Active Ingredients Market Information By End Use (Personal care & Cosmetics, Pharmaceuticals, Agrochemicals) By Region (North America, Europe, Asia Pacific) Forecast till 2030

Active Ingredients Market Forecast

According to MRFR analysis, Active ingredients market is projected to register a CAGR of over 6.5% to reach around USD 320.56 billion by the end of 2028.

Active ingredients are the substances in products that are responsible for the beneficial effects experienced by consumers.Active ingredients are widely used in drug manufacturing, cosmetics, agrochemicals, among others.Some of the key active ingredients used in personal care & cosmetics products include ceramides, niacinamide, hyaluronic acid, retinol, hydroquinone & kojic acid, salicylic acid, and alpha-hydroxic acid, among many others.

The key driver of the global active ingredients market is its use in cosmetic & personal care products. Rising concerns regarding skinaging and the need for an even skintone contribute to the increase in sales and production of various cosmetic products, which drives the global active ingredients market. Factors such as harshness by sun, pollution, stress, and poor eating habits result in damaged skin, there fore driving the demand for personal care & cosmetics products. The growth of skincare products is attributed to key factors such as a growing desire for health-promoting and self-care products, increasing interest in the power of regimens and routines, and social media empowerment to simplify consumers' unusually complex choices when they interact with them skincare brands.This is attributed to the influence of social media platforms and celebrity brand endorsement, which increases the sales of personal care & cosmetics products across the globe and is another prime driver of the global active ingredients market.

The active ingredients and bulk active ingredients used in the medical sector are called active pharmaceuticals ingredients.The active pharmaceutical ingredients are part of any drug that produces the intended effects. Combination the rapies which have multiple active ingredients are used to treat different symptoms is a keyfactor boosting the growth of the active pharmaceutical ingredients market include the rising drug research and development activities, the vital role of generics, and the increasing consumption of biopharmaceuticals. Rising prevalence of chronic diseases across the globe due to the sedentary lifestyle is expected to increase the demand for drugs, which is expected to fuel the active pharmaceutical ingredients market growth during the forecast period. The use of alcohols such as ethyl alcohol and is opropyl alcohol as active ingredients in hand sanitizers, which witnessed a peak during the outbreak as the consumers have shifted towards leading a hygienic lifestyle, has had a positive impact on the global active ingredients market.

Moreover, the use of active ingredients in agrochemicals is yet another driver for the global market. An active ingredient in an agro chemical revents, destroys, repels, mitigates a pest, or is a nitrogen stabilizer. Key factors such as rapid industrialization and urbanization leading to lack of arable land and poor soil quality drive the demand for agrochemicals.

Regulatory Framework

The quality of active ingredients in a drug directly affects the safety and efficacy of that drug. Poorly manufactured and contaminated active ingredients result in negative health outcomes, including deaths. Therefore, countries across the globe have started regulating the production and processing of active ingredients. For instance, the US Environmental Protection Agency regulates pesticides under the Federal Insecticide, Fungicide, and Rodenticide Act.

On the other hand, the Food and Drug Regulations outlinesthe requirements of Establishment Licensing and Good Manufacturing Practices related to the manufacturing and importingof active pharmaceutical ingredients.

The ICH Q7 Guideline is a quality standard that regulates the manufacturing of active ingredients andis established by the International Conference on Harmonization, which includes several countries such as the US, Japan, and the countries of the European Union.

Impact of Coronavirus Outbreak

After hitting the lowest by the outbreak of COVID-19, the global economy is set to expand 5.6% in 2021. However, the recovery is projected to be uneven owing to the uneven vaccine rollouts, upcoming COVID-19 waves, and withdrawal of monetary support measures. In many emerging markets and developing economies, obstacles to vaccination also result in delayed normalcy. The recovery is envisioned to continue into 2022, with global growth moderating to 4.3%. However, yet the global GDP is expected to remain 1.8% below pre-pandemic projections.

The pandemic has resulted in disruptions in the operations and global supply chain across end-use industries. The disruptions have resulted in slowing or shutting down of the markets. However, with the uplifting of bans and travel restrictions, the growth across end-use industries has gained significant momentum.

