France Active Pharmaceutical Ingredients (API) Market Size

France Active Pharmaceutical Ingredients (API) Market Analysis

The French Active Pharmaceutical Ingredients (API) market is expected to register a CAGR of 6.1% over the forecast period.

The COVID-19 pandemic not only impacted the entire pharmaceutical supply chain but, more specifically, disrupted the supply of APIs from India and China. The lockdown measures and restrictions imposed by the government disrupted import-export activities across the globe, which led to shortages of drugs and APIs in the country. For instance, as per a news published in October 2022, the president of the Trade Union of Dispensing Pharmacists in France called on the government to take more initiative and appeal for policies to encourage manufacturers to produce drugs and APIs. Also, various companies took the initiative to set up a new company to boost API production in the country. For instance, in May 2020, Sanofi announced the development of a standalone company dedicated to producing active pharmaceutical ingredients components that are biologically active in a drug in France. This negatively impacted the market growth during the pandemic. However, with the release restrictions and resumed import-export activities, the demand for API in France is expected to increase over the forecast period.

The factors such as the rising prevalence of infectious, genetic, cardiovascular, and other chronic disorders, the increasing prevalence of cancer with growing sophistication in oncology drugs research, and the growing adoption of biologics and biosimilars are boosting the market growth.

According to the study published in PLOS ONE in January 2021, about 2.8 million people will have the chronic obstructive pulmonary disease (COPD) by 2025 in France. Thus, the expected increase in the number of people suffering from COPD will increase the demand for COPD drugs, such as bronchodilators, oral steroids, and others, thereby increasing the demand for APIs for manufacturing medicines and boosting market growth.

Additionally, as per an article published in June 2021, obesity is considered a significant public health problem in France as it is a risk factor for chronic diseases, such as diabetes and hypertension, etc., which in turn has substantial psychological and social consequences. Obese people require more blood to supply oxygen and nutrients to the body, which causes an increase in blood pressure. According to 2022 statistics published by IDF, about 3.9 million were living with diabetes in France in 2021, and this number is projected to increase to 4.1 million and 4.2 million by 2030 and 2045, respectively. Diabetics are likely to develop various heart and liver diseases, which lead to the accumulation of lipids in the arteries, decreased cardiac rhythms, and other problems. This is anticipated to fuel the demand for various pharmaceutical products, which in turn is expected to increase the demand for API for drug formulation, propelling the market growth.

The increasing health expenditure in the country raises the government and companies focus on developing effective and safe drugs for treating various chronic as well as other diseases, thereby propelling the market growth. For instance, according to the data published by OECD, in June 2022, the healthcare expenditure in France was around USD 304.28 billion in 2021 compared to USD 209.2 billion in 2020. An increase in healthcare spending is expected to boost the development of treatment drugs and APIs, positively impacting the market growth.

Furthermore, the rising company activities in developing drugs and adopting various business strategies, such as expansion, product launches, collaborations, and others, contribute to market growth. For instance, in June 2022, STADA Arzneimittel and Alvotech launched a high-concentration, citrate-free adalimumab biosimilar (Hukyndra; AVT02) in France. Also, in April 2022, Sanofi reported that the French Autorité des marchés financiers (AMF) approved the listing prospectus prepared by EUROAPI in connection with the intended listing of its shares on the regulated market of Euronext Paris.

Moreover, in December 2021, the UCB entered a commercialization agreement with Novartis to develop UCB0599 and UCB7853, two innovative and potentially disease-modifying investigational assets in Parkinson's disease.

Therefore, owing to the aforementioned factors, the studied market is expected to grow over the forecast period. However, the drug price control policies in the country, stringent regulations for drug approvals, and high competition between API manufacturers are expected to impede the growth of the active pharmaceutical ingredients market over the forecast period.