Market evolution: Pharmaceutical preparations (CN 3006) — 2015–2025

Introduction

This report analyses the trade dynamics of the European Union in pharmaceutical preparations and related products (Customs Code 3006) over the period 2015–2025. This product group encompasses a diverse range of items, from sterile surgical materials and diagnostic reagents to dental cements and ostomy appliances. The analysis reveals a period of robust growth for the EU's pharmaceutical trade, characterized by a significant strengthening of its net exporter position, evolving partnerships, and notable price and volume shifts across different product segments and partner countries. The following sections detail these main trends and their potential interpretations.

I. The EU's Strengthening Position as a Net Pharma Exporter

The EU's trade in CN 3006 products has expanded markedly over the decade, with its export performance growing more dynamically than its imports. This has resulted in a substantial and increasing trade surplus, underscoring the bloc's role as a key global supplier of these specialized pharmaceutical goods.

Stronger export growth has driven an expanding trade surplus

The overall trade data shows significant growth across both flows. EU exports grew by 75.3% in value (from €4.23 billion to €7.41 billion) and 41.3% in quantity (from 41,436 to 58,567 tonnes) over the period. Import growth, while also substantial, lagged behind, rising by 53.5% in value (to €2.13 billion) and 66.9% in quantity (to 40,795 tonnes). Crucially, the net import reliance metric, which was negative throughout (indicating a net export position), deepened from -43.9% in 2015 to -126.0% in 2025. This doubling of the surplus ratio highlights a strengthening external position. The trade surplus consequently surged from €2.84 billion to €5.28 billion, an increase of 86.0%.

Divergent price trends reveal shifting value dynamics

A key factor behind the surplus growth is the divergence in price trends. The average unit price for EU exports increased by 24.1% (to €126,532 per tonne). In contrast, the average import price decreased by 8.0% (to €52,181 per tonne). This suggests that the EU is exporting higher-value pharmaceutical preparations while importing, on average, lower-value goods. This price dynamic contributed to export value growth outpacing the increase in exported volumes.

Table 1: EU Trade Summary for CN 3006 (2015 vs. 2025)

II. Shifting Geographies: Partner Diversification and Concentration

The landscape of the EU's key trading partners for pharmaceutical products has evolved. While traditional partners remain dominant, new significant relationships have emerged, and the geographic concentration of both imports and exports has shifted.

The United States remains the cornerstone, but exports to China have surged

The United States is by far the EU's largest export destination, with trade values rising by 159.7% to €2.46 billion in 2025. However, the most dramatic growth occurred in exports to China, which increased by 233.1% to €690 million, making China the third-largest export market by 2025. On the import side, the US is also the largest source, with imports rising by 55.3% to €694 million. Notably, imports from the United Kingdom, which peaked in 2022, have shown high volatility, as reflected in a coefficient of variation (CV) of 0.78.

Trade concentration has increased on the export side while becoming more diversified on imports

The Herfindahl-Hirschman Index (HHI), a measure of market concentration, tells a divergent story. For exports, the HHI on value rose from 817 to 1,364, indicating increased concentration towards top partners like the US and UK. Conversely, the import HHI fell from 2,069 to 1,573, suggesting a diversification of the EU's import sources away from a few dominant suppliers. This diversification is supported by the strong growth in imports from partners like Türkiye (+291%) and Tunisia (+212%).

Table 2: Evolution of Top Trade Partners by Value (2015-2025)

III. Internal EU Dynamics: Production Growth and Specialisation

Within the EU, pharmaceutical production has expanded significantly, reinforcing the bloc's export capacity. The internal market structure shows clear patterns of specialisation, with certain member states demonstrating a strong comparative advantage in this sector.

EU production growth has outpaced trade growth

Available production data indicates that the value of EU pharmaceutical production (related to PRODCOM codes) grew by 141.8% from €3.56 billion to €8.62 billion over the period. This surge in domestic production capacity is a fundamental driver behind the strong export performance and the increasing export propensity, which rose from 38.7% to 79.3%. The growing integration of EU production in global supply chains is also evident in rising trade intensity.

Specialisation is concentrated in a few key member states

The specialisation analysis reveals a pronounced geographical concentration of production and export strength within the EU. Ireland, with a Revealed Symmetric Comparative Advantage (RSCA) of 0.59, is the most specialised member state, contributing 15.5% of EU production value but only 2.1% of total exports, indicating a focus on high-value production. Other highly specialised economies include Hungary (RSCA 0.41) and Belgium (RSCA 0.29). Germany remains the largest absolute exporter (€1.86 billion), but its growth was moderate (+12.6%). In contrast, the Netherlands saw explosive export growth (+201.5% to €1.71 billion), rising to become the second-largest EU exporter.

Conclusion

Between 2015 and 2025, the EU's trade in pharmaceutical preparations (CN 3006) underwent a period of vigorous expansion and structural change. The bloc solidified its position as a major net exporter, with its trade surplus nearly doubling, fueled by robust export growth, rising unit values, and substantial increases in domestic production capacity. Geographically, trade ties deepened with the United States while diversifying significantly towards high-growth markets like China. Internally, specialisation intensified, with Ireland, the Netherlands, and Hungary emerging as pivotal hubs in the EU pharmaceutical trade network. These trends point to an EU pharmaceutical sector that has become more globally integrated, competitive, and reliant on external markets for growth.