February 22, 2024
India Active Pharmaceutical Ingredients Market

India Active Pharmaceutical Ingredients Market: Growing Demand for Generic Drugs Driving Market Growth

The global India Active Pharmaceutical Ingredients (API) Market is estimated to be valued at US$ 19,993.2 million in 2021 and is expected to exhibit a CAGR of 8.3% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The India API market refers to the production and supply of chemical compounds that are used as raw materials in the manufacturing of pharmaceutical drugs. API plays a critical role in the formulation and development of various healthcare products. Advantages of India API include cost-effectiveness, easy availability, and high-quality production. The increasing demand for generic drugs is one of the major factors driving the growth of the India API market. Generic drugs are more affordable alternatives to branded drugs and are widely used due to their cost-effectiveness. The need for high-quality API in the production of generic drugs is propelling the market growth in India.

Market Key Trends:

One key trend observed in the India API market is the increasing focus on research and development activities. Market players are investing heavily in R&D to develop innovative and advanced API products. This trend is driven by the growing demand for new drug formulations and the need to meet stringent regulatory standards. The R&D activities aim to develop APIs that offer enhanced therapeutic benefits, improved drug delivery systems, and reduced side effects. This trend is expected to create lucrative opportunities for market players in the coming years.

Porter’s Analysis

Threat of New Entrants:

The India’s active pharmaceutical ingredients market is highly competitive and fragmented, posing a low threat of new entrants. The market is dominated by established players with significant market share and strong distribution networks. Additionally, the high barriers to entry, such as stringent regulatory requirements and the need for substantial investments in research and development, act as deterrents for new entrants.

Bargaining Power of Buyers:

Buyers in the Indian active pharmaceutical ingredients market have significant bargaining power. The presence of numerous suppliers and intense competition among them empowers buyers to negotiate favorable terms and prices. Additionally, buyers have access to a wide range of options, giving them the flexibility to switch suppliers if needed.

Bargaining Power of Suppliers:

Suppliers in the India active pharmaceutical ingredients market have moderate bargaining power. While there are numerous suppliers available, the high demand for quality ingredients and the requirement for stringent regulatory compliance give suppliers some leverage. However, the presence of well-established buyers with strong purchasing power helps to balance the bargaining power.

Threat of New Substitutes:

The threat of new substitutes in the Indian active pharmaceutical ingredients market is low. Active pharmaceutical ingredients are essential components of pharmaceutical formulations, and there are limited alternatives available. The high barriers to entry and the requirement for regulatory approvals further limit the entry of new substitutes into the market.

Competitive Rivalry:

Competition within the India active pharmaceutical ingredients market is intense. The market is characterized by the presence of numerous key players, each striving to gain a larger market share. The key players compete on factors such as product quality, pricing, technological advancements, and distribution networks. The high level of competition contributes to continuous innovation and improved product offerings.

Key Takeaways

The India active pharmaceutical ingredients market is expected to witness high growth, exhibiting a CAGR of 8.3% over the forecast period (2023-2030). This growth can be attributed to several factors, including the increasing demand for generic drugs, rising chronic disease prevalence, and the growing focus on research and development activities by key players.

In terms of regional analysis, India is projected to be the fastest-growing and dominating region in the active pharmaceutical ingredients market. The country has a strong pharmaceutical manufacturing base, low production costs, and a large pool of skilled labor. Additionally, government initiatives promoting domestic manufacturing and export of pharmaceuticals further contribute to the growth of the market in India.

Key players operating in the India active pharmaceutical ingredients market include Teva Pharmaceutical Industries Ltd., Solara, Aurobindo Pharma Limited, Dr. Reddy’s Laboratories, Lupin Limited, Sun Pharmaceutical Industries Limited, Divi’s Laboratories Ltd., Aarti Drugs Ltd., Hikal Ltd., Neuland Labs, Century Pharmaceuticals Ltd., Proventus Life Sciences Pvt Ltd, Chiral Drugs Pvt Ltd, USV Private Limited, and ASolution Pharmaceuticals Pvt. Ltd. These key players compete based on factors such as product quality, pricing, distribution networks, and technological advancements. They play a crucial role in driving market growth and innovation within the industry.

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