The pharmaceutical industry is Europe’s largest high-tech export sector, employing close to one million people directly while supporting nearly three times as many jobs indirectly and ensuring health security for the population.

The environment in which it operates is changing rapidly. Fierce global competition, geopolitical uncertainty and fast-moving technological development create both opportunities for growth and risks that must be managed.

This report provides an overview of the industry — including regional snapshots that highlight thought-provoking examples — and an analysis of the key trends shaping its future. These trends directly affect the competences needed across the industry.

Key trends in this report

  • Digitalisation & AI. Digital technologies are reshaping R&D, clinical trials and manufacturing. Generative AI accelerates the discovery of new medicines and strengthens maintenance and quality control in production. Entirely new business areas are emerging where pharma and technology converge. There is already a shortage of automation specialists, and for the workforce this adds to the demand for competences in data integrity, cybersecurity and the ethical use of AI — while regulatory bodies need new skills to keep pace with innovation.
  • Sustainability & energy. Meeting Europe’s climate commitments and the EU Green Deal, now evolving into the Clean Transition/Industry Deal, brings major challenges. In pharmaceuticals, reliable electricity supply is critical — even small disruptions may force entire batches to be discarded. Increasing requirements for circularity add further pressure to redesign products and processes. The Safe and Sustainable by Design (SSbD) framework is shaping this transition and increasing demand for ecotoxicologists and life-cycle analysis literacy across the workforce.
  • New technologies. The classic pill based on stable chemical compounds is now accompanied by therapies rooted in biotechnology. Personalised treatments and ATMPs require entirely new types of production facilities and logistics systems, along with competences in bioprocess engineering and advanced manufacturing.
  • Geopolitics & resilience. The Covid-19 pandemic, Russia’s war of aggression against Ukraine and renewed tariff disputes have exposed how vulnerable global supply chains are. For the pharmaceutical industry, resilience has become a strategic priority, requiring competences in supply chain design, risk management and long-term security planning. Leadership and change management are equally important, as companies must adapt quickly to disruptions while maintaining trust and stability. The EU’s Critical Medicines Act underlines the urgency of strengthening these capacities across the sector.
  • Demographics & workforce. Europe’s ageing population is increasing the demand for medicines. Upcoming mass retirements in healthcare may reduce the capacity to run clinical trials, undermining a critical step in pharmaceutical innovation. This raises the need for skills in patient engagement, trial coordination and international collaboration to secure the flow of new therapies.
  • Business models & public perception. Pressure on healthcare budgets and public scrutiny of high drug prices challenge the industry and influence investment decisions. Innovative approaches such as digital health, real-world evidence and patient-centric care highlight the need for business models that can attract venture capital to SMEs. Skills in health economics, market access and the ability to explain the value of innovation are increasingly needed across the industry.

This report is part of a series delivered by the ChemSkills project, which addresses the entire chemical industry. It outlines the context in which future skills needs must be understood and provides the basis for the next ChemSkills deliverables. ChemSkills contributes to Europe’s strategic objectives on competitiveness, sustainability and resilience, as underlined in the Draghi Report.

Entirely ‘green’ drugs do not exist — but medicines can be produced with a far greener footprint if the workforce is equipped with the right skills.

Deliverable 9.1 in ChemSkills (project number 101103234)

The text above is the summary of a report written in September 2025 by Kristina Svensson on behalf of IKEM, who leads WP9 in ChemSkills.