Pharmaceutical Intermediates Market Size

Pharmaceutical Intermediates Market Analysis

The Pharmaceutical Intermediates Market size is estimated at USD 42.31 billion in 2024, and is expected to reach USD 60.52 billion by 2029, growing at a CAGR of 7.42% during the forecast period (2024-2029).

COVID-19 pandemic had a significant impact on the market studied. According to a study that was published in the American Chemical Society Pharmacology and Translational Science, 2020, new potential therapeutics for COVID-19 were discovered using a combined virtual and experimental screening strategy. Furthermore, they choose among the medications that were already in use and were examined to check for structural similarity against a library of almost 4,000 medications that were already in use, with hydroxychloroquine (HCQ) serving as a reference medication. The study suggested remdesivir and favipiravir therapies as prospective adjuvants in COVID-19 treatment and zuclopenthixol, nebivolol, and amodiaquine as potential candidates for clinical trials against the early phase of the SARS-CoV-2 infection. Thus, the pharmaceutical intermediates market witnessed significant growth during the covid pandemic and it is observed that even after the pandemic, the demand for pharmaceutical intermediates is high in the global market.

Specific factors that are driving the market growth include the increasing prevalence of chronic diseases and growing R&D initiatives and activities in the pharmaceutical industry. Given that these pharma intermediates are used in the treatment of cancer detection and a variety of chronic diseases, the rise in the prevalence of chronic diseases is projected to propel market expansion in the area under study. For instance, chronic diseases account for around 41 million annual fatalities, or 71% of all fatalities worldwide, according to the WHO's key facts on non-communicable diseases published in April 2021. The high fatality rate from these diseases increases the demand for early intervention, which in turn propels the market's expansion.

The market is expected to develop due to the rising prevalence of respiratory ailments such as lung cancer, chronic obstructive pulmonary diseases, and others. For instance, the WHO stated in its January 2022 report that Chronic Obstructive Pulmonary Disease (COPD) is the 3rd most common cause of morbidity and mortality globally. Low- and middle-income nations (LMIC) countries contribute largely to the global rise in prevalence of COPD. The necessity for effective treatment of the disease is brought on by the increasing prevalence of chronic obstructive pulmonary disease which is expected to increase the market growth.

There has been an upsurge in the usage of advanced technologies, such as high throughput, bioinformatics, and combinatorial chemistry for better drug candidate identification. The discovery and development of novel drugs to treat, prevent, or cure several diseases, including cancer, diabetes, cardiovascular disorders, and chronic kidney disease, has been accelerated by the significant rise in disease incidence rates around the world. The United States health care spending climbed 9.7% to reach USD 4.3 trillion in 2021, a substantially greater rate than the 4.2% increase recorded in 2020, according to the CMS data published in March 2022. Additionally, increased investments in R&D are a significant driver of market expansion. For instance, JSR life sciences introduced a corporate venture fund in March 2021 with a focus on small and developing biotech, attracting clients to its range of life sciences services. Hence, owing to the rising R&D activities in the pharmaceutical industry, the usage of pharmaceutical intermediates is expected to observe strong growth as well.

However, stringent regulatory issues regarding certain pharmaceutical intermediate substances are expected to hinder market growth.