Market Trends of Germany Pharmaceutical Warehousing Industry
Growth of E-commerce in the market
Germany is Europe's e-commerce leader, offering a myriad of opportunities for international online retailers and service providers alike. During the period 2017 to 2022, B2C e-commerce grew by 69%, from EUR 58.5 billion to EUR 99.1 billion (USD 63.59 Billion to USD 107.72 Billion). With 58 million people, 84% of the German population over the age of 16, are purchasing online regularly. Germany boasts not only the most internet users in Europe but also the greatest e-commerce customer potential.
In its December 2021 coalition agreement, the new federal government declared the digital transformation of Germany’s healthcare system to be a priority. It announced the development of a national e-health strategy. Priorities include realignment of the telematics infrastructure and continued national implementation of electronic patient records and e-prescriptions.
As of 2022, 99% of pharmacies were connected to the telematics infrastructure, a significant increase from 75% in 2021. However, 87% of pharmacists worry that the e-prescription program will prompt greater competition from online and mail-order pharmacies.
German citizens and patients are most interested in the convenience and flexibility of digital health solutions. In a 2022 survey by Doctolib, best known for its online appointment-booking platform, 66% of patients indicated their interest in using online booking, 58% e-prescriptions, and 55% digital transmission of diagnostic results.
Increase in export and import of pharmaceuticals
The German industry is ahead of the French, Italian, and Great Britain markets. Germany’s share of the total global pharmaceutical value stood at 5.9% of the pharmaceutical industry worldwide. Germany holds more than 510 pharmaceutical companies and more than 670 biotechnology companies. The industry manufactured medicines and pharma equipment worth EUR 31.1 billion (USD 33.81 Billion) at the beginning of the COVID-19 pandemic.
With EUR 131.2 billion (USD 154.4 billion) generated through foreign sales, HCT contributes 8.3% to Germany’s total exports. The expected CAGR of the German medical equipment market for 2020-2025 is 5.1% in euro terms and 6.8% in USD terms. The value of pharmaceuticals imported into Germany was approximately EUR 71 billion (USD 76 billion) in 2021. It means Germany holds a positive trade balance in the pharmaceutical market as its exports are worth more than its imports.
In Germany alone, the pharmaceutical industry spends over EUR 6.2 billion (USD 6.6 billion) annually on research and development (R&D), or EUR 15 million (USD 16 million) each day. It demonstrates that Germany is among the top research destinations for pharmaceutical businesses with a global presence.
