Pharmaceutical Intermediates Global Market Report 2024

The pharmaceutical intermediates market size has grown strongly in recent years. It will grow from $31.33 billion in 2023 to $33.59 billion in 2024 at a compound annual growth rate (CAGR) of 7.2%. The growth observed in the historical period can be attributed to various factors, including advancements in chemical synthesis techniques, the evolution of drug development processes, market demand and expansion, increased investment in research and development, and adherence to regulatory compliance standards.

The pharmaceutical intermediates market size is expected to see strong growth in the next few years. It will grow to $43.01 billion in 2028 at a compound annual growth rate (CAGR) of 6.4%. The anticipated growth in the forecast period can be attributed to factors such as innovation in biopharmaceuticals, the development of precision medicine, initiatives in green chemistry, the production of customized intermediates, and prevailing trends in pharmaceutical outsourcing. Noteworthy trends expected in the forecast period encompass the adoption of continuous flow chemistry, increased use of automation and robotics, the application of nanotechnology, advancements in biocatalysis and enzyme engineering, and the implementation of strategic supply chain management in the pharmaceutical intermediates sector.

The anticipated increase in the prevalence of chronic diseases is poised to drive the growth of the pharmaceutical intermediates market in the foreseeable future. Chronic diseases, characterized by lasting three months or longer and having the potential to worsen over time, are on the rise due to factors such as an aging population, lifestyle changes, rapid urbanization, and insufficient preventive measures. In March 2022, the National Institute of Health reported that chronic kidney disorders are expected to affect 13.4% of the population, with an estimated 4.902 to 7.083 million individuals requiring renal replacement therapy for end-stage kidney disease (ESKD). Pharmaceutical intermediates play a vital role in developing medications used to manage chronic diseases, mitigating the escalating prevalence of such conditions and consequently driving the pharmaceutical intermediates market's growth.

The expected increase in pharmaceutical drug production is set to propel the pharmaceutical intermediates market's expansion. Drug production involves the manufacturing process of pharmaceutical substances, medications, or drugs, and as pharmaceutical drugs become more complex and targeted, their synthesis requires multiple steps. Pharmaceutical intermediates are chemical compounds produced during these intermediate steps in the manufacturing process. The European Federation of Pharmaceutical Industries and Associations (EFPIA) reported in June 2022 that the total pharmaceutical production in Europe reached $351 billion (€300,000 million) in 2021, marking a 5% increase from $335.2 billion (€286,697 million) in 2020. The growing demand for pharmaceutical drugs is a key driver propelling the pharmaceutical intermediates market.

Leading companies in the pharmaceutical intermediates market are introducing new product lines, such as API Intermediates, to enhance their market position and profitability. API intermediates, which are chemical compounds used in the synthesis of active pharmaceutical ingredients (APIs), play a crucial role in producing medications for various therapeutic areas. In October 2023, Huateng Pharmaceutical Co. Ltd., a China-based pharmaceutical company, launched its Gastrointestinal API Intermediates product line. These intermediates serve as building blocks for pharmaceutical active ingredients used in medications treating gastrointestinal system disorders, including laxatives, 5-HT3 receptor antagonists, H2-receptor antagonists, and proton pump inhibitors.

Major players in the pharmaceutical intermediates market are focusing on developing intermediates specifically for small molecule drugs. Intermediates are transitional products formed during different stages of the chemical manufacturing process before reaching the final active pharmaceutical ingredient (API) or drug substance, playing a crucial role in the synthesis of small molecule drugs. Sumitomo Chemical Co., Ltd., a Japan-based chemical company, launched active pharmaceutical ingredients (APIs) and intermediates for small molecule drugs in March 2022. This initiative aims to meet the growing demand for small molecule medications by offering a broader range of premium APIs and intermediates.

In May 2021, Aceto Corporation, a US-based provider of specialty materials, acquired Finar Limited, an India-based manufacturer and supplier of high-purity solvents and chemicals. This acquisition aligns with Aceto's growth strategy, enhancing its manufacturing footprint, research and development (R&D) capabilities, and quality expertise in the pharmaceutical intermediates market. The collaboration with Finar Limited allows Aceto to expand its product offerings and strengthen its position in the industry.

Major companies operating in the pharmaceutical intermediates market report are BASF SE, Sanofi SA, Thermo Fisher Scientific Inc., Merck KGaA, Dishman Carbogen Amcis Ltd., Evonik Industries AG, Arkema Inc., Lonza Group AG, Wuxi AppTec co. Ltd., Aurobindo Pharma Limited, Lianhe Chemical Technology Co. Ltd., Cambrex Corporation, Vertellus Holdings LLC., Hovione LLC, Hikal Ltd., Codexis Inc., Aceto Corporation, Interchem Corporation, Midas Pharma GmbH, Arbiom, Dextra Laboratories Ltd., A. R. Life Sciences, Ingenza Ltd., Chiracon GmbH, Dyadic International Inc., Elam Pharma Pvt Ltd., Yin-sheng Bio-tech Co. Ltd., Green Vision Life Sciences, Sibylla Biotech s.r.l., Pfizer CentreOne.

North America was the largest region in the pharmaceutical intermediates market in 2023. The regions covered in the pharmaceutical intermediates market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the pharmaceutical intermediates market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The main types of pharmaceutical intermediates products include chemical intermediates, bulk drug intermediates, and other products. Chemical intermediates are compounds or substances produced during the manufacturing process of chemicals and find applications in various industries, including pharmaceuticals, agrochemicals, polymers, and specialty chemicals. Categories of pharmaceutical intermediates include branded drug intermediates and generic drug intermediates. The applications of pharmaceutical intermediates cover various drugs such as analgesics, anti-infective drugs, cardiovascular drugs, oral antidiabetic drugs, antimicrobial drugs, and others. The end-users of pharmaceutical intermediates include biotech and pharma companies, research institutions, and others.

The pharmaceutical intermediates market research report is one of a series of new reports that provides pharmaceutical intermediates market statistics, including pharmaceutical intermediates industry global market size, regional shares, competitors with a pharmaceutical intermediates market share, detailed pharmaceutical intermediates market segments, market trends, and opportunities, and any further data you may need to thrive in the pharmaceutical intermediates industry. This pharmaceutical intermediate market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The pharmaceutical intermediates market consists of sales of intermediates for API synthesis, API precursors, fine chemicals, and specialty chemicals. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.