Active Pharmaceutical Ingredients Market Analysis
The global active pharmaceutical ingredients market is predicted to touch USD 215 billion at a 4.93% CAGR over the forecast period (2018-2023), states the latest Market Research Future (MRFR) report. Active pharmaceutical ingredient (API) is an active ingredient that is present in medicines. Drug components are made up of various components, of which active pharmaceutical ingredients is the primary ingredient, and the remaining are known as excipients. API is manufactured through different processes including recombinant DNA, fermentation process, chemical synthesis, isolation as well as recovery from natural sources, and a combination of such processes.
Various factors are propelling the active pharmaceutical ingredients market growth. Some of these factors according to the Market Research Future report, include growing incidences of chronic diseases, increasing importance of generics, rising uptake of biopharmaceuticals, advancements in active pharmaceutical ingredients manufacturing, and increasing geriatric population. Additional factors pushing market growth include growing biopharmaceutical sector, rising incidences of orthopedic and cardiovascular diseases and cancer, unhealthy and sedentary lifestyle, and burgeoning demand for low-cost medicines.
On the contrary, rising penetration of counterfeit drugs and unfavorable drug cost control policies are factors that may restrict the active pharmaceutical ingredients market growth over the forecast period.
Impact of Covid-19 Outbreak on Active Pharmaceutical Ingredients (API) Market
COVID-19 has impacted every single industry, adversely impacting the global economy. One such industry that has faced the wrath of COVID-19 is the pharmaceuticals. The COVID-19 has disrupted both the production and the supply chain of the pharmaceuticals industry.
China is a significant source for many Active Pharmaceutical Ingredients. China being the epicenter of the outbreak, manufacturing and export were stopped completely as factories were closed to curb the spread of the virus. Additionally, with the virus spreading to the other 150 countries, the production and export-import of active pharmaceutical ingredients APIs from other major countries, like the US and India, are also affected. For instance, according to the FDA, China has 15% of the world’s facilities that manufacture APIs for 370 essential drugs, while the US has 21% of those facilities.
The majority of APIs for generic drug manufacturing across the globe are sourced from India, which also supplies approximately 30% of the generic APIs used in the US. However, the Indian manufacturers rely heavily on APIs from China for the production of their medicine formulations, procuring around 70% from China, the top global producer and exporter of APIs by volume.
In the Hubei province, where COVID-19 occurred, there are 44 companies, such as Puracap Pharmaceutical LLC, and Fresenius Kabi, AG that are FDA-approved and manufacture APIs or supply chemical ingredients to API manufacturers. However, since the lockdown, these companies have been shut down hindering the manufacturing and import-export of API in and around China.
It is not just the US and China that are facing difficulties; the entire global demand and supply are affected.
Market Research Future (MRFR) collected data on several factors including implications of covid-19 impact on Active Pharmaceutical Ingredients (API) Market and demographic challenges, showed how it could move forward in the coming years.
Active Pharmaceutical Ingredients Market Segmentation
The MRFR report offers a wide segmental analysis of the active pharmaceutical ingredients market on the basis of the manufacturing process, synthesis, API formulation, application, and molecule.
Based on manufacturing, the active pharmaceutical ingredients market is segmented into contract manufacturing and captive manufacturing. Of these, the captive manufacturing segment will have the largest share in the market over the forecast period. This is owing to the availability of raw materials and intensive capitalization of leading companies in developing high-end manufacturing facilities.
Based on synthesis, the active pharmaceutical ingredients market is segmented into biotech and synthetic. Of these, the synthetic segment will dominate the market over the forecast period. This is owing to simple techniques of synthesis and easy availability of raw materials.
Based on API formulation, the active pharmaceutical ingredients market is segmented into innovative API and generic API. Of these, the innovative API segment will lead the market over the forecast period. This is owing to favorable government regulations and increased research and development initiatives for new drug development.
Based on application, the active pharmaceutical ingredients market is segmented into urology, gastrointestinal disorders, respiratory, orthopedic disorders, neurological disorders, oncology, and cardiovascular disease. Of these, the cardiovascular disease segment will have the maximum share in the market over the forecast period. It is owing to its increasing prevalence worldwide.
Based on molecule, the active pharmaceutical ingredients market is segmented into large molecule and small molecule.
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Active Pharmaceutical Ingredients Market Regional Analysis
Based on the region, the active pharmaceutical ingredients market report covers the latest trends and growth opportunities across the Americas, Europe, the Asia Pacific, and the Middle East and Africa. Of these, the Americas will lead the market over the forecast period. This is owing to the robust value that is sustained by the small molecule segment both in the US and Canada. Moreover, the pharmaceutical sector is the most exceptional and major ventures in the United States.
The active pharmaceutical ingredients market will have the second-largest share in the market over the forecast period.
The active pharmaceutical ingredients market in the APAC region is predicted to grow at the fastest pace over the forecast period. This is owing to growing expenses on infrastructure and equipment, and expanding initiatives that are motivating investments in active pharmaceutical ingredients from drug manufacturers for increasing the capacity of producing APIs.
The active pharmaceutical ingredients market in the Middle East and Africa is predicted to have moderate growth over the forecast period.
Active Pharmaceutical Ingredients Market Key Players
Leading players profiled in the active pharmaceutical ingredients market report include Teva Pharmaceutical Industries Ltd, Merck & Co., Inc., Novartis AG, GlaxoSmithKline Plc (GSK), Abbott Laboratories, Boehringer Ingelheim GmbH, Sanofi, F. Hoffmann-La Roche AG, Pfizer Inc., Eli Lilly and Company, and Bayer AG. Key players are using various strategies to increase their market presence, such as collaborations, acquisitions, and introducing new ingredients.