SEATTLE, Nov. 12, 2021 /PRNewswire/ -- According to Coherent Market Insights, The global active pharmaceutical ingredients market is estimated to account for 303.3 Bn in terms of value by the end of 2028.
Active pharmaceutical ingredients are chemicals that when combined with other active ingredients form a new compound that has all the chemical properties of the active ingredient. An active ingredient is also the active ingredient in a chemical or pesticide, and sometimes in medicine. Most of the active ingredients used in modern medicines are chemical compounds that are man-made. An active ingredient may also be a naturally occurring compound. The most common chemicals used as active ingredients in topical and oral medications are parabens, phthalates, and SLSs [single-use low-length plastic bottles (place in the freezer to keep liquid alive); see my article on parabens for further explanation].
1. Increasing incidence of chronic diseases is expected to drive growth of the global active pharmaceutical ingredients market during the forecast period.
The number of chronic diseases cases such as hypertension, cancer, and cardiovascular diseases (CVD) has increased significantly over the years. According to the World Health Organization (WHO), in 2018, around 9.6 million died due to cancer with over 300,000 new cases of cancer being diagnosed each year among children aged 0-19 years across the globe. According to the same source, around 17.9 million people die each year from cardiovascular disease worldwide. According to the Centers for Disease Control and Prevention (CDC), in the U.S., in 2020, around 108 million people have hypertension, which is defined as systolic blood pressure. API is a key part of any drug that produces the intended effects and hence, it has witnessed high demand across the healthcare and pharmaceutical industry.
Precision medicine has gained significant popularity in the recent past as they are more efficient than conventional drugs. Precision medicine uses the information about a person's own genes or proteins to prevent or treat disease. These medicines are typically used in cancer treatment to understand specific information about a person's tumor for diagnosis, treatment plans, and analysis of how the treatment is working. This, in turn, has increased the adoption of API as it provides the intended effects of the drug.
1. Rapid growth of the biosimilars market can present lucrative growth opportunities for key companies
Biosimilars refer to a medicine that is extremely close to structure and function to biological drugs. Biologic drugs are made in the living system namely bacteria, yeast, or animal cells. One of the major advantages of biosimilars in patients with inflammatory bowel disease (IBD) is that the drug acquisition cost is decreased and hence they are less expensive.
2. Emerging markets can provide major business opportunities for major players
The pharmaceutical industry in emerging economies such as India, Brazil, and China has witnessed robust growth in the recent past. According to the India Brand Equity Foundation (IBEF), India's domestic pharmaceutical market is expected to reach US$ 64 billion by 2024, increasing from US$ 42 billion in 2021. As a result of this, the demand for active pharmaceutical ingredients has increased massively.
Among regions, North America is expected to witness significant growth in the global active pharmaceutical ingredients market during the forecast period. This is owing to growing epidemiology of cancer and rising cases of lifestyle-related diseases in the region. Moreover, increasing R&D activities is expected to boost regional market growth in the near future.
Europe is expected to register a robust growth rate, owing to increase in research funding and rapid growth of the biopharmaceutical industry across the region. Furthermore, growing healthcare expenditure is expected to propel the regional market growth over the forecast period.
Major companies involved in the global active pharmaceutical ingredients market are Aurobindo Pharma, Sun Pharmaceutical Industries Ltd, Teva Pharmaceutical Industries Ltd, Mylan NV, Pfizer Inc., Dr. Reddy's Laboratories Ltd, Novartis AG, Boehringer Ingelheim GmbH, and BASF SE.
Key companies are focused on entering into strategic agreements and deals with competitors, in order to expand the market presence. For instance, in April 2021, Novartis AG entered into an agreement with Roche to make ingredients for Roche's Actemra treatment, indicated for COVID-19 patients.
Global Active Pharmaceutical Ingredients Market, By Region: