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Active Pharmaceutical Ingredients Market Research Report - Forecast till 2028

Active Pharmaceutical Ingredients Market Research Report: Information By Manufacturing Process (Captive Manufacturing and Contract Manufacturing), Type of Synthesis (Synthetic and Biotech), By API Formulation (Generic API and Branded/Innovative API), Application (Cardiovascular Disease, Oncology, Neurological Disorders, Orthopedic Disorders, Respiratory, Gastrointestinal Disorders, Urology and others), Molecules (Large Molecule and Small Molecule) and Region - Forecast till 2028

ID: MRFR/Pharma/0876-CR | February 2021 | Region: Global | 157 pages

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Active Pharmaceutical Ingredient (API) Market Overview


Active Pharmaceutical Ingredient Market size is anticipated to disclose a 6.2% CAGR and touch USD 312 Billion by 2028. The active pharmaceutical ingredients share price has risen incrementally over the past few years due to medicinal properties. The drugs taken together with combined therapy have numerous active ingredients to treat a range of disorders. The various types of active pharmaceutical ingredients are prime elements in the production of drugs, and this global market is estimated to experience optimistic growth in the upcoming period.


COVID-19 Analysis of Active Pharmaceutical Ingredient Market 


The surge in COVID-19 cases globally has played an intrinsic role in active pharmaceutical ingredient manufacturers' development through the forecast period. In India's active pharmaceutical ingredient market, the administration has completed a molecule-by-molecule charting of active pharmaceutical ingredients (APIs) imported from China to elevate domestic construction and imports from third party suppliers in sight of the supply chain interruptions because of the COVID-19 pandemic. The administration is also organizing special provisions for APIs that still require to be sourced from China.


The COVID-19 pandemic has added a further hurdle as governments globally decided to boycott APIs manufactured in China. The COVID-19 contagion put a constraint on the manufacture and the supply chain of several strategic pharmaceutical companies. The global reliance on China for APIs for various biologics and generic drugs is estimated to exert a considerable pull on the global active pharmaceutical ingredient business model. Approximately 44 businesses were considered invalid during the pandemic lockdown restrictions put by the Chinese government. This trend has contributed mainly to nations rolling out native API production programs after reassessing their healthcare models to treat the virus and guarantee a steady inflow of API manufacture. Consequently, well-known pharmaceutical companies are altering their business standards based on key performance indicators.


Active Pharmaceutical Ingredient Market Dynamics


Drivers


Raised Incidences Of Chronic Diseases


The increasing occurrences of chronic diseases have risen significantly in the past few years due to increased exposure to risk factors and better detection of the ailments at their initial stages.


Upsurge In Novel Drug Applications


The progress in reduced new drug applications (ANDA) is showing a sudden spike due to improved funding into the R & D aspect for treatment of the disease.


Promotion In The Biopharmaceutical Outlook


The intensifying approval of biopharmaceuticals is estimated to play out in favor of the active pharmaceutical ingredient industry in the coming period. The community's healthcare expenses and the present COVID-19 pandemic have led pharmaceutical producers to rearrange their capabilities to cater to a large patient pool.


Opportunities


Advancement In Generics


The developing status of generics in the global active pharmaceutical ingredient market is projected to augment the active pharmaceutical ingredients market growth. Also, the diminishing number of novel drugs in the pharmaceutical industry is estimated to add to the product development's active pharmaceutical ingredients in the upcoming period.


Restraints


Regulatory Drawbacks


The rigorous supervisory strategies and hostile drug price control strategies throughout several countries are expected to limit the growth of the active pharmaceutical ingredients' companies. A shift to digital manufacturing and patents for blockbuster drugs is estimated to lower the market's development.


Active Pharmaceutical Ingredient Market Segment Overview


By Manufacturing Process


The contract manufacturing segment is estimated to enhance the active pharmaceutical ingredients market share.


Based On Type Of Synthesis


The biotech segment is foreseen to display promising growth in the duration of the forecast period.


Based On API Formulation


The generic API and branded/ innovative API segments are estimated to show notable progress in the forecast period.


Based on Application


The cardiovascular disease oncology and neurological disorders segment is estimated to perform extraordinarily in the upcoming period.


Based On Molecule


The small molecule is estimated to enhance the active pharmaceutical ingredients market share in the forecast period.


