Active Pharmaceutical Ingredient (API) Market size was valued at USD 191.3 billion in 2022 and is poised to grow at a CAGR of 6.1% from 2023-29. Factors such as increased drug R&D, the rising incidence of chronic diseases, the growing importance of generics, and the rising consumption of biopharmaceuticals are all driving market expansion. Unfavorable medicine price control rules in several countries, as well as high production costs, are projected to limit the market's expansion. Government regulations that encourage API development, as well as changes in geopolitical situations, are propelling the market forward. The API market is facing significant changes as a result of COVID-19's supply chain disruption. Due to geopolitical circumstances and a desire to lessen reliance on China for API products, countries such as India are being favoured over China for API export. Active pharmaceutical ingredient (API) is a part of the drug that produces a pharmacological effect. Some drugs such as combination therapy have multiple active pharmaceutical ingredients (API) to treat different symptoms in different ways. API's provide health benefits and play a vital role in prevention, treatment and diagnosis. Active Pharmaceutical ingredients may synthesize by a chemical process, biotechnological process, and various other processes. Active pharmaceutical ingredients used for making the wide range of drugs that used to treat chronic diseases such as cancer, metabolic disorders, cardiovascular disorders, and neurological disorders, and others. Some market players manufacture their own API and others buy from other API manufacturing companies to make drug formulations. Active pharmaceutical ingredient (API) market is driven by various factors such as the increase in the incidence of chronic diseases, and penetration of healthcare systems in underdeveloped countries increased the consumption of drugs are expected to fuel the growth of API market. Furthermore, a surge in healthcare spending, development of healthcare infrastructure around the world enables boost the active pharmaceutical ingredients market growth. However, unfavourable drug pricing policies in some countries and stringent regulatory requirements are hampering the Active Pharmaceutical Ingredient (API) Market.
Fastest Growing Market
Active Pharmaceutical Ingredient Market is witnessing robust growth rate over the forecast period. Globally API market is highly fragmented with many players. Market players are banking on mergers and acquisitions to expand their manufacturing capabilities, geographical expansions and to increase the market share. In September 2015, Sun Pharmaceuticals acquired GlaxoSmithKline?s (GSK?s) opiates business in Australia, to strengthen its active pharmaceutical ingredients (API) and analgesic drug segments. In July 2014, Hospira acquired API manufacturing facility and an associated R&D facility from Orchid Chemicals & Pharmaceuticals, an Indian pharmaceuticals company. This acquisition enables Hospira to vertically integrate into the beta-lactam antibiotic APIs. Furthermore, contract API manufacturing is growing at a significant rate owing to the low cost of manufacturing. New treatments for various diseases are expected to spur the demand for active pharmaceutical ingredients (API) across the globe.
The active pharmaceutical ingredient market size was valued at USD 191.3 billion in 2022
Pfizer, Sanofi, Lonza Group, Novartis, GlaxoSmithKline, Catalent
North America is the fastest-growing region for the active pharmaceutical ingredient market