Europe Active Pharmaceutical Ingredients Market To Reach $80.16 Billion By 2033

Europe Active Pharmaceutical Ingredients Market Growth & Trends

The Europe active pharmaceutical ingredients market size is estimated to reach USD 80.16 billion by 2033, registering a CAGR of 5.67% from 2025 to 2033, according to a new report by Grand View Research, Inc. The development of the biopharmaceutical industry in the region, the rising elderly population, and improvements in the ease of production of complex active pharmaceutical ingredients (API) are some of the market's key drivers. In addition, the growing prevalence of chronic diseases such as cancer and cardiovascular diseases is further driving the demand for complex drugs and their APIs.

The government is making efforts toward shifting manufacturing of API in European countries to reduce reliance on other nations. For instance, as per Germany Trade and Commerce, Jens Spahn, the Federal Minister for Health of Germany, announced in March 2020, that he intends to start discussions with EU partners on the potential of bringing the manufacturing of active pharmaceutical ingredients (API) back to Germany. As a result, concerns have been raised about the reliability and security of imported APIs and the possibility of supply chain disruptions. As a consequence, domestic production is gaining traction, and regulatory scrutiny for imported products has increased.

The COVID-19 pandemic had a positive impact on the global API market. The pharmaceutical industry was an epicenter for treating symptoms related to COVID-19, including cough, high fever, and cold. With the heightened popularity of the pharmaceutical business during the SARS-COV-2 pandemic, the active pharmaceutical ingredient market also witnessed growth during the period. Following the World Health Organization's declaration of the COVID-19 outbreak as a pandemic, a diverse group of prominent biopharmaceutical and pharmaceutical companies and new startups initiated the manufacturing of active pharmaceutical ingredients. For instance, in February 2023, Advent International introduced a new brand identity for its active pharmaceutical ingredients and CDMO (contract development and manufacturing company), allowing it to focus more on the division.

Furthermore, the market for active pharmaceutical ingredients operates with high complexity. Companies are focusing more on investment to expand their API manufacturing units in order to meet market demand. For instance, Veranova in February 2023, invested USD 8.10 million in API manufacturing expansion in the UK. Growth in the targeted therapy sector has created lucrative opportunities for flexible, small-quantity manufacturers. This is a nontraditional opportunity, as CDMOs are usually considered for outsourcing large batches of API production. With the entry of targeted and precision medicine, the number of patients is expected to decline, which, in turn, is likely to boost demand for flexible small-batch manufacturers to manufacture precision medicines.

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Europe Active Pharmaceutical Ingredients Market Report Highlights

• Based on synthesis, the synthetic segment dominated the market in 2024 and is attributable to its easy availability compared to natural molecules.

• By manufacturer, the captive API segment dominated the market in 2024, owing to high investment by market players to develop high-end manufacturing facilities and the rising trend of reducing third-party dependence in the industry.

• Based on type, Generic API segment is projected to grow at the fastest CAGR of 6.90% over the forecast period, fueled by strong demand for cost-effective treatments across Europe.

• Based on application, the oncology segment is expected to expand with the fastest CAGR due to the high prevalence of the condition around Europe.

• The UK is expected to register the fastest CAGR of 8.09% over the forecast period, driven by its strong pharmaceutical manufacturing base and advanced R&D capabilities.

Europe Active Pharmaceutical Ingredients Market Segmentation

Grand View Research has segmented the Europe active pharmaceutical ingredients (API) market based on synthesis, manufacturer, type, application, and country:

Europe Active Pharmaceutical Ingredients Synthesis Outlook (Revenue, USD Billion, 2021 - 2033)

• Biotech

  • Biotech APIs Market, By Type

    • Generic API

    • Innovative API

  • Biotech APIs Market, By Product

    • Monoclonal Antibodies

    • Hormones

    • Cytokines

    • Recombinant Proteins

    • Therapeutic Enzymes

    • Vaccines

    • Blood Factors

• Synthetic

  • Synthetic APIs Market, By Type

    • Generic API

    • Innovative API

Europe Active Pharmaceutical Ingredients Manufacturer Outlook (Revenue, USD Billion, 2021 - 2033)

• Captive APIs

• Merchant APIs

  • Merchant APIs Market, By Type

    • Generic API

    • Innovative API

  • Merchant APIs Market, By Synthesis

    • Biotech

    • Synthetic

Europe Active Pharmaceutical Ingredients Type Outlook (Revenue, USD Billion, 2021 - 2033)

• Generic API

• Innovative API

Europe Active Pharmaceutical Ingredients Application Outlook (Revenue, USD Billion, 2021 - 2033)

• Cardiovascular Diseases

• Oncology

• CNS and Neurology

• Orthopedic

• Endocrinology

• Pulmonology

• Gastroenterology

• Nephrology

• Ophthalmology

• Others

Europe Active Pharmaceutical Ingredients Country Outlook (Revenue, USD Billion, 2021 - 2033)

• UK

• Germany

• France

• Spain

• Italy

• Denmark

• Sweden

• Norway

• Rest of Europe

List of Key Players in the Europe Active Pharmaceutical Ingredients Market

• Cipla, Inc.

• Merck & Co., Inc.

• Boehringer Ingelheim International GmbH

• Sun Pharmaceutical Industries Ltd.

• AbbVie, Inc.

• Bristol-Myers Squibb Company

• Teva Pharmaceutical Industries Ltd.

• Albemarle Corporation

• Aurobindo Pharma

• Viatris Inc.