Active Pharmaceutical Ingredients Industry Overview
The global active pharmaceutical ingredients market size was valued at USD 209.7 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 6.0% from 2022 to 2030.
The growth can be attributed to the advancements in active pharmaceutical ingredient (API) manufacturing and the rising prevalence of chronic diseases, such as cardiovascular diseases and cancer. Favorable government policies for API production, along with changes in geopolitical situations, are boosting the market growth. The API market is undergoing immense changes due to supply chain disruption by COVID-19. Countries such as India are being preferred over China for the export of API owing to geopolitical situations and the demand to reduce dependence on China for API products. Furthermore, governments of many countries have formulated plans and granted incentives to promote the production of API.
The COVID-19 pandemic had a positive impact on the global APIs market. The pharmaceutical industry was an epicenter in treating symptoms related to COVID-19, including high fever, cough, and cold. Due to the increased popularity of the pharma industry during the pandemic, the active pharmaceutical ingredients market also witnessed growth during the period.
Gather more insights about the market drivers, restrains and growth of the Global Active Pharmaceutical Ingredients Market
Following the World Health Organization's declaration of the COVID-19 outbreak as a pandemic, a diverse group of renowned pharmaceutical and biopharmaceutical companies, as well as new startups, stepped forward to create therapies to combat the virus.
Scientists discovered a list of compounds that target COVID-19. Currently, there are approximately 155 compounds in clinical trials and 45 molecules in preclinical development to combat COVID-19. Four vaccines have been repurposed for treatment against COVID-19, including Chloroquine, Hydroxychloroquine, Lopinavir & Ritonavir, and Remdesivir. In March 2020, WHO started a worldwide trial of the four COVID-19 medicines. Increased investment and research and development in pharmaceutical products will propel the growth of the market further. However, the coronavirus outbreak has caused global business and economic disruption. It is expected to have a short-term impact on the active pharmaceutical ingredients industry in the first quarter of 2020.
The global geriatric population is rising. According to the UN, in 2018, the population aged 65 and above is anticipated to increase from 962 million in 2018 to 2.1 billion by 2050. Aging weakens the immune system and increases a patient’s susceptibility to acquiring infectious diseases. Moreover, impairment in body functions enhances the chances of getting other diseases, such as CVD and diabetes.
The requirement of high capital for the production of APIs is because the process needs extremely systematic protocols, which results in the outsourcing of various APIs. In addition, pharmaceutical companies benefit from API production outsourcing as it eradicates the need for expensive manufacturing unit installation and labor force. Thus, the need for cost savings boosts outsourcing. Strategic outsourcing by companies allows them to focus on core competencies, which results in increased productivity.
HPAPIs (highly potent active pharmaceutical ingredients) indicate a dramatic shift in how pharmaceutical companies use small molecules to offer new medicines. As a result of the change to HPAPIs, a pipeline of more effective drugs with lower doses has emerged. HPAPIs' advantages, including the requirement for a lower therapeutic dose, capacity to bind to specific receptors, and high efficiency, can be attributed to their rising demand among producers and customers. The API market has always been dominated by small molecules. API manufacturers are adopting HPAPIs to differentiate themselves from the competition as the generic API industry becomes increasingly competitive.
In addition, APIs are used as Antibody Drug Conjugates (ADCs). ADCs are important and effective treatment modalities used in combination with biologically active drugs and monoclonal antibodies for cancer. APIs effectively target cancer cells while causing minimum exposure of drugs to healthy tissues. Thus, the development of cancer-specific APIs is expected to boost the API market growth.
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- Geriatric Medicine Market – The global geriatric medicine market was valued at nearly USD 540 billion in 2015. One of the key factors attributing to its rapid growth includes rapidly increasing geriatric population base. According to the estimates published by the United Nations in 2012, the global geriatric population was estimated to be nearly 809.4 million, and is anticipated to reach nearly 1.13 billion by 2022 and exceed a value of over 2 billion by 2050.
- High Potency Active Pharmaceutical Ingredients Market – The global high potency active pharmaceutical ingredients market size was valued at USD 20.39 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 8.4% from 2021 to 2028. The increasing prevalence of cancer, the growing applications of high potency active pharmaceutical ingredients (HPAPIs), and the growth of targeted therapies are anticipated to accelerate the market growth in the forecast period.
Active Pharmaceutical Ingredients Market Segmentation
Grand View Research has segmented the global active pharmaceutical ingredients market report on the basis of the type of synthesis, type of manufacturer, type, application, and region:
- Active Pharmaceutical Ingredients Type of Synthesis Outlook (Revenue, USD Billion, 2017 – 2028)
- Biotech
- Monoclonal Antibodies
- Recombinant Proteins
- Vaccines
- Synthetic
- Active Pharmaceutical Ingredients Type of Manufacturer Outlook (Revenue, USD Billion, 2017 – 2028)
- Captive APIs
- Merchant APIs
- Active Pharmaceutical Ingredients Type Outlook (Revenue, USD Billion, 2017 – 2028)
- Generic APIs
- Innovative APIs
- Active Pharmaceutical Ingredients Application Outlook (Revenue, USD Billion, 2017 – 2028)
- Cardiovascular Diseases
- Oncology
- CNS and Neurology
- Orthopedic
- Endocrinology
- Pulmonology
- Gastroenterology
- Nephrology
- Ophthalmology
- Others
- Active Pharmaceutical Ingredients Regional Outlook (Revenue, USD Billion, 2017 – 2028)
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Market Share Insights
- August 2021: Teva Pharmaceutical and MEDinCell received approval from the U.S FDA for a new drug application to treat schizophrenia.
- November 2019: Bio-Techne announced an investment of over USD 40 million to upgrade its protein manufacturing facility and meet cell therapy demands.
Key Companies profiled:
Some prominent players in the global active pharmaceutical ingredients market include:
- Merck & Co., Inc.
- AbbVie, Inc.
- Bristol-Myers Squibb Company
- Boehringer Ingelheim International GmbH
- Cipla, Inc.
- Teva Pharmaceutical Industries Ltd.
- Albemarle Corporation
- Viatris Inc.
- Aurobindo Pharma
- Sun Pharmaceutical Industries Ltd.
- Dr. Reddy’s Laboratories Ltd.
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