The Global Active Pharmaceutical Ingredients (API) Market, by Product Type (Low Potent APIs and High Potent APIs), by Molecular Type (Small Molecules and Large Molecules), by Formulation (Oral, Topical, Injectables, and Drops), by Application (Diabetes, Oncology, Cardiovascular, CNS, Analgesics, Ophthalmic, Respiratory, Dermatology, and Others), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) is estimated to be valued at US$ 235 Billion in 2023 and is expected to exhibit a CAGR of 6.8% during the forecast period (2023-2030), as highlighted in a new report published by Coherent Market Insights.
The increasing incidence of chronic diseases such as diabetes, cardiovascular disease, and central nervous system diseases is expected to drive demand for drugs, which is further expected to fuel the active pharmaceutical ingredientss (API) market growth over the forecast period. For instance, in August 2021, Glenmark Pharmaceuticals, an India-based pharmaceutical company, manufactured on-commoditized active pharmaceutical ingredientss (APIs) such as tadalafil and telmisartan for chronic therapeutic areas such as diabetes, pain management, central nervous system illness, and cardiovascular disease.
Moreover, increasing collaborations between key market players are expected to fuel the global active pharmaceutical ingredients (API) market growth during the forecast period. For instance, in May 2020, Quartic.ai, a manufacturer of AI and IIoT platform suppliers, and Bright Path Labs, a provider of continuous flow reactor technologies, entered into a collaboration to develop AI-powered technology for continuous manufacturing of key APIs and other small molecule drugs.
Global Active Pharmaceutical Ingredients (API) Market – Impact of Coronavirus (COVID-19) Pandemic
Increasing cases of COVID-19 caused production shutdowns in almost all sectors, including China’s pharmaceutical industry, which is a major exporter of APIs. For instance, as per the European Fine Chemicals Group (EFCG), an association representing API manufacturers, in 2018, more than 80% of chemicals used to make drugs sold in Europe originated from China and India. The manufacturing sites were severely affected, as these were among the worst-hit countries by the COVID-19 pandemic. Hence, this has led to acute shortage of medical resources and raw materials, leading to global supply disruption.
Due to the COIVD-19 pandemic, various regulatory scenarios have been changed, including inspection sites, API quality evaluation, and certain acts for security of supply for drugs and APIs, which is having a negative impact on the active pharmaceutical ingredients (API) market.
API manufacturers increased the production of critical components needed for antiviral medications and vaccines. This involved scaling up production lines, optimizing manufacturing processes, and working around the clock to meet the increased demand.
For instance, in June 2022, Pfizer Inc., an American multinational pharmaceutical and biotechnology corporation, announced that it will further strengthen its commitment to U.S. manufacturing with a US$120 million investment at its Kalamazoo, Michigan, facility, enabling U.S.-based production in support of its COVID-19 oral treatment, PAXLOVIDTM (nirmatrelvir [PF-07321332] tablets and ritonavir tablets). The investment will expand the production of active pharmaceutical ingredientss (API) and registered starting materials (RSMs) used in the manufacture of nirmatrelvir, a novel main protease (Mpro) inhibitor originating in Pfizer’s laboratories, which will create more than 250 additional high-skilled jobs at Pfizer’s Kalamazoo site.
Browse 27 Market Data Tables and 31 Figures spread through 310 Pages and in-depth TOC on “Global Active Pharmaceutical Ingredients (API) Market”- Forecast to 2030, Global Active Pharmaceutical Ingredients (API) Market, by Product Type (Low Potent APIs and High Potent APIs), by Molecular Type (Small Molecules and Large Molecules), by Formulation (Oral, Topical, Injectable, and Drops), by Application (Diabetes, Oncology, Cardiovascular, CNS, Analgesics, Ophthalmic, Respiratory, Dermatology, and Others), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa).
To know the latest trends and insights prevalent in this market, click the link below:
https://www.coherentmarketinsights.com/market-insight/active-pharmaceutical-ingredients-market-738
Key Takeaways of the Global Active Pharmaceutical Ingredients (API) Market:
- Among product type, the high potent APIs segment is expected to witness the fastest growth in the global active pharmaceutical ingredients (API) market over the forecast period. Highly potent API (HPAPI) medicines are a significant portion of the small molecule therapeutic research pipeline, and this group of products is expanding at a faster rate owing to its use in cancer therapies. For instance, in August 2020, Pfizer CentreOne introduced high potent drugs to cure cancer, inhibit immune responses to avoid organ rejection, and offer contraception.
- Among molecular type, the small molecules segment is expected to witness the fastest growth over the forecast period in the global active pharmaceutical ingredients (API) market, owing to increasing demand for biologics and increasing approval of small molecule pharmaceuticals. For instance, as per Drug, Chemical, and Associated Technologies Association (DCAT) articles, small molecules dominated new drug approvals in 2020, accounting for 79% of all new molecular entity (NME) approvals and representing 38 of the 48 NMEs approved by the U.S. Food and Drug Administration (U.S. FDA) in 2020.
- On the basis of formulation, injectable segment is estimated to witness the fastest growth in the global active pharmaceutical ingredients (API) market in 2021, owing to regulatory approvals of new injectable molecules. For instance, in January 2020, Teva Pharmaceuticals USA, Inc., a subsidiary of Teva Pharmaceutical Industries Ltd., received the S. FDA approval for an autoinjector device for AJOVY (fremanezumab-vfrm) injection. AJOVY is the only U.S. FDA-approved anti-calcitonin gene-related peptide (CGRP) that allows either quarterly (675 mg) or monthly (225 mg) dosage.
- In terms of application, the cardiovascular segment is expected to witness the fastest growth during the forecast period in the global active pharmaceutical ingredients (API) market, owing to the increasing prevalence of cardiovascular diseases. For instance, in December 2020, according to the American College of Cardiology, cardiovascular diseases (CVD) are the underlying cause of 9.6 million deaths among men and 8.9 million deaths among women. Over 6 million of these deaths occurred among people between the ages of 30 and 70. The highest number of CVD deaths occurred in China, followed by India, Russia, the U.S., and Indonesia.
- Among regions, North American is expected to exhibit the highest CAGR in the active pharmaceutical ingredients (API) market growth over the forecast period due to lower costs of production, lower labor costs, and high-quality production centers. For instance, as per the China Chamber of Commerce for Import and Export of Medicine and Health Products (CCCMHPIE) data, the total active pharmaceutical ingredientss produced and exported by China reached 10.1 million tons by volume in 2020.
- Major players operating in the global active pharmaceutical ingredients (API) market include Teva Pharmaceutical Industries Ltd., Pfizer, Inc., Dr. Reddy’s Laboratories Ltd., Novartis AG, Mylan N.V., Amneal Pharmaceuticals LLC, Lonza Group, Lupin Limited, Fresenius Kabi, Hikma Pharmaceuticals, Cipla Limited, Glenmark Pharmaceuticals Limited, Sun Pharmaceutical Industries Ltd., Endo International plc, Aurobindo Pharma Limited, Apotex Inc, Taro Pharmaceutical Industries Ltd, Stada Arzneimittel AG, Krka Pharmaceuticals, CordenPharma International, Evonik Industries AG, and Biological E. Limited.