Active Pharmaceutical Ingredient Market Regional Analysis


The Americas active pharmaceutical ingredient market is anticipated to hold the principal portion of the global market. The North America active pharmaceutical ingredients market governs the global active pharmaceutical ingredients market due to the increasing technological progress in diagnostics linked with the growing occurrences of chronic diseases and other neurological conditions.


The European regional active pharmaceutical ingredient market is projected to account for a second principal market portion through the forecast period. Many CMOs present in manufacturing of APIs and the mounting need to advance generic drugs are likely to spur the market. 


The Asia Pacific active pharmaceutical ingredient market is evaluated to be the fastest encouraging region in the global active pharmaceutical ingredient market due to the commonness of quickly emerging markets such as India, China, and South Korea that are developing as main hubs for outsourcing drug manufacturing. Japan is estimated to advance the Asia Pacific active pharmaceutical ingredient market primarily.


The Middle Eastern & African active pharmaceutical ingredients market is anticipated to intensify due to the escalate emerging healthcare infrastructure and growing demand for healthcare products.


Active Pharmaceutical Ingredient Market Competitive Landscape


The noticeable companies in the active pharmaceutical ingredients market are



  • Sanofi SA (France)

  • Hoffmann-La Roche Ltd (Switzerland),

  • Pfizer Inc. (US)

  • Abbott (US),

  • Bayer AG(UK)

  • Merck & Co., Inc (US)

  • Boehringer Ingelheim GmbH (UK)

  • GlaxoSmithKline Plc (UK)

  • Novartis AG (UK)

  • Eli Lilly and Company (US)

  • Teva Pharmaceutical Industries Ltd (Israel)


The companies functioning in the global market are expanding their presence by strategic collaborations to increase production capacities and amass a bigger market share in the forecast period.


Recent Developments



  • Dec 2020 Piramal is planning to invest USD 32 million into its manufacturing plant in Michigan, US shoring up production and expansion for non-potent and potent active pharmaceutical ingredients (APIs) over the coming two years. The additional 25,000-square-foot expansion will enhance the 8,500 square feet of production area. It's also anticipated to lift volume for large-scale production because novel reactors can process projects up to 4,000 liters, boosting API production from 30% to 40%.



  • Dec 2020 EQT AB, a private equity firm, decided to purchase Swedish pharmaceuticals business Recipharm AB for USD 2.1 billion, evidencing the newest drug industry procurements trend. Recipharm AB has multi-purpose plants that can manufacture more than a few active pharmaceutical ingredients (APIs) at a time.


Report Overview



  • By Manufacturing Process

    • Captive Manufacturing

    • Contract Manufacturing





  • By Type of Synthesis

    • Synthetic

    • Biotech





  • By API Formulation

    • Generic API

    • Branded/ Innovative API





  • By Application

    • Cardiovascular Disease

    • Oncology

    • Neurological Disorders

    • Orthopedic Disorders

    • Respiratory

    • Gastrointestinal Disorders

    • Urology

    • Others





  • By Molecule

    • Large Molecule

    • Small Molecule





Report Scope:
Report Attribute/Metric Details
  Market Size   2028: USD 312 Billion
  CAGR   6.6% (2021-2028)
  Base Year   2019
  Forecast Period   2028
  Historical Data   2018
  Forecast Units   Value (USD Billion)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   By Manufacturing Process, Type of Synthesis, API Formulation, Application, Molecule, Region
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Sanofi SA (France), Hoffmann-La Roche Ltd (Switzerland), Pfizer Inc. (US), Abbott (US), Bayer AG(UK), Merck & Co., Inc (US), Boehringer Ingelheim GmbH (UK), GlaxoSmithKline Plc (UK), Novartis AG (UK), Eli Lilly and Company (US), Teva Pharmaceutical Industries Ltd (Israel)
  Key Market Opportunities   Advancement In Generics
  Key Market Drivers

  • Raised Incidences Of Chronic Diseases
  • Upsurge In Novel Drug Applications
  • Biopharmaceutical Outlook


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    Frequently Asked Questions (FAQ) :

    The active pharmaceutical ingredients market is projected to grow at a 6.2% CAGR between 2021-2028.

    The Americas are predicted to command the highest share in the active pharmaceutical ingredients market.

