Active Pharmaceutical Ingredients Market – Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018-2026

  • To Be Published : Apr 2019 |
  • Format : CMI Insight PPT Format CMI Insight PDF Format

Active Pharmaceutical Ingredients (API) are active constituents used in the manufacturing of pharmaceutical formulations and have a pharmacological and therapeutic effects on the body.  API constitutes the main ingredient, which helps cure the disease or disorder. APIs provide health benefits and are used in disease diagnosis, prevention, and treatment. APIs cannot be used in the raw form because it is the crude form of drug, which will not meet the appropriate pharmacodynamics and pharmacokinetics parameters.  APIs are thus combined with the suitable excipients which are pharmacologically and therapeutically inactive but enhance its stability and activities.

Any drug is composed of two components, the first one is the active pharmaceutical ingredient, which is the central ingredient of the drug and the second is an excipient. Certain drugs such as combination therapies, have numerous active ingredients, which treat different symptoms or act in different ways. Manufacturers use different standards to determine the strength of an API. However, the standard differs from one brand to another, as per the company choice. The largest active pharmaceutical ingredients production companies are located in Asia, and India and china have the highest growth for API production.

Increasing prevalence of chronic diseases is expected to boost the active pharmaceutical ingredients market over the forecast period

According to World Health Organization (WHO), mortality and global health estimates of 2015, Ischaemic heart disease, stroke, chronic obstructive lung disease, and lower respiratory infections have been the cause for maximum number of deaths during the past decade. Diabetes caused 1.6 million (2.8%) deaths in 2015, from 1.0 million (1.8%) deaths in 2000. Deaths due to dementias doubled between 2000 and 2015, making it the 7th leading cause of global deaths in 2015. The increasing prevalence of chronic diseases is expected to increase the demand for drugs, in turn fueling the active pharmaceutical ingredients market in the near future.

According to World Health Organization (WHO), Non-Communicable Disease fact sheet 2017, equivalent to 70% of all deaths globally. Each year, 15 million people die from a NCD between the age range of 30 and 69 years, over 80% of these premature deaths occur in low- and average-income countries. Cardiovascular diseases account for most NCD deaths, with 17.7 million deaths annually, followed by cancers (8.8 million), respiratory diseases (3.9million), and diabetes (1.6 million) contributing over 80% of all premature NCD deaths. The increase in non-communicable disease is also expected to increase the demand for drug, lending growth for the active pharmaceutical ingredients market in the future. With busier lifestyles, unhealthy diet patterns, including the consumption of junk food and tobacco, and alcohol, are factors making the future generation more prone to contracting diseases due to a weak immune system.

The global active pharmaceutical ingredients market is segmented on the basis of type, application, synthesis, manufacture, and end-user

On the basis of type, the active pharmaceutical ingredients market is segmented into:

  • Innovative APIs
  • Generic APIs

On the basis of application, the active pharmaceutical ingredients market is segmented into:

  • Cardiovascular Disease
  • Diabetes
  • CNS and Neurological Disorders
  • Oncology

On the basis of synthesis, the active pharmaceutical ingredient market is segmented into:

  • Synthetic API
  • Biotech API

On the basis of manufacturers, the active pharmaceutical ingredient market is segmented into:

  • Merchant Manufacturers
  • Captive Manufacturers

Cumulative prevalence of non-communicable diseases in Africa is expected to fuel the active pharmaceutical ingredients market over the forecast period

Regional market for active pharmaceutical ingredients by Coherent Market Insights, is segmented into North America, Latin America, Europe, Asia Pacific, Middle East, and Africa. Africa is expected to hold a dominant position in the active pharmaceutical ingredients market in the future due to the increasing prevalence of non-communicable diseases in the region. According to WHO, 2015, NCD deaths are projected to increase by 15% globally, between 2010 and 2020. The Asia Pacific region is expected to be the fastest emerging region in the Active Pharmaceutical Ingredients Market owing to the increasing consumption of tobacco, alcohol, unhealthy diet, and physical inactivity observed among the populace, which are expected to cause chronic diseases.   Government plans bulk drugs parks, import curbs to boost manufacturing in India

TAPI (Teva Active Pharmaceutical Ingredients) is the foremost producer of APIs in the globe, with 75 years of experience, Dr. Reddy’s is another leading producer with over 60 APIs, Cipla was the first company to fully develop and produce active pharmaceutical ingredients. Aurobindo, Sandoz, Ranbaxy, Sun Pharma are other leading players. In 2017, Government of India, in the draft pharma policy, has proposed ‘peak customs duty’ for all active pharmaceutical ingredients (API) that are made in India, this is expected to drive global API’s manufacturing companies to expand their business in India.

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

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Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.
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Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization:

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users

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