Market Trends of Global Active Pharmaceutical Ingredients CDMO Industry
The Commercial Segment is Expected to Hold the Major Market Share
The COVID-19 pandemic led to an increase in the demand for pharmaceutical products, and the hoarding of supplies by some nations in the wake of production disruptions boosted exports. When COVID-19 cases rapidly increased, there was a need for new COVID-19 vaccines and therapeutics. Some governments even started considering localization regulations to ensure that sufficient quantities of therapeutics would be produced domestically.
As a result, many pharmaceutical companies started expanding their manufacturing footprint, and some began to rethink their manufacturing footprint to plan for the years ahead. The largest source of additional capacity was CDMOs.
Additionally, pharmaceutical firms reserved and sometimes even double-booked a considerable space with the contract manufacturers. AstraZeneca, Moderna, and Pfizer have declared their partnership agreements with a number of CDMOs, including Lonza, Catalent, and Emergent Biosolutions. Making the most of the opportunity, Cambrex, Catalent, Samsung Biologics, and many other developing country CDMOs have declared a major expansion of their plants.
Asia-Pacific is Expected to Hold a Significant Share in the Market during the Forecast Period
China and India have a significantly low cost of manufacturing compared to the United States and Europe. As per Invest India, the cost of manufacturing in India is approximately 33% lower than that of the United States. While China and India have established themselves as significant providers of API manufacturing services, the United States continues to be the main outsourcing hub for pharmaceutical development. This is due to the combination of enormous amounts of financing and an exclusive concentration of university-affiliated pharmaceutical research hubs.
The expanding importance of traditional pharmaceuticals and the rapidly rising incidence of persistent infections are critical drivers of the Indian API CDMO market's favorable growth. As per an article published in PHRMABIZ.com in 2020, generic APIs are exported to developed countries from India, accounting for 41.6% of the total sales in India versus 24.7% in China. As per the Chemical Pharmaceutical Generic Association Research, India is the second-largest provider of generic API to the US market, with a 24.4% share. The country is also increasing its supply to Western Europe, which accounts for 19.2% of the region's total supply. Also, China accounts for 30% of the global nonexclusive API vendor market. Following China, the United States and India are the leading producers of nonexclusive APIs.
