Major factors that are spurring the growth of the global active pharmaceutical ingredients market are an increase in prevalence of chronic diseases, rise in number of outsourcing for drug discovery projects from big pharmaceuticals, and growing focus on development of effective treatment for rare diseases. As per the study of CDC, in United States, 6 out of 10 adults have a chronic disease while 4 in 10 adults have two or more. It has been the leading cause of disability & death and is expected to spend nearly 3.8 trillion USD in annual healthcare costs. To reduce such huge economic burden, there has been rise in spending on R&D activities on small molecules as well as antibiotics for development of innovative drugs. Further to support this, funding from the government has also been increased. All these factors are propelling the growth of global active pharmaceuticals market. In addition to this, growing demand for generic drugs is also equally contributing to the growth of the market. Moreover, repurpose of small molecule API at a rapid rate, increase in number of CROs & CDMOs, expansion of pipeline products, and increase in number of clinical trials are also some of the key factors that are fostering the growth of the market. On the other hand, the stringent regulatory policies for drug development regarding its safety & efficacy may restrain the growth of the global market.
However, technological advancements in medical science for drug discovery may lead to beneficial opportunities for the growth of the global active pharmaceutical ingredients market during the forecast period. The market has been moderately affected by the covid-19 pandemic in the first half of 2020.
Disruption in supply chain and constraints on personnel movement led to unavailability of raw material thereby hampering the production process. However, with the growing demand for antibiotics during the pandemic, a surge in demand for API is been witnessed which led to healthy growth of the market.
The global active pharmaceutical ingredients market is fragmented based on type, type of synthesis, type of manufacturer, therapeutic application, and region. Based on the type, the global active pharmaceutical ingredients market is segregated into innovative and generic. Based on the type of synthesis, the global market is categorized into synthetic and biotech. The type of manufacturer segment is split into captive and merchant. The therapeutic application segment consists of communicable diseases, respiratory diseases, pain management, cardiovascular diseases, diabetes, oncology, and other therapeutic applications.
The global active pharmaceutical ingredients market is highly competitive due to the growing demand for small molecule API & antibiotic API and growing mergers & acquisitions of small players for expansion of product portfolio. Some of the key participants operating in the global market are Pfizer, Inc., Merck & Co., Inc., Cipla, Inc., Sanofi S.A., Teva Pharmaceutical Industries Ltd., Boehringer Ingelheim International GmbH, Bayer AG., Dr. Reddy’s Laboratories Ltd., Sun Pharmaceutical Industries Ltd., and Sandoz International GmbH, etc..
Trends and Future Outlook:
- New high-tech therapeutics coupled with the development of innovative & novel delivery systems.
- Development of personalized medicines
