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Active Pharmaceutical Ingredients (API) - Global Market Trajectory & Analytics

  • ID: 4804526
  • Report
  • February 2022
  • Region: Global
  • 664 Pages
  • Global Industry Analysts, Inc

Global Active Pharmaceutical Ingredients (API) Market to Reach US$265.3 Billion by the Year 2026


APIs represent biologically-active substances and primary components for drug manufacturing. The production of APIs globally is mainly concentrated to developing nations due to their capability to scale production as per customization and low-cost manufacturing. The API market is slated to gain from increasing focus on generic and branded drugs as a result of rising prevalence of non-communicable and chronic medical conditions due to lifestyle changes and rapid urbanization. The market growth is anticipated to be augmented further from the transition away from conventional manufacturing techniques, rising investment in drug discovery, and strong adherence to product quality. The market is also benefitting from increasing influx of generic drugs that are produced following permission of a pharmaceutical company for creating the own version of the medicine. The COVID-19 pandemic and the resulting disruptions in supply chain are driving various governments to boycott sourcing of APIs from China. Despite these challenges, the API market is bound to progress ahead swiftly due to positive factors like pending approval of various generic and blockbuster drugs that rely on APIs.

Amid the COVID-19 crisis, the global market for Active Pharmaceutical Ingredients (API) estimated at US$177.5 Billion in the year 2020, is projected 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 projected to grow at a 6.4% CAGR to reach US$190.9 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Generic segment is readjusted to a revised 7.4% CAGR 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, resulting in an augmented API market demand.



The U.S. Market is Estimated at $71.5 Billion in 2021, While China is Forecast to Reach $35.4 Billion by 2026


The Active Pharmaceutical Ingredients (API) market in the U.S. is estimated at US$71.5 Billion in the year 2021. The country currently accounts for a 36.3% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$35.4 Billion in the year 2026 trailing a CAGR of 7.6% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 6.1% and 6.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 6.1% CAGR while Rest of European market (as defined in the study) will reach US$37.5 Billion by the end of the analysis period. China is a leading producer and exporter of APIs, accounting for about 20% of global API production. The country`s strong presence in API production could be attributed to factors such as low cost of utilities and strong government support. COVID-19 has highlighted various vulnerabilities associated with sourcing of APIs from other regions or countries, such as fractured supply chain and limited scope for immediate response to changes. These challenges are now prompting a number of European nations and the US to focus on relocation of pharmaceutical and API production back to home country.

Select Competitors (Total 266 Featured) -

  • AbbVie Inc.
  • Aurobindo Pharma Ltd.
  • BASF SE
  • Boehringer Ingelheim International GmbH
  • Cipla Ltd.
  • Dr. Reddy’s Laboratories Ltd.
  • Lupin Ltd.
  • Merck KGaA
  • Novartis International AG
  • Pfizer Inc.
  • Sun Pharmaceutical Industries Ltd.
  • Teva Pharmaceutical Industries Ltd.
  • Viatris Inc.
Frequently Asked Questions about the Global Market for Active Pharmaceutical Ingredients (API)

What is the estimated value of the Global Market for Active Pharmaceutical Ingredients (API)?

The Global Market for Active Pharmaceutical Ingredients (API) was estimated to be valued at $177.5 Billion in 2020.

What is the growth rate of the Global Market for Active Pharmaceutical Ingredients (API)?

The growth rate of the Global Market for Active Pharmaceutical Ingredients (API) is 6.9%, with an estimated value of $265.3 Billion by 2026.

What is the forecasted size of the Global Market for Active Pharmaceutical Ingredients (API)?

The Global Market for Active Pharmaceutical Ingredients (API) is estimated to be worth $265.3 Billion by 2026.

Who are the key companies in the Global Market for Active Pharmaceutical Ingredients (API)?

Key companies in the Global Market for Active Pharmaceutical Ingredients (API) include AbbVie Inc., Aurobindo Pharma Ltd., BASF SE, Boehringer Ingelheim International GmbH, Cipla Ltd., Dr. Reddy’s Laboratories Ltd., Lupin Ltd., Merck KGaA and Pfizer Inc..

Table of Contents

I. METHODOLOGY


II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW

  • Influencer Market Insights
  • World Market Trajectories
  • Impact of Covid-19 and a Looming Global Recession
  • 2020: A Year of Disruption & Transformation
  • As the Race between the Virus & Vaccines Intensifies, Where is the World Economy Headed in 2021
  • World Economic Growth Projections (Real GDP, Annual % Change) for 2020 through 2022
  • COVID-19 Alters Pharmaceutical Industry and API Production Dynamics
  • COVID-19 Exposes US Pharmaceutical Makers to Risk of Supply Shortages, Driving the Need to Revamp Domestic Industry Structure
  • Pandemic Leads US to Focus on Stockpiling & Localized Manufacturing to Rectify Supply Chain Flaws
  • Percentage Breakdown of API Manufacturing Facilities by Country for Drug Production in the US: 2020
  • Revamping Local Production Capacity
  • Knock-on Effect of COVID-19 on API Availability Incites Players to Reconfigure Supply Chain
  • COVID-19 Pandemic: A Wake-Up Call for API Seekers to Mitigate Supply Risks
  • Short-Term Strategies
  • Long-Term Strategies
  • Unprecedented Global Push to Expedite COVID-19 Vaccine Development to Spur Demand for APIs
  • Global Percentage of Individuals Vaccinated by Geographic Region for 2021 through 2025
  • Number of CMO Sites for Vaccine Production in Select Countries: 2020
  • Active Pharmaceutical Ingredients (API) - Global Key Competitors Percentage Market Share in 2022 (E)
  • Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2022 (E)
  • Active Pharmaceutical Ingredients: A Prelude
  • Outlook
  • Regional Landscape
  • US CDMOs to Gain from Mounting Concerns Over Excess Reliance On Chinese APIs
  • China Continues to Remain a Major Hub
  • COVID-19 Brings Europe’s High Reliance on APIs Sourced from Outside under Spotlight
  • India Strives to Increase API Production to Attain Self Reliance in Pharmaceutical Production
  • Domestic Production and Import Share of Select API/Advanced Intermediates in India: 2019
  • Global PE Firms to Invest Heavily in Indian Intermediate Pharma Companies
  • Recent Market Activity
  • world Brands

