France has one of the highest per capita consumption of medicines in the world. Easy access to doctors and, therefore, prescription medicines, has been one of the key factors in the high level of pharmaceutical spending in France. Moreover, the high level of state responsibility for expenditure has meant that neither doctors nor patients have ever had very much incentive to limit the amount of drugs consumed. Overconsumption is seen as a problem, not only for the government, which is attempting to reduce its pharmaceutical expenditure, but also for the health of the nation. The over-consumption of antibiotics has caused particular concern owing to the growing number of infections that have become antibiotic-resistant and this has resulted in a concerted campaign to cut the number of inappropriate antibiotic prescriptions by 50%. Other areas where French consumption is deemed excessive include psychotropics, vasodilators and vein tonics. Paradoxically, whilst general drug consumption is high, a complex regulatory system has at times delayed the introduction of more innovative medicines.

The market environment is changing significantly as a result of government's attempts to limit healthcare, and in particular, pharmaceutical expenditure. Tentative limits have been placed on doctors' prescribing activities, access to doctors is being more closely controlled, while the pharmaceutical industry has been subjected to a series of taxes and other charges. The generics market, which remains underdeveloped, is expanding rapidly, due in part to government initiatives to promote generics, but also as a result of the large number of high-volume products coming off patent. As a result of these measures pharmaceutical spending in France has slowed dramatically in recent years.

France is the third largest producer of pharmaceuticals in the world, accounting for 7% of global pharmaceutical output. Many multinationals have strategic manufacturing sites in France. However, the country is gradually losing out competitively to other European countries with more attractive business environments, such as Ireland, and to low cost producers in east Europe and South America. The increasingly competitive business environment has resulted in many smaller independent producers being acquired by multinational groups, the latest examples being the acquisition of Fournier Pharma by Solvay of Belgium and the acquisition of Negma-Lerads by Wockhardt of India.

France has also lost ground in the field of pharmaceutical research with the majority of multinationals preferring to concentrate their research efforts in their home country or in the US. Oncology research remains one of the few growth areas, due to the launch of a national cancer plan.