The global active pharmaceutical ingredient market size was US$ 91.1 billion in 2021. The global active pharmaceutical ingredient market is forecast to grow to US$ 331.9 billion by 2030 by registering a compound annual growth rate (CAGR) of 7.1% during the forecast period from 2022 to 2030.
Chemicals called Active Pharmaceutical Ingredients (API) are employed in the manufacture of medications. The drug contains physiologically active substances (APIs). The active pharmaceutical ingredient (API) and the excipient are the two components that make up any medication. The excipient is an inactive component of the medication that transports the API.
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Factors Influencing the Market
Over the past few decades, there has been a sharp increase in the prevalence of chronic diseases such as diabetes, coronary artery disease, chronic obstructive pulmonary disease (COPD), asthma, hepatitis, arthritis, and cancer. The growing prevalence of these diseases, combined with the rising elderly population, will bring untapped potential opportunities for the market. According to the International Diabetes Federation, there will be 23.6 million new instances of cancer annually by 2030. Thus, it will benefit the active pharmaceutical ingredient market during the study period.
The need for biosimilars in a variety of therapeutic applications, as well as the expanding number of biologic pharmaceuticals that are no longer covered by patents, is expected to boost the growth of the active pharmaceutical ingredient market during the study period. Apart from that, generic versions of proprietary biologic drugs known as biosimilars do not need to adhere to the same stringent regulatory standards as branded biologic drugs. As a result, it makes them comparatively cost-effective, which will contribute to the growth of the overall active pharmaceutical ingredient market.
On the flip side, stringent government regulations associated with the use of active pharmaceutical ingredients may limit the growth of the market during the forecast period.
COVID-19 Impact Analysis
Almost every government body has raised investments in the healthcare and pharmaceuticals sector after the sudden onset of the COVID-19 pandemic, prompting the rate of R&D activities. Since active pharmaceutical ingredients play an essential role in the treatment of various diseases, the global market will witness lucrative growth opportunities in the coming years. However, the market witnessed several obstacles during the initial phase of the pandemic.
China is a significant source of many Active Pharmaceutical Ingredients; however, the government-imposed restrictions limited the import and export of goods. As a result, it hampered the growth of the active pharmaceutical ingredient market.
Regional Analysis
North America is forecast to dominate the active pharmaceutical ingredient, owing to the rising occurrence of preventable chronic diseases, the growing geriatric population, and increasing government emphasis on generic drugs. Furthermore, the surging demand for biologics and specialty drugs, combined with the growing technological advancements in the sector, will boost the growth of the active pharmaceutical ingredient market during the study period.
Competitors in the Market
• Cipla
• Bristol Myers Squibb
• Boehringer Ingelheim GmbH
• BASF SE
• Aurobindo Pharma
• Albemarle Corporation
• Abbvie Inc.
• Dr. Reddy’s Laboratories Ltd
• Eli Lilly and Company
• Viatris Inc
• Other Prominent Players
The report furnishes an intricate comprehension of each segment, delivering potential estimations for principal applications and insights into emerging prospects. Every regional market is meticulously scrutinized to ascertain its potential for growth, development, and demand in the forthcoming years.
As of the end of 2022, the Active Pharmaceutical Ingredient industry experienced notable growth in its workforce. Starting in January, employment within the Active Pharmaceutical Ingredient sector exceeded its pre-COVID levels, resulting in an expansion of payrolls by over 15,000 employees throughout the course of the year. The global Active Pharmaceutical Ingredient output demonstrated a remarkable increase of 5.2% during 2021, primarily attributed to a widespread economic upswing and a surge in demand for commodities. However, the momentum shifted in 2022, with the global industrial sector’s production contracting. This reversal followed a robust expansion in 2021, fueled by altered consumer spending patterns and substantial fiscal support.
Forecasts indicate that the global Active Pharmaceutical Ingredient output is set to rise by approximately 2.9% in 2023. This projection is underpinned by the gradual recovery of production in Western Europe from its previous troughs, as well as a rebound in output across the Asia/Pacific region. Maintaining its dominant position, China, accounting for nearly 45% of the global Active Pharmaceutical Ingredient market, remains both its largest producer and consumer. Remarkably, China’s market share has surged since 2010, when it stood at around 26%. This ascent has led to a substantial contribution to the nation’s GDP. Notably excelling as a top exporter, China leads in various sectors, including silicon, PVC, and several specific segments of the Active Pharmaceutical Ingredient market.
Market Segmentation
The global active pharmaceutical ingredient market segmentation focuses on Type, Synthesis, Application, and Region.
By Type
• Innovative APIs
• Generic APIS
By Type of Synthesis
• Synthetic
• Biotech
By Application
• Communicable Diseases
• Oncology
• Diabetes
• Cardiovascular Disease
• Pain management
• Respiratory Diseases
• Others
By Region
● North America
o The U.S.
o Canada
o Mexico
● Europe
Western Europe
o The UK
o Germany
o France
o Italy
o Spain
o Rest of Western Europe
Eastern Europe
o Poland
o Russia
o Rest of Eastern Europe
● Asia Pacific
o China
o India
o Japan
o Australia & New Zealand
o ASEAN
o Rest of Asia Pacific
● Middle East & Africa (MEA)
o UAE
o Saudi Arabia
o South Africa
o Rest of MEA
● South America
o Brazil
o Argentina
o Rest of South America
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