Active Pharmaceutical Ingredients Market Overview
The global Active Pharmaceutical Ingredients Market size was valued at USD 209.5 billion in 2021 and is projected to reach USD 360 billion by 2030, growing at a CAGR of 6.2% during the forecast period.
Active pharmaceutical ingredients are the component of drugs that are beneficial for health effects. It presents biologically active or other direct impacts in the treatment, diagnosis, mitigation, or prevention of disease or affects the function or structure of the human or animal body. The increasing significance of generics, rising focus on the introduction of precision medicine, and growing adoption of AI-based tools for drug discovery are surging the demand for active pharmaceutical ingredients in the global market. However, high manufacturing costs and increasing usage of counterfeit drugs are some challenging factors that are hindering market growth worldwide. In addition, increasing technological developments in API manufacturing, coupled with the rising availability of highly potent active pharmaceutical ingredients are further bolstering the growth of the market over the forecasting years.
COVID-19 Impact Analysis
The outbreak of COVID-19 has exhibited a huge impact on the various sectors of the global economy. With the emergence of this pandemic, there are various biopharmaceuticals and pharmaceuticals, along with small startups focusing on developing treatments for that target infection. In order to target COVID-19, an estimated 155 molecules are under clinical investigation, while 45 molecules are being developed in preclinical settings. On March 24, 2020, the WHO declared that the massive worldwide trial for the four most promising medications desivir, Lopinavir with Ritonavir plus Interferon beta-1a, Lopinavir & Ritonavir, and Chloroquine & Hydroxychloroquine,) that have been modified to combat COVID-19.
On March 24, 2020, the WHO announced that it had initiated a global mega-trial of the four most promising drugs against COVID-19. Accordingly, various countries are entering a race to introduce and mass-produce an efficient vaccine to fight COVID-19. As of June 2020, The WHO estimates that around 140 vaccinations were in various stages of development, which shows a huge impact on the active pharmaceutical ingredients market.
Active Pharmaceutical Ingredients Market Segmentation:
The global Active Pharmaceutical Ingredients Market is segmented on the basis of Type (Innovative APIs, Generic APIS), the basis of Type of Manufacturer (Captive Manufacturers, Merchant Manufacturers), the basis of Type of Synthesis (Synthetic APIs, Biotech APIs), the basic Type of Drug (Prescription Drugs, Over-the-counter Drugs), on the basis of Application (Communicable Diseases, Oncology, Diabetes, Cardiovascular Disease, Pain Management, Respiratory Diseases, Other Therapeutic Applications)
The synthetic APIs segment is expected to be the largest segment of the Active Pharmaceutical Ingredients Market
On the basis of the Type of Synthesis, the Synthetic APIs segment dominated the market and accounted for the largest revenue share in 2021. Factors such as higher availability of raw materials support in lowering the cost of production of chemically synthesized ingredients are propelling the segment’s growth. In addition, the easier protocols for the synthesis and development of f these molecules are also bringing an upsurge in the growth of the segment around the world. Whereas, the biotech segment is anticipated to grow at the fastest growth rate during the forecast period owing to the high competence of these molecules, which are extensively used in gene sequencing, as well as growing demand from the biopharmaceutical sector is fueling the segment growth in the foreseen years.
The oncology segment is expected to record the fastest growth during the forecasted period
On the basis of Application, the oncology segment is exhibiting a substantial CAGR over the forthcoming years owing to the exponential demand for the highly potent APIs (HPAPIs) to cure cancer. Factors such as the high adoption of a sedentary lifestyle and changing lifestyles are leading to the incidences of a wide range of metabolic disorders. Also, the escalating cases of hormonal imbalance are the cause of disorders such as thyroid and sex hormone imbalance. Thus, the demand for levothyroxine is on the rise as this API is highly adopted to treat hypothyroidism, which is also expected to drive market growth in oncology
Active Pharmaceutical Ingredients Market Dynamics:
Drivers:
Thriving demand for pharmaceutical drugs to stimulate market growth
The increasing adoption of a sedentary lifestyle and the increasing geriatric population leads to the high burden of a wide range of chronic diseases among the population. The expenditure on research and development (R&D) by the pharmaceutical industry has been constantly increasing in the past two decades. The primary objective of this R&D spending is to introduce novel drugs to cure a variety of diseases. According to Congressional Budget Office, the pharmaceutical sector invested nearly USD 83 billion in R&D in 2019, which is around ten times what the sector spent annually in the 1980s after accounting for inflation. Likewise, the number of new drugs approved for sale increased by 60% between 2010 and 2019 compared to the previous decade, reaching a peak of 59 new drugs in the year 2018. Accordingly, the increasing frequency of new diseases, as well as changes in the complexities of chronic diseases is likely to drive the growth of the global market in the forecasting years.
