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The UK’s basic pharmaceuticals manufacturing industry has undergone rapid changes in recent years, driven by shifting global supply chains, surging oil prices, rigid NHS pricing and an urgent push for digital modernisation. Demand for essential medicines and advanced therapies has remained steady, but industry manufacturers have had to navigate unstable feedstock costs and more intense import competition, which have intensified in the wake of Brexit and energy market volatility. Costs for vital resources, for example, oil and natural gas, soared after 2022, then dropped back down, but price caps imposed by the NHS and overseas competitors with lower production costs have cut into profitability and revenue. Manufacturers have responded by investing in digital process automation and next-generation production technologies, enabling more efficient and high-value drug output. Profit margins have remained pressured, with NHS contract structures rarely allowing for rapid cost pass-throughs. Over the five years to 2025-26, industry revenue is projected to slump at a compound annual rate of 0.6%, reaching £2.9 billion, including a 1.5% dip this year.
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IBISWorld's research coverage on the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom includes market sizing, forecasting, data and analysis from 2016-2031. The most recent publication was released January 2026.
The Basic Pharmaceutical Product Manufacturing industry in the United Kingdom operates under the SIC industry code C21.100. 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. 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.
Products and services covered in Basic Pharmaceutical Product Manufacturing industry in the United Kingdom include Human and animal blood processing, Other and Chemically pure sugars.
Companies covered in the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom include Sandoz Ltd, AstraZeneca UK Ltd and Accord-UK Ltd.
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
The Products and Markets chapter covers detailed product and service segmentation, analysis of major markets and international trade data for the for the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
The Companies chapter covers Key Takeaways, Market Share and Companies in the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom.
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The market size of the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom is £2.9bn 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.
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.
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.
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.
Over the next five years, the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom is expected to grow.
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
Human and animal blood processing and Chemically pure sugars are part of 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.
The level of competition is high and steady in the Basic Pharmaceutical Product Manufacturing industry in the United Kingdom.