Pharmaceutical API Manufacturing Market Report 2025

The pharmaceutical api manufacturing market size has grown strongly in recent years. It will grow from $219.76 billion in 2024 to $233.43 billion in 2025 at a compound annual growth rate (CAGR) of 6.2%. The growth in the historic period can be attributed to increase in pharmaceutical R&D expenditure, increasing preference for outsourcing APIs, growing prevalence of chronic illness, increased healthcare expenditure, a rise in disposable income, an increase in patent expiration and growing government policies for API production.

The pharmaceutical api manufacturing market size is expected to see strong growth in the next few years. It will grow to $295.46 billion in 2029 at a compound annual growth rate (CAGR) of 6.1%. The growth in the forecast period can be attributed to a rise in ageing population, rapid technological advancements, rising prevalence of cancer, increasing mergers and acquisitions and high potential of emerging economies will drive the growth. Major trends in the forecast period include focus on production facility expansion, use of artificial intelligence (ai), focus on greener API manufacturing, increasing investments and focus on use of QR code labelling.

The increase in the aging population is a significant driver of the pharmaceutical API manufacturing market. With the rise in the aging population, there is a corresponding increase in the demand for pharmaceutical drugs. APIs play a crucial role in these medicines, serving as specialty drugs to address specific diseases. For example, an article shared by the World Health Organization (WHO) in October 2022 revealed that 80% of senior citizens are projected to reside in low- and middle-income nations by 2050. The aging population is growing at a faster rate than in the past, with more individuals over the age of 60 than under five-year-olds projected for 2020. Therefore, the growth of the aging population is a key factor driving the pharmaceutical API manufacturing market.

The surge in chronic conditions is anticipated to drive the pharmaceutical API manufacturing market in the future. Chronic conditions, or chronic diseases, are long-term health conditions that persist for extended periods, often throughout a person's lifetime, and typically cannot be completely cured. The quality, effectiveness, and safety of medications depend significantly on the API used. pharmaceutical API manufacturing plays a crucial role in producing essential medications for managing chronic diseases. For instance, according to the National Library of Medicine in 2023, it is projected that nearly 36% of US adults aged 50 and older will have at least one chronic condition by 2035, with this number expected to rise to almost 48% by 2050. Therefore, the increase in chronic conditions is a driving force for the pharmaceutical API manufacturing market.

Major companies in the pharmaceutical API manufacturing market are concentrating on creating innovative solutions, such as API manufacturing plants, to boost production efficiency, ensure regulatory compliance, and enhance product quality. An API (Active Pharmaceutical Ingredient) manufacturing plant is a specialized facility dedicated to producing active pharmaceutical ingredients, which are the biologically active components used in medication formulations. For example, in November 2023, Cadila Pharma, a pharmaceutical company based in India, opened a new Active Pharmaceutical Ingredients (API) manufacturing plant. This cutting-edge facility incorporates advanced Distributed Control System (DCS) automation technology to improve production efficiency and ensure high purity in the APIs. This expansion demonstrates Cadila's commitment to meeting the increasing global demand for quality pharmaceuticals while also creating job opportunities in the region and aligning with its broader strategy to innovate across various therapeutic areas.

Key companies in the pharmaceutical API manufacturing market are dedicated to developing innovative solutions such as Apisolex to streamline manufacturing processes and minimize API loss. Apisolex, launched by Lubrizol Life Science (LLS) Health in March 2022, is a novel solubility-enhancing excipient technology addressing solubility challenges. It can significantly enhance solubility, support high drug loading, and optimize manufacturing efficiency by reducing API loss and ensuring efficient encapsulation.

In August 2023, Sigachi Industries Ltd., a pharmaceutical company based in India, acquired Trimax Biosciences for $12 million. This acquisition allows Sigachi to strategically broaden its operations into the Active Pharmaceutical Ingredients (API) sector, enhancing its ability to develop and supply a wide variety of APIs to meet the increasing demand in the pharmaceutical market while strengthening its competitive position in the healthcare industry. Trimax Biosciences, also based in India, specializes in the manufacturing of active pharmaceutical ingredients (APIs).

Major companies operating in the pharmaceutical api manufacturing market include Pfizer Inc, Sanofi S.A, Teva Pharmaceutical Industries Ltd., Aurobindo Pharma, Dr. Reddy’s Laboratories, BASF SE, Sun Pharmaceutical Industries Ltd, Novartis AG, Lupin Ltd, Cipla Inc., Arlak Biotech, Healthkind Labs Pvt. Ltd, SwisscheM Healthcare Pvt. Ltd, Apikos Pharma, Kolaz Biotech, CStone Pharma, CARsgen Therapeutics, JW Therapeutics, BeiGene, Takeda Pharmaceuticals, Astellas Pharma Inc, Otsuka Pharmaceutical Co, Ltd, Legend Biotech Co, Zai Lab, Daiichi Pharmaceutical, Sankyo, GlaxoSmithKline (GSK), AstraZeneca, Abbott Laboratories, Vectura Group, Roche Holding AG, Merck & Co, Boehringer Ingelheim, Zentiva, Microgen, Geropharm, Valenta, NovaMedica, Veropharm, Celon Pharma, SynBio, Generium, Skopinpharm, ALMEDIS, Biocad, Farmacol, Polska Grupa Farmaceutyczna, Polpharma, BioVectra, Celgene Corporation, Kashiv Pharma, Cambrex, Eli Lilly and Company, Bristol-Myers Squibb Company, Apotex, Gilead Sciences, AbbVie Inc, Hisun USA Inc, AMEGA Biotech, BioMarin Pharmaceutical, Ferring Pharmaceuticals, Tikun Olam Cannbit, Wavelength Pharmaceuticals, SAUDIBIO, Tabuk Pharmaceuticals, Bayer, Adcock Ingram, Johnson & Johnson, Eurolab, Aspen.

North America was the largest region in the pharmaceutical API manufacturing market in 2024. The Middle East is expected to be the fastest-growing region in the global pharmaceutical API manufacturing market share during the forecast period. The regions covered in the pharmaceutical API manufacturing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the pharmaceutical API manufacturing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The manufacturing of pharmaceutical active pharmaceutical ingredients (API) involves producing the active substances that impart the desired impact on the body for the treatment of a specific condition in pharmaceutical medicines. To create APIs, chemical components undergo processing. The active component of a biological drug is termed a bulk process intermediate.

pharmaceutical API manufacturing focuses on various therapy areas, including cardiovascular disorders, metabolic disorders, neurological disorders, oncology, musculoskeletal disorders, NSAIDs, and other therapeutic uses. Cardiovascular diseases encompass a range of disorders affecting the heart and blood vessels. Chemical API and biological API are the primary types used in the production of innovative drugs, generic prescription drugs, and over-the-counter (OTC) drugs.

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

The pharmaceutical active pharmaceutical ingredients (API) manufacturing market includes tablets, capsules, creams, and injectable sales. 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.

This product will be delivered within 3-5 business days.