Optimism in life sciences and pharmaceuticals can remain high with robust products and investment amidst growing trade tensions

• Increased competition (55%), supply chain restrictions/procurement challenges (47%), and political instability are the factors most likely to hold back growth in the Life Sciences and Pharmaceutical sector. 
• Economic factors (39%) is the biggest trend impacting business in the sector, alongside new technologies (37%), and supply chain challenges and increased competition equally (33%). 
• C-suite leaders are looking to cut through competition by establishing new products or services (35%) - their top strategic priority over the next three to five years. 
• Most (80%) businesses in this sector plan some international expansion in the next five years, with leaders citing the U.S. and the UK as the top destinations targeted. 
• Challenges with supply chains for the sector continues as 53% of leaders cite establishing local sources to be the second biggest barrier to setting up operations in new countries, equally, alongside understanding local regulations. 

Leaders in the life sciences and pharmaceutical sector could not pick a better time to refocus and reassess their strategic priorities for the next few years. Findings from the firm’s 2025 C-suite barometer show that 55% of leaders recognise increased competition as the factor most likely to hold back growth, with supply chain restrictions or procurement challenges a close second to 47% of the C-suite. Results reveal 35% of executives are focused on opportunities to establish new products or services as the key to competing for market share, and the top priority for business leaders in the sector for the next three to five years.  

Nigel Layton, Partner and Head of Life Sciences, comments: “What is striking about this year's findings is the high levels of optimism in the life sciences & pharmaceutical sector, with 98% of C-suite leaders indicating a positive growth outlook for their businesses in 2025. What is behind such optimism are robust drug pipelines and significant investments in R&D, allowing the sector to grow revenues that put it in a strong position to support future growth ambitions.” 

Alongside economic factors (39%) and the emergence of new technologies (37%), optimism and growth ambitions of the sector’s leaders centre on supply chain challenges and resilience (33%) as the top three trends expected to have the biggest impact on organisations in the sector over the next 12 months.  

The top strategic priorities of life sciences and pharmaceutical leaders also extend to international expansion – with four in five businesses planning to expand to at least one new country over the next five years. The top destinations for these expansion plans could change following recent events, with the U.S. having been tipped as the top destination planned by most leaders at the end of last year. Other countries like the UK, China, Germany and India are now expected to jump to the top of the list and benefit from any potential shift in strategy, so long as they can adapt to welcome inbound business quickly. 

The biggest barriers for businesses in the sector looking to set up operations in new countries will be localising or diversifying products for new markets according to 58% of executives. The challenges with supply chains continue as 53% of leaders cite establishing local sources to be the second biggest issue, equally, alongside understanding local regulations. 

Layton continues: “Of course, the sector is no stranger to supply chain issues. The importance of supply chain continuity and robustness was severely tested during the Covid-19 pandemic. These are being tested again with talk of the sector being hot with significant tariffs. Yet, while the industry learned a number of lessons on improving supply chain continuity during this period, 2025 heralds a new phase of supply chain disruption. How sector leaders reassess their supply chain strategies will become clearer as escalating geopolitical tensions, sanctions and tariffs further impact the economic and political landscape. At the same time, the rise in climate-related natural disasters is likely to move supply chain location risk higher up the agenda.” 

Read the full report

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About the study     

The C-suite barometer: outlook 2025 examines the views, challenges, and strategic priorities of today’s C-suite leaders around the world. This independent research was conducted between 28 September and 23 October 2024 and captures the views of 1,706 C-suite leaders at for-profit organisations with annual revenues of over $1million across more than 35 countries. Insights from 51 participants in the life sciences, biotechnology and pharmaceuticals sectors were considered for the development of the firm’s sector-specific report. 

Press contacts  

Heather McMaster, Group Head of PR and Content  
Heather.McMaster@mazars.co.uk  / +44 (0) 20 7063 4165

Rosa Mejia Banks, Group PR and Content Officer  
Rosa.Mejia-Banks@mazars.co.uk / +44 (0) 20 7063 4934