analgesics, antibiotics, antivirals, diuretics, and others. The antibiotics segment held 21.7% share of the Europe generic drugs market in 2024, amassing US$ 16,927.00 million. It is projected to garner US$ 26,629.94 million by 2031 to expand at 6.9% CAGR during 2025-2031.
By indication, the Europe generic drugs market is segmented into metabolic diseases, cancer, immunology, respiratory disorder, cardiovascular disorder, neurology disorder, rare diseases, and others. The cancer segment held 24.4% share of the Europe generic drugs market in 2024, amassing US$ 19,018.25 million. It is projected to garner US$ 28,740.09 million by 2031 to expand at 6.3% CAGR during 2025-2031.
Based on type, the Europe generic drugs market is bifurcated into prescription and OTC drugs. The prescription segment held 67.7% share of the Europe generic drugs market in 2024, amassing US$ 50,576.85 million. It is projected to garner US$ 78,214.38 million by 2031 to expand at 5.9% CAGR during 2025-2031.
By distribution channel, the Europe generic drugs market is segmented into hospital pharmacies, retail pharmacies, and online pharmacies. The hospital pharmacies segment held 50.2% share of the Europe generic drugs market in 2024, amassing US$ 39,102.91 million. It is projected to garner US$ 58,729.57 million by 2031 to expand at 6.2% CAGR during 2025-2031.
By country, the Europe generic drugs market is categorized into the UK, Germany, France, Italy, Spain, and the Rest of Europe. The Rest of Europe held 40.6% share of Europe generic drugs market in 2024, amassing US$ 31,682.84 million. It is projected to garner US$ 42,096.36 million by 2031 to expand at 4.3% CAGR during 2025-2031.
Key players operating in the generic drugs market are 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.
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