Global Active Pharmaceutical Ingredient (API) Markets of $ 312 Billion to 2028 –



DUBLIN – (COMMERCIAL THREAD) – The “Global Active Pharmaceutical Ingredients Market Size, Share and Trend Analysis Report by Synthetic Type (Biotech, Synthetic), By Type of Manufacturer (Captive, Merchant), By Type, By application, by region and segment forecast, The 2021-2028 report “has been added to offer.

The global active pharmaceutical ingredients market size is expected to reach USD 312.56 billion by 2028 and is expected to grow at a CAGR of 6.6% from 2021 to 2028.

The market is driven by the growth of the biopharmaceutical industry, advancements in the manufacture of active pharmaceutical ingredients (APIs) and the growing geriatric population.

The growth of the captive API segment is driven by companies investing in solving challenges and developing new chemical methods for in-house API production. This helps reduce costs and the risk of contamination. Artificial intelligence and protein synthesis should facilitate faster development with better control of the process.

The increasing prevalence of chronic and lifestyle-related diseases, such as cardiovascular disease, is accelerating the demand for APIs. For example, according to the American pharmacist in 2020, 47% of adults have at least one risk factor that promotes the development of cardiovascular disease. Cardiovascular disease is one of the global and critical public health burdens, leading to intensive R&D for APIs in the field.

Generic API segment is gaining market share due to its cost-effectiveness, helping to meet the needs of growing number of patients in low-income developing regions. According to the Association for Accessible Medicines (AAM), in 2017 there was a considerable increase in manufacturing units in Asia, Australia and the EU5. The market share of generic drugs has also increased.

Developing countries like India enjoy increased market preference over API market dominant countries like China due to geopolitical situations. In addition, other factors favoring India include quality raw materials and products, a large workforce, an extensive distribution network and government subsidies under programs such as “Make in India” .

To meet unmet medical needs, companies are working together to develop new treatments. This allows companies to use their resources to help with product development and improve the supply chain. In August 2019, OmniChem Private Limited was acquired by Ajinomoto Bio-Pharma Services (previously they were in a joint venture since 2011 for the manufacture of APIs). The acquisition was finalized in June 2020.

Highlights of the Active Pharmaceutical Ingredients Market Report

  • According to the WHO, around 17.5 million people die of cardiovascular disease each year, accounting for 31% of all deaths worldwide

  • Growing geriatric population in Asian countries such as Japan and China along with high untapped opportunities are expected to drive the market during the forecast period. It is estimated that over 20% of the Japanese population is aged 65 and over

  • According to the CDC, approximately 795,000 people in the United States suffer from stroke each year, including 87% of ischemic stroke cases

  • Companies are looking to diversify their API vendors and manufacturers to different locations instead of outsourcing them to a single manufacturer or country

  • Major players are increasingly focusing on vaccines, for example, Sanofi announced an investment of $ 601.37 million for vaccine production and research in France. These investments are expected to stimulate the development of new vaccine APIs in the coming years to facilitate preparation for delivery of new products.

Market dynamics

Market driver analysis

  • Growing geriatric population

  • Increased prevalence of target diseases such as nosocomial infections, genetic, cardiovascular and neurological diseases

  • Growing preference for a targeted therapeutic approach in cancer treatment

  • Growing preference for API outsourcing

Analysis of market restrictions

  • High capital investments and production costs

  • Strict API safety and handling regulations

Companies mentioned

  • AbbVie, Inc.

  • Boehringer Ingelheim International GmbH

  • Bristol-Myers Squibb Company

  • Cipla, Inc.

  • Merck & Co., Inc.

  • Albemarle Company

  • Aurobindo Pharma

  • Viatris Inc. (Mylan NV)

  • Teva Pharmaceutical Industries Ltd.

  • Sun Pharmaceutical Industries Ltd.

  • Dr Reddy’s Laboratories Ltd.

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