New York, Jan. 18, 2024 (GLOBE NEWSWIRE) -- In 2022, the global revenue from active pharmaceutical ingredients (API) reached $192.3 billion, and it's expected to grow at a rate of 4.2% annually, reaching $300.2 billion by 2033, as per Persistence Market Research.
Small molecules are projected to contribute more than 90% of the revenue in the global API market by 2023. Overall, API sales make up around 13.3% of the global pharmaceutical market, valued at approximately $1.5 trillion in 2023.
From 2016 to 2022, the Active Pharmaceutical Ingredient market had a historical growth rate of 3.4%. API, which influences the cure, diagnosis, mitigation, or prevention of diseases, is becoming crucial with the rising prevalence of chronic diseases like diabetes, cardiovascular issues, cancer, obesity, osteoporosis, and pulmonary illnesses.
Major pharmaceutical companies are investing in research and development to expedite the introduction of breakthrough drugs. To enhance efficiency and reduce costs, companies are turning to Contract Development and Manufacturing Organizations (CDMOs) for outsourcing manufacturing expertise, especially for complex APIs.
The industry is also focusing on adopting advanced technologies, such as Continuous Manufacturing (CM), to streamline Active Pharmaceutical Ingredient development and production. CM technology is expected to reduce the time required for developing production processes, enhance efficiency in commercial production, and ensure high-quality pharmaceutical products.
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Market Scope:
| Report Coverage | Details | |
| Market Revenue 2023 | US$ 24,847.8 Million | |
| Estimated Revenue 2033 | US$ 83,110.5 Million | |
| Growth Rate – CAGR | 12.8% | |
| Forecast Period | 2023-2033 | |
| No. of Pages | 350 Pages | |
| Market Segmentation | By Product & Services, Technology, End User, Region | |
| Regions Covered | North America, Latin America, Europe, South Asia & Pacific, East Asia, The Middle East & Africa | |
| Key Companies Profiled |
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Market Dynamics:
Drivers:
Rise in Chronic Diseases: The increasing prevalence of chronic diseases is expected to boost the demand for pharmaceutical treatments, leading to the market's growth for active pharmaceutical ingredients (API) in the coming years. Strategic initiatives such as introducing new drugs, collaborations, acquisitions, and geographical expansions are contributing to market stability. Additionally, advancements in medical technology, awareness-raising initiatives by public and private organizations, and government funding will further fuel the API market. Rising disposable incomes, a growing number of seizures, and lifestyle changes will also drive API market growth.
Restraints:
Counterfeit Drugs: The presence of substandard and counterfeit drugs is a potential obstacle to market growth. Disruptions in the supply chain caused by the COVID-19 pandemic have further constrained market expansion.
Opportunities:
Research and Investment Growth: Increased research and development activities, coupled with higher investments from both public and private entities, will create new opportunities for market growth. The introduction of efficient treatments and ongoing clinical trials will present lucrative prospects for the API market. The market is poised for accelerated growth due to significant unmet demand for existing treatments and advancements in medical technology.
Challenges:
Lack of Demand: The global API market faces challenges due to the prevalence of counterfeit and low-quality pharmaceuticals, resulting in insufficient demand. Disruptions in the API supply chain caused by COVID-19 pose challenges to healthcare providers and may potentially impact the global API business. Throughout the forecast period, challenges are expected due to the absence of treatment for certain neurological illnesses and a general lack of understanding about genetic and rare disorders.
In a nutshell, the Persistence Market Research report is a must-read for start-ups, industry players, investors, researchers, consultants, business strategists, and all those who are looking to understand this industry. Get a glance at the report at - https://www.persistencemarketresearch.com/market-research/active-pharmaceutical-ingredient-market.asp
Active Pharmaceutical Ingredients (API) Market Trends:
Oncology Segment Set for Noteworthy Growth
A significant rise in cancer cases worldwide is a major health concern globally. The incidence of cancer increases substantially with age, leading to a growing need for effective treatments.
