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Press Release: Active Pharmaceutical Ingredients Market to Surpass US$ 284.3 Billion by 2027
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
An Active Pharmaceutical Ingredient (API) is the biologically active component of a drug that produces the intended effects. These ingredients are chemical or natural substances or a combination of substances used in a finished pharmaceutical products (FPP) intended to furnish pharmacological activity or to otherwise have a direct effect in the diagnosis, cure, mitigation, treatment or prevention of disease, or to have direct effect in restoring, correcting or modifying physiological functions in human beings. Active pharmaceutical ingredients manufacturing process is a related series of operations which result in the preparation of active pharmaceutical ingredients. Major operations or steps in the API process may include multi-step chemical synthesis and fermentation, purification, crystallization, drying, milling, packing, labeling, and testing.
The global active pharmaceutical ingredients market is estimated to be valued at US$ 180.4 billion in 2020 and is expected to exhibit a CAGR of 6.7% during the forecast period (2020-2027).
Figure 1. Global Active Pharmaceutical Ingredients Market Share (%) in Terms of Value, By Region, 2020
Factors such as the increasing prevalence of chronic diseases, and investments in research and development are expected to drive the market growth during the forecast period.
The growing prevalence of chronic diseases is expected to drive demand for drugs and fuel the global active pharmaceutical ingredients market growth in near future. According to the World Health Organization’s mortality and global health estimates of 2015, ischemic heart disease, stroke, chronic obstructive lung disease, and lower respiratory infections have been the cause for maximum number of deaths in the past decade.
Furthermore, increasing number of major pharmaceutical companies are focusing on expansion of their product lines in HPAPIs or considering investing in new HPAPIs production facilities, and further outsourcing manufacturing of APIs to contract manufacturers. For instance, in October 2017, Piramal Pharma Solutions (PPS), a contract development and manufacturing organization invested US$ 55 million across its sites in Asia to expand its API manufacturing capabilities and capacities.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2019 | Market Size in 2020: | US$ 180.4 Bn |
| Historical Data for: | 2016 to 2019 | Forecast Period: | 2020 to 2027 |
| Forecast Period 2020 to 2027 CAGR: | 6.7% | 2027 Value Projection: | US$ 284.3 Bn |
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| Segments covered: |
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| Companies covered: |
Teva Pharmaceutical Industries Ltd., Pfizer, Inc., Endo International plc, Dr. Reddy’s Laboratories Ltd., Novartis AG, Mylan N.V., Amneal Pharmaceuticals LLC, Lonza Group, Stada Arzneimittel AG, Lupin Limited, Fresenius Kabi, Hikma Pharmaceuticals, Aurobindo Pharma Limited, Apotex Inc., Cipla Limited, Taro Pharmaceutical Industries Ltd., Biological E. Limited, CordenPharma International, Evonik Industries AG, Sun Pharmaceutical Industries Ltd., Glenmark Pharma, and Krka Pharmaceuticals |
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| Restraints & Challenges: |
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Figure 2. Global Active Pharmaceutical Ingredients Market Share (%), by Product Type, 2020
Geographic expansions by API manufacturers are expected to drive the market growth during the forecast period.
Several active pharmaceutical ingredients manufacturers are expanding their presence across the globe. API manufacturers are establishing their commercial production units in Asia Pacific to remain competitive and gain advantage over other competitors.
For instance, in May 2019, BASF and SINOPEC have started production at the propionic acid plant at the Verbund site, China. The new plant has an annual production capacity of 30,000 metric tons of propionic acid.
Global Active Pharmaceutical Ingredients Market – Impact of Coronavirus (COVID-19) Pandemic
Since the COVID-19 virus outbreak in December 2019, the disease has spread to over 100 countries across the globe and the World Health Organization declared it a public health emergency. According to the World Health Organization’s report, the manifestation of coronavirus disease (COVID-19) has resulted in more than 58.6 million infected individuals worldwide as of November 23, 2020. As most API manufacturers are based in China and India, the global supply has been impacted significantly due to the COVID-19 outbreak in these countries. For instance, as per US FDA Center for Drug Evaluation and Research, total API demand from the U.S. biopharmaceutical companies is fulfilled by 230 API manufacturing facilities in China (13% of total supply facilities), 510 in the U.S. (28%), and remaining 59% or 1,048 facilities other countries. Manufacturing sites which are based in countries worst hit by COVID-19 have been affected severely due to severe shortage of medical resources and raw materials at these countries. This has led to global supply disruption.
Global Active Pharmaceutical Ingredients Market - Restraint
Stringent regulatory guidelines are expected to hinder growth of the global active pharmaceutical ingredients market. Stringent global regulatory policies on quality assessments of active pharmaceutical ingredients manufacturing, facility certification, enhanced cGMP guidelines tightening surprise inspection regimes, and increased supply chain security issues in emerging countries impacted cost of final active pharmaceutical ingredients products.
Key Players
Major players operating in the global active pharmaceutical ingredients market are Teva Pharmaceutical Industries Ltd., Pfizer, Inc., Endo International plc, Dr. Reddy’s Laboratories Ltd., Novartis AG, Mylan N.V., Amneal Pharmaceuticals LLC, Lonza Group, Stada Arzneimittel AG, Lupin Limited, Fresenius Kabi, Hikma Pharmaceuticals, Aurobindo Pharma Limited, Apotex Inc., Cipla Limited, Taro Pharmaceutical Industries Ltd., Biological E. Limited, CordenPharma International, Evonik Industries AG, Sun Pharmaceutical Industries Ltd., Glenmark Pharma, and Krka Pharmaceuticals.
An active pharmaceutical ingredient is a chemical compound that is the most important raw material to produce a finished medicine. In medicine, API produces the intended effects to cure the disease. For instance, Paracetamol is the API for Crocin and it is the API that gives relief from body ache and fever. API is not made by only one reaction from the raw materials but rather it becomes an API via several chemical compounds. The chemical compound which is in the process of becoming an API from raw material is called an intermediate. Finished dosage forms manufacturers are now more focusing on API procurement from outsourcing due to cost effective products obtained through this API outsourcing.
Market Dynamics
Increasing research & development expenditure and rising incidence of chronic diseases are some of the major factors responsible for growth of the global active pharmaceutical ingredients market. According to the World Health Organization – Non-communicable Diseases (NCD) Country Profiles, around 269,500 premature deaths occurred due to non-communicable diseases (NCD) in South Africa in 2016.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective section.
*Browse 39 market data tables and 35 figures on "Active Pharmaceutical Ingredients Market” - Global Forecast to 2027
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