UK life sciences are set for growth, but challenges remain
The life sciences industry makes a major contribution to the UK economy. One in every 121 employed people in the UK works in the sector, which in 2023 contributed over £13 billion to the national economy.
Last year, the sector performed better than many other industrial sectors, which partly reflects that demand for pharmaceuticals is less sensitive to the economic cycle relative to other goods and services. This includes demand from the public sector (the NHS is the largest buyer of pharmaceutical products) and consumers’ willingness to continue to spend on these items despite the real value of household budgets having been eroded by inflation and the increase in interest rates. Focusing on the dominant pharmaceutical sector, our central forecast is that UK pharmaceutical output will grow by an average of 1.3% a year between 2024 to 2026.
On the regulatory front, the sector is facing a period of change as post-Brexit revisions take effect. From the beginning of 2024, companies will need regulatory approval from the UK’s Medicines and Healthcare products Regulatory Agency (MHRA) to sell medicines and medical products in the UK. As many UK-based life sciences businesses also sell into other European markets—with approximately half of UK exports of medicines and medical products going to the EU—these companies will need to continue obtaining separate regulatory approval from the European Medicines Agency, creating an increased compliance burden.
Nevertheless, the sector has promising long-run growth trends. Increased purchasing power in developing economies, and ageing populations and increased interest in health in developed ones are expected to keep demand strong in the long run. The UK also has several strengths in the life sciences field with some its universities ranking among the best in the world for research into life science and medicine.
To download the report, please complete the form below.
The expert behind the research
Our Industry Consulting team are among the world’s leading analysts of a variety of industrial sectors. They combine their expert insight with our state-of-the-art economic models and tools to answer the crucial questions facing our clients.
Emily Gladstone
Senior Economist
Read the report
Complete the form below to download the report.
Tags:
Recent related reports
The true impact of UK Manufacturing
Our study highlights how the manufacturing sector's impact on the UK economy extends far more widely than manufacturing companies themselves.
Find Out More
Smart Energy International: Siemens unveils utilities’ struggle with limited behind-the-meter DER visibility
Utility companies in North America are hurrying to keep up with historic changes taking place in the way electricity is generated, consumed, and monetized. However, most companies lack the ability to measure and manage an energy economy impacted by the rapid adoption of electric vehicles, solar panels, and batteries, known as distributed energy resources, or DERs.
Find Out More
Insight Forecast: Gain insights into the North American construction market
Oxford Economics and ConstructConnect produce forecasts for US and Canadian construction starts as part of ConstructConnect’s Insight Forecast. These forecasts include 34 building categories in the US and 23 categories in Canada, and the US and Canada national and regional data segmented by state, MSA (CMA), and county level. With these changes in the market dynamics, prudent forecasts help businesses to make informed decisions, and ultimately help support the wider economy.
Find Out More
Industry Key Themes 2024 – Industry to Outperform the Broader Economy
2023 has been a turbulent year for global industry, with growth on track to come in lower than any other year since 2000 other than the crisis-hit 2009 and 2020. After two years where industrial growth unusually underperformed global GDP, 2024 should see a resumption of the norm where industry outperforms the broader economy.
Find Out More