June 14, 2024

Active Pharmaceutical Ingredients Market High Growth Opportunities, Emerging Trends, Industry Review, Forecast Till 2031

Pharmaceuticals

The demand for generic medicines has been rising constantly over the past few years owing to increasing healthcare costs and patent expirations of blockbuster drugs. Active pharmaceutical ingredients (APIs), which are the biologically active components in drugs, are the key ingredients in generic medicines. APIs provide the intended effects of pharmaceutical drug products. They are manufactured through chemical or biological synthesis. Some of the widely used APIs include acetaminophen, atorvastatin calcium, ibuprofen, and metformin hydrochloride. APIs are used to produce medications for treating various therapeutic conditions including cardiovascular diseases, pain management, diabetes, cancer, and neurological disorders.

The global Active Pharmaceutical Ingredients Market is estimated to be valued at US$ 249.3 Bn in 2024 and is expected to exhibit a CAGR of 6.1% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Get more insights on this topic: https://www.coherentmarketinsights.com/market-insight/active-pharmaceutical-ingredients-market-738

Market key trends:

One of the major trends in the active pharmaceutical ingredients market is outsourcing of API manufacturing. Growing regulatory pressures and rising costs of manufacturing are driving pharmaceutical companies to outsource API production to contract development and manufacturing organizations (CDMOs). This is allowing drug makers to focus on drug development while leveraging the expertise of CDMOs. Outsourcing to countries like India and China is gaining popularity due to low manufacturing costs. Additionally, technological advancements in continuous flow technology and process intensification are helping improve API manufacturing efficiency and productivity. This is reducing manufacturing timelines and costs. Adoption of advanced technologies like artificial intelligence and Internet of Things is also supporting vendors achieve enhanced process development and scale-up for API production.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate in the active pharmaceutical ingredients market. Significant capital investments are required to meet strict regulatory compliance and quality standards.

Bargaining power of buyers: The bargaining power of buyers is high with large pharmaceutical companies dominating the market. Buyers can negotiate on price and demand overall cost reduction.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many suppliers in the market. However, suppliers need to adhere to stringent pharmaceutical manufacturing standards and practices.

Threat of new substitutes: The threat of new substitutes is low as active pharmaceutical ingredients are unique chemical compounds that require considerable R&D investments.

Competitive rivalry: The market is competitive with leading players focusing on product innovation and expanding their manufacturing capabilities.

Key Takeaways

The global active pharmaceutical ingredients market is expected to witness high growth. The market size is forecasted to reach US$ 349.7 Bn by 2031 from US$ 249.3 Bn in 2024, registering a CAGR of 6.1% during the forecast period.

Regional analysis: North America dominated the global market in 2021 and is estimated to maintain its lead position over the forecast period. This can be attributed to the aging population and growing prevalence of chronic diseases in the region. Asia Pacific is anticipated to experience the fastest growth owing to increasing generic drug production and rising healthcare expenditure in countries such as China and India.

Key players: Key players operating in the active pharmaceutical ingredients market are Teva Pharmaceutical, Novartis AG, Pfizer Inc., Boehringer Ingelheim, and Dr. Reddy’s Laboratories. Teva Pharmaceutical aims to strengthen its Active Pharmaceutical Ingredients (API) operations through continuous process improvements and new product introductions.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it