New data commissioned by the European Union (EU) has revealed a significant year-on-year increase in the value of pharma trade across the region in 2025 – figures the EU says represent a record trade balance for its medicines sector.

In 2025, the value of EU pharmaceutical exports totaled €366.2bn ($429.3bn), a 16% increase from the €315.7bn in pharma trade across the Union during 2024.

While exports increased, EU import spending on medicines also increased by 21% in 2025, with countries in the political union spending €145.7bn on medicines over the year.

This leaves the EU with a trade surplus of €220.5bn in 2025, up almost 30bn from a surplus of €195.3bn in 2024.

According to Evan Ryan, Europe pharma managing analyst at Global Data, the EU’s trade performance is “impressive”, as it comes against a backdrop of geopolitical and economic uncertainty linked to US tariff policies.

When comparing the total value of ex-EU exports of all countries to the EU, Ireland outperformed its peers – contributing just over a quarter of the EU’s total pharma trade value of €93.8bn. Meanwhile, Germany and Belgium ranked second and third, and pharmaceutical exports from each country reached €67.9bn and €38.5bn for the EU respectively.

In 2025, the US was the main destination for EU pharmaceutical exports, with 44% (or €160.6bn) of the Union’s total pharmaceutical exports going to the US market.

However, Ryan noted that these trends could be a sign of “front-loading,” as U.S. importers look to stay one step ahead of tariff threats posed by the Trump administration. “There is already evidence that US drug trade flows from the EU slowed in Q1 2026 and are likely to remain limited with a weak growth outlook,” he said.

The EU’s 15 percent tariff on branded drug imports to the U.S. will play a part in that trend, though countries that haven’t signed the deal will soon be subject to it. 100% import tax.

While trade bodies such as the European Federation of Pharmaceutical Industries and Associations (EFPIA) expressed their concerns On the implications of the EU-US trade deal, experts interviewed earlier. Pharmaceutical Technology say Europe’s pharma trade with the US will remain fragile.Even as tariff turmoil affects the union’s bottom line.

The positive trade surplus data posted by Eurostat comes as the EU looks to boost its pharma industry’s competitiveness globally, as the nation faces tough competition from the US and China.

While experts have previously cautioned that Europe’s efforts should keep up with its peers fall shortEuropean institutions are now taking action to change that narrative.

In February 2026, European venture capital firms created European Life Sciences Coalition (ELSC) to tackle the continent’s declining financial attractiveness. A month earlier, the Novo Nordisk Foundation 850 million dollars were poured. For similar reasons in the European life sciences sector.

Despite these efforts, Ryan warned that geopolitical events in the Middle East could pose a potential barrier to EU pharma export growth, as the conflict “could affect key trade corridors and global supply chains beyond the energy industry”, which could have significant implications for EU-based drugmakers.

However, there are still companies Betting on America on the Continent For Contract Drug Manufacturing (CM). In 2025, the US experienced the largest drop in CM deals for FDA-approved drugs sold on home turf in half a decade. Meanwhile, deals across Europe remained steady.

In one Previous discussions with Pharmaceutical TechnologyContract development and manufacturing organizations (CDMOs) noted that Europe remains an attractive region for expansion due to its lower production costs compared to the US, as well as its stricter regulatory standards and talent infrastructure on the continent.

“EU sees 2025 pharma export surge amid competition concerns” was originally created and published by Pharmaceutical Technologya brand owned by Global Data.

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