The global Active Pharmaceutical Ingredient (API) market gathered revenue around USD 187.9 Billion in 2020 and market is set to grow USD 249.7 Billion by the end of 2027 and is estimated to expand at a modest CAGR of 6.1% during the prediction period 2021 to 2027.
Growth Factors:
The market is driven by the growth of the biopharmaceutical sector, advancements in active pharmaceutical ingredient (API) manufacturing, and an increase in the geriatric population.
The growth of the captive API segment is propelled by companies investing in solving challenges and developing new chemical ways for the production of APIs in house. This aids in reducing costs and the risk of contamination. Artificial intelligence and protein synthesis are expected to facilitate faster development with greater control over the process.
The rising prevalence of chronic and lifestyle-based conditions, such as cardiovascular diseases, is accelerating the demand for API. For instance, as per U.S. Pharmacist in 2020, 47% of adults have at least one risk factor that supports cardiovascular disease development. Cardiovascular diseases are one of the global, critical public health burdens driving extensive R&D for APIs in the field.
The generic API segment is gaining share in the market owing to its cost effectiveness, which helps in catering to the needs of the rising number of patients in developing regions with a low-income population. According to the Association for Accessible Medicines (AAM), in 2017, there was a considerable rise in manufacturing units in Asia, Australia, and EU5. There has also been an increase in the market share of generic drugs.
Developing nations like India are receiving an increased preference in the market over dominant API market countries, like China, owing to geopolitical situations. Furthermore, other factors favoring India include quality raw materials and products, large workforce, vast distribution network, and government subsidies under schemes like "Make in India".
For addressing unmet medical needs, companies are collaborating to develop novel treatments. This allows firms to use their resources to aid in the development of products and enhance the supply chain. In August 2019, OmniChem Private Limited was acquired by Ajinomoto Bio-Pharma Services (earlier they were in a joint venture since 2011 for the manufacturing of APIs). The acquisition was completed in June 2020.
This research report purposes at stressing the most lucrative growth prospects. The aim of the research report is to provide an inclusive valuation of the Active Pharmaceutical Ingredient (API) market and it encompasses thoughtful visions, actualities, industry-validated market findings, historic data, and prognoses by means of appropriate set of assumptions and practice. Global Active Pharmaceutical Ingredient (API) market report aids in comprehending market structure and dynamics by recognizing and scrutinizing the market sectors and predicted the global market outlook.
Report Coverage
Report Scope | Details |
Market Size | USD 249.7 Billion by 2027 |
Growth Rate | CAGR of 6.1% From 2021 to 2027 |
Base Year | 2020 |
Forecast Period | 2021 to 2027 |
Historic Data | 2017 to 2020 |
Report coverage | Growth Factors, Revenue Status, Competitive Landscape, and Future Trends |
Segments Covered | Type, Type of manufacturer, Type of synthesis, Type of drug, application And Region |
Regional Scope | North America, Europe, Asia Pacific, Latin America, Middle East & Africa (MEA) |
Companