New York, April 23, 2024 (GLOBE NEWSWIRE) -- Overview
According to Dimension Market Research, The Global Active Pharmaceuticals Ingredient Market size was valued USD 249.0 billion in 2023 and it is further anticipated to reach a market value of USD 446.6 billion by 2032 at a CAGR of 6.4%.
The active pharmaceutical ingredient market deals with the manufacturing sector devoted to producing, developing, and globally distributing APIs, the vital components of pharmacological medicines with therapeutic effects. It is essential to drug manufacturing, this marketplace serves innovators and generic drug makers, facilitating the production of a variety of drugs, from over-the-counter drugs to complicated biologics. This market has a significant position within the pharmaceutical industry.
Important Insights
- Market Size: Projections suggest a substantial surge, within the global active pharmaceuticals ingredients market as it is expected to show noteworthy growth by reaching USD 446.6 billion by 2032 at a CAGR of 6.4%, commencing from its 2023 base value of USD 249.0 billion.
- Synthesis Segement Analysis: Synthetic APIs dominate this segment based on synthesis with a 73.2% market share in 2023. This dominance is attributed to cost-effectiveness, streamlined manufacturing, scalability, and better stability.
- Manufacturers Segment Analysis: Captive APIs dominate with the highest market share in 2023, offering manufacturers complete control for a consistent user experience, enhanced security, and compliance. Controlled access enables revenue generation, protects innovations, and ensures brand consistency.
- Regional Analysis: North America commands a 40.0% share in the global API market in 2023, projecting subsequent growth due to increased demand from chronic diseases. Government policies in North America prioritize generic drugs, fostering API production to curb healthcare costs and ensure cost-effective medication.
- Regional Analysis: Asia-Pacific is showing great potential in the active pharmaceutical ingredient market. As the market dynamics of this region may evolve Asia Pacific will demonstrate growth potential suggesting increased adoption, and positioning the region as a significant player in this market.
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Latest Trends
- Advances in genetic testing and biomarkers enable healthcare professionals to understand individual patient's genetic makeup and personalized treatment plans, fueling demand for APIs tailored to individual genetic profiles.
- Growing demand for oncology therapies, driven by rising cancer prevalence and innovative treatments, fuels API demand. Opportunities arise for supplying APIs in targeted and sophisticated oncology treatments.
- The API market growth is intricately linked to the global surge in chronic diseases, reflecting a continual demand for pharmaceutical solutions and APIs to address evolving healthcare challenges.
- The growing focus on oncology treatments at the industry's end fosters collaboration among API manufacturers, spurring demand for patient-specific APIs.
- The intricate molecular structures and multi-step synthesis routes of APIs drive pharmaceutical companies to outsource manufacturing, fostering increased demand for efficient and cost-effective production from Contract Manufacturing Organizations (CMOs).
Active Pharmaceutical Ingredient Market: Competitive Landscape
- The competitive landscape of the global active pharmaceutical ingredient market is shaped by key players such as Merck & Co. Inc., AbbVie Inc., Bristol-Myers Squibb Company, Boehringer Ingelheim International GmbH, and Cipla Inc. These industry leaders prioritize research and development to gain a competitive edge over others.
- Major API market players, including Teva Pharmaceutical and MEDinCell, strategically prioritize novel product introductions for sustained market leadership. A competitive landscape mandates continual innovation, vital amid challenges like patent expirations. Teva Pharmaceutical and MEDinCell's FDA-approved schizophrenia treatment illustrates their dedication to distinctive, innovative solutions, solidifying their industry leadership.
- Companies with advanced technology and diverse product ranges strategically prioritize API production. Forming alliances with local partners ensures a stable raw material supply, reinforcing their dominance in the market.
Some of the prominent market players:
- Merck & Co. Inc.
- AbbVie Inc
- Bristol-Myers Squibb Company
- Boehringer Ingelheim International GmbH
- Cipla Inc.
- Teva Pharmaceutical Industries Ltd.
- Albemarle Corporation
- Viatris Inc.
- Aurobindo Pharma
- Sun Pharmaceutical Industries Ltd.
- Dr. Reddy’s Laboratories Ltd.
- Other Key Players
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Active Pharmaceutical Ingredient Market Scope
| Report Highlights | Details |
| Market Size (2023) | USD 249.0 Bn |
| Forecast Value (2032) | USD 446.6 Bn |
| CAGR (2025-2032) | 6.4% |
| North America Revenue Share | 40.0% |
| Historical Data | 2017 - 2022 |
| Forecast Data | 2025 - 2032 |
| Base Year | 2023 |
| Estimate Year | 2024 |
| Segments Covered | By Synthesis, By Manufacturer, By Type, By Application |
| Regional Coverage | North America, Europe, Asia Pacific, Latin America, Middle East & Africa (MEA) |
Market Analysis
In the context of synthesis, synthetic APIs dominated with a 73.2% market share in 2023 due to cost-effectiveness, streamlined manufacturing, scalability, and better stability. The synthetic process enables greater control over composition, ensuring crucial consistency, but the choice between synthetic and biological APIs depends on specific drug requirements.
Based on manufacturers, Captive APIs, holds the highest market share in 2023, affording manufacturers complete control for seamless integration and a consistent user experience. They enhance security, compliance, and monetization through controlled access, protecting innovative technologies, and ensuring brand consistency. A balanced approach, opening certain APIs to external developers, fosters innovation and growth.
Growth Drivers
- Personalized Medicine Demand: Genetic testing advancements fuel API demand tailored to individual-specific genetic profiles, driving the growth of this market.
- Oncology Treatment Expansion: Rising cancer prevalence and innovative therapies escalate the need for APIs in targeted oncology treatments, stimulating market growth.
- Rise in Chronic Disease: Global increase in chronic diseases drives demand for pharmaceutical solutions and APIs, pushing continuous growth in the market.
- Outsourcing Trend: Complex molecular structures prompt pharmaceutical companies to outsource API manufacturing, boosting demand for efficient and cost-efficient production from CMOs.
Restraints
- Regulatory Compliance: The implementation of strict regulations poses a problem for producers of APIs, who must satisfy highly sophisticated quality requirements and sometimes become an obstacle to market development and innovation.
- Intellectual Property Protection: Protecting API innovations poses challenges amid patent expirations and the risk of intellectual property theft, potentially stifling market competition.
- Supply Chain Disruptions: Vulnerabilities in most global supply chains, including shortages of raws and geo-political issues can hinder the manufacturing and distribution of API which may affect market stability.
- Pricing Pressures: Competitive edge and pricing pressure in the pharmaceutical business influence API producers in regards to less revenue, this may result in decreased funds for research and development activities.
Growth Opportunities
- Emerging Markets Expansion: There are many regions in the world with yet-to-be-tapped possibilities that API manufacturers can utilize for market penetration and serve the healthcare needs and pharmaceutical industries' growth.
- Biotechnology Advancements: Led by the progress of biotechnology, a variety of new biological API products are being researched and developed, which fully support innovation as well as various changing medical needs.
- Contract Manufacturing Partnerships: Partnerships with Contract Manufacturing Organizations (CMOs) give rise to fast and effective API production, thus granting companies an opportunity to use expertise and resources in order to boost their market growth speed.
- Precision Medicine Adoption: The rising use of the precision medicine strategy opens up a chance for more individualized API development that caters to the specific needs of the patient and brings more efficacy to the treatment process.
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Active Pharmaceutical Ingredient Market Segmentation
By Synthesis
- Synthetic APIs
- Biological APIs
- Monoclonal Antibodies
- Recombinant Proteins
- Vaccines
By Manufacturer
- Captive APIs
- Merchant APIs
- Generic APIs
- Innovative APIs
By Type
- Generic APIs
- Innovative APIs
By Application
- Cardiovascular Diseases
- Oncology
- Orthopedic
- Pulmonology
- Nephrology
- Ophthalmology
- Others
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Regional Analysis
North America dominates the global Active Pharmaceutical Ingredient (API) market, holding a 40.0% market share in 2023 with projected subsequent growth. The region's focus on generic drugs, spurred by healthcare cost reduction policies, propels API demand. Robust specialty drug demand and major players like AbbVie, Teva, and Mylan contribute to North America's leadership. The interplay of health demographics, policies, technological innovation, investment, and industry influence solidify its position in the global active pharmaceutical ingredient market.
By Region
North America
- The U.S.
- Canada
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
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Recent Developments in the Active Pharmaceutical Ingredient Market
- October 2023: Egis Pharmaceuticals expands, investing 100 billion HUF in Hungary, offering drug substance contract development and manufacturing services. Vertical integration, innovation, and commitment to quality mark its 110-year journey.
- April 2023: Aurobindo Pharma has approved the transfer of two API units, namely Unit V and Unit XVII, to its wholly-owned subsidiary, Apitoria Pharma Private Limited.
- February 2023: Piramal Pharma Solutions has initiated production at its new API facility in Riverview, Michigan, marking the completion of "Project PRIME Phase 1" with a $38M investment, enhancing their API manufacturing capacity.
- February 2023: 51 Indian pharmaceutical firms approved for the Production Linked Incentive (PLI) Scheme, reducing reliance on Chinese imports, producing 92,130 MT.
- January 2023: Novartis sold its API facility in Ringaskiddy, Ireland, to Sterling Pharma Solutions while retaining production rights for cardiovascular, immunology, and oncology APIs.
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