Active Pharmaceutical Ingredients: Global Market Trends and Innovations
Navigate Fierce Competition and Regulatory Challenges: Analyzing Shifts in API Demand and Market Impact
BOSTON, Jan. 6, 2025 /PRNewswire/ -- According to the latest study from BCC Research, "Active Pharmaceutical Ingredients: Global Markets" is estimated to reach $347.9 billion by 2029, at a compound annual growth rate (CAGR) of 5.9% from 2024 through 2029.
This report comprehensively analyzes the global active pharmaceutical ingredients (API) market in order to help readers evaluate the market landscape, develop growth strategies, and assess their market position. BCC Research estimates the API market size for 2023, with forecasts through 2029. The analysis focuses on API demand across regions and countries, clearly understanding consumption trends rather than production output.
The API market is segmented by manufacturer type, production method, molecule type, and region. The report also covers industry growth trends, market drivers, restraints, and opportunities, in order to provide a thorough understanding of market dynamics. This global perspective allows businesses to identify evolving needs and make informed decisions to capitalize on opportunities in the API market.
The COVID-19 pandemic highlighted the risks of depending on specific regions for API production, prompting a trend towards diversification and reshoring to mitigate supply chain vulnerabilities and geopolitical risks. This report explores how these changes have impacted and will continue to influence the API market and demand patterns across different regions. It provides insights into the ongoing realignment of the global API supply chain.
The factors driving the global market for APIs include:
Resilient Pharmaceutical Demand: The demand for pharmaceuticals remains strong due to the continuous need for medications to manage chronic and acute diseases, ensuring a stable market for APIs.
Increase in Adoption of Generics: The expiration of patents for many branded drugs has led to a significant shift toward generics, which are more affordable and increase the demand for APIs used in their production.
Shift to More Complex Chemical Entities: The pharmaceutical industry focuses on developing more complex chemical entities, including highly potent active pharmaceutical ingredients (HPAPIs) and innovative drug formulations, necessitating advanced manufacturing techniques.
Growth in the Biologics Market: Biologics, including vaccines and gene therapies, are increasingly important, driving demand for APIs needed in these products.
Advances in API Manufacturing: Technological innovations, such as continuous manufacturing and biocatalysis, are improving efficiency and reducing costs in API production, helping to meet growing demand.
Government Support: Governments support domestic API production through funding, favourable regulations, and incentives, ensuring a stable supply chain and encouraging innovation in the pharmaceutical sector.
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Report Synopsis
Report Metric |
Details |
Base year considered
|
2023
|
Forecast period considered
|
2024-2029
|
Base year market size
|
$247.8 billion
|
Market size forecast
|
$347.9 billion
|
Growth rate |
CAGR of 5.9% for the forecast period of 2024-2029 |
Segments covered
|
Manufacturer Type, Production Method, Molecule Type
|
Regions covered
|
North America, Europe, Asia-Pacific, Rest of the World
|
Countries covered
|
U.S., Canada, Mexico, Germany, France, U.K., Italy, Spain, Switzerland, Denmark, Norway, Poland, Belgium, Austria, Netherlands, Sweden, Russia, China, Japan, India, Australia, South Korea, New Zealand, Taiwan, Singapore, Malaysia, Thailand, Philippines, Indonesia, Brazil, Turkey, Argentina, Israel, U.A.E., South Africa, Egypt, Turkey, Iran, Iraq, Peru, Columbia |
Market drivers
|
• Resilient pharmaceutical demand • Increase in adoption of generics • Shift to more complex chemical entities • Growth in the biologics market • Advances in API manufacturing • Government support |
Interesting facts:
- As of August 14, 2023, around 75% of API manufacturing sites serving the U.S. market are outside the U.S., with 29% in Europe, 19% in India, and 15% in China.
- The number of biopharmaceutical manufacturing sites in the U.S. has grown by more than 50% in recent years.
- European manufacturers specialize in APIs with low production volumes, technologically complex production processes, and high-quality requirements.
The report addresses the following questions:
- What is the projected size and growth rate of the API market?
- The global API market was estimated at $247.8 billion in 2023 and is projected to reach $347.9 billion in 2029, growing at a CAGR of 5.9% during the forecast period. - Which market segments are covered in the report?
- Manufacturer type, production method, molecule type, and region. - Which production method segment will dominate the market in 2029?
- The chemical synthesis production method segment is expected to dominate the market in 2029. - Which molecule type market is growing the fastest?
- The large molecule segment is the fastest-growing market.
Market leaders include:
- AUROBINDO PHARMA
- DIVI'S LABORATORIES LTD.
- EUROAPI
- EVONIK INDUSTRIES AG
- LONZA
- PFIZER INC.
- SIEGFRIED HOLDING AG
- TEVA PHARMACEUTICAL INDUSTRIES LTD.
- THERMO FISHER SCIENTIFIC INC.
- WUXI APPTEC
Other related reports include:
Global Market for Contract Research Organization (CRO) Services: This report provides an in-depth analysis of the global CRO services market, covering major CRO companies, clinical trial processes, and functional services. It segments the market by functional services, therapeutic areas, end users, and geography. The report covers market trends, estimates for 2024, and growth forecasts through 2029, along with a competitive landscape analysis, including regulatory scenarios, market drivers, restraints, and opportunities.
Excipients in Pharmaceuticals: Global Markets to 2029: This report offers an overview of the pharmaceutical excipients market, including competitive landscape, company profiles, and market trends. It covers current and future market sizes, and segments the market by product type (organic, inorganic, USP water) and region. The report excludes excipients used in cosmetics, food, and chemical industries.
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