Active Pharmaceutical Ingredients Market

Active Pharmaceutical Ingredients Market by Type of Synthesis (Biotech [Monoclonal Antibodies, Recombinant Proteins, and Vaccines], and Synthetic), Type of Manufacturer (Captive APIs and Merchant APIs), Type (Generic APIs and Innovative APIs), Application (Cardiovascular Diseases, Oncology, CNS and Neurology, Orthopedic, Endocrinology, Pulmonology, Gastroenterology, Nephrology, Ophthalmology, and Others), and Regions (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2021 – 2028

  • Report ID: HC-610
  • Author: Growth Market Reports
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  • No. Of Pages: 170
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The global active pharmaceutical ingredients market size was valued at USD 187.76 billion in 2020 and is projected to expand at a CAGR of 6.6 % during the forecast period, 2021–2028. The growth of the market is attributed to the increasing prevalence of cardiovascular and cancer diseases and continuous development in active pharmaceutical ingredient (API) manufacturing.

Active Pharmaceutical Ingredients Market Takeaways

Active pharmaceutical ingredient (API) refers to the active ingredient of a medicine (e.g., tablet, capsule, cream, injectable) which produces the intended effects. A drug is usually made up of several components. The primary ingredient is represented as the API, while excipient is the inactive ingredient of drug. For example, paracetamol is the API and the binding agent such as starch is the excipient in a paracetamol tablet. The quality of a drug's API determines its safety and efficacy. APIs that have been improperly manufactured or are unsafe to use can have serious consequences, including death. As a result, APIs must meet stringent safety and quality standards.

There are two main steps in the production of pharmaceuticals. Manufacturers convert raw materials into APIs in the first step. The second step includes mixing APIs and excipients into tablets, capsules, solutions, and other forms, and the final step includes packaging the drug for use by end users. APIs are either sold on the open market also known as the merchant market or used as inputs in final formulations by manufacturers.

Market Trends, Drivers, Restraints, and Opportunities

  • Increasing geriatric population worldwide is projected to boost the market growth during the forecast period.
  • Increasing expenditure on healthcare by public and prevalence lifestyle diseases are the factors which is anticipated to propel the market growth in the forecast period.
  • Government initiatives that encourage API development, as well as changes in geopolitical conditions is expected to drive the market growth in the coming years.
  • Increased funding for research and development of pharmaceutical products for the treatment of covid-19 is projected to drive the market growth in the coming years.
  • High cost of manufacturing of APIs and expensive chemical synthesis of APIs are expected to hamper the market growth.
  • Lack of skilled work force and less availability of drugs in developing countries present as key challenges that can restrict the market growth during the forecast period.
  • Increasing prevalence of various diseases, the growing number of off-patent biologic medicines, excellent results in current biosimilar clinical studies, and the growing need for biosimilars in diverse therapeutic applications are estimated to create significant opportunities for the key players.

Scope of the Report

The report on the global active pharmaceutical ingredients market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Attributes

Details

Report Title

Active Pharmaceutical Ingredients Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast

Base Year

2020

Historic Data

2018–2019

Forecast Period

2021–2028

Segmentation

Type of Synthesis (Biotech [Monoclonal Antibodies, Recombinant Proteins, and Vaccines], and Synthetic), Type of Manufacturer (Captive APIs and Merchant APIs), Type (Generic APIs and Innovative APIs), Application (Cardiovascular Diseases, Oncology, CNS and Neurology, Orthopedic, Endocrinology, Pulmonology, Gastroenterology, Nephrology, Ophthalmology, and Others)

Regional Scope

Asia Pacific, North America, Latin America, Europe, and Middle East & Africa

Report Coverage

Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast

Key Players Covered in the Report

Merck & Co., Inc.; AbbVie, Inc.; Bristol-Myers Squibb Company; Boehringer Ingelheim International GmbH; Teva Pharmaceutical Industries Ltd.; Cipla, Inc.; Albemarle Corporation; Viatris Inc.; Aurobindo Pharma; Sun Pharmaceutical Industries Ltd.; Dr. Reddy’s Laboratories Ltd.