Regional Analysis:
Asia Pacific Active Pharmaceutical Ingredients Market is expected to exhibit the fastest CAGR during the forecast period.
Asia Pacific is anticipated to exhibit the fastest CAGR during the forecast period owing to the increasing number of contracts manufacturing organizations, rising use of organ-on-chip models in drug development, and availability of inexpensive resources including raw materials and labor. In addition, the growing prevalence of cancer and other lifestyle-induced diseases is propelling the spending on R&D activities, thus, in turn, it is accelerating the market demand.
Moreover, Europe is witnessing significant growth during the estimated period. Factors such as the rising availability of funding in the field of research, as well as the high presence of well-established biopharmaceutical companies, are projected to fuel the market demand in this region. For instance, in 2018, the biopharma sector raised USD 20 billion in terms of investment, and this amount climbed by 28% to USD 27.5 billion in the year 2019. Therefore, the rising number of biopharmaceutical R&D programs by various chief market players in Europe is boosting regional market growth.
Key Market Players and Competitive Landscape
Some of the key market players operating in the global market are:
- Merck & Co., Inc. (US)
- Pfizer, Inc. (US)
- AbbVie Inc. (US)
- Hoffmann-La Roche Ltd. (Switzerland)
- Novartis International AG (Switzerland)
- Sreepathi Pharmaceuticals Limited (India)
- Eli Lilly and Company (US)
- Boehringer Ingelheim (Germany)
- Sanofi (France)
- Dr. Reddy’s Laboratories Ltd. (India)
- Sun Pharmaceutical Industries Ltd. (India)
- Bristol-Myers Squibb (US)
- Teva Pharmaceutical Industries Ltd. (Israel)
- Cipla, Inc. (India)
- BDR Pharmaceuticals Internationals Pvt. Ltd. (India)
The Beyond Market Insights research has segmented the Global Active Pharmaceutical Ingredients Market report on the basis of Type, Type of Manufacturer, Equipment, Type of Drug, Application, and region
Active Pharmaceutical Ingredients Market, Type Outlook:
- Innovative APIs
- Generic APIS
Active Pharmaceutical Ingredients Market, Type of Manufacturer Outlook
- Captive Manufacturers
- Merchant Manufacturers
Active Pharmaceutical Ingredients Market, Type of Synthesis Outlook
- Synthetic APIs
- Biotech APIs
Active Pharmaceutical Ingredients Market, Type of Drug Outlook
- Prescription Drugs
- Over-the-counter Drugs
Active Pharmaceutical Ingredients Market, Application Outlook
- Communicable Diseases
- Oncology
- Diabetes
- Cardiovascular Disease
- Pain management
- Respiratory Diseases
- Other Therapeutic Applications
Active Pharmaceutical Ingredients Market, Regional Outlook
- North America
- Europe
- France
- Germany
- UK
- Italy
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- South Korea
- Australia
- Rest of the APAC
- Latin America
- Mexico
- Brazil
- Rest of Latin America
- Middle East & Africa
- UAE
- Saudi Arabia
- Israel
- South Africa
- Rest of the Middle East & Africa
Table of Content
Active Pharmaceutical Ingredients Market Size, Share, Growth, and Forecast Report
1. Introduction
1.1. Report Description
1.1.1. Aim of the Report
1.1.2. Prospective Audience
1.1.3. Unique Selling Prepositions and Key Takeaways from the Report
1.2. Scope of the Research Study
1.3. Approach/Research Methodology
1.3.1. Secondary Research
1.3.2. Primary Research
1.3.3. Expert Panel Review
1.3.4. Market Data Breakdown and Data Triangulation
1.3.5. Research Approach for Market Size Estimation
1.3.5.1. Top-Down Approach
1.3.5.2. Bottom-Up Approach
1.3.6. Key Assumptions
1.4. Market Segmentation
1.4.1. Type
1.4.2. Type of Manufacturer
1.4.3. Type of Synthesis
1.4.4. Type of Drug
1.4.5. Application
2. Active Pharmaceutical Ingredients Market Overview
