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Active Pharmaceutical Ingredients Market

Active Pharmaceutical Ingredients Market Size, Share, and Growth Report by Type (Innovative APIs, Generic APIS), by Manufacturer (Captive and Merchant), by Synthesis (Synthetic APIs, Biotech APIs), by Drug (Prescription Drugs, Over-the-counter Drugs), by Application (Communicable Diseases, Oncology, Diabetes, Cardiovascular Disease, Pain Management, Respiratory Diseases), By Region – Global and Regional Industry Overview, Market Intelligence, Premium Insights, Complete Analysis, Historical Data, and Forecasts 2023 – 2030

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:


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:
  1. Merck & Co., Inc. (US)
  2. Pfizer, Inc. (US)
  3. AbbVie Inc. (US)
  4. Hoffmann-La Roche Ltd. (Switzerland)
  5. Novartis International AG (Switzerland)
  6. Sreepathi Pharmaceuticals Limited (India)
  7. Eli Lilly and Company (US)
  8. Boehringer Ingelheim (Germany)
  9. Sanofi (France)
  10. Dr. Reddy’s Laboratories Ltd. (India)
  11. Sun Pharmaceutical Industries Ltd. (India)
  12. Bristol-Myers Squibb (US)
  13. Teva Pharmaceutical Industries Ltd. (Israel)
  14. Cipla, Inc. (India)
  15. 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:

  1. Innovative APIs
  2. Generic APIS

Active Pharmaceutical Ingredients Market, Type of Manufacturer Outlook

  1. Captive Manufacturers
  2. Merchant Manufacturers

Active Pharmaceutical Ingredients Market, Type of Synthesis Outlook

  1. Synthetic APIs
  2. Biotech APIs

Active Pharmaceutical Ingredients Market, Type of Drug Outlook

  1. Prescription Drugs
  2. Over-the-counter Drugs

Active Pharmaceutical Ingredients Market, Application Outlook

  1. Communicable Diseases
  2. Oncology
  3. Diabetes
  4. Cardiovascular Disease
  5. Pain management
  6. Respiratory Diseases
  7. Other Therapeutic Applications

Active Pharmaceutical Ingredients Market, Regional Outlook

  1. North America
    • United States
    • Canada
  2. Europe
    • France
    • Germany
    • UK
    • Italy
    • Rest of Europe
  3. Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Rest of the APAC
  4. Latin America
    • Mexico
    • Brazil
    • Rest of Latin America
  5. Middle East & Africa
    • UAE
    • Saudi Arabia
    • Israel
    • South Africa
    • Rest of the Middle East & Africa

Frequently Asked Questions

The global Active Pharmaceutical Ingredients Market size was valued at USD 209.5 billion in 2021 and is expected to reach USD 222.48 billion in 2022.
The global active pharmaceutical ingredients API market is expected to increase at a compound annual growth rate of 6.2% from 2022 to 2030 to reach USD 360 billion by 2030.
Key players in the global API market are Merck & Co., Inc. (US), Pfizer, Inc. (US), AbbVie Inc. (US), F. Hoffmann-La Roche Ltd. (Switzerland), Novartis International AG (Switzerland), Sreepathi Pharmaceuticals Limited (India), Eli Lilly and Company (US), Boehringer Ingelheim (Germany), Sanofi (France) and Others


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