Germany maintains its spot as Europe's largest pharmaceutical market and the fourth largest in the world, and continues to exert considerable influence over the pharmaceuticals industry at large. This position is bolstered by several key factors, including demographic shifts, a rise in chronic diseases, and an increasing focus on prevention and self-medication. These factors have driven growth in Germany’s pharmaceuticals industry at a faster rate than the overall economy, with 2022 sales increasing by 5.4% to reach EUR 56.5 billion. Germany is also at the forefront of clinical trials and research and development (R&D). With a significant investment in R&D and high levels of patent applications, Germany has established itself as Europe's top pharmaceutical innovation hub. On top of this, the country is also a major exporter of medicinal products. In response to growing demand for personalized medicine, Germany has become a key supplier of biopharmaceuticals, and provides tailored treatments for individual patient needs. Germany’s pharmaceutical sector is marked by a diverse range of companies, with more than 600 pharmaceutical firms operating in the country. The backbone of the industry consists of small and medium-sized enterprises (SMEs), which represent over 90% of drug manufacturers and employ fewer than 500 people. Overall, the industry provides jobs for around 140,000 individuals. The country’s over-the-counter (OTC) market has also shown impressive growth. From 2017 to 2022, revenues in the OTC market grew by an average of 4% annually, and reached nearly EUR 12 billion in 2022. The non-prescription drug segment, which includes both pharmacy-only and freely sold OTC drugs, generated EUR 7.8 billion, while health products, such as food supplements, added another EUR 4.2 billion to the market. These products are sold not only in pharmacies but also in supermarkets and drugstores.