Market Segment Insights

Synthetic segment is expected to account for a key share of the market
Based on type of synthesis, the active pharmaceutical ingredients market is bifurcated into biotech and synthetic. The biotech segment is further sub segmented into monoclonal antibodies, recombinant proteins, and vaccines. The synthetic segment is expected to account for a key share of the market during the forecast period owing to easing availability of raw material and easier synthesis techniques for these molecules.

On the other hand, the biotech segment is anticipated to expand at a rapid pace during the forecast period due to increasing demand for biopharmaceuticals and higher efficiency of these molecules. Furthermore, large investments in the biotechnology and biopharmaceutical industries might contribute to the biotech segment's growth. This provides the opportunity for development of new molecules that assist in the treatment of diseases like cancer. Biotech-related API's high revenue makes the market extremely attractive, for key companies in the market. Recombinant proteins are widely utilized in gene sequencing, particularly in the creation of antibody probes within cells. As a result, recombinant proteins have a wide range of uses in targeted therapeutics. These proteins are important in the development of new treatments like cell therapy.

Captive API segment is expected to hold a key share of the market
Based on type of manufacturer, the active pharmaceutical ingredients market is bifurcated into Captive APIs and Merchant APIs. The captive API segment is expected to hold a key share of the market during the forecast period owing to increased investments by key players for development of advanced manufacturing facility and ease of getting the raw material. In addition, recent developments and activities by key companies indicate that they are increasingly focusing on in-house production rather than outsourcing. In November 2019, Novartis announced the acquisition of CellforCure, a CDMO company in France, for the purpose of generating molecules in-house, which had previously been contracted to CellforCure. The segment's growth is expected to be driven by these initiatives taken by key players. The cheaper manufacturing costs in countries like India and China make them a popular alternative for companies wishing to outsource their API development. Product outsourcing to developing nations is a cost-effective strategy that helps these companies to increase earnings, resulting in faster market growth.

Active Pharmaceutical Ingredients Market By Type of Manufacturer

Innovative APIs segment is expected to account for a key share of the market
Based on type, the active pharmaceutical ingredients market is bifurcated into generic APIs and innovative APIs. The innovative APIs segment is expected to account for a key share of the market during the forecast period owing to increased emphasis in R&D for new drug development and favorable government regulations. Many novel products are presently in the pipeline as a result of extensive research in this field and are projected to be introduced throughout the forecast period. This market is projected to be driven by new entrants. A surge in demand for targeted treatments including high-potency API molecules, such as HPAPI, is expected to drive up demand for customized medications.

On the other hand, the generic APIs segment is anticipated to expand at a rapid pace during the forecast period owing to Patent expiry of branded molecules. Due to significant unmet clinical requirements and acceptability of OTC drugs, the generic drug industry is expected to rise rapidly in countries such as Brazil and India.

Cardiovascular diseases segment is expected to constitute a key share of the market
Based on applications, the active pharmaceutical ingredients market is segmented into cardiovascular diseases, oncology, CNS and neurology, orthopedic, endocrinology, pulmonology, gastroenterology, nephrology, ophthalmology, and others. The cardiovascular diseases segment is expected to constitute a key share of the market during the forecast period owing to increasing prevalence of cardiovascular diseases. Initiatives by public and private organizations to spread the awareness is also anticipated to boost the market growth and thereby thus driving demand for APIs for cardiology drugs.

On the other hand, the oncology segment is anticipated to expand at a rapid pace during the forecast period due to increasing prevalence of cancer and changing lifestyles.

The frequency of numerous metabolic disorders is increasing as people embrace a more sedentary lifestyle. In most nations, hormonal imbalance is becoming more of a problem. Thyroid and sex hormone imbalances are examples of these conditions. Other disorders, like as diabetic retinopathy and macular degeneration, are on the rise, driving up demand for highly efficient and cost-effective treatments.

Active Pharmaceutical Ingredients Market By Applications

North America is anticipated to dominate the market
On the basis of regions, the active pharmaceutical ingredients market is (classified/categorized) as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to dominate the market at an impressive CAGR during the forecast period. The regional market growth can be attributed to growing incidence of cancer and other lifestyle-related disorders.

On the other hand, Asia Pacific is expected to exhibit a rapid growth rate in the coming years owing to increased healthcare expenditure. The existence of economies like China and India, which the world relies on for low-cost API manufacturing, is a benefit for the region.

Europe is also expected to exhibit a rapid growth rate in the coming years owing to increased R&D investments and presence of key players in the region.

1. Executive Summary
2. Assumptions and Acronyms Used
3. Research Methodology
4. Active Pharmaceutical Ingredients Market Overview
  4.1. Introduction
     4.1.1. Market Taxonomy
     4.1.2. Market Definition
  4.2. Macro-Economic Factors
     4.2.1. Industry Outlook
  4.3. Active Pharmaceutical Ingredients Market Dynamics
     4.3.1. Market Drivers
     4.3.2. Market Restraints
     4.3.3. Opportunity
     4.3.4. Market Trends
  4.4. Active Pharmaceutical Ingredients Market - Supply Chain
  4.5. Global Active Pharmaceutical Ingredients Market Forecast
     4.5.1. Active Pharmaceutical Ingredients Market Size (US$ Mn) and Y-o-Y Growth
     4.5.2. Active Pharmaceutical Ingredients Market Size (000’ Units) and Y-o-Y Growth
     4.5.3. Active Pharmaceutical Ingredients Market Absolute $ Opportunity
5. Global Active Pharmaceutical Ingredients Market Analysis and Forecast by Types
  5.1. Market Trends
  5.2. Introduction
     5.2.1. Basis Point Share (BPS) Analysis by Types
     5.2.2. Y-o-Y Growth Projections by Types
  5.3. Active Pharmaceutical Ingredients Market Size and Volume Forecast by Types
     5.3.1. Generic APIs
     5.3.2. Innovative APIs
  5.4. Absolute $ Opportunity Assessment by Types
  5.5. Market Attractiveness/Growth Potential Analysis by Types
6. Global Active Pharmaceutical Ingredients Market Analysis and Forecast by Applications
  6.1. Market Trends
  6.2. Introduction
     6.2.1. Basis Point Share (BPS) Analysis by Applications
     6.2.2. Y-o-Y Growth Projections by Applications
  6.3. Active Pharmaceutical Ingredients Market Size and Volume Forecast by Applications
     6.3.1. Cardiovascular Diseases
     6.3.2. Oncology
     6.3.3. CNS and Neurology
     6.3.4. Orthopedic
     6.3.5. Endocrinology
     6.3.6. Pulmonology
     6.3.7. Gastroenterology
     6.3.8. Nephrology
     6.3.9. Ophthalmology
     6.3.10. Others
  6.4. Absolute $ Opportunity Assessment by Applications
  6.5. Market Attractiveness/Growth Potential Analysis by Applications
7. Global Active Pharmaceutical Ingredients Market Analysis and Forecast by Region
  7.1. Market Trends
  7.2. Introduction
     7.2.1. Basis Point Share (BPS) Analysis by Region
     7.2.2. Y-o-Y Growth Projections by Region
  7.3. Active Pharmaceutical Ingredients Market Size and Volume Forecast by Region
     7.3.1. North America
     7.3.2. Latin America
     7.3.3. Europe
     7.3.4. Asia Pacific
     7.3.5. Middle East and Africa (MEA)
  7.4. Absolute $ Opportunity Assessment by Region
  7.5. Market Attractiveness/Growth Potential Analysis by Region
  7.6. Global Active Pharmaceutical Ingredients Demand Share Forecast, 2019-2026
8. North America Active Pharmaceutical Ingredients Market Analysis and Forecast
  8.1. Introduction
     8.1.1. Basis Point Share (BPS) Analysis by Country
     8.1.2. Y-o-Y Growth Projections by Country
  8.2. North America Active Pharmaceutical Ingredients Market Size and Volume Forecast by Country
     8.2.1. U.S.
     8.2.2. Canada
  8.3. Absolute $ Opportunity Assessment by Country
  8.4. North America Active Pharmaceutical Ingredients Market Size and Volume Forecast by Types
     8.4.1. Generic APIs
     8.4.2. Innovative APIs
  8.5. Basis Point Share (BPS) Analysis by Types
  8.6. Y-o-Y Growth Projections by Types
  8.7. North America Active Pharmaceutical Ingredients Market Size and Volume Forecast by Applications
     8.7.1. Cardiovascular Diseases
     8.7.2. Oncology
     8.7.3. CNS and Neurology
     8.7.4. Orthopedic
     8.7.5. Endocrinology
     8.7.6. Pulmonology
     8.7.7. Gastroenterology
     8.7.8. Nephrology
     8.7.9. Ophthalmology
     8.7.10. Others
  8.8. Basis Point Share (BPS) Analysis by Applications
  8.9. Y-o-Y Growth Projections by Applications
  8.10. Market Attractiveness/Growth Potential Analysis
     8.10.1. By Country
     8.10.2. By Product Type
     8.10.3. By Application
  8.11. North America Active Pharmaceutical Ingredients Demand Share Forecast, 2019-2026
9. Latin America Active Pharmaceutical Ingredients Market Analysis and Forecast
  9.1. Introduction
     9.1.1. Basis Point Share (BPS) Analysis by Country
     9.1.2. Y-o-Y Growth Projections by Country
     9.1.3. Latin America Average Pricing Analysis
  9.2. Latin America Active Pharmaceutical Ingredients Market Size and Volume Forecast by Country
      9.2.1. Brazil
      9.2.2. Mexico
      9.2.3. Rest of Latin America
   9.3. Absolute $ Opportunity Assessment by Country
  9.4. Latin America Active Pharmaceutical Ingredients Market Size and Volume Forecast by Types
     9.4.1. Generic APIs
     9.4.2. Innovative APIs
  9.5. Basis Point Share (BPS) Analysis by Types
  9.6. Y-o-Y Growth Projections by Types
  9.7. Latin America Active Pharmaceutical Ingredients Market Size and Volume Forecast by Applications
     9.7.1. Cardiovascular Diseases
     9.7.2. Oncology
     9.7.3. CNS and Neurology
     9.7.4. Orthopedic
     9.7.5. Endocrinology
     9.7.6. Pulmonology
     9.7.7. Gastroenterology
     9.7.8. Nephrology
     9.7.9. Ophthalmology
     9.7.10. Others
  9.8. Basis Point Share (BPS) Analysis by Applications
  9.9. Y-o-Y Growth Projections by Applications
  9.10. Market Attractiveness/Growth Potential Analysis
     9.10.1. By Country
     9.10.2. By Product Type
     9.10.3. By Application
  9.11. Latin America Active Pharmaceutical Ingredients Demand Share Forecast, 2019-2026
10. Europe Active Pharmaceutical Ingredients Market Analysis and Forecast
  10.1. Introduction
     10.1.1. Basis Point Share (BPS) Analysis by Country
     10.1.2. Y-o-Y Growth Projections by Country
     10.1.3. Europe Average Pricing Analysis
  10.2. Europe Active Pharmaceutical Ingredients Market Size and Volume Forecast by Country
     10.2.1. Germany
     10.2.2. France
     10.2.3. Italy
     10.2.4. U.K.
     10.2.5. Spain
     10.2.6. Russia
     10.2.7. Rest of Europe
  10.3. Absolute $ Opportunity Assessment by Country
  10.4. Europe Active Pharmaceutical Ingredients Market Size and Volume Forecast by Types
     10.4.1. Generic APIs
     10.4.2. Innovative APIs
  10.5. Basis Point Share (BPS) Analysis by Types
  10.6. Y-o-Y Growth Projections by Types
  10.7. Europe Active Pharmaceutical Ingredients Market Size and Volume Forecast by Applications
     10.7.1. Cardiovascular Diseases
     10.7.2. Oncology
     10.7.3. CNS and Neurology
     10.7.4. Orthopedic
     10.7.5. Endocrinology
     10.7.6. Pulmonology
     10.7.7. Gastroenterology
     10.7.8. Nephrology
     10.7.9. Ophthalmology
     10.7.10. Others
  10.8. Basis Point Share (BPS) Analysis by Applications
  10.9. Y-o-Y Growth Projections by Applications
  10.10. Market Attractiveness/Growth Potential Analysis
     10.10.1. By Country
     10.10.2. By Product Type
     10.10.3. By Application
  10.11. Europe Active Pharmaceutical Ingredients Demand Share Forecast, 2019-2026