2.1. Introduction
2.2. Analysis by Type, 2017-2030 (US$ Billion)
2.3. Analysis by Type of Manufacturer, 2017-2030 (US$ Billion)
2.4. Analysis by Type of Synthesis, 2017-2030 (US$ Billion)
2.5. Analysis by Type of Drug, 2017-2030 (US$ Billion)
2.6. Analysis by Application, 2017-2030 (US$ Billion)
2.7. Market Analysis by Region, 2017-2030 (US$ Billion)
3. Active Pharmaceutical Ingredients Market Dynamics
3.1. Introduction
3.2. Growth Drivers
3.3. Growth Restraints
3.4. Growth Opportunities
3.5. Porter’s Five Forces Analysis
3.5.1. Threat of New Entrants
3.5.2. Bargaining Power of Buyers/Consumers
3.5.3. Bargaining Power of Suppliers
3.5.4. Threat of Substitute Types
3.5.5. Intensity of Competitive Rivalry
3.6. Attractiveness Analysis
3.6.1. Type
3.6.2. Type of Manufacturer
3.6.3. Type of Synthesis
3.6.4. Type of Drug
3.6.5. Application
3.6.6. Region
3.7. Value Chain Analysis
4. Active Pharmaceutical Ingredients Market Competition Analysis
4.1. Active Pharmaceutical Ingredients Market Share Analysis by Company, 2019 – 2021
4.1.1. Top 3 Players, 2019 – 2021
4.1.2. Top 6 Players, 2019 – 2021
4.2. Strategic Initiatives
4.2.1. New Products Launch
4.2.2. Mergers/Acquisitions
4.2.3. Agreement and Collaborations
4.2.4. Partnerships, Joint Ventures, Expansion, and Distribution
5. Global Active Pharmaceutical Ingredients Market Analysis by Type, Type of Manufacturer, Type of Synthesis, Type of Drug and Application, 2017-2030 (US$ Billion)
5.1. Type
5.1.1. Global Active Pharmaceutical Ingredients Market Share, by Type, 2021 and 2030
5.1.2. Global Active Pharmaceutical Ingredients Market Revenue, by Type, 2017-2030 (US$ Billion)
5.1.3. By Innovative APIs Market Analysis 2017-2030 (US$ Billion)
5.1.4. By Generic APIS Market Analysis 2017-2030 (US$ Billion)
5.2. Type of Manufacturer
5.2.1. Global Active Pharmaceutical Ingredients Market Share, by Type of Manufacturer, 2021 and 2030
5.2.2. Global Active Pharmaceutical Ingredients Market Revenue, by Type of Manufacturer, 2017-2030 (US$ Billion)
5.2.3. By Captive Manufacturers Market Analysis 2017-2030 (US$ Billion)
5.2.4. By Merchant Manufacturers Market Analysis 2017-2030 (US$ Billion)
5.3. Type of Synthesis
5.3.1. Global Active Pharmaceutical Ingredients Market Share, by Type of Synthesis, 2021 and 2030
5.3.2. Global Active Pharmaceutical Ingredients Market Revenue, by Type of Synthesis, 2017-2030 (US$ Billion)
5.3.3. By Synthetic APIs Market Analysis 2017-2030 (US$ Billion)
5.3.4. By Biotech APIs Market Analysis 2017-2030 (US$ Billion)
5.4. Type of Drug
5.4.1. Global Active Pharmaceutical Ingredients Market Share, by Type of Drug, 2021 and 2030
5.4.2. Global Active Pharmaceutical Ingredients Market Revenue, by Type of Drug, 2017-2030 (US$ Billion)
5.4.3. By Prescription Drugs Market Analysis 2017-2030 (US$ Billion)
5.4.4. By Over-the-counter Drugs Market Analysis 2017-2030 (US$ Billion)
5.5. Application
5.5.1. Market Share, by Application, 2021 and 2030
5.5.2. Market Revenue, by Application, 2017-2030 (US$ Billion)
5.5.3. By Communicable Diseases Market Analysis 2017-2030 (US$ Billion)
5.5.4. By Oncology Market Analysis 2017-2030 (US$ Billion)
5.5.5. By Diabetes Market Analysis 2017-2030 (US$ Billion)
5.5.6. By Cardiovascular Disease Market Analysis 2017-2030 (US$ Billion)
5.5.7. By Pain management Market Analysis 2017-2030 (US$ Billion)
5.5.8. By Respiratory Diseases Market Analysis 2017-2030 (US$ Billion)
5.5.9. By Other Therapeutic Applications Market Analysis 2017-2030 (US$ Billion)
6. Global Active Pharmaceutical Ingredients Market Type Analysis by Region, 2017-2030 (US$ Billion)
6.1. Innovative APIs Market Analysis 2017-2030 (US$ Billion)
6.1.1. North America
6.1.2. Europe
6.1.3. Asia Pacific
6.1.4. Latin America
6.1.5. Middle East & Africa
