Active Pharmaceutical Ingredients Market ? Global Industry Insights, 2025

Posted by Pareesh on November 1st, 2017

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.

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.

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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

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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.

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Pareesh

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Pareesh
Joined: May 31st, 2017
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