11. Asia Pacific Active Pharmaceutical Ingredients Market Analysis and Forecast
  11.1. Introduction
     11.1.1. Basis Point Share (BPS) Analysis by Country
     11.1.2. Y-o-Y Growth Projections by Country
     11.1.3. Asia Pacific Average Pricing Analysis
  11.2. Asia Pacific Active Pharmaceutical Ingredients Market Size and Volume Forecast by Country
     11.2.1. China
     11.2.2. Japan
     11.2.3. South Korea
     11.2.4. India
     11.2.5. Australia
     11.2.6. Rest of Asia Pacific (APAC)
  11.3. Absolute $ Opportunity Assessment by Country
  11.4. Asia Pacific Active Pharmaceutical Ingredients Market Size and Volume Forecast by Types
     11.4.1. Generic APIs
     11.4.2. Innovative APIs
  11.5. Basis Point Share (BPS) Analysis by Types
  11.6. Y-o-Y Growth Projections by Types
  11.7. Asia Pacific Active Pharmaceutical Ingredients Market Size and Volume Forecast by Applications
     11.7.1. Cardiovascular Diseases
     11.7.2. Oncology
     11.7.3. CNS and Neurology
     11.7.4. Orthopedic
     11.7.5. Endocrinology
     11.7.6. Pulmonology
     11.7.7. Gastroenterology
     11.7.8. Nephrology
     11.7.9. Ophthalmology
     11.7.10. Others
  11.8. Basis Point Share (BPS) Analysis by Applications
  11.9. Y-o-Y Growth Projections by Applications
  11.10. Market Attractiveness/Growth Potential Analysis
     11.10.1. By Country
     11.10.2. By Product Type
     11.10.3. By Application
  11.11. Asia Pacific Active Pharmaceutical Ingredients Demand Share Forecast, 2019-2026
12. Middle East & Africa Active Pharmaceutical Ingredients Market Analysis and Forecast
  12.1. Introduction
     12.1.1. Basis Point Share (BPS) Analysis by Country
     12.1.2. Y-o-Y Growth Projections by Country
     12.1.3. Middle East & Africa Average Pricing Analysis
  12.2. Middle East & Africa Active Pharmaceutical Ingredients Market Size and Volume Forecast by Country
     12.2.1. Saudi Arabia
     12.2.2. South Africa
     12.2.3. UAE
     12.2.4. Rest of Middle East & Africa (MEA)
  12.3. Absolute $ Opportunity Assessment by Country
  12.4. Middle East & Africa Active Pharmaceutical Ingredients Market Size and Volume Forecast by Types
     12.4.1. Generic APIs
     12.4.2. Innovative APIs
  12.5. Basis Point Share (BPS) Analysis by Types
  12.6. Y-o-Y Growth Projections by Types
  12.7. Middle East & Africa Active Pharmaceutical Ingredients Market Size and Volume Forecast by Applications
     12.7.1. Cardiovascular Diseases
     12.7.2. Oncology
     12.7.3. CNS and Neurology
     12.7.4. Orthopedic
     12.7.5. Endocrinology
     12.7.6. Pulmonology
     12.7.7. Gastroenterology
     12.7.8. Nephrology
     12.7.9. Ophthalmology
     12.7.10. Others
  12.8. Basis Point Share (BPS) Analysis by Applications
  12.9. Y-o-Y Growth Projections by Applications
  12.10. Market Attractiveness/Growth Potential Analysis
     12.10.1. By Country
     12.10.2. By Product Type
     12.10.3. By Application
  12.11. Middle East & Africa Active Pharmaceutical Ingredients Demand Share Forecast, 2019-2026
13. Competition Landscape
  13.1. Global Active Pharmaceutical Ingredients Market: Market Share Analysis
  13.2. Active Pharmaceutical Ingredients Distributors and Customers
  13.3. Active Pharmaceutical Ingredients Market: Competitive Dashboard
  13.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
     13.4.1. Merck & Co., Inc.
     13.4.2. AbbVie, Inc.
     13.4.3. Bristol-Myers Squibb Company
     13.4.4. Boehringer Ingelheim International GmbH
     13.4.5. Teva Pharmaceutical Industries Ltd.
     13.4.6. Cipla, Inc.
     13.4.7. Albemarle Corporation
     13.4.8. Viatris Inc.
     13.4.9. Aurobindo Pharma
     13.4.10. Sun Pharmaceutical Industries Ltd.
     13.4.11.
Segments Covered in the Report
The global active pharmaceutical ingredients market has been segmented on the basis of

Type of Synthesis
  • Biotech
    • Monoclonal Antibodies
    • Recombinant Proteins
    • Vaccines
  • Synthetic
Type of Manufacturer
  • Captive APIs
  • Merchant APIs
Type
  • Generic APIs
  • Innovative APIs
Application
  • Cardiovascular Diseases
  • Oncology
  • CNS and Neurology
  • Orthopedic
  • Endocrinology
  • Pulmonology
  • Gastroenterology
  • Nephrology
  • Ophthalmology
  • Others
Regions
  • Asia Pacific
  • North America
  • Latin America
  • Europe
  • Middle East & Africa
Key Players
  • Merck & Co., Inc.
  • AbbVie, Inc.
  • Bristol-Myers Squibb Company
  • Boehringer Ingelheim International GmbH
  • Teva Pharmaceutical Industries Ltd.
  • Cipla, Inc.
  • Albemarle Corporation
  • Viatris Inc.
  • Aurobindo Pharma
  • Sun Pharmaceutical Industries Ltd.
  • Dr. Reddy’s Laboratories Ltd.

Key players competing in the active pharmaceutical ingredients market include/are Merck & Co., Inc.; AbbVie, Inc.; Bristol-Myers Squibb Company; Boehringer Ingelheim International GmbH; Teva Pharmaceutical Industries Ltd.; Cipla, Inc.; Albemarle Corporation; Viatris Inc.; Aurobindo Pharma; Sun Pharmaceutical Industries Ltd.; Dr. Reddy’s Laboratories Ltd.

The active pharmaceutical ingredient market is quite complicated. Patent expiration of popular pharmaceuticals, growing outsourcing operations owing to high manufacturing costs, and rigorous rules on API production are all projected to maintain high market competition during the forecast period. Due to non-compliance with regulations, a number of key players are facing legal actions. For example, in August 2019, the United States Food and Drug Administration (FDA) issued 75 warning letters to API manufacturing facilities , half of which were to Indian and Chinese companies.

 Active Pharmaceutical Ingredients Market By Key Players

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