Small Molecule API Market Research Report - Forecast to 2032

Small Molecule API Market Research Report Information By Types (Synthetic/Chemical API and Biological API), By Application (Cardiovascular, Oncology, Diabetes, and Immunological Disorders), By Manufacturing Method (In-House and Contract), and By Region (North America, Europe, Asia-Pacific, And Rest Of The World) – Market Forecast Till 2032

ID: MRFR/Pharma/0279-CR | 109 Pages | Author: Rahul Gotadki | February 2021         

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Global Small Molecule API Market Overview


The small molecule API market size was valued at USD 173.5 billion in 2022 and is projected to grow from USD 185.6 billion in 2023 to USD 318.97 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.00% during the forecast period (2023 - 2032). The rising demand for small molecule medicines in the market, the rising prevalence of diseases, including cancer and cardiovascular disease, and the increased outsourcing trend are the key market drivers expanding the market growth.


Small Molecule API Market O


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Small Molecule API Market Trends



  • Increasing prevalence of diseases to propel market growth


The major driver of the market is the growing prevalence of diseases, including cardiovascular disease, cancer, and infections, the creation of businesses creating small molecule APIs, and the patent expirations of the best-selling medications. Increased corporate partnerships, simple access to medicine in emerging economies, and growing consumer awareness of the benefits of small molecule API accelerate the expansion of the small molecule API. An increasing number of research and developments with innovative technologies developed with small molecule API and enhance utilization in pharmaceutical industries with new drug developments in particular disorders in the generic form with reduced cost is the major factor that increases the opportunity for driving the market growth. An enhanced number of technologies developed with advancements in pharmaceutical sectors with increased manufacturing and production in small-scale industries propels the small molecule API market CAGR.


Moreover, an increasing number of chronic diseases such as oncology, diabetes, cardiovascular diseases, respiratory diseases, neurology disorders, ortho arthritis and many more with the rising number of disorders among the people increasing population and many more disorders with an increasing number of treatments based on the small molecule API with increased efficiency of the molecule and developed infrastructures in health care sectors boost the market to grow with rising market demand for the innovations in medications with faster recovery propels the market of small molecule API to a larger extend. Increased research and developments for developing a vaccine for treating Covid-19 and constant research for developing new drug developments with small molecule API, which is the major drug for treating the disorder with increased demands from the medical sector and an increased number of patients with chronic disorder expands the market growth of market for small molecule API to drive high.


Figure 1: Number of people suffering from different complications due to diabetesNumber of people suffering from different complications due to diabetes


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


However, the market for small molecule APIs is impacted by the growing rate of generic pharmaceuticals and enhanced production of small molecule APIs due to technical enhancement in the manufacturing sector. Moreover, the market for small molecule API is favorably impacted by the increasing geriatric population, increase in disease and treatment awareness among people, research and development activities, improved healthcare infrastructure, and rise in healthcare spending drives the small molecule API market revenue.


Small Molecule API Market Segment Insights


Small Molecule API Type Insights


The market segments of small molecule API, based on type, includes synthetic/chemical API and biological API. The synthetic/chemical API segment held the majority share in 2022 in the small molecule API market data. This is due to the dominance of synthetic drugs in the pharmaceutical industry that propels the demand for raw materials such as small molecule APIs for production. However, biological API is the fastest-growing category over the forecast period due to a rising focus on targeted therapies and a surge in demand for biotech-based products.


Small Molecule API Application Insights


The market segments of small molecule API, based on application, include cardiovascular, oncology, diabetes, and immunological disorders. The cardiovascular segment dominated the market growth in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is due to the growing prevalence of cardiovascular conditions globally, owing to changes in lifestyle and food habits. However, oncology is the fastest-growing category over the forecast period due to a surge in the prevalence of cancer. The presence of a lucrative pipeline and an increase in demand for cancer drugs is creating a pull for oncology API in the market.


Figure 2: Small Molecule API Market, by Application, 2022 & 2030 (USD Billion) Small Molecule API Market, by Application,


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Small Molecule API Manufacturing Method Insights


The market data of small molecule API, based on the manufacturing method, includes in-house, and contract. The in-house segment dominated the market revenue of small molecule API in 2022 and is projected to be the fastest-growing category during the forecast period, 2022-2030. This is owing to many companies manufacturing their API themselves, making them less reliant on suppliers for raw materials. However, the contract is the fastest-growing category over the forecast period due to the increasing number of approved molecules requiring complex manufacturing processes.


Small Molecule API Regional Insights


By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North America small molecule API market accounted for USD 79.46 billion in 2022 with a share of around 45.80% and is anticipated to exhibit a significant CAGR growth during the study period. The existence of favorable government initiatives, coupled with the regional players' increased interest, is anticipated to propel the North American market. For instance, in November 2020, Cambrex announced an investment of USD 50 million for the expansion of its large-scale manufacturing in the US. The facility is aimed at meeting the continually surging demand for small molecules.


Further, the major countries studied in the market report are: The U.S, Germany, Canada, France, UK, Italy, Spain, China, Japan, Australia, India, South Korea, and Brazil.


Figure 3: SMALL MOLECULE API MARKET SHARE BY REGION 2022 (%)SMALL MOLECULE API MARKET SHARE BY REGION


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Europe small molecule API market accounts for the second-largest market share. This is due to improvements in overall healthcare infrastructure, improved access to healthcare, and the presence of local manufacturers in large numbers. Moreover, UK market of small molecule API held the largest market share, and the Germany market of small molecule API was the fastest-growing market in the region.


Asia Pacific small molecule API market is projected to expand at the fastest CAGR from 2022 to 2030. This is due to increasing government support in nations such as India for investing in API business, further accelerating the region's growth. In March 2022, Lonza announced the completion of the expansion of its laboratory in China's API manufacturing facility, which allows the company to focus on small molecule high potency APIs. Further, the China market of small molecule API held the largest market share, and the India market of small molecule API was the fastest-growing market in the region.


Small Molecule API Key Market Players & Competitive Insights


Major key players are investing a lot of money in R&D to enhance their product lines, which will help the market of small molecule API  to grow even more. Market participants are also taking several strategic initiatives to enhance their worldwide footprint, with key market developments including mergers and acquisitions, new product launches, contractual agreements, increased investments, and collaboration with other organizations. Competitors in the small molecule API industry must provide cost-effective items to expand and survive in an increasingly competitive and growing market environment.


One of the major business strategies manufacturers adopts in the small molecule API industry to advance clients and expand the market sector is manufacturing locally to reduce operating costs. In recent years, the small molecule API industry has delivered medicine with some of the most significant benefits. The small molecule API market major player such as Teva Pharmaceuticals, ALLERGAN, BASF SE, Siegfried Holding AGand others is working on enhancing the market demand by investing in R&D activities.


Sumitomo Chemical Company, Limited manufactures chemical products. The Company specializes in basic chemicals, petrochemicals, and fine chemicals such as photo-resists, pharmaceutical intermediates, and agrochemicals. Sumitomo Chemical operates manufacturing plants and sales offices worldwide. In March 2022, Sumitomo Chemical Co., Ltd. announced its investment to build a new manufacturing facility in Japan to meet the surge in demand for high-quality small molecule APIs and intermediates.


Sandoz is a section of the Novartis Group and a authority in generic pharmaceuticals and biosimilars. The company was established in 2003 when Novartis united its generics businesses under Sandoz. In January 2020, Sandozis company introduced generic drug developments in the market and off-patented medicines, and increased acquisition drive the market of small molecule API.


Key Companies in the Small Molecule API market include




  • Teva Pharmaceuticals




  • ALLERGAN




  • BASF SE




  • Siegfried Holding AG




  • Sun Pharmaceuticals




  • Sanofi S.A




  • Albany Molecular Research Inc




  • Novartis AG




  • Albemarle Corporation




  • Dr. Reddy's Laboratories Ltd




  • Merck Sharp & Dohme Corp




  • GlaxoSmithKline plc




  • Pfizer Inc.




Small Molecule API Industry Developments


June 2022: Schrödinger, Inc., whose physics-based software platform is transforming the way therapeutics and materials are discovered, announced that the US Food and Drug Administration(FDA) removed its investigational new drug application for its MALT1 inhibitor, SGR-1505. Schrödinger expects to initiate a Phase 1 clinical trial of SGR-1505 in patients with relapsed or refractory B-cell lymphoma in the second half of 2022.


Small Molecule API Market Segmentation


Small Molecule API Type Outlook (USD Billion, 2019-2030)




  • Synthetic/Chemical API




  • Biological API




Small Molecule API Application Outlook (USD Billion, 2019-2030)



Small Molecule API Manufacturing Method Outlook (USD Billion, 2019-2030)




  • In-House




  • Contract




Small Molecule API Regional Outlook (USD Billion, 2019-2030)




  • North America








    • US




    • Canada








  • Europe








    • Germany




    • France




    • UK




    • Italy




    • Spain




    • Rest of Europe








  • Asia-Pacific




    • China




    • Japan




    • India




    • Australia




    • South Korea




    • Australia




    • Rest of Asia-Pacific






  • Rest of the World




    • Middle East




    • Africa




    • Latin America





Report Scope:

Report Attribute/Metric Details
Market Size 2022 USD 173.5 billion
Market Size 2023 USD 185.6 billion
Market Size 2032 USD 318.97 billion
Compound Annual Growth Rate (CAGR) 7.00% (2023-2032)
Base Year 2022
Market Forecast Period 2023-2032
Historical Data 2018 - 2021
Market Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Type, Application, Manufacturing Method and Region
Geographies Covered North America, Europe, Asia Pacific, and the Rest of the World
Countries Covered The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled Albemarle Corporation, Allergan Plc, Aurobindo Pharma, Cambrex Corporation, Dr. Reddy's Laboratories Ltd, GlaxoSmithKline Plc, Lonza, Merck Sharp & Dohme Corp., Mylan NV, Novartis AG, Pfizer Inc., Siegfried AG, Sun Pharmaceutical Industries Ltd., and Teva Pharmaceutical Industries Ltd.
Key Market Opportunities Increase in the small-scale production
Key Market Dynamics Technological developments in the manufacturing sector Increasing prevalence of diseases




Frequently Asked Questions (FAQ) :

The small molecule API market size was valued at USD 173.5 Billion in 2022.

The market is projected to grow at a CAGR of 7.00% during the forecast period, 2023-2032

The key players in the market are Albemarle Corporation, Allergan Plc, Aurobindo Pharma, Cambrex Corporation, Dr. Reddy's Laboratories Ltd, GlaxoSmithKline Plc, Lonza, Merck Sharp & Dohme Corp., Mylan NV, and Novartis AG.

The synthetic/chemical API category dominated the market in 2022.

Key Questions Answered

  • Global Market Outlook
  • In-depth analysis of global and regional trends
  • Analyze and identify the major players in the market, their market share, key developments, etc.
  • To understand the capability of the major players based on products offered, financials, and strategies.
  • Identify disrupting products, companies, and trends.
  • To identify opportunities in the market.
  • Analyze the key challenges in the market.
  • Analyze the regional penetration of players, products, and services in the market.
  • Comparison of major players’ financial performance.
  • Evaluate strategies adopted by major players.
  • Recommendations
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