Skip to main content

Active Pharmaceutical Ingredients Market Continues Growth with Increasing Generic Drug Approvals

Active Pharmaceutical Ingredients Market

Active pharmaceutical ingredients, also known as APIs, are the biologically active components of pharmaceutical drugs. APIs provide the desired therapeutic effects in pharmaceutical products and are responsible for the intended physiological effects of pharmaceutical treatments. The rising prevalence of chronic diseases and growing generic drug market have led to substantial demand for APIs. The global API market is growing rapidly owing to the need for affordable healthcare and increasing focus on generics.


The global API industry largely caters to the off-patent generic drug market. APIs are necessary for the manufacturing of generic drugs and represent a major cost component. The expiration of patents for blockbuster drugs and subsequent availability of low-cost generic versions have boosted API demand. Further, initiatives by governments worldwide to promote generics in order to provide cost-effective treatment options have accelerated API consumption. The growing generics market and easing regulatory approval processes for generic drugs are supporting continued growth of the API industry.

The global active pharmaceutical ingredients market is estimated to be valued at US$ 268.05 billion in 2024 and is expected to exhibit a CAGR of 6.8% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the active pharmaceutical ingredients market include Teva Pharmaceutical Industries Ltd., Pfizer, Inc., Dr. Reddy's Laboratories Ltd., Novartis AG, Mylan N.V., Amneal Pharmaceuticals LLC, Lonza Group, Lupin Limited, Fresenius Kabi, Hikma Pharmaceuticals, Cipla Limited, Glenmark Pharmaceuticals Limited, Sun Pharmaceutical Industries Ltd., Endo International plc, Aurobindo Pharma Limited, Apotex Inc, Taro Pharmaceutical Industries Ltd, Stada Arzneimittel AG, Krka Pharmaceuticals, CordenPharma International, Evonik Industries AG, and Biological E. Limited.

The rising incidence of chronic diseases and increasing geriatric population are fueling Active Pharmaceutical Ingredients Market Demand for affordable treatment options. This is driving uptake of generics and subsequent API consumption globally. Additionally, growing penetration of health insurance is supporting demand for low-cost generics in several countries.

API manufacturers are focusing on expanding production facilities in key markets to ensure timely supply and gain greater share of the global generics drug market. This includes strategic investments and partnerships between innovator firms and API providers to establish local manufacturing presence.

Market Key Trends

Growing investments by API manufacturers in continuous manufacturing, process automation, and advanced biomanufacturing technologies are expected to be a major trend driving the active pharmaceutical ingredients market over the forecast period 2024 to 2031. Continuous processing lessens production costs and enhances efficiency by reducing processing times. Additionally, ongoing R&D for complex APIs like peptides and oligonucleotides will support revenue growth of innovator API providers in the coming years. Sustained collaborations between API suppliers and generics firms for joint development of complex drug molecules are also expected to bolster market trends.

Porter’s Analysis
Threat of new entrants: High capital requirement and economies of scale prevent new players from entering this market easily.
Bargaining power of buyers: Many buyers present in the market so buyers possess moderate bargaining power.
Bargaring power of suppliers: Few suppliers produce raw materials for APIs so they possess moderate bargaining power.
Threat of new substitutes: No major substitutes available as APIs are required for all prescription medicines thus threat of substitutes is low.
Competitive rivalry: Presence of many large generic players worldwide has led to intense competition in the market.

Geographical Regions
North America holds the largest share of the global active pharmaceutical ingredients market in terms of value due to increased R&D expenditure and advanced healthcare facilities in United States and Canada. The U.S. is the major contributor to the North American API market owing to favorable reimbursements and presence of many API manufacturers. Asia Pacific region is anticipated to witness fastest growth during the forecast period majorly due to expanding generic drug manufacturing capabilities in India and China. The growing pharmaceutical industry and low labor & manufacturing costs are propelling API market in Asia Pacific region.
Europe remains the second largest regional market for APIs. High healthcare spending and availability of advanced technologies have propelled Germany, U.K., France to hold major shares of European API market. Latin America and Middle East & Africa are projected to offer lucrative opportunities for API manufacturers owing to increasing healthcare expenditures and growing pharmaceutical industry in Brazil, Mexico, Saudi Arabia and South Africa. 

Get more insights on Active Pharmaceutical Ingredients Market

Unlock More Insights—Explore the Report in the Language You Prefer:-

·         French

·         German

·         Italian

·         Russian

·         Japanese

·         Chinese

·         Korean

·         Portuguese

About Author:

Vaagisha brings over three years of expertise as a content editor in the market research domain. Originally a creative writer, she discovered her passion for editing, combining her flair for writing with a meticulous eye for detail. Her ability to craft and refine compelling content makes her an invaluable asset in delivering polished and engaging write-ups.

(LinkedIn: https://www.linkedin.com/in/vaagisha-singh-8080b91)

Labels:

Comments

Post a Comment

Popular posts from this blog

Rails to Resilience: Strategies Driving Growth in the Railway Coatings Market

Railway Coatings Market Railway coatings play a critical role in protecting rail infrastructure against corrosion, abrasion, and weathering, thereby extending the lifespan of railway assets and enhancing operational efficiency. The Railway Coatings Market encompasses a diverse range of coatings specifically formulated to meet the unique requirements of rail applications, including coatings for rolling stock, track components, bridges, and stations. As the global rail industry continues to expand and modernize, the demand for high-performance coatings that offer durability, safety, and environmental sustainability is on the rise. The railway coatings market was valued at  US$ 2,334.2 Mn in 2024 , and is expected to exhibit a  CAGR of 5.2% , in terms of revenue, over the forecast period  2024-2031  to reach  US$ 3,497.6 Mn by 2031 . Key Takeaways: The Railway Coatings Market is witnessing steady growth, driven by various factors such as infrastructure development ...
Post a Comment
Read more

Global Amphibious Vehicle Market is Anticipated to Witness High Growth Owing to Growing Demand

Amphibious Transport Amphibious vehicles, commonly referred as 'amphibians', are wheeled or tracked vehicles that have the capability to travel through both land and water. They are widely used by military forces across the world for tactical mobility options. Amphibious vehicles provide unique advantages for various military operations conducted near water bodies or in flooded areas. They allow rapid deployment of troops and equipment without requiring additional logistical support. Some key uses of amphibious vehicles include border patrolling, transportation across rivers, and transportation of supplies to islands. The growing focus on military modernization programs and increasing defense budgets globally has augmented the demand for advanced amphibious vehicles. The Global Amphibious Vehicle Market is estimated to be valued at US$ 5.08 Bn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 To 2031. Key Takeaways Key players operating in the Globa...
Post a Comment
Read more

Active Protection Systems Market is Anticipated to Witness High Growth

Active Protection Systems Market Active protection systems (APS) are anti-weapon defense system employed on armored fighting vehicles and tanks that protect them against incoming anti-tank missiles and rockets. An APS utilizes sensors for detecting the threat, followed by countermeasures that include projectile interceptors, direct energy weapons or smoke screens to neutralize the threat. The increasing modernization initiatives by militaries worldwide coupled with rising defense budgets is stimulating the demand for advanced protection systems for tanks and armored vehicles. The Global active protection systems market is estimated to be valued at US$ 4.30 Bn in 2024 and is expected to exhibit a CAGR of 5.6% over the forecast period 2024 to 2031. Active Protection Systems Market Growth   provides effective self-defence solutions and are becoming an integral part of the protection suites being developed for next-gen armored platforms. These systems play a crucial role in saving live...
Post a Comment
Read more