Pharmaceutical Chemicals Global Market Report 2024

The global pharmaceutical chemicals market has grown strongly in recent years. It will grow from $129.54 billion in 2023 to $138.71 billion in 2024 at a compound annual growth rate (CAGR) of 7.1%. The growth in the historic period can be attributed to advancements in drug discovery, aging population, regulatory changes, increasing chronic diseases.

The global pharmaceutical chemicals market is expected to see strong growth in the next few years. It will grow to $182.44 billion in 2028 at a compound annual growth rate (CAGR) of 7.1%. The growth in the forecast period can be attributed to personalized medicine, biopharmaceuticals and biosimilars, emerging markets, digital health and telemedicine. Major trends in the forecast period include precision drug manufacturing, gene and cell therapies, drug repurposing, vaccine development and production.

The burgeoning prevalence of neurological disorders is poised to act as a significant driver for the expansion of the pharmaceutical chemicals market. Neurological disorders encompass conditions that impact the central and peripheral nervous systems, spanning the brain, spinal cord, and the intricate network of nerves throughout the human body. Pharmaceutical chemicals play a pivotal role in the formulation and development of drugs intended for the treatment of pain and movement disorders associated with neurological conditions. A compelling illustration is found in the Alzheimer's Disease Facts and Figures report for 2023, issued by the Alzheimer's Association, a US-based organization dedicated to providing support and care for Alzheimer's patients. The report underscores the stark reality of neurological disorders, with nearly 6 million Americans grappling with Alzheimer's in 2023. This figure is anticipated to soar to nearly 13 million by 2030. The economic impact is profound, with Alzheimer's and other dementias estimated to cost the nation $345 billion in 2023, a figure that is projected to escalate to a staggering $1 trillion by 2050. Consequently, the escalating prevalence of neurological disorders serves as a pivotal growth driver for the pharmaceutical chemicals market.

The expansion of the pharmaceutical industry is set to underpin the growth trajectory of the pharmaceutical chemicals market in the forthcoming years. The pharmaceutical industry encompasses the intricate processes of research, development, and manufacturing of pharmaceuticals and medicinal remedies. Pharmaceutical chemicals wield versatile utility, finding application as solvents, reagents, catalysts, active ingredients, excipients, and more. These indispensable substances play a pivotal role in the production of various pharmaceutical products, spanning medications, topical formulations, vaccines, dietary supplements, and even neonatal milk compositions. A vivid demonstration of this expansion is evident in data from June 2023, emanating from the European Federation of Pharmaceutical Industries and Associations, a Brussels-based trade organization that represents the European pharmaceutical sector. The global pharmaceutical (prescription) market witnessed significant growth, achieving a valuation of $1,256,863 million in 2021, as compared to $1,077,856 million in 2020, when measured at ex-factory prices. Evidently, the robust expansion of the pharmaceutical industry emerges as a pivotal driving force propelling the pharmaceutical chemicals market.

The pharmaceutical chemicals market faces a significant hurdle due to the heightened cost associated with the production of building blocks for APIs (Active Pharmaceutical Ingredients). This cost escalation poses a substantial constraint to the growth of the pharmaceutical chemicals market during the projected period. The amplified costs can potentially undermine the capacity of companies to manufacture drugs at a competitive price, thereby influencing consumers. Multiple factors contribute to the heightened cost of producing building blocks for APIs and advanced intermediates, encompassing research and development expenditures, rigorous regulatory mandates, uncertainties in the supply chain, adherence to stringent environmental standards, dependence on imported resources, and, in certain instances, unlawful price collusion. For instance, a report published by PharmaOffer in January 2023 revealed a noteworthy insight; APIs wield substantial influence over the pricing of medications, contributing to approximately 52% of the overall cost structure. This underscores the pivotal role that the expense entailed in manufacturing API building blocks and advanced intermediates plays as a fundamental cost driver for pharmaceutical enterprises. Consequently, the elevated cost associated with the production of building blocks for APIs stands as a formidable deterrent to the flourishing of the pharmaceutical chemicals market.

Leading entities in the pharmaceutical chemical sector are actively embracing innovative technologies to bolster their foothold in the market. Notably, they are turning to revolutionary approaches, such as Software-as-a-Service (SaaS) quantum chemistry platforms, which are gaining prominence within the pharmaceutical industry. SaaS quantum chemistry platforms are cloud-based solutions that offer subscription-based access to advanced quantum chemistry software and resources. A case in point is the introduction of the Promethium software-as-a-service (SaaS) quantum chemistry platform by QC Ware Corp, a US-based provider of quantum computing software, in April 2023. This platform is meticulously tailored to expedite the processes associated with pharmaceutical, chemical, and materials discovery, equipped with a sophisticated quantum chemistry toolset harnessed via H100 or A100 Tensor Core. What sets the Promethium toolbox apart is its remarkable ability to perform calculations for a diverse array of chemical systems comprising up to approximately 100 atoms. These complex computations are executed within seconds, contrasting sharply with the conventional algorithms that typically necessitate minutes or hours to deliver results. The adoption of these cutting-edge SaaS quantum chemistry platforms underscores the industry's commitment to innovation, efficiency, and scientific advancement.

The strategic acquisition of W.R. Grace by Standard Industries Holdings Inc., a US-based industrial conglomerate, bears testimony to the industry's forward-looking approach in fortifying its sustainable technology portfolio. In September 2021, Standard Industries Holdings finalized this acquisition at a valuation of $7.0 billion. By integrating W.R. Grace, renowned for its expertise in manufacturing specialty chemicals and specialty materials catering to the pharmaceutical sector, Standard Industries Holdings is poised to bolster its endeavors in sustainable modern industrialism and innovative technology. This move reflects the industry's commitment to expanding its technological capabilities and enhancing its position in the pharmaceutical chemical domain.

Major players in the pharmaceutical chemicals market are BASF SE, The Dow Chemical Company, Abbott Laboratories, Johnson Matthey PLC, Evonik Industries AG, Eastman Chemical Company, Koninklijke DSM N.V, Lanxess AG, Albemarle Corporation, Lonza Group AG, Clariant AG, W. R. Grace and Co, Jubilant Life Sciences Ltd., Sumitomo Seika Chemicals Co Ltd., Borregaard ASA, WeylChem International GmbH, Vertellus Holdings LLC, CABB Group GmbH, Dishman Carbogen Amcis Ltd., Hikal Ltd., Porton Fine Chemicals Ltd., Denisco Chemicals Pvt Ltd., CHEMADA Industries Ltd., Valaji Pharma Chem, Syntor Fine Chemicals Ltd., Kenko Corporation.

North America was the largest region in the pharmaceutical chemicals market in 2023. Asia Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in pharmaceutical chemicals report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the pharmaceutical chemicals market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary categories of pharmaceutical chemical products include solvents, reagents or catalysts, key starting materials (KSMs) or intermediates, and building blocks for active pharmaceutical ingredients (APIs) or advanced intermediates. Solvents are chemicals capable of dissolving one or more other compounds to form a solution. Pharmaceutical chemicals are used in various drug types, including proprietary and non-proprietary medications, which are employed in the treatment of a wide range of medical conditions. These conditions may encompass cardiovascular diseases, neurological disorders, oncological conditions, respiratory ailments, gastrointestinal issues, musculoskeletal disorders, and more. Pharmaceutical chemicals are fundamental in the pharmaceutical industry for the development and production of therapeutic agents.

This report provides pharmaceutical chemicals market statistics, including pharmaceutical chemicals industry global market size, regional shares, competitors with a pharmaceutical chemicals market share, detailed pharmaceutical chemicals market segments, market trends and opportunities and any further data you may need to thrive in the pharmaceutical chemicals industry. This pharmaceutical chemical 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 chemicals market consists of sales of acetone, hydrochloric acid and acetic anhydride. 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.


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