    The active pharmaceutical ingredients market is predicted to touch USD 312 Billion by 2028.

    Rising prevalence of chronic diseases and rising importance of generics are boosting market growth.

    Strict regulatory policies may impede market growth.

    Active Pharmaceutical Ingredients or API, in short, are growing in an increscent manner due to the unmatched effects of active chemicals in the drugs and the portions that work on treating the condition. The bridging of foreign manufacturers and local distributors has led to extensive progress in the market over the past few years. The launch of innovative and improved APIs in the market will boost the market’s progress to a great extent in the forthcoming period. Moreover, the constantly growing demand for biotech API has stimulated the firms to present better and new products to address the unmet requirements of the market.

    The outlook for growth in the economy is likely to perceive a sweeping rise in the API industry owing to the growing occurrence of chronic disorders such as diabetes, cardiovascular diseases, obesity and other infectious diseases which will lead to the launch of numerous innovative drugs. The rising cases of chronic diseases are also one of the foremost reasons for hospitalization with a huge number of patients with these conditions who may need re-admission in hospitals owing to an infection that can cause other chronic diseases. The expiration of patents of branded drugs has created a serious impression on drug manufacturers, as the companies can incur tremendous losses after expiration. Hence, the producers favor generic drugs over the branded ones. The generics are also expected to be the most rapidly growing type due to patent expirations of many blockbuster drugs.


    However, the rapidly increasing scope for high-potency active pharmaceutical ingredients over the last decade has shifted the focus to the new biologics gold rush of recombinant proteins and monoclonal antibodies. As a result of this, the chemical API market for western contract manufacturers, on the whole, has undergone a sharp decline till 2015. Many custom manufacturing organizations (CMOs) have shifted their emphasis to rescheduling plants or manufacturing of higher-value biologics.


    Segmental Analysis


    The segmental analysis of the market is based on the segments of the manufacturing process, API formulation, application, type of synthesis, molecule, and region. The market segmentation by type of synthesis consists of biotech and synthetic segments. The synthetic segment in 2017 was worth USD 132,690.7 Mn. The manufacturing process based segmentation of the market comprises of contract manufacturing and captive manufacturing. The captive manufacturing segment presently has the significant market share and is expected to remain extremely lucrative throughout the assessment period. The API formulation segments the market into innovative API and generic API. The generic API segment presently held the leading market share in 2017. The segmentation based on molecule has been segmented into small molecule and large molecule. The small molecule segment is expected to maintain its top position till the end of 2028. The application based segmentation of the market has been segmented into oncology, cardiovascular disease, orthopedic disorders, neurological disorders, respiratory, urology, gastrointestinal disorders and others. The oncology segment is anticipated to develop with an incremental CAGR during the forecast period.


    Regional Analysis


    The market for APIs has been segmented into Europe, Americas, Asia Pacific (APAC), and the Middle East & Africa (MEA). The Americas region presently controls the significant market portion, and the trend will probably carry on in the foreseeable future. This factor is majorly related to the robust value sustained by the small molecule segment in both Canada and the U.S. Additionally the pharmaceutical industry is among one of the major and most exceptional ventures in the US nations. The pharmaceutical organizations in the USA have developed quickly in comparison with other countries. The European and Asia Pacific region are also anticipated to continue growth in the revenue pockets for the active pharmaceutical ingredients (API) market during the forecast period. Europe accounts for the second largest market for active pharmaceutical ingredients which is followed by the Asia Pacific region. While the APAC region, the market’s course is mostly directed by factors such as the amplified level of expense on equipment and infrastructure, expanding initiatives which are motivating investment in APIs from drug makers to increase the capacity to produce APIs.


    Competitive Analysis


    The players and key trends have created a positive tone for development. The competitors in the market are also leveraging their competitive benefits to secure their development in the market. The market progress by competitors also encompasses strong risk management strategies which are positively motivating the expansion of the market.


    Bayer AG, Eli Lilly and Company, Pfizer Inc., F. Hoffmann-La Roche AG, Sanofi, Boehringer Ingelheim GmbH, Abbott Laboratories, GlaxoSmithKline Plc (GSK), Novartis AG, Merck & Co., Inc., and Teva Pharmaceutical Industries Ltd.