The active pharmaceutical ingredients market is expected to witness substantial growth in the oncology segment over the forecast period. This growth is attributed to factors like the increasing burden of cancer cases and heightened awareness regarding early-onset cancer treatment. For instance, data from the American Cancer Society in 2023 predicts approximately 1,958,310 new cancer cases in the United States, compared to 1,918,030 in 2022. This upward trend indicates a rapid surge in cancer cases, elevating the demand for oncology drugs requiring API for formulation. Consequently, the market anticipates a significant impact in the forecast period.
Additionally, companies' increased focus on strategic initiatives like collaborations and partnerships is expected to boost the development of novel cancer drugs. For example, in October 2022, Mendus AB entered an agreement with Minaris Regenerative Medicine GmbH for the technology transfer of its lead development program, DCP-001, which is undergoing evaluation in clinical trials for preventing tumor recurrence in Acute Myeloid Leukemia (AML) and ovarian cancer.
Furthermore, rising investments to expedite API production are poised to contribute to the growth of this segment. In July 2022, NovasepPharmaZell Group invested EUR 7.3 million (USD 7.6 million) in its Mourenx site in southwestern France. This investment aims to support the site's growth and meet the increasing demand for active pharmaceutical ingredients (APIs), particularly highly potent drugs (HPAPIs) used in cancer treatment.
Market Segmentation:
Prescription vs. Over-the-Counter Drugs:
The active pharmaceutical ingredient (API) market can be split into prescription drugs and over-the-counter (OTC) drugs. Prescription drugs dominate, constituting the largest share in the API industry. The demand for APIs is highest for prescription drugs since they are primarily sold with a doctor's prescription. The surge in innovator drugs, coupled with government initiatives to make drugs more affordable and the rise of generic drugs, contributes to the prominence of the prescription drugs segment.
Biotech API Expression Systems:
In the biotech API sector, mammalian expression systems take the lead among various expression systems like microbial, yeast, insect, and others. Mammalian expression systems lead due to their efficient protein folding and superior post-translational modification capabilities, making them the most suitable for human use.
Geographical Insights - North America:
North America stands as the dominant force in the global API market, closely followed by Europe. The growth in this region is fuelled by major pharmaceutical and biopharmaceutical manufacturing facilities, a government focus on generic drugs, increasing demand for biologics and specialty drugs, and technological advancements in API manufacturing processes. However, the market in this region is expected to grow moderately due to economic and healthcare severity measures and the introduction of low-cost and generic versions of branded drugs.
Recent Development
- In December 2021, Novasep, a company specializing in services and technologies for the life sciences sector, invested approximately 6 million euros in its Chasse-sur-Rhône facility in France. This investment aimed to enhance the company's capabilities in working with the latest generation of Active Pharmaceutical Ingredients (APIs), particularly in areas such as oncology, the central nervous system (CNS), and infectious diseases.
- In August 2021, the U.S. Food and Drug Administration (FDA) granted approval for a new drug application named TV-46000/mdc-IRM. This application, submitted by Teva Pharmaceutical and MEDinCell, pertains to risperidone extended-release injectable suspension for subcutaneous use. This medication is designed for individuals with schizophrenia.
Key Questions Answered in the Report:
- What are the contributing factors to the market's growth trends?
- What is the current market size, and how is it expected to change in the upcoming years?
- What are the key elements exerting influence on the market?
- How is the Active Pharmaceutical Ingredients market segmented, considering types, applications, fuels, or other relevant factors?
- Who are the major participants in the Active Pharmaceutical Ingredients market?
- What strategies are these players employing to establish a competitive edge?
- What factors are propelling the expansion of the Active Pharmaceutical Ingredients market?
- Which regions are anticipated to witness notable growth, and what are the driving factors behind it?
- What recent technological advancements are impacting the Active Pharmaceutical Ingredients industry?
About Persistence Market Research:
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