The COVID-19 pandemic had a favorable impact on the active pharmaceutical ingredients market as the major players manufactured huge amounts of ingredients to maintain the demand for the treatment of COVID-19. Moreover, the various strains of COVID-19 coupled with the cases of black fungus resulted in various drugs. The outbreak of COVID-19 has resulted in redirectionof models by drug manufacturers to to focus on a larger pool of patients. For example, the US requested that hydroxychloroquine be imported from India as a treatment for COVID-19, which increased the production in India. Moreover, the research & development across the globe for the COVID-19 vaccine promoted the demand for various active ingredients.

Supply Chain Analysis

The supply chain analysis evaluates every stage and step taken by stakeholders involved throughout the production and distribution of active ingredients. The supply chain includes raw materials and suppliers, active ingredients producers, distribution channels, and end-use industries.The distribution channel in this market comprises distributors, wholesalers, and e-commerce merchants. Some key distributors and suppliers of active ingredients include Brenntag North America, Inc. (US), ParchemFine &Specialty Chemicals (US), Argus Chemicals (China), Jigs Chemical (India), and Caldic B.V. (The Netherlands).

Market USP

Extensive use in skincare products

Market Drivers

• Accelerating demand for anti-aging, skin whitening, and sun protection products


• Extensive use in drug manufacturing

Market Restraints

• Regulatory constraints

Segmentation

By End Use

• Personal Care & Cosmetics: The beauty and personal care industry is rapidly evolving due to continuous innovation and new product developments, thus resulting in an increased demand for brands to understand consumer preferences better. This results in the production of various types of personal care & cosmetics products. In addition to this, stress, bad dietary habits, and exposure to blue light are affecting skin conditions, thereby promoting the demand for skincare products across the globe.


• Pharmaceuticals: Factors such as increasing investment in drug R&D, rising incidences of chronic diseases, and the growing importance of generics are driving the demand for active pharmaceuticals ingredients. The rising geriatric population, increasing spending power, and the will to live a healthy life drive the demand for a range of pharmaceuticals, including long-term chronic diseases such as cancer, diabetes, coronary artery disease, chronic obstructive pulmonary disease, asthma, hepatitis, and arthritis.


• Agrochemicals: Agrochemical active ingredients are chemicals used to formulate common agrochemicals used in the agriculture industry. The demand for global agrochemical active ingredients market is increasing on account of the high population growth and subsequent increase in demand for food, soil degradation, limited agricultural land, and increased consumer awareness about the benefits of agrochemicals.

By Region

• North America: The North American market for active ingredientsis driven by the expanding industrial sector in the region. The market in North America is primarily driven by the growing incidence of preventable chronic diseases, increasing government focus on generic drugs, rising demand for biologics and specialty drugs, and technological advancements in the manufacturing processes of APIs. According to IQVIA (MIDAS May 2019), 65.2% of sales of new medicines launched during 2013-2018 were in the US market, with pharmaceutical R&D expenditure of USD 55,755 million in 2018.


• Europe: The market in Europe is projected to witness high demand for active ingredientsdue to the growth of the pharmaceutical and personal care & cosmetics industries in the region. Major contributors to the market growth include Germany, the UK, France, and Russia.


• Asia-Pacific: Asia-Pacific is the fastest-growing regional market on account of the rapid industrialization in the region. The growth potential is in emerging economies such as India, South Korea, Thailand, and Malaysia. Asia-Pacific active ingredients market has been witnessing consistent growth due to the increasing demand for agrochemicals on account of the presence of agricultural countries in the region.

Key Players

• AkzoNobel N.V. (The Netherlands)


• Ashland (US)


• BASF SE (Germany)


• Clariant (Switzerland)


• Evonik Industries AG (Germany)


• Lonza (Switzerland)


• Gattefossé(France)


• Sumitomo Corporation (Japan)


• DuPont (US)


• Croda International Plc (UK)


• Eastman Chemical Company (US)


• FMC Corporation (US)


• Sipcam (US)


• United Phosphorus Limited (India)


• Nufarm Limited (Australia)


• ADAMA Agricultural Solutions Limited (Israel)


• PotashCorp (Canada)


• Israel Chemicals Ltd (Israel)


• K+S AG (Germany)


• IFFCO (India)


• Pfizer Inc. (US)


• Novartis International AG (Switzerland)


• Merck & Co. (Germany)


• Teva Pharmaceutical Industries Ltd (Israel)


• Mylan N.V. (US)


• Boehringer Ingelheim (Germany)


• Hoffmann-La Roche AG (Switzerland)


• Sanofi (France)


• AbbVie (US)


• AstraZeneca (UK)