Active Pharmaceutical Ingredients Market

Market Overview:

The global active pharmaceutical ingredients (API) market size reached US$ 222.9 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 303.9 Billion by 2028, exhibiting a growth rate (CAGR) of 5.6% during 2023-2028.

Active pharmaceutical ingredient (API), is the term that is used to refer to the biologically active component of a drug (e.g. tablet, capsule). A drug is usually composed of several components. The API represents the primary ingredient. Other ingredients are commonly known as "excipients. Sometimes a drug can contain several APIs and its effect on a patient depends on the dosage prescribed and can vary from person to person. In combination therapies, two or more than two active ingredients are used to treat different symptoms in different ways. Stringent quality control is a mandate when it comes to the manufacturing of drugs as the API represents the main component considered while making the prescription.

Pharmaceutical manufacturing occurs in two general steps. In the first step, manufacturers convert raw materials into APIs. The second step involves creating the final formulation by mixing APIs and excipients into tablets, capsules, solutions, etc. and finally packaging the drug for the end users. Manufacturers either sell APIs in the open market (also known as the merchant market) or use them as inputs to make their final formulations. The global API market is extremely competitive with a number of large and small manufacturers. Firms that engage in API manufacturing generally specialize and target their manufacturing based on a combination of the firms in-house skills and market opportunities. Catalyzed by lower costs, API manufacturing has gradually been shifting from the historical leaders in Western countries to manufacturers based in India and China.

The global demand of APIs is currently exhibiting strong growth. One of the major drivers of this market is the rising number of blockbuster patent expiries creating a significant opportunity for generic APIs. Moreover, there has been a strong demand for APIs for biologicals. The global market for biologicals is currently exhibiting strong growth catalyzed by their high potency and ability to treat diseases beyond the scope of small molecule drugs. This is creating a strong demand for APIs for branded biological drugs and their biosimilar versions. Other factors catalyzing the global demand of APIs include ageing population, rising expenditures on healthcare, increasing prevalence of lifestyle diseases, etc.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the global active pharmaceutical ingredients (API) market report, along with forecasts at the global, regional and country level from 2023-2028. Our report has categorized the market based on drug type, type of manufacturer, type of synthesis and therapeutic application.

Breakup by Drug Type:

• Innovative Active Pharmaceutical Ingredients (API)
• Generic Active Pharmaceutical Ingredients (API)
   

Based on the drug type, the market has been segmented as innovative active pharmaceutical ingredients and generic active pharmaceutical ingredients.

Breakup by Type of Manufacturer:

• Captive Manufacturers 
• Merchant API Manufacturers 
  • Innovative Merchant API Manufacturers
  • Generic Merchant API Manufacturers
     

Based on the type of manufacturer, the market has been segmented as captive manufacturers and merchant API manufacturers.

Breakup by Type of Synthesis:

• Synthetic Active Pharmaceutical Ingredients (API)
  • Market Breakup by Type
    • Innovative Synthetic APIs
    • Generic Synthetic APIs
• Biotech Active Pharmaceutical Ingredients (API)
  • Market Breakup by Type
    • Innovative Biotech APIs
    • Biosimilars
  • Market Breakup By Product 
    • Monoclonal Antibodies 
    • Vaccines 
    • Cytokines 
    • Fusion Proteins 
    • Therapeutic Enzymes 
    • Blood Factors
  • Market Breakup By Expression System 
    • Mammalian Expression Systems 
    • Microbial Expression Systems
    • Yeast Expression Systems 
    • Transgenic Animal Systems
    • Others
       

Based on the type of synthesis, the market has been segmented as synthetic active pharmaceutical ingredients and biotech active pharmaceutical ingredients.

Breakup by Therapeutic Application:

• Oncology
• Cardiovascular and Respiratory
• Diabetes 
• Central Nervous System Disorders
• Neurological Disorders
• Others
   

Based on the therapeutic application, the market has been segmented as oncology, cardiovascular & respiratory, diabetes, central nervous system disorders, neurological disorders and others.

Breakup by Region:

• North America 
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
• Middle East and Africa
   

Region-wise, the market has been segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Competitive Landscape:

The competitive landscape of the market has also been examined with some of the (active pharmaceutical ingredients companies) key players being Pfizer, Inc., Novartis International AG, Sanofi, Boehringer Ingelheim, Bristol-Myers Squibb, Teva Pharmaceutical Industries Ltd., ELI Lilly and Company, GlaxoSmithKline, Merck & Co., Inc. and Abbvie Inc.

Report Coverage: