Serbia’s pharmaceutical industry is gaining importance within higher-value manufacturing, with pharmaceutical exports approaching €1 billion and domestic turnover from medicines and medical devices exceeding €2.2 billion. Pharmaceutical exports rose 30.2% in 2025, bringing the sector close to the €1 billion threshold and accounting for around 2.8% of Serbia’s total goods exports, according to industry data reported by Nova Ekonomija.
The sector combines a sizeable domestic market with strong export activity, investment in production equipment and a relatively high level of technological content compared with more labour-intensive manufacturing industries.
Domestic pharmaceutical market expands
Domestic sales of medicines and medical devices exceeded €2.2 billion in 2025, corresponding to more than €300 per capita. Prescription medicines recorded growth of around 15%, with oncology treatments as well as medicines for nervous-system and metabolic diseases among the main contributors to the increase. The pharmaceutical industry’s expansion comes alongside Serbia’s established manufacturing export base, which has traditionally been concentrated in automotive components, electrical equipment, metals and other industries integrated into European industrial supply chains.
Equipment accounts for most pharmaceutical investment
Investment patterns point to significant capital spending within the sector. Around 80% of pharmaceutical investment is allocated to equipment, while almost 90% of companies finance their investments from their own resources, according to the industry data.
Pharmaceutical production requires controlled manufacturing processes, laboratories, quality systems and compliance with international pharmaceutical standards, making investment in production equipment an important component of industrial capacity. Expansion in the sector can also generate demand across related activities, including laboratories, packaging, logistics, engineering, validation, regulatory services and specialised suppliers.
Imported inputs remain a key dependency
Despite rising exports, Serbia’s pharmaceutical industry remains heavily dependent on imported active pharmaceutical ingredients and other production materials. The reliance on imported inputs exposes manufacturers to exchange-rate movements, global supply disruptions and changes in international input prices. It also limits the share of value retained domestically when exports of finished pharmaceutical products increase.
Greater local or regional production of active pharmaceutical ingredients, specialised chemicals, packaging and pharmaceutical intermediates could represent a further stage in the development of the industry. API and biotechnology production require larger investments, specialised personnel, sophisticated environmental controls and access to international regulatory markets.
Export growth increases focus on pharmaceutical supply chains
With exports approaching €1 billion, pharmaceuticals have reached a scale that places the sector among Serbia’s significant manufacturing segments alongside its role in the domestic healthcare market. The development of deeper domestic supply chains remains linked to the composition of future investment. Continued spending primarily on equipment for existing production would expand manufacturing capacity while active ingredients and other high-value inputs remain imported.
Investment in API production, biotechnology, research and specialised pharmaceutical suppliers would instead broaden the range of activities carried out within Serbia’s pharmaceutical value chain. The sector’s near-€1 billion export level provides the scale for that development, while the domestic market continues to generate turnover from medicines and medical devices.
