Water rarely comes to mind when we think about vaccines or antibiotics, yet it is the backbone of pharmaceutical manufacturing. Purified water and water for injection support drug formulation, cleaning, sterilization, and quality control across the industry. From blockbuster therapies like Ozempic to life-saving COVID-19 vaccines, reliable pharmaceutical water systems help ensure product purity, regulatory compliance, and patient safety.

The reality is that the pharmaceutical industry’s high demand for water, particularly ultrapure water (water highly purified to eliminate contaminants), is colliding with the increasing strain on global water resources. Each dose of medication, every vial, carries a hidden water footprint. As regulations and public scrutiny surrounding water usage intensify, pharma companies face a pivotal challenge: They must manage water more sustainably or risk significant reputational and operational consequences in a world where scarcity is not a hypothetical issue.

Pharma Emerging as New Frontier for Water Solutions and Management

As demand for popular pharmaceuticals continues to rise, escalating healthcare costs and an aging population, is driving new manufacturing facilities. In the U.S. alone, the number of manufacturing facilities has jumped by 48% since 2020, while new drug approvals have increased by 35% compared to 2022. Consequently, the pharmaceutical sector’s need for water—both as a raw material and for advanced wastewater treatment—presents many opportunities for specialized equipment and water service providers. It is essential to recognize the critical role of water and the unique aspects of the water industry.

Water is a crucial component often overlooked on product packaging; however, it is essential for both facility operations and as an ingredient in many products. Key examples include the following:

• Ultrapure water for production: essential for manufacturing injectables, tablets, and Active Pharmaceutical Ingredients
• Process water for operations: used in cleaning, sterilization, cooling, formulation, and steam generation
• Advanced wastewater treatment: necessary for managing high-strength effluents and residual compounds

Given water’s crucial role in pharmaceutical operations, companies are facing increasing pressure to assess and mitigate water-related risks throughout their processes and supply chains. These challenges require significant capital and operational expenditures; companies must invest in securing water sources, implementing advanced treatment systems, and ensuring compliance with stringent local and global regulations. The conversation is shifting from merely meeting compliance requirements to focusing on efficiency gains and water reuse as integral parts of broader sustainability and risk-reduction strategies. This change presents significant growth opportunities for providers of advanced treatment technologies and specialized services in an industry where reliability, purity, and adherence to regulations are essential.

A Surge in EU Growth = A Surge in Water Management Spend

In the U.S., pharmaceutical manufacturing is projected to grow by over 8% through 2030. This growth rate is comparable to that of many rapidly expanding high-tech sectors, including semiconductors and data centers. In this context, the European Union (EU) represents the second-largest market for pharmaceuticals after North America, accounting for nearly 30% of global revenues. The bulk of this market is concentrated in Western European countries such as Germany, Switzerland, and France. Switzerland stands out as a global leader in the pharmaceutical industry thanks to its long history of innovation and prominent domestic industry players, including Novartis, Roche, and Lonza. Roche has made significant investments in advanced wastewater treatment systems at its manufacturing facilities in Switzerland and Germany.

At the same time, extensive facility upgrades are creating expansion opportunities. For example, Novo Nordisk, the pharma giant known for producing the popular drug Ozempic, recently announced a US$4.1 billion investment in North Carolina and doubled the capacity of its wastewater treatment plant in Denmark with an investment of US$291.0 million. Novo Nordisk’s water withdrawals have increased by 33% since 2022 as a result of these expansions and new constructions. Additionally, in 2023, Novo Nordisk awarded a contract worth US$9.9 million to Saur (through its subsidiary Aqua-Chem) to construct a facility in Denmark that will produce Water for Injection (WFI) and pure steam.

Regulatory Pressures Mount

New EU regulations are significantly elevating the responsibilities of pharmaceutical manufacturers. The revised Urban Waste Water Treatment Directive (UWWTD) introduces a major shift, as companies will now be directly accountable for removing micro-pollutants—such as active pharmaceutical ingredients—from wastewater. This obligation requires costly system upgrades and carries the risk of penalties for noncompliance.

At the core of these changes is an extended producer responsibility framework. Under this new system, industries including pharmaceuticals, cosmetics, and hygiene products must cover at least 80% of the costs associated with advanced wastewater treatment. These costs encompass expanding and operating quaternary treatment plants, as well as ongoing monitoring, data collection, and compliance verification. EU member states may cover the remaining 20%, with measures in place to ensure that medicines remain affordable and widely available.

The financial implications for pharmaceutical companies are clear: Manufacturers will face higher operational costs not only for upgrading on-site treatment systems but also for fees associated with municipal wastewater services. These regulatory changes highlight the urgent need for proactive investments in advanced treatment technologies and the establishment of strategic water partnerships to mitigate compliance risks and manage rising costs.

From Turnkey to Strategic Water Partnerships

Across the sector, facility expansions and new greenfield projects are on the rise due to robust market growth, creating recurring revenue streams for water technology providers. These developments present opportunities for midterm equipment upgrades and a consistent demand for consumables, such as treatment chemicals and filtration membranes.

Gone are the days when water systems were treated as a one-time capital expenditure. As pharma facilities become increasingly complex, companies are shifting toward long-term partnerships that include digital monitoring, performance guarantees, and service-based models. Given the attractive growth potential and the increasing stringency of water quality parameters, leading service providers are forming partnerships with big pharma in Europe. Notable examples include the following:

• Veolia Water Technologies stands out for providing purified water, WFI, clean steam, and wastewater treatment systems for the pharma sector.
• BWT Pharma & Biotech specializes in high-purity water systems, offering both standardized and customized units.
• Xylem delivers advanced water treatment technologies such as reverse osmosis, UV treatment, filtration, and ion exchange, along with life cycle management services.
• Herco Water Technology offers flexible engineering and service solutions for both new and existing water treatment plants.
• H+E Pharma GmbH stems from a joint venture, combining expertise in industrial water treatment with pharmaceutical engineering to design, install, and maintain water systems for pharma clients.

In addition, collaborative projects like INSPIREWATER, an EU-funded consortium, are also working toward advancing sustainable and resource-efficient solutions tailored for pharma and other industrial sectors.

Opportunities for Water Tech & Service Providers

Pharmaceutical manufacturing is emerging as a major growth opportunity for water technology providers. The rising demand for ultrapure water and advanced wastewater treatment is driving investment across the value chain. Companies that prioritize innovation and forge strategic partnerships will be well positioned at the forefront of this transition. Those that act early—by investing in water stewardship and resilient systems—will not only ensure compliance but also gain operational efficiency and cost advantages.