Since the beginning of the full-scale war, the Ukrainian pharmaceutical market has shown some growth: market volumes and consumption have increased, and import and export operations have intensified. Domestic producers have increased production and sales, and Ukrainians continue to choose local medicines.
In the third year of the full-scale war, the pharmaceutical sector is showing growth in most areas. In 2023, the volume of products sold in the market increased by 19.6% compared to 2022, pharmacy sales of medicines in monetary terms increased by 9.4%, exports of medicines increased by 17.2%, and consumption reached its highest level in the last 11 years.
These data are presented in the analytical report ‘Pharmaceutical Industry of Ukraine 2023’, prepared by the content marketing agency Top Lead in cooperation with the pharmaceutical company ‘Darnitsa’ and Proxima Research.
Ukrainians are increasing their consumption of medicines
As for the consumption of medicines, we can see that this activity has increased significantly in the market recently. What is the reason for this? After the COVID-19 pandemic, the demand for certain categories of medicines, such as anti-inflammatory, antibacterial and respiratory drugs, remained high. Individual outbreaks of coronavirus infection still affect society from time to time, and the consumption of medicines is also focused on the needs caused by the covid.
With the outbreak of a full-scale war, people have become more attentive to their health and are more likely to seek treatment at the early stages of illness. The growing demand for analgesics and drugs to treat cardiovascular diseases is also a consequence of the increased focus on chronic diseases. The war, economic and social problems have led to an increase in sales of psychoanaleptics (drugs to treat depression and anxiety), which may be due to the increased level of stress in the population. The rise in diseases such as diabetes and hypertension also contributed to the increase in sales of antidiabetic and antihypertensive drugs.
Consumption in monetary terms was also affected by inflation and economic instability.
Over the year, sales volumes in all drug groups increased. At the same time, there were changes in the sales ranking: antithrombotic drugs, which were ranked 9th in 2022, lost their position in the top ten. They have been replaced by drugs for the treatment of acid-dependent diseases, which are now among the best-selling medicines.
Compared to other countries, the level of medicines consumption remains low
If we look at the level of consumption of medicines in Ukraine compared to other countries, the picture is disappointing. It is true that over the past year, the volume of medicines purchased has increased by 15.3%, but this is more likely due to inflation and rising prices than to the increased purchasing power of Ukrainians and their greater attention to their own health.
It is noteworthy that in countries such as Switzerland, Norway or Sweden, the majority of drug costs are covered by the state or private insurance companies, which encourages greater consumption of medicines, as citizens do not face high out-of-pocket expenses.
The lack of medical literacy among ordinary consumers of medicines plays a significant role. In Ukraine, there is often a lack of trust in doctors and their prescriptions, especially for innovative or expensive medicines. This also affects consumption. In addition, some people believe that medicines should be taken only in extreme cases.
In contrast, in countries with high consumption rates, such as Sweden or Canada, people have more trust in modern medicine and are willing to invest in their health, consuming medicines, among other things, to prevent or treat minor illnesses.
Self-medication is another factor that influences the consumption of medicines. In Ukraine, the practice of using traditional methods of treatment is extremely widespread, which also reduces the demand for pharmaceuticals. Many citizens visit doctors only in case of serious illnesses and often neglect prevention or early diagnosis, which contributes to the low level of medicines consumption.
Consequently, in more developed countries, people are more aware of the importance of prevention and regular medication to maintain health, especially for chronic diseases.
Top medicines: before the war and after the war
The main trends in the popularity of medicines in Ukraine between 2021 and 2023 indicate the impact of the war on the medical needs of the population. Sadly, the demand for painkillers is growing. Nalbuphine, which emerged among the leaders in 2023, is a strong opioid analgesic, indicating an increase in demand for strong painkillers due to injuries and surgeries caused by the fighting.
Spasmalgon and Nurofen remain popular, which also reflects the increased need for painkillers in wartime, both among the military and civilians.
In contrast, specific drugs such as Tivortin and Heptral, which were popular before the war, disappeared from the top in 2023. This may indicate a decline in demand for metabolic support and liver medicines as more attention is directed to more urgent needs.
Drugs such as Triplixam (blood pressure) have become more popular, which may be due to the increase in stress factors in the population due to the war, which provokes high blood pressure and heart problems.
Thus, the war has had a significant impact on the structure of demand for medicines in Ukraine, contributing to the growth in demand for painkillers, anticoagulants, and medicines for stress and cardiovascular diseases.
Ukrainians prefer domestic pharmacy
Another important trend. Ukrainian pharmaceutical companies continue to increase production volumes and maintain leadership in terms of the number of units sold. In 2023, the share of sales of Ukrainian medicines in physical terms was 63%, while foreign brands accounted for 37%. However, due to the lower average price of domestic drugs, the situation is the opposite in monetary terms: 37% for Ukrainian medicines and 63% for imported ones.
In 2024, Ukraine’s pharmaceutical industry continues to develop intensively, becoming one of the key priority sectors of the economy. Since the start of Russia’s full-scale invasion, this industry has become especially important, as ensuring an uninterrupted supply of medicines is critical for both the civilian population and the military.
Ukraine’s pharmaceutical industry receives support from the government, including investment and guarantees for stable production, which helps to increase access to quality medicines for Ukrainians. The industry also plays an important role in national security, as a strong pharmaceutical industry is one of the guarantees of the nation’s health in times of war. Programmes to support the production of medicines and medical devices are also being developed.
In addition, there is an increase in the number of clinical trials and active involvement of international companies such as Pfizer, Novartis, and others in the industry. At the same time, Ukrainian companies, such as Farmak and Arterium, continue to dominate the market, actively competing with international players. The development of the generic and OTC medicines market also remains high.
