Active Pharmaceutical Ingredients Market To Reach $352.98 Billion By 2030

November 2023 | Report Format: Electronic (PDF)

Active Pharmaceutical Ingredients Market Growth & Trends

The global active pharmaceutical ingredients market size is expected to reach USD 352.98 billion by 2030, expanding at a compound annual growth rate (CAGR) of 5.75% from 2024 to 2030. The market is driven by the growth of the biopharmaceutical sector, advancements in active pharmaceutical Ingredients (API) manufacturing, and an increase in the geriatric population.

The growth of the captive API segment is propelled by companies investing in solving challenges and developing new chemical ways for the production of APIs in-house. This aids in reducing costs and the risk of contamination. Artificial intelligence and protein synthesis are expected to facilitate faster development with greater control over the process.

The rising prevalence of chronic and lifestyle-based conditions, such as cardiovascular diseases, is accelerating the demand for API. For instance, as per U.S. Pharmacist in 2020, 47% of adults have at least one risk factor that supports cardiovascular disease development. Cardiovascular diseases are one of the global, critical public health burdens driving extensive R&D for APIs in the field.

The active pharmaceutical Ingredients market was positively influenced by the COVID-19 pandemic, as countries and significant players produce large quantities of components to meet the demand for the treatment of COVID-19.  As a result of the outbreak, drug companies have changed the companies’ strategies to focus on a larger patient population. To treat coronavirus, the U.S., for example, requested that HCQ be imported from India. The virus has also impacted Canada's medicine supply system, potentially causing complications for patients. The increasing importance of generics, rise in consumption of biopharmaceuticals, and expanding drug research and development activities for drug manufacturing are the primary drivers driving the growth of the market. However, the market's expansion is likely to be hampered by unfavorable drug price control regimes in several countries and high manufacturing costs.

Developing nations like India are receiving an increased preference in the market over dominant API market countries, like China, owing to geopolitical situations. Furthermore, India has quality raw materials and products, a large workforce, a vast distribution network, and government subsidies through the "Make in India" program.

To address unmet medical needs, companies are collaborating to develop novel treatments. This allows firms to use their resources to aid in the development of products and enhance the supply chain. In November 2021, Merck & Co Inc. announced that it has acquired Acceleron Pharma, this acquisition would help Merck & Co to expand their cardiovascular portfolio and pipeline.

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Active Pharmaceutical Ingredients Market Report Highlights

  • Innovative APIs held the largest share of 62.0% in 2023, owing to increasing research and development activities for novel drug development and positive government initiatives

  • Captive APIs segment held the largest market share of 51.03% in 2023

  • The synthetic API segment dominated the market with the largest revenue share of 70.66% in 2023, owing to the higher availability of raw materials and easier protocols for the synthesis of these molecules

  • North America accounted for the largest revenue share of 38.26% in 2023 and is expected to maintain its lead over the forecast period. This is attributed to the rising epidemiology of cancer, along with other lifestyle-induced diseases, thus encouraging the R&D activities, thereby boosting the market growth

Artificial Intelligence Market Segmentation

Grand View Research has segmented the global active pharmaceutical ingredients market report based on type of synthesis, type of manufacturer, type, application, type of drug, and region

Active Pharmaceutical Ingredients (API) Type of Synthesis Outlook (Revenue, USD Billion, 2018 - 2030)

  • Biotech

    • Biotech APIs Market, By Type (Revenue, USD Billion, 2018 - 2030)

      • Generic APIs

      • Innovative APIs

    • Biotech APIs Market, By Type (Revenue, USD Billion, 2018 - 2030)

      • Monoclonal Antibodies

      • Hormones

      • Cytokines

      • Recombinant Proteins

      • Therapeutic Enzymes

      • Vaccines

      • Blood Factors

  • Synthetic

    • Synthetic APIs Market, By Type (Revenue, USD Billion, 2018 - 2030)

      • Generic APIs

      • Innovative APIs

Active Pharmaceutical Ingredients (API) Type of Manufacturer Outlook (Revenue, USD Billion, 2018 - 2030)

  • Captive APIs

  • Merchant APIs

Active Pharmaceutical Ingredients (API) Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Generic APIs

  • Innovative APIs

Active Pharmaceutical Ingredients (API) Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Cardiovascular Diseases

  • Oncology

  • CNS and Neurology

  • Orthopedic

  • Endocrinology

  • Pulmonology

  • Gastroenterology

  • Nephrology

  • Ophthalmology

  • Others

Active Pharmaceutical Ingredients (API) Type of Drug Outlook (Revenue, USD Billion, 2018 - 2030)

  • Prescription

  • OTC

Active Pharmaceutical Ingredients (API) Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

    • Denmark

    • Sweden

    • Norway

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • South Korea

    • Thailand

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East and Africa (MEA)

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait

List of Key Players of Active Pharmaceutical Ingredients Market

  • Dr. Reddy’s Laboratories Ltd.

  • Sun Pharmaceutical Industries Ltd.

  • Teva Pharmaceutical Industries Ltd.

  • Cipla Inc.

  • AbbVie Inc.

  • Aurobindo Pharma

  • Sandoz International GmbH (Novartis AG)

  • Viatris Inc.

  • Fresenius Kabi AG

  • STADA Arzneimittel AG

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