6.2. Generic APIS Market Analysis 2017-2030 (US$ Billion)
7. Global Active Pharmaceutical Ingredients Market Type of Manufacturer Analysis by Region, 2017-2030 (US$ Billion)
7.1. Captive Manufacturers Market Analysis 2017-2030 (US$ Billion)
7.1.1. North America
7.1.2. Europe
7.1.3. Asia Pacific
7.1.4. Latin America
7.1.5. Middle East & Africa
7.2. Merchant Manufacturers Market Analysis 2017-2030 (US$ Billion)
8. Global Active Pharmaceutical Ingredients Market Type of Synthesis Analysis by Region, 2017-2030 (US$ Billion)
8.1. Synthetic APIs Market Analysis 2017-2030 (US$ Billion)
8.1.1. North America
8.1.2. Europe
8.1.3. Asia Pacific
8.1.4. Latin America
8.1.5. Middle East & Africa
8.2. Biotech APIs Market Analysis 2017-2030 (US$ Billion)
9. Global Active Pharmaceutical Ingredients Market Type of Drug Analysis by Region, 2017-2030 (US$ Billion)
9.1. Prescription Drugs Market Analysis 2017-2030 (US$ Billion)
9.1.1. North America
9.1.2. Europe
9.1.3. Asia Pacific
9.1.4. Latin America
9.1.5. Middle East & Africa
9.2. Over-the-counter Drugs Market Analysis 2017-2030 (US$ Billion)
10. Global Active Pharmaceutical Ingredients Market Application Analysis by Region, 2017-2030 (US$ Billion)
10.1. Communicable Diseases Market Analysis 2017-2030 (US$ Billion)
10.1.1. North America
10.1.2. Europe
10.1.3. Asia Pacific
10.1.4. Latin America
10.1.5. Middle East & Africa
10.2. Oncology Market Analysis 2017-2030 (US$ Billion)
10.3. Diabetes Market Analysis 2017-2030 (US$ Billion)
10.4. Cardiovascular Disease Market Analysis 2017-2030 (US$ Billion)
10.5. Pain management Market Analysis 2017-2030 (US$ Billion)
10.6. Respiratory Diseases Market Analysis 2017-2030 (US$ Billion)
10.7. Other Therapeutic Applications Market Analysis 2017-2030 (US$ Billion)
11. Active Pharmaceutical Ingredients Market Analysis by Geography, 2017-2030 (US$ Billion)
11.1. North America Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.1.1. U.S. Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.1.1.1. Type
11.1.1.2. Type of Manufacturer
11.1.1.3. Type of Synthesis
11.1.1.4. Type of Drug
11.1.1.5. Application
11.1.2. Canada Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.1.3. Mexico Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.2. Europe Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.2.1. UK Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.2.1.1. Type
11.2.1.2. Type of Manufacturer
11.2.1.3. Type of Synthesis
11.2.1.4. Type of Drug
11.2.1.5. Application
11.2.2. France Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.2.3. Germany Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.2.4. Spain Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.2.5. Russia Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.2.6. Italy Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.2.7. Rest of Europe Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.3. Asia Pacific Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.3.1. China Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.3.1.1. Type
11.3.1.2. Type of Manufacturer
11.3.1.3. Type of Synthesis
11.3.1.4. Type of Drug
11.3.1.5. Application
11.3.2. Japan Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.3.3. South Korea Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.3.4. India Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.3.5. Australia Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.3.6. Southeast Asia Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.3.7. Taiwan Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.3.8. Rest of Asia Pacific Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.4. Latin America Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.4.1. Brazil Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.4.1.1. Type
11.4.1.2. Type of Manufacturer
11.4.1.3. Type of Synthesis
