Introduction
The life sciences labour market in the DACH (Germany, Austria, Switzerland) and BeNeLux (Belgium, Netherlands, Luxembourg) regions has been navigating a period of significant fluctuation. Following a notable decline in 2023, the sector is witnessing signs of recovery in 2024. This report provides an analysis of the market trends, with a particular focus on 2024 data and projections. Key metrics include the demand for scientific skills, vacancy rates across countries and sectors, and the performance of major companies within the regions.
1. EU Life Sciences Market Overview
The EU life sciences market as a whole experienced a decline of 32% from 2022 to 2023, attributed to lingering effects of the COVID-19 pandemic and market uncertainties. However, a projected 25.2% increase in 2024 suggests a recovery phase, although the first half of 2024 is expected to show lower volumes compared to the full-year estimate. This trend indicates potential continued volatility, possibly due to shifting market dynamics and the transition back to traditional work environments.
2. DACH Region Trends
The DACH region saw a sharper decline than the EU average, with a 38.1% drop in 2023. The recovery is expected to be more modest, with a projected 12.7% increase in 2024. The first half of 2024 anticipates 5,041 vacancies, lower than the full-year estimate of 10,082, reflecting ongoing market volatility.
•Germany: Holding the largest share in the DACH market (65.9% in 2024), Germany faced a 39.2% decline in 2023 but is expected to recover with a 13.9% increase in 2024. The pharmaceutical sector's decline from 80.7% to 66.9% market share, along with biotech's expected recovery to 13.9%, highlights a shift in sectoral focus.
•Switzerland: With a more moderate decline of 30.7% in 2023, Switzerland is forecasted to see a 14.0% increase in 2024. This growth is indicative of a resilient biotech and CRO sector.
•Austria: Austria, comprising the smallest share of the DACH market, is projected to experience a slight decrease of 2.2% in 2024. This may be influenced by the upcoming election and potential legislative changes.
3. BeNeLux Region Trends
In the BeNeLux region, trends show a shifting market balance:
•Netherlands: Increasing its market share from 43.3% in 2022 to 55.0% in 2024, the Netherlands experienced a 32.6% decline in 2023 but is set to recover strongly. This growth may be driven by favourable economic conditions and a supportive regulatory environment.
•Belgium: Belgium's market share is decreasing, from 56.6% in 2022 to an estimated 44.7% in 2024, following a significant 39.1% decline in 2023. A further slight decrease of 2.1% is expected in 2024, possibly due to competitive pressures and economic factors.
•Sectoral Focus: Pharmaceuticals remain the dominant sector but have declined from 56.0% in 2022 to an estimated 54.1% in 2024. The CRO sector, after a substantial drop in 2023, is projected to surge by 93.3% in 2024, reflecting a rebound in demand for clinical research services.
4. Key Companies and Employment Trends
•Eurofins: Leading in scientific vacancies, Eurofins continues to expand, with an increase of 69.5% from 2022 to 2023 and a further projected growth of 40.8% in 2024. This growth is driven by the company's global expansion and strong demand for its services.
•BioNTech: In the DACH region, BioNTech has shown consistent growth, with a 6.7% increase in vacancies from 2022 to 2023 and an 8.7% projected increase in 2024. The company continues to innovate in the biotech sector.
•Johnson & Johnson: In the BeNeLux region, Johnson & Johnson has remained stable, with a 3.6% decline in 2023 and no significant change expected in 2024.
•Other Key Players: Abbot, with a predicted 76 vacancies in 2024, and GSK, with a projected 35.3% decline, highlight varying fortunes within the region's companies.
2024 Market Projections
1.EU Market Recovery:
The EU market is projected to rebound with a 25.2% increase in 2024 after a previous decline.
2.DACH Region:
The DACH region is expected to see a 12.7% increase in 2024.
Germany, the largest market in the region, is projected to recover by 13.9%.
Switzerland is forecasted to increase by 14.0%.
Austria, however, is expected to experience a slight decrease of -2.2%, potentially influenced by the upcoming election and related legislative changes.
3.BENELUX Region:
The BENELUX region is expected to grow by 18.3% in 2024.
The Netherlands' market share is projected to increase to 55.0%, recovering from a prior decline.
Belgium's share is expected to decrease to 44.7%, with a slight overall decline of -2.1%.
Sectoral Breakdown
Pharmaceuticals:
In the DACH region, pharmaceuticals are expected to see a decline in market share from 80.7% in 2023 to 66.9% in 2024.
In BENELUX, pharmaceuticals are projected to maintain a dominant position but with a slight reduction in market share to 54.1%.
Biotech:
In the DACH region, biotech is anticipated to increase its market share to 13.9%.
In BENELUX, the biotech sector is projected to decrease by -13.9%.
CRO (Contract Research Organizations):
CROs in the DACH region are forecasted to have significant growth, with a 142.2% increase in vacancies.
In BENELUX, the CRO sector is expected to recover with a 93.3% increase.
In-Demand Skills
R&D Skills:
R&D skills are projected to make up a larger share of the market in 2024. In the EU, they are expected to reach 29.7%, while in DACH and BENELUX, they are projected to be 35.7% and 32.5%, respectively.
Regulatory Affairs Skills:
Regulatory Affairs skills remain the least in demand, maintaining a stable presence across the regions.
These 2024 projections highlight expected recoveries across several sectors, increased demand for R&D skills, and significant growth for certain companies like Eurofins, despite varied performance across different regions and sectors.
Arnold Bokumbe
Head of Research & Development – UK + Europe