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Editing: 8; Published: February 2022
Executive Pool: 5211
Companies: 266 – Players covered include AbbVie, Inc.; AstraZeneca PLC; Boehringer Ingelheim International GmbH; Bristol-Myers Squibb Company; Eli Lilly and company; F. Hoffmann-La Roche AG; GlaxoSmithKline PLC; Pfizer, Inc.; Sanofi; Teva Pharmaceutical Industries Ltd. and others.
Blanket: All major geographies and key segments
segments: Type (innovative, generic); Synthesis (Synthetics, Biotech); Application (cardiovascular disease, endocrinology, central nervous system and neurology, oncology, gastroenterology, orthopedics, other applications)
Geographies: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; UK; and rest of Europe); Asia Pacific; Rest of the world.
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Global Active Pharmaceutical Ingredients (API) Market to Reach $265.3 Billions by 2026
APIs represent biologically active substances and primary components for the manufacture of drugs. The production of APIs in the world is mainly concentrated in developing countries due to their ability to scale production according to customization and low cost manufacturing. The API market is expected to benefit from the growing focus on generic and branded drugs owing to the rising prevalence of non-communicable and chronic diseases due to lifestyle changes and rapid urbanization. Market growth is expected to be further augmented by the transition from conventional manufacturing techniques, increasing investment in drug discovery, and strong adherence to product quality. The market is also benefiting from the growing influx of generic drugs produced after a pharmaceutical company was given permission to create its own version of the drug. The COVID-19 pandemic and resulting supply chain disruptions are causing various governments to boycott API sourcing from China. Despite these challenges, the API market is set to grow rapidly owing to positive factors such as the pending approval of various generic and blockbuster drugs that rely on APIs.
Amid the COVID-19 crisis, the global Active Pharmaceutical Ingredients (APIs) market estimated at US$213.2 billion in 2022, is expected to reach a revised size of US$265.3 billion by 2026, growing at a CAGR of 6.7% over the analysis period. Innovative, one of the segments analyzed in the report, is expected to grow at a CAGR of 6.4% to reach US$190.9 billion at the end of the analysis period. After a thorough analysis of the business implications of the pandemic and the induced economic crisis, the growth of the generic segment is readjusted to a revised CAGR of 7.4% for the next 7-year period. This segment currently accounts for a 30.2% share of the global Active Pharmaceutical Ingredients (API) market. As patents for branded APIs expire, opportunities for generic APIs increase, driving an increase in API market demand.
The US market is estimated at $77.1 billion in 2022, when China is expected to reach $35.4 billion by 2026
The Active Pharmaceutical Ingredients (APIs) Market in the United States is estimated at US$77.1 billion in 2022. The country currently accounts for a 36.3% share of the global market. Chinaworld’s second largest economy, is expected to reach an estimated market size of US$35.4 billion in 2026 with a CAGR of 7.6% over the analysis period. Other notable geographic markets include Japan and Canada, each predicting growth of 6.1% and 6.5% respectively over the analysis period. In Europe, Germany is expected to grow around 6.1% CAGR while the rest of the European market (as defined in the study) will reach US$37.5 billion at the end of the analysis period. China is a leading producer and exporter of APIs, accounting for approximately 20% of global API production. The country’s strong presence in IPA production could be attributed to factors such as low cost of utilities and strong government support. COVID-19 has exposed various vulnerabilities associated with API sourcing from other regions or countries, such as a fractured supply chain and limited scope for immediate response to changes. These challenges are now prompting a number of European countries and the United States to focus on relocating pharmaceutical and API production to their home countries.
Personalized medicine drives demand for complex APIs
Known alternatively as targeted medicine or precision medicine, the science of personalized medicine involves precision diagnosis of patients through the collection and analysis of non-invasive samples for better disease stratification at the help of genetic and other markers and subsequent selection of drugs for treatment tailored to the individual. based on secure personal information. Although the idea of personal medicine is not entirely new as physicians use patient profiles, environmental factors and diagnostic information to determine the most appropriate treatment, which defines modern personalized medicine, it are the technological advances that provide information at the genetic level of patients never before. available to physicians. Improved molecular and genetic testing allows physicians to understand variations in DNA and RNA levels in patients with the same diseases, allowing them to choose therapies that target these variations to affect a desirable outcome.
Active Pharmaceutical Ingredients (APIs) developed for personalized pharmaceuticals are more complex and require specialized handling. Custom 3D printing drugs facilitate personalized drug dosing, novel drug release profile, and production of distinct dosage forms. Active pharmaceutical ingredients are compounded into a polymer matrix in pharmaceutical hot melt extrusion (HME).
Today, personalized medicine is a key research area in the healthcare industry. Having become an integral part of everyday clinical practice, personalized medicine is transforming the way a large number of diseases are identified, categorized and treated. Currently, more than 150 personalized drugs are on the market. In addition, approximately 40% of drugs in development target biomarkers. Over the past five years, investments in personalized medicines have doubled and are expected to see significant growth for the foreseeable future. Oncology is currently the largest therapeutic category of personalized medicine. The unmet need and potential in this space can be further gauged by the fact that three-quarters of cancer drugs in development are personalized drugs. Continued
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