Industry Statistics and Trends
Market size and recent performance (2016-2031)
Industry revenue has declined at a CAGR of 0.6 % over the past five years, to reach an estimated £2.9bn in 2026.
Trends and Insights
Basic pharmaceutical prices and profit hinge on global oil prices
- The primary input for basic pharmaceutical products is chemicals made from oil and gas, with 99% of pharmaceutical feedstocks coming from these fossil fuels, according to the Canadian Energy Centre in 2022. When oil prices rise, Higher oil prices raise both production and sales prices for basic pharmaceuticals, as demand for essential medicines remains strong. Revenue often increases with costs, but if manufacturers can’t pass on the full price rise to markets with long-term contracts like the NHS, profit margins can still be squeezed.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2026-2031)
Market size is projected to grow over the next five years.
Trends and Insights
Tariff-free access to the US market cements the UK pharma export edge
- The US is the largest buyer of UK basic pharmaceutical products, with exports reaching £1.25 billion in 2024 and accounting for 62.4% of all UK overseas sales in this category, according to HMRC. UK producers benefit from strong US demand, shorter shipping routes and recognition for consistently high product standards that align with US industry needs. The US accounts for 54.8% of global drug sales according to IQVIA, a healthcare technology company, making it a critical market for UK manufacturers.
Biggest companies in the Basic Pharmaceutical Product Manufacturing in the UK
| Company | Market Share (%)
2026 | Revenue (£m)
2026 |
|---|---|---|
Sandoz Ltd | 230.0 | |
AstraZeneca UK Ltd | 124.6 | |
Accord-UK Ltd | 97.2 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Human and animal blood processing, Other and Chemically pure sugars. Human and animal blood processing is the largest segment of the Basic Pharmaceutical Product Manufacturing in the UK.
Trends and Insights
Rising raw material costs hit active pharmaceutical ingredient (API) makers
- APIs, the biologically active drug substances, comprise the bulk of basic pharmaceutical manufacturing operations. These range from paracetamol, which is used for pain relief, to enoxaparin, which treats blood clots. APIs are combined with excipients, which are used to enhance the API's effectiveness, to create medicine.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
Companies in the Basic Pharmaceutical Product Manufacturing industry manufacture medicinal active substances that are used for their pharmacological properties to make medications, including antibiotics, basic vitamins, salicylic acids and aspirin. The industry also includes companies that manufacture chemically pure sugars and process blood and glands.
What's included in this industry?
Products and services covered in the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom include Human and animal blood processing, Chemically pure sugars, Active pharmaceutical ingredients, Processing glands and Manufacturing extracts from glands.Companies
Companies covered in the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom include Sandoz Ltd, AstraZeneca UK Ltd and Accord-UK Ltd.Purchase this report to view all 5 major companies in this industry.
Related Terms
Related terms covered in the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom include active pharmaceutical ingredient (api), biopharmaceuticals, blockbuster drug, boutique drugs, generic drug and good manufacturing practice.Industry Code
SIC 21.10 - Basic Pharmaceutical Product Manufacturing in the UK
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Oil price swings shape industry costs and profits. Costs rise when oil is expensive, as most feedstocks are derived from petroleum. However, companies are investing in renewa...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2016-2025) and forecast (2026-2031)
- Employees, including historical (2016-2025) and forecast (2026-2031)
- Businesses, including historical (2016-2025) and forecast (2026-2031)
- Profit, including historical (2016-2026)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Rising costs put a dent in API manufacturing. Escalating energy expenses and supply chain disruptions resulting from the Russia-Ukraine conflict have hiked raw material costs...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2026
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2026
- Major market segmentation in 2026
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
London attracts pharmaceutical manufacturers. Its infrastructure, robust healthcare system, world-class universities for research and supportive government policies make it a...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2026
Tables
- Number and share of establishments in each region in 2026
- Number and share of revenue each region accounts for in 2026
- Number and share of wages each region accounts for in 2026
- Number and share of employees in each region in 2026
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Patent protection gives pharmaceutical producers an edge. It grants them the rights to exclusively produce, use and sell a newly developed drug, encouraging innovation while ...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2021-2026
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
GSK’s pivot to speciality drugs sharpens focus and margins. Closing legacy antibiotic plants and investing in high-value R&D have boosted GSK’s profitability, positioning the...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2022 through 2026
- Major companies in the industry, including market share, revenue, profit and profit margin in 2026
- Overview of Sandoz Ltd's performance by revenue, market share and profit margin from 2020 through 2026
- Overview of AstraZeneca UK Ltd's performance by revenue, market share and profit margin from 2020 through 2026
- Overview of Accord-UK Ltd's performance by revenue, market share and profit margin from 2020 through 2026
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for Sandoz Ltd, and factors influencing its performance in the industry
- Description and key data for AstraZeneca UK Ltd, and factors influencing its performance in the industry
- Description and key data for Accord-UK Ltd, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Medicines Act shapes pharma companies' operations. The law demands high standards for safety, quality and efficacy, requiring pharma companies to invest heavily in testin...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2016-2031)
- Assistance historical data and forecast (2016-2031)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Rising costs tighten industry profit margins. Higher input, wage and compliance costs squeeze profits, so companies rely on automation and scale while benefiting from long-te...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2026
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2026
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2020-2024)
- Coverage Ratios (2020-2024)
- Leverage Ratios (2020-2024)
- Operating Ratios (2020-2024)
- Assets (2020-2024)
- Liabilities (2020-2024)
- Cash Flow & Debt Service Ratios (2016-2031)
- Revenue per Employee (2016-2031)
- Revenue per Enterprise (2016-2031)
- Employees per Establishment (2016-2031)
- Employees per Enterprise (2016-2031)
- Average Wage (2016-2031)
- Wages/Revenue (2016-2031)
- Establishments per Enterprise (2016-2031)
- IVA/Revenue (2016-2031)
- Imports/Demand (2016-2031)
- Exports/Revenue (2016-2031)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2016-2031)
- IVA (2016-2031)
- Establishments (2016-2031)
- Enterprises (2016-2031)
- Employment (2016-2031)
- Exports (2016-2031)
- Imports (2016-2031)
- Wages (2016-2031)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom in 2026?
The market size of the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom is £2.9bn in 2026.
How many businesses are there in the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom in 2026?
There are 239 businesses in the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom, which has declined at a CAGR of 0.5 % between 2021 and 2026.
How may import tariffs affect the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom?
The Basic Pharmaceutical Product Manufacturing industry in the United Kingdom is likely to be significantly impacted by import tariffs with imports accounting for a high share of industry revenue.
How may export tariffs affect the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom?
The Basic Pharmaceutical Product Manufacturing industry in the United Kingdom is likely to be significantly impacted by export tariffs with exports accounting for a high share of industry revenue.
Has the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom grown or declined over the past 5 years?
The market size of the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom has been declining at a CAGR of 0.6 % between 2021 and 2026.
What is the forecast growth of the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom over the next 5 years?
Over the next five years, the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom is expected to grow.
What are the biggest companies in the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom?
The biggest companies operating in the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom are Sandoz Ltd, AstraZeneca UK Ltd and Accord-UK Ltd
What does the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom include?
Human and animal blood processing and Chemically pure sugars are part of the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom.
Which companies have the highest market share in the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom?
The company holding the most market share in the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom is Sandoz Ltd.
How competitive is the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom?
The level of competition is high and steady in the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom.
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
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