Introduction:

Active pharmaceutical ingredient (API) is a substance used in a finished pharmaceutical product (FPP), intended to furnish pharmacological activity. The market growth is due to the rising prevalence of chronic diseases, such as cardiovascular diseases and cancer and the advancements in active pharmaceutical ingredient (API) manufacturing. Favorable government policies for API production are also boosting the market growth. The increasing uptake of biopharmaceuticals and growing importance of generics are also driving the market growth. Due to COVID-19 pandemic, the market and distribution network was disturbed and that led to expansion and formation of self-sufficient models by many governments.

The global Active Pharmaceutical Ingredients market size was estimated to be at USD 180.2 billion in 2020, and is expected to grow at a CAGR of 5.9% during forecast period to reach USD 271.7 billion in 2027.

Market Dynamics:

The incidence and prevalence of chronic disease such as cardiovascular diseases, diabetes, asthma, COPD, cancer, etc. is increasing globally. Also, the geriatric population is increasing and that results into increasing demand of treatment product such as pharmaceutical formulations. For instance; according to the UN, in 2017, the population aged 65 and above is anticipated to increase from 962 million in 2017 to 2.1 billion by 2050. This will create demand for APIs to meet the formulation demand during forecast period.

Rising research and development efforts are contributing to the advancements in APIs. This is, coupled with increasing demand for generics, expected to fuel the demand for APIs during forecast period. The increased use of result-oriented biopharmaceuticals and the rising demand for biosimilars in different therapeutic applications are the key factors driving the growth of the active pharmaceutical ingredients market.

COVID-19 Impact:

The COVID-19 pandemic has triggered the research activities to find treatment COVID. This has led to increased use and increased production of certain APIs. Currently, more than 155 molecules are under clinical investigation, and around 50 molecules are under preclinical development to be targeted against COVID-19. The mass production of effective vaccine or treatment products offers an opportunity to API market to grow exponentially.

Global Active Pharmaceutical Ingredients Market Forecast 2019-2027 (US$ Mn)

Source: Precise Market Intelligence, 2020

Segmentation:

The market has been segmented based on synthesis type, product, type of players and region.

  • By Synthesis Type
    • Biotech APIs
      • Monoclonal Antibodies
      • Recombinant Proteins
      • Others
    • Synthetic APIs
  • By Product
    • Conventional APIs
    • High Potency APIs
      • Generic
      • Branded
  • By Type of Players
    • Captive
    • Merchant
  • By Region
    • North America (U.S., Canada)
    • Europe (U.K., France, Germany, Italy, Spain, and rest of Europe)
    • Asia Pacific (China, Japan, India, and Rest of Asia Pacific)
    • South America (Brazil, Mexico, and Rest of South America)
    • Middle East & Africa (Saudi Arabia, UAE, South Africa, and Rest of Middle East & Africa)

Active Pharmaceutical Ingredients Market, By Region, 2019

Source: Precise Market Intelligence, 2020

Competition Landscape:

The prominent companies in the market are; Pfizer, Inc., AbbVie, Eli Lilly and Company, AstraZeneca, Novartis International AG, Merck & Co., Teva Pharmaceutical Industries Ltd., Mylan N.V., Sanofi, Bristol-Myers Squibb, GlaxoSmithKline plc and others.