Why this is important to Wisconsin businesses: Wisconsin has a strong biopharmaceutical sector, and Wisconsin companies could benefit by getting exposure to a wider market if they pursue collaborations in Germany.
Biotechnology is a rapidly growing field in Germany, with a strong mix of established companies, startups, and research institutions.
The primary focus is on health, including pharmaceuticals, diagnostics, and medical technologies. There is also a significant cluster in industrial biotech, with a focus on sustainable processes, bio-based materials, and biofuels.
Biotech hubs exist in big cities such as Berlin, Munich, and Frankfurt, and they serve as centers for collaboration between industry and academia, fostering knowledge exchange and accelerating technology development.
The biotech market in Germany generated about $104 billion in 2023 and is expected to more than double to nearly $230 billion by 2030, according to a report by Grand View Research. Health was the largest segment, producing 45% of the country’s biotech revenue in 2023, the report says.
Germany is the major pharmaceutical market in Europe and the fourth-largest worldwide, according to Germany Trade and Investment (GTAI), the government’s economic development agency. In 2023, pharmaceutical industry sales in Germany rose 5.7%, reaching €59.8 billion ($61.6 billion USD).
The country is also strong in pharma innovation as the push for personalized medicine grows. Germany is one of the main suppliers of novel pharmaceuticals, GTAI says. In 2021, the pharmaceutical industry in Germany invested more than €8.7 billion ($9 billion USD) in research and development—more than any other European country. With 589 clinical trials financed by pharmaceutical companies in 2021, Germany ranks second in the EU and sixth worldwide.
More than 600 pharmaceutical companies are located in Germany with a combined workforce of about 140,000 people.
With Wisconsin’s expertise in biotechnology and biopharmaceuticals, Wisconsin companies are well-positioned to explore investment in Germany’s biotech market.