11.4.1.4. Type of Drug
11.4.1.5. Application
11.4.2. Argentina Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.4.3. Rest of Latin America Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.5. Middle East Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.5.1. Israel Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.5.1.1. Type
11.5.1.2. Type of Manufacturer
11.5.1.3. Type of Synthesis
11.5.1.4. Type of Drug
11.5.1.5. Application
11.5.2. Turkey Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.5.3. Saudi Arabia Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.5.4. UAE Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.5.5. Rest of Middle East Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.6. Africa Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.6.1. Egypt Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.6.1.1. Type
11.6.1.2. Type of Manufacturer
11.6.1.3. Type of Synthesis
11.6.1.4. Type of Drug
11.6.1.5. Application
11.6.2. South Africa Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
11.6.3. Rest of Africa Active Pharmaceutical Ingredients Market Analysis 2017-2030 (US$ Billion)
12. Company Profiles
12.1. Merck & Co., Inc. (US)
12.1.1. Company Overview
12.1.2. Financial Performance
12.1.3. Product Benchmarking
12.1.4. Strategic Initiatives
12.2. Pfizer, Inc. (US)
12.3. AbbVie Inc. (US)
12.4. Hoffmann-La Roche Ltd. (Switzerland)
12.5. Novartis International AG (Switzerland)
12.6. Sreepathi Pharmaceuticals Limited (India)
12.7. Eli Lilly and Company (US)
12.8. Boehringer Ingelheim (Germany)
12.9. Sanofi (France)
12.10. Dr. Reddy’s Laboratories Ltd. (India)
12.11. Sun Pharmaceutical Industries Ltd. (India)
12.12. Bristol-Myers Squibb (US)
12.13. Teva Pharmaceutical Industries Ltd. (Israel)
12.14. Cipla, Inc. (India)
12.15. BDR Pharmaceuticals Internationals Pvt. Ltd. (India)
13. COVID-19 Impact Analysis
13.1. Global Active Pharmaceutical Ingredients Market, 2020 – 2030, Pre-V/S Post COVID 19
13.2. Estimated Impact of The Coronavirus (Covid-19) Epidemic on the Active Pharmaceutical Ingredients Market Size In 2022, By Scenario
13.3. Impact on Supply Chain and Production in Active Pharmaceutical Ingredients Market
13.4. Impact on Import and Export
14. Import-Export Analysis
14.1. North America Active Pharmaceutical Ingredients Import-Export, 2017 – 2021
14.2. Europe Active Pharmaceutical Ingredients Import-Export, 2017 – 2021
14.3. Asia Pacific Active Pharmaceutical Ingredients Import-Export, 2017 – 2021
14.4. Latin America Active Pharmaceutical Ingredients Import-Export, 2017 – 2021
14.5. Middle East America Active Pharmaceutical Ingredients Import-Export, 2017 – 2021
14.6. Africa Active Pharmaceutical Ingredients Import-Export, 2017 – 2021
15. Active Pharmaceutical Ingredients Marketing Channel Analysis
15.1. Marketing Channel
15.1.1. Direct Marketing
15.1.2. Indirect Marketing
15.1.3. Development Trend
15.2. Market Positioning
16. Active Pharmaceutical Ingredients Manufacturing Cost Analysis
16.1. Key Raw Materials
16.2. Key Raw Material Suppliers
16.3. Market Concentration Rate
16.4. Manufacturing Cost Structure
16.5. Process Analysis
17. Conclusion
Active Pharmaceutical Ingredients Market, Type Outlook:
- Innovative APIs
- Generic APIS
Active Pharmaceutical Ingredients Market, Type of Manufacturer Outlook
- Captive Manufacturers
- Merchant Manufacturers
Active Pharmaceutical Ingredients Market, Type of Synthesis Outlook
- Synthetic APIs
- Biotech APIs
Active Pharmaceutical Ingredients Market, Type of Drug Outlook
- Prescription Drugs
- Over-the-counter Drugs
Active Pharmaceutical Ingredients Market, Application Outlook
- Communicable Diseases
- Oncology
- Diabetes
- Cardiovascular Disease
- Pain management
- Respiratory Diseases
- Other Therapeutic Applications
