Active Pharmaceutical Ingredients (API) Market Size and Global Industry Growth

Posted by shivf on September 9th, 2021

The global Active Pharmaceutical Ingredients Market was valued at US$ 168.9 Bn in the year 2018 and is expected to reach US$ 273.3 Bn by the year 2026, growing at a CAGR of 6.2% during the forecast period.

The increasing demand for biopharmaceuticals is one of the most important factors that is driving the growth of the global active pharmaceutical ingredients market. Some of the key biologic drugs used for the treatment of cancer, cardiovascular diseases, and infectious diseases include monoclonal antibodies, antibody fragments, and other recombinant proteins. The US FDA has approved over a dozen of monoclonal antibodies for the treatment of cancer. More and more companies are investing in research and development of biopharmaceuticals.

Apart from this, the increasing prevalence of chronic diseases such as diabetes, asthma, and hypertension, amongst others, will also drive the global active pharmaceutical ingredients market. The increasing health care expenditure and the growing demand for quality healthcare will further drive the market.

However, stringent drug price control policies will impede the growth of the market. Drug price control policies are in place in various countries to ensure that the drugs that are being sold in the country offer significant improvements over the drugs currently available and they are worth the price being quoted. Apart from this, the increasing availability of counterfeit drugs will also impede the growth of the active pharmaceutical ingredients market.

Recent news:

• In March 2018, Pfizer CenterOne introduced Enviero progesterone. This API is produced by using a first-of-its-kind progesterone synthesis developed by Pfizer. It is the first API launched under the green-chemistry program of Pfizer CentreOne. The procedure used for synthesizing this Progesterone API has led to a reduction in greenhouse gases, use of hazardous solvents, and waste produced. For instance, the carbon footprint of the progesterone manufacturing process has reduced by more than 70%.
• In 2018, Sanofi completed the acquisition of Ablynx, a biopharmaceutical company that is developing nanobodies for various therapeutic areas including immuno-oncology, hematology, and respiratory diseases, amongst others.
• In May 2018, Novartis successfully completed the acquisition of AveXis, a clinical-stage gene therapy company, for US$ 8.7 billion in cash. AveXis’ lead product is a one-time gene replacement therapy for spinal muscular atrophy.

Geographically, North America is dominating the global active pharmaceutical ingredients market. The increasing incidence of chronic diseases, rising demand for biologics, technological advancements in manufacturing processes, and favourable reimbursement policies will drive the growth of the API market in this region.

However, the Asia-Pacific region is expected to grow at the highest CAGR during the forecast period. The market is witnessing a shift in API production facilities from the western nations to developing countries such as China and India. The availability of cheap labor, transportation, and utilities such as power are some of the major factors leading to this shift. Therefore, the Chinese and Indian API markets are expected to show a double-digit annual growth over the coming years.

Read More- https://www.alltheresearch.com/report/106/active-pharmaceutical-ingredients-api

The major players operating in the active pharmaceutical ingredients market are AbbVie Inc. (US), AstraZeneca Plc (UK), Boehringer Ingelheim (Germany), Bristol-Myers Squibb (US), Eli Lilly and Company (US), GlaxoSmithKline Plc. (UK), Merck & Co. Inc. (US), Novartis AG (Switzerland), Pfizer Inc. (US), and Teva pharmaceuticals (Israel), amongst others.