GLOBAL PHARMACEUTICAL INTERMEDIATES MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Global Pharmaceutical Intermediates Market Size and Trends

The pharmaceutical intermediates market is estimated to be valued at USD 43.67 Bn in 2024 and is expected to reach USD 75.12 Bn by 2031, growing at a compound annual growth rate (CAGR) of 8.1% from 2024 to 2031.

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The pharmaceutical intermediates market is expected to witness significant growth over the forecast period. The demand for pharmaceutical intermediates is rising mainly owing to the increasing prevalence of diseases across the globe and growing need for medicines and drugs. The major factors driving the growth of this market include rising spending on healthcare worldwide coupled with the increasing consumption of generic drugs. Additionally, the growing production of active pharmaceutical ingredients (APIs) is also augmenting the demand for pharmaceutical intermediates. However, stringent regulations for the manufacturing and processing of pharmaceutical intermediates may hamper the growth of this market to some extent over the next few years.

Rising demand from generic drug manufacturers

The demand for pharmaceutical intermediates is being driven strongly by generic drug manufacturers. Over the past decade, the generic drug market has witnessed tremendous growth as many blockbuster drugs have lost their patent protection. This has paved the way for many generic versions of the original brand name drugs to be introduced in the market at much lower price points. Generics account for over 80% of the total prescriptions filled in major pharmaceutical markets today. However, the production of generic drugs requires large quantities of pharmaceutical intermediates which serve as the building blocks and raw materials. Most generic drug manufacturers do not have in-house capabilities to produce these intermediates and hence rely significantly on dedicated pharmaceutical intermediate producers.

Another key driver for the pharmaceutical intermediates market has been the increasing research and development investments and activities undertaken by large pharmaceutical corporations. Despite facing numerous challenges, big pharma companies have continued devoting greater resources towards new drug development programs in therapeutically important areas. The discovery and development of new molecular entities requires the extensive synthesis, screening, and testing of various intermediates during the chemical process. Any candidate molecules demonstrating efficacy and safety are then subjected to further optimization and scale-up involving multifarious intermediates. The entire cycle from target identification to commercialization entails synthesizing multitudes of intermediates. Therefore, as big pharma’s R&D budgets and pipelines expand, they translate into higher outsourcing of intermediate manufacturing responsibilities.