Small Molecule Active Pharmaceutical Ingredient Global Market Report 2024

The small molecule active pharmaceutical ingredient market size has grown strongly in recent years. It will grow from $181.54 billion in 2023 to $196.44 billion in 2024 at a compound annual growth rate (CAGR) of 8.2%. The expansion during the historical period can be attributed to regulatory approvals, patent expirations, disease prevalence, pricing pressures, and the outcomes of clinical trials.

The small molecule active pharmaceutical ingredient market size is expected to see strong growth in the next few years. It will grow to $265.6 billion in 2028 at a compound annual growth rate (CAGR) of 7.8%. The anticipated growth in the forecast period can be attributed to precision medicine, specialty therapeutics, sustainability initiatives, the adoption of telehealth, and the integration of artificial intelligence (AI). Key trends expected in the forecast period involve outsourcing trends, the development of targeted therapies, digitalization in the pharmaceutical industry, the implementation of virtual clinical trials, and the utilization of advanced analytics.

The small molecule active pharmaceutical ingredient (API) market is poised for growth driven by the increasing prevalence of diseases. Diseases, abnormal conditions affecting the body, are on the rise globally. Active pharmaceutical ingredients (APIs) are crucial components in pharmaceutical drugs that treat various conditions. Cancer Research UK reported around 18 million new cancer cases in 2020, with an estimated 28 million new cases per year by 2040. The increasing prevalence of diseases, including cancer and cardiovascular conditions, will continue to be a key driver for the small molecule API market.

The small molecule API market is poised for growth due to the increasing adoption of personalized medicine. Personalized medicine, considering individual differences in genes, environments, and lifestyles, relies on small molecules in pharmaceutical formulations to develop tailored treatments. In 2022, the Food and Drug Administration’s Center for Drug Evaluation and Research approved 37 new molecular entities (NMEs), with approximately 34% classified as personalized medicines by the Personalized Medicine Coalition. This increased adoption of personalized medicine drives the growth of the small molecule API market.

Strategic partnerships and collaborations are a key trend in the small molecule active pharmaceutical ingredient market, with major players reinforcing their positions through such alliances. In May 2022, NovAliX, Alysophil, De Dietrich Process Systems, and Bruker collaborated to jointly develop a new approach to active pharmaceutical ingredient (API) production. The partnership aims to offer complete, standalone, and location-independent API manufacturing solutions to pharmaceutical companies and contract manufacturing organizations (CMOs).

The key players in the small molecule API market are leveraging new technologies, such as microparticle technologies, to gain a competitive edge. Evonik Industries AG, a Germany-based specialty chemical company, introduced EUDRATEC SoluFlow in March 2022. This technology significantly enhances the solubility of active pharmaceutical ingredients in oral drug products, addressing challenges related to drug solubility. EUDRATEC SoluFlow transforms poorly soluble drugs into free-flowing powders of amorphous solid dispersions, simplifying manufacturing processes and improving pharmacokinetic performance.

In March 2021, Piramal Pharma, an India-based pharmaceutical company, completed the acquisition of Hemmo Pharmaceuticals for a deal amount of $7.75 billion (775 crores). This strategic move allows Piramal Pharma to access the growing peptide active pharmaceutical ingredients (API) market. Hemmo Pharmaceuticals, an India-based manufacturer specializing in peptide products and custom peptide synthesis, is now part of Piramal Pharma.

Major companies operating in the small molecule active pharmaceutical ingredient market report are Pfizer Inc., BASF SE, Roche Holding AG, F. Hoffmann-La Roche Limited, AbbVie Inc., Allergan PLC, Bayer AG, Novartis AG, Sanofi SA, Bristol Myers Squibb Company, AstraZeneca PLC, Glaxo Smith Kline PLC, China Resources Pharmaceutical Group Limited, Takeda Pharmaceutical Company Limited, Eli Lilly and Company, Gilead Sciences Inc., Boehringer Ingelheim International GmbH, Merck KGaA, Viatris Inc., Teva Pharmaceutical Industries Limited, Johnson Matthey PLC, Astellas Pharma Inc., Albemarle Corporation, Sun Pharmaceutical Industries Limited, Aurobindo Pharma Limited, Dr Reddy’s Laboratories Limited, Siegfried Holding AG, Albany Molecular Research Inc., Cipla Inc., Cambrex Corporation, Daiichi Sankyo Company Ltd., Eisai Co. Ltd., Otsuka Holdings Co. Ltd.

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

The primary types of small molecule active pharmaceutical ingredient markets are synthetic, chemical, and biological. Synthetics engage in the manufacturing of pharmaceutical drugs, with synthetic chemical APIs, also known as small molecules, constituting a significant portion of the pharmaceutical market. Various therapeutic types, including autoimmune diseases, oncology, metabolic diseases, ophthalmology, cardiovascular diseases, infectious diseases, neurology, respiratory disorders, dermatology, and urology, are addressed. Manufacturing methods involve in-house and contract methods, with applications spanning clinical and commercial domains.

The small molecule active pharmaceutical ingredient market research report is one of a series of new reports that provides small molecule active pharmaceutical ingredient market statistics, including small molecule active pharmaceutical ingredient industry global market size, regional shares, competitors with a small molecule active pharmaceutical ingredient market share, detailed small molecule active pharmaceutical ingredient market segments, market trends and opportunities, and any further data you may need to thrive in the small molecule active pharmaceutical ingredient industry. This small molecule active pharmaceutical ingredient 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 small molecule active pharmaceutical ingredient market consists of sales of standard API, HPAPI (high potency active pharmaceutical ingredients), branded synthetic API, generic synthetic API, and semi-synthetic API. 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.