2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS

  • Sustained Increase in Drug R&D Spending to Drive API Market
  • Pharmaceutical R&D Spending Worldwide (USD Billion): 2015-2025
  • Increased API Sourcing Creates the need for More Scrutiny of Suppliers for Best Quality Products
  • Preference for Specialized CDMO Contractors on the Rise
  • Strong Rise in Pharmaceutical Sales to Drive Demand
  • Global Prescription Drug Sales (In US$ Billion) for the Years 2017, 2019, 2021, 2023 & 2025
  • The AIC Approach for Faster Assessment of Viable Drug Candidates
  • Drug Makers Embrace Digital Technology Amidst COVID-19 Crisis
  • Digital Transformation Spending in US$ Billion in Pharma Sector: 2020 and 2027
  • AI Finds Growing Application in Drug Discovery and Development
  • Microdosing Beneficial for the Formulation of High Potency Ingredients
  • Growing Penetration of Generic Drugs Augments Market Prospects
  • Leading Drugs Facing Patent Expiry in the US in 2020
  • Global Generic Drugs Market Size (in $ Billion) for the Years 2016, 2019, 2020 & 2025
  • Increasing Interest in Biopharmaceuticals Supports Market Demand
  • Global Biologic Drugs Market Size (in US$ Billion) for the Years 2019, 2022 & 2025
  • Rising Number of Biologics Approvals Augurs Well
  • The U.S FDA Biologic NME Approvals for Years 2016 through 2020
  • Sponsor Market Cap for the FDA-Approved Biologic FDA NMEs (2020)
  • Growing Biosimilars Market Create Opportunities for APIs
  • Global Biosimilars Market in US$ Billion: 2020 & 2025
  • Growing Attention Towards Personalized Medicine Spurs Demand for Complex API
  • Global Personalized Medicine Market: Revenues in US$ Million for the Years 2019, 2021, 2023 and 2025
  • Increasing Sales of OTC Drugs Presents an Opportunity for APIs
  • Global OTC Drugs Market Breakdown by Product (in %): 2020E
  • Growing Prevalence of Infectious Diseases to Spur Growth
  • Infectious Diseases Remain Major Cause of Death in Under Developed Regions: Breakdown of Leading Causes of Death in Sub-Saharan Africa (in %)
  • Global Number of Deaths Caused Due to Communicable Diseases (In 000s)
  • Rising Incidence of Cancer & Need to Reduce Cancer-Related Mortality Spell Increased Demand
  • Global Cancer Incidence: Number of New Cancer Cases in Million for the Years 2018, 2020, 2025, 2030, 2035 and 2040
  • Global Breakdown of Total Number of Cancer Cases by Type: 2020
  • Increasing Prevalence of Chronic Disorders Fuels Market Growth
  • World Diabetes and Population Statistics (2019, 2030 & 2045)
  • Rising Incidence of Cardiovascular Diseases Revs Up Opportunities
  • Hypertension Prevalence (%) Worldwide by Region in Male and Females Aged 25+ Years
  • Fatalities by Heart Conditions: Estimated Percentage Breakdown for Cardiovascular Disease, Ischemic Heart Disease, Stroke, and Others
  • Upsurge in ANDA Approvals Bodes Well
  • Aging Population & Increasing Burden of Chronic Diseases Spurs Pharma Product Sales, Driving Market Growth
  • Global Aging Population Statistics for the 65+ Age Group in Million by Geographic Region for the Years 2019, 2025, 2035 and 2050

4. GLOBAL MARKET PERSPECTIVE


III. MARKET ANALYSIS

UNITED STATES

  • Active Pharmaceutical Ingredients (API) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United States for 2022 (E)

CANADA

JAPAN

  • Active Pharmaceutical Ingredients (API) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Japan for 2022 (E)

CHINA

  • Active Pharmaceutical Ingredients (API) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in China for 2022 (E)

EUROPE

  • Active Pharmaceutical Ingredients (API) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Europe for 2022 (E)

FRANCE

  • Active Pharmaceutical Ingredients (API) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in France for 2022 (E)

GERMANY

  • Active Pharmaceutical Ingredients (API) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Germany for 2022 (E)

ITALY

UNITED KINGDOM

  • Active Pharmaceutical Ingredients (API) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United Kingdom for 2022 (E)

REST OF EUROPE

ASIA-PACIFIC

  • Active Pharmaceutical Ingredients (API) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Asia-Pacific for 2022 (E)

REST OF WORLD

IV. COMPETITION

  • Total Companies Profiled: 266

Companies Mentioned

A selection of companies mentioned in this report includes:

  • AbbVie Inc.
  • Aurobindo Pharma Ltd.
  • BASF SE
  • Boehringer Ingelheim International GmbH
  • Cipla Ltd.
  • Dr. Reddy’s Laboratories Ltd.
  • Lupin Ltd.
  • Merck KGaA
  • Novartis International AG
  • Pfizer Inc.
  • Sun Pharmaceutical Industries Ltd.
  • Teva Pharmaceutical Industries Ltd.
  • Viatris Inc.