Serbia’s pharmaceutical sector is experiencing a significant transition, evolving from a focus on defensive healthcare supply to becoming a growth-oriented industry. This change is driven by various factors, including rising public healthcare demand, an ageing population, increased consumption of prescription medications, reliance on imports, potential for regional exports, and renewed investments in manufacturing.
In the first quarter of 2026, Serbia’s exports of medicinal and pharmaceutical products reached €172.3 million, marking a year-on-year increase of 15.7%. Conversely, imports totaled €520.0 million, which represents a decrease of 15.3% compared to the same period in 2025. Despite recording a trade deficit of €347.7 million, this figure shows improvement from the previous year’s deficit of €465.3 million, indicating that local production and export capabilities are strengthening.
The overall market for pharmaceuticals in Serbia has also seen substantial growth. In 2025, the market was valued at approximately €2.07 billion, up from €1.52 billion in 2022, reflecting a growth rate of about 36% over three years. The prescription medicine segment has been particularly influential in this expansion, contributing around €137 million in new sales, with original prescription drugs accounting for the majority of the value increase.
Despite this growth, Serbia remains a significant importer of pharmaceuticals. In 2024, the country imported around $1.5 billion worth of medicaments, an increase from $1.29 billion in 2023 and the highest recorded level to date. Exports were considerably lower at approximately $363 million in 2024, following a peak of $444 million in 2023.
This import-export gap presents opportunities for domestic manufacturers such as Hemofarm, Galenika, Zdravlje Actavis/Teva, and PharmaSwiss. Hemofarm, part of STADA, plays a crucial role as a central industrial player with production facilities in Vršac and a strong regional export presence. The Serbian government recognized Hemofarm’s contributions to economic growth in March 2026 and indicated plans for further investments in high-value production.
Several factors are driving market demand. An ageing demographic is increasing the need for chronic disease treatments including cardiovascular care, diabetes management, oncology drugs, neurology products, and hospital pharmaceuticals. Additionally, public healthcare spending trends and reimbursement policies are facilitating volume growth in prescription medications. Inflation alongside higher-value therapies is accelerating market value beyond mere unit consumption increases. Furthermore, Serbia’s position within CEFTA and the Western Balkans provides local manufacturers with access to a broader regional market while EU-aligned regulations enhance the attractiveness of Serbian facilities for nearshore production.
The fastest growing segments within the market are expected to include original prescription medicines, generics, biosimilars, oncology treatments, cardiometabolic therapies, hospital medications, vaccines and biologics distribution, consumer health products, dietary supplements, and private-label pharmacy items. Generics are particularly critical as they help manage costs within Serbia’s healthcare system while original and specialty therapies drive overall value growth.
Investment opportunities extend beyond drug manufacturing to areas such as contract manufacturing, packaging solutions, cold-chain logistics, pharmaceutical warehousing, clinical trials management, regulatory affairs consulting, pharmacovigilance services, quality control laboratories, medical distribution networks, and digital pharmacy infrastructure development. Although Serbia boasts a competitive cost base and skilled workforce along with established industrial practices, it continues to rely heavily on imported active pharmaceutical ingredients (APIs), advanced biologics, specialty medications, and patented treatments.
The investment landscape for 2026 indicates that while Serbia has not yet emerged as a major pharmaceutical power globally, it is increasingly recognized as a vital regional hub for production and healthcare demand fulfillment. With ongoing market expansion coupled with high import volumes and improving export performance alongside robust local manufacturing capabilities, Serbia is poised to capture more value by advancing into high-standard generics production and enhancing its biosimilars offerings along with sterile production processes and regional supply chain services.
