New figures debuted by the European Union (EU) have uncovered a significant rise in the year-on-year value of pharma trade seen across the region in 2025 – stats the EU says represent a record trade balance for its medicines sector.
In 2025, the value of EU drug exports totalled €366.2bn ($429.3bn), marking a 16% rise from the €315.7bn the pharma trade across the union brought in during 2024.
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While exports took an uptick, the EU total drug import spend was also 21% higher in 2025, with countries across the political union forking out €145.7bn for medicines throughout the year.
This leaves the EU with a 2025 trade surplus of €220.5bn in 2025, nearly €30bn larger than the €195.3bn surplus in 2024.
According to Eoin Ryan, pharma managing analyst for Europe at GlobalData, the EU’s trade performance is “impressive”, considering it occurred against the backdrop of geopolitical and economic uncertainty linked to US tariff policies.
When comparing the total value of ex-Europe exports across nations in the EU, Ireland took the helm over its peers – bringing in just over a quarter of the EU’s total pharma trade value through its €93.8bn contribution. Meanwhile, Germany and Belgium took second and third place, and medicines exports from each country raked in €67.9bn and €38.5bn, respectively, for the EU.
US remains crucial market for EU
In 2025, the US was the main destination for EU drug exports, with 44% (or €160.6bn) of the union’s total medicines exports heading to the US market.
However, Ryan noted that these trends could be a sign of “frontloading”, as US importers looked to stay one step ahead of tariff threats posed by the Trump administration. “There is already evidence that the EU-to-US medicines trade flow slowed in Q1 2026 and is likely to be confined to a weaker growth outlook,” he said.
15% tariffs placed on the EU’s branded drug imports to the US will play a part in this trend, though nations without a deal will soon be subject to 100% import taxes.
While trade bodies like the European Federation of Pharmaceutical Industries and Associations (EFPIA) voiced their concerns on the implications of the EU-US trade deal, experts previously interviewed by Pharmaceutical Technology say that Europe’s pharma trade with the US will remain critical, despite tariff turmoil impacting the union’s bottom line.
EU looks to retain competitiveness
The positive trade surplus figures posted by Eurostat come as the EU looks to boost the competitiveness of its pharma industry on the global stage, as the nation contends with heated rivalry from the US and China.
While experts have previously warned that Europe’s efforts to keep up with its peers are falling short, European entities are now taking action to shift this narrative.
In February 2026, European venture capital firms created The European Life Sciences Coalition (ELSC) to tackle the slump in the continent’s financial attractiveness. A month before this, the Novo Nordisk Foundation poured $850m into the European life sciences sector for similar reasons.
Despite these efforts, Ryan warned that geopolitical events in the Middle East could pose a potential constraint to EU pharma export growth, as conflict could “disrupt vital trade corridors and global supply chains beyond the energy industry”, which could have significant implications for EU-based drugmakers.
However, companies are still betting on the continent over the US for contract drug manufacturing (CM). In 2025, the US experienced the largest drop in CM deals for FDA-approved drugs to be sold on home turf in half a decade. Meanwhile, deals across Europe remained consistent.
In a previous conversation with Pharmaceutical Technology, contract development and manufacturing organisations (CDMOs) noted that Europe is still an attractive region for expansion due to its reduced production costs compared with the US, as well as its stringent regulatory standards and the talent infrastructure present on the continent.
