Global Active Pharmaceutical Ingredients Market - 2023-2030

Market Overview

The global active pharmaceutical ingredients market reached US$ 197.2 billion in 2022 and is expected to witness lucrative growth by reaching up to US$ 313.7 billion by 2030. The global active pharmaceutical ingredients market is expected to exhibit a CAGR of 6.1% during the forecast period (2023-2030).

APIs (Active Pharmaceutical Ingredients) are critical components of pharmaceutical products. They are the physiologically active chemicals that are responsible for a drug's desired therapeutic effect. APIs are taken from natural sources or chemically synthesised, and they are subjected to extensive testing and quality control to assure their safety and efficacy.

APIs are essential components in pharmaceutical products, and they play an important role in supplying safe and effective drugs. They are critical for treatment efficacy, manufacturing procedures, research and development, regulatory compliance, and sustaining a dependable global pharmaceutical supply chain.

MarketDynamics

Rising the Manufacturing Procedures will Drive the Market Growth

Increasing the pharma manufacturings plants helps to drive the market growth. For instance, on May 03, 2023, at its German headquarters, Boehringer Ingelheim has begun building on a new 285 million euro ($315 million) plant that will create active pharmaceutical components and medications for clinical trials. The Chemical Innovation Plant is set to open in 2026 at Boehringer's headquarters in Ingelheim, Germany.

Additionally, on June 13, 2023, Novo Nordisk has announced intentions to invest DKr15.9 billion ($2.29 billion) in expanding its manufacturing facility in Hillerod, Denmark, beginning in 2023. The new investment will expand the company's ability to satisfy future demand and allow for the development of its future clinical late-phase product portfolio. The funds will be used to develop its existing Danish API production plant in order to advance its future serious and chronic illness portfolio. As a result, the aforementioned factors contribute to market expansion.

Technological Advancements API Manufacturing Helps to Boost The Market Growth

Continuous processing and computerization of processes are two new API manufacturing technologies that enable large-scale, cost-effective, and efficient production. Automated machinery, computer-controlled process description (CPD) systems, and digital manufacturing systems are currently being used to improve API formulation accuracy, increase overall efficiency, and eliminate the need for manual labour.

For instance, on Feburary 15, 2023, Piramal Pharma Solutions, a patient-focused Contract Development and Manufacturing Organisation (CDMO) and subsidiary of Piramal Pharma Ltd, announced that it had begun of production of initial batches of active pharmaceutical ingredients (APIs) in new reactor suites at its Riverview, Michigan, USA facility. Thus, technical developments contribute to market expansion.

High Manufacturing Costs Will Hamper the Market Growth

The cost of various raw materials can be affected by their availability and demand. Raw material prices can rise if there is a limited supply of a specific raw material or if demand increases owing to reasons such as new drug development or changes in market dynamics. Currency exchange rate fluctuations and geopolitical considerations can also have an impact on raw material prices.

It is crucial to note that the raw material costs of APIs are only one component of the overall pharmaceutical manufacturing expenses. Other factors that influence the final cost of pharmaceutical products include manufacturing procedures, quality control, regulatory compliance, and production scale. These factors are impeding market expansion throughout the predicted period.

COVID-19 Impact Analysis

The global APIs market benefited by the COVID-19 epidemic. The pharmaceutical sector was in the forefront of treating COVID-19-related symptoms such as high fever, cough, and cold. The active pharmaceutical components market grew during the pandemic due to the rising popularity of the pharmaceutical sector. Following the World Health Organization's declaration of the COVID-19 outbreak as a pandemic, a varied group of known pharmaceutical and biopharmaceutical companies, as well as young startups, moved up to develop vaccines.

Russia-Ukraine War Impact Analysis

The Russia-Ukraine conflict is estimated to have a moderate impact on the global active pharmaceutical ingredients market, owing to the low number of key market players in this region. However, the impact of the import and export of raw materials is expected to have little influence over the global active pharmaceutical ingredients market growth over the forecast period.

Segment Analysis

The global active pharmaceutical ingredients market is segmented based on type, application, nature, manufacturing type and region.

Oncology Type Segment Accounts for 21.3% of Market Share

Owing to the high prevalence of cancer in the last few decades, and the disease is expected to affect a higher portion of the population during the forecast period. Key companies are constantly developing new APIs to meet worldwide demand in the oncology segment. For instance, on June 28, 2023, Merck KGaA's North American subsidiary, MilliporeSigma, has opened the doors to its $65 million high-potency active pharmaceutical ingredient (HPAPI) manufacturing plant, which will focus on cancer therapies.

HPAPIs have been discovered to be highly effective at low doses for cell killing, with few side effects for patients. They are currently being employed in innovative cancer therapeutics such as antibody-drug conjugates. As a result, the aforementioned elements contribute to segment growth.

Geographical Analysis

North America Accounted for Approximately 38.4% of the Market Share

The growing prevalence of chronic diseases, as well as increased government incentives to create innovative drugs, characterise the North American market. In addition, the increased adoption of biological pharmaceuticals among patients for the treatment of a variety of chronic illnesses is fuelling demand for the biological API segment in North America.

According to the Alzheimer's Association, roughly 7.5 million persons over the age of 60 in the United States suffer from Alzheimer's dementia, with that number expected to rise to 13 million by 2050. As a result, the rise in such chronic illnesses has fueled the expansion of this market in the North American area.

Competitive Landscape

The major global players in the active pharmaceutical ingredients market include: Aurobindo Pharma, Teva Pharmaceutical Industries Ltd, Pfizer Inc., Novartis AG, BASF SE, Boehringer Ingelheim GmbH, Dr. Reddy's Laboratories Ltd, Lupin Ltd, Mylan NV, Sun Pharmaceutical Industries Ltd among others.

Why Purchase the Report?

• To visualize the global active pharmaceutical ingredients market segmentation based on type, application, nature, manufacturing type and region,as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of active pharmaceutical ingredients market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global active pharmaceutical ingredients market report would provide approximately 53 tables, 54 figures and 195 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies