Active Pharmaceutical Ingredients Market | Growth, Trends, and Forecast (2019-2024)

Active Pharmaceutical Ingredients (API) Market- Growth, Trends, and Forecast (2019 - 2024)

The market is segmented by Business Mode, Synthesis Type, Type of Drug, Application, and Geography

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Active Pharmaceutical Ingredients market-1

Study Period:

2016-2024

Base Year:

2018

Fastest Growing Market:

Asia Pacific

Largest market:

North America

Key Players:

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Market Overview

Global Active Pharmaceutical Ingredients market was valued at USD  165.74 billion in 2018, and is estimated to be valued at USD 236.7 billion in 2024, witnessing a CAGR of 6.1%. Few key factors that are driving the market include the increasing prevalence of infectious, cardiovascular and other chronic disorders. Apart from these diseases, genetic disorders are significantly driving the usage of of biologicals and biosimilars across the globe.

Biosimilars, in many instances, serve as low-cost options and hold the potential to create a more sustainable healthcare system by making room for innovation, so that more patients continue to receive the best possible care.

The active pharmaceutical ingredient (API) market has traditionally been dominated by drugs such as anti-infectives, diabetes, cardiovascular, analgesics and pain management drugs,  However, as per the R&D trends, the demand is shifting towards the development of complex API’s used in novel formulations targetting niche therapeutic areas.

A large number of drugs are in pipeline to develop treatments for cancer, autoimmune and metabolic diseases. Owing to the rising prevalence of cancer,  several manufacturers are venturing into the development of Highly Potent APIs (HPAPI) and specialty API’s to cater to the growing demand for these products.

Scope of the Report

Active pharmaceutical ingredient (API) is a part of any drug that produces its effects. Some drugs, such as combination therapies, have multiple active ingredients to treat different symptoms or act in different ways. They are produced using highly technological industrial processes, both during the R&D and the commercial production phase.

By Business Mode
Captive API
Merchant API
By Synthesis Type
Synthetic
Biotech
By Type
Generic
Branded
By Application
Cardiology
Pulmonology
Oncology
Ophthalmology
Neurology
Orthopedic
Other Applications
Geography
North America
US
Canada
Mexico
Europe
Germany
UK
France
Italy
Spain
Rest of Europe
Asia Pacific
China
Japan
India
Australia
South Korea
Rest of Asia-Pacific
Middle East and Africa
GCC
South Africa
Rest of Middle East and Africa
South America
Brazil
Argentina
Rest of South America
  • MARKET SEGMENTATION
    • By Business Mode
      • Captive API
      • Merchant API
    • By Synthesis Type
      • Synthetic
      • Biotech
    • By Type
      • Generic
      • Branded
    • By Application
      • Cardiology
      • Pulmonology
      • Oncology
      • Ophthalmology
      • Neurology
      • Orthopedic
      • Other Applications
    • Geography
      • North America
        • US
        • Canada
        • Mexico
      • Europe
        • Germany
        • UK
        • France
        • Italy
        • Spain
        • Rest of Europe
      • Asia Pacific
        • China
        • Japan
        • India
        • Australia
        • South Korea
        • Rest of Asia-Pacific
      • Middle East and Africa
        • GCC
        • South Africa
        • Rest of Middle East and Africa
      • South America
        • Brazil
        • Argentina
        • Rest of South America

Key Market Trends

Cardiology is Expected to hold the Highest Market Share in the Application Category

The API market by application is dominated by cardiology segment due to the vast population using various CVD drugs. This segment is projected to grow with CAGR of  6.05% in the forecast period.

Coronary heart disease (CHD) is the most common type of heart disease, with a death toll of over 370,000 people, annually in the US alone. According to American Heart Association (AHA), cardiovascular disease accounts for 17.3 million deaths per year. The Centre for Disease Control and Prevention states that about 610,000 people die of heart diseases in the United States every year, i.e., 1 in every four deaths can be attributed to cardiovascular diseases (CVDs).

Cholesterol reducers and blood pressure lowering drugs are the key drug classes under CVS. Cholesterol reducers, especially Statins, are driving the CVS segment and have emerged as the most important family of drugs in cholesterol and triglycerides reducers. Healthcare spending for hypertension was USD 23 to 26 billion in 2017 in developed markets alone. Another USD 14 to 17 billion was spent in 2017 in pharmerging markets. The high expenditure on the cardiovascular category highlights the growing demand for API’s in this category.

Active Pharmaceutical Ingredients market-2

North America Dominates the Market and Expected to continue its dominance through the Forecasted Period

North America currently dominates the market for active pharmaceutical ingredients and is expected to continue its stronghold for a few more years. This region is expected to increase its market share in the future owing to the increasing number of diseases and rising aging population. The United States holds the majority of the market in the North America region, however, the majority of its API requirements are met through imports from the Asian Markets. The trade statistics suggest that nearly 75% to 80% of the API’s imported to the United States are from China and India as these countries have well-established manufacturing facilities and have abundant talent pool serving the pharmaceutical sector.

The recent political and trade policies implemented by the US government to increase import duties and taxes are expected to drive operational costs and increase the pricing pressure on the manufacturers. The FDA has also increased the application fees for new drug approvals and has increased the number of periodic inspections conducted on various off-share contract manufacturing facilities to ensure the supply of high quality products to the US market.

API Market-3

Competitive Landscape

The active pharmaceutical ingredients market is highly competitive and consists of several major players indicating a fragmented market scenario. The API market has several manufacturers from China and India holding a dominant market poisition due to their large manufacturing footprint. In Europe, Italy, Germany, and the UK are key regions for API trade due to the presence of well developed pharmaceutical and Lifesciences industry.

A majority of the API’s produced by reputed MNC’s are used for captive production, however few players have emerged as contract manufacturers with diversified client base. Further with the growing technological advancement and product innovation, mid-size and small scale companies are increasing their market presence by introducing new ingredients with competitive prices. Companies like Teva, Pfizer, Aurobindo, Sun Pharmaceuticals, Novartis, Mylan, and Boehringer ingelheim hold  substantial market share in the active pharmaceutical ingredients market.

Major Players

  1. Aurobindo Pharma
  2. Teva Pharmaceutical Industries Ltd
  3. Pfizer Inc.
  4. Novartis AG
  5. Sun Pharmaceutical Industries Ltd

* Complete list of players covered available in the table of contents below

Active Pharmaceutical Ingredients market-4

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Table of Contents

  1. INTRODUCTION
    1. Study Deliverables
    2. Study Assumptions
    3. Scope of the Study
  2. RESEARCH METHODOLOGY
  3. EXECUTIVE SUMMARY
  4. MARKET DYNAMICS
    1. Market Overview
    2. Market Drivers
      1. Increasing Prevalence of Infectious, Genetic, Cardiovascular, and Other Chronic Disorders
      2. Increasing Adoption of Biologicals and Biosimilars
      3. Rising Prevalence of Cancer and Increasing Sophistication in Oncology Drug Research
    3. Market Restraints
      1. Drug Price Control Policies Across Various Countries
      2. High Competition Between the API Manufacturers
      3. Stringent Regulations
    4. Industry Attractiveness Porter's Five Force Analysis
      1. Threat of New Entrants
      2. Bargaining Power of Buyers/Consumers
      3. Bargaining Power of Suppliers
      4. Threat of Substitute Products
      5. Intensity of Competitive Rivalry
  5. MARKET SEGMENTATION
    1. By Business Mode
      1. Captive API
      2. Merchant API
    2. By Synthesis Type
      1. Synthetic
      2. Biotech
    3. By Type
      1. Generic
      2. Branded
    4. By Application
      1. Cardiology
      2. Pulmonology
      3. Oncology
      4. Ophthalmology
      5. Neurology
      6. Orthopedic
      7. Other Applications
    5. Geography
      1. North America
        1. US
        2. Canada
        3. Mexico
      2. Europe
        1. Germany
        2. UK
        3. France
        4. Italy
        5. Spain
        6. Rest of Europe
      3. Asia Pacific
        1. China
        2. Japan
        3. India
        4. Australia
        5. South Korea
        6. Rest of Asia-Pacific
      4. Middle East and Africa
        1. GCC
        2. South Africa
        3. Rest of Middle East and Africa
      5. South America
        1. Brazil
        2. Argentina
        3. Rest of South America
  6. COMPETITIVE LANDSCAPE
    1. Company Profiles
      1. Aurobindo Pharma
      2. Teva Pharmaceutical Industries Ltd
      3. Pfizer Inc.
      4. Novartis AG
      5. BASF SE
      6. Boehringer Ingelheim GmbH
      7. Dr. Reddy’s Laboratories Ltd
      8. Lupin Ltd
      9. Mylan NV
      10. Sun Pharmaceutical Industries Ltd
    2. *List Not Exhaustive
  7. MARKET OPPORTUNITIES AND FUTURE TRENDS
**Competitive Landscape covers- Business Overview, Financials, Products and Strategies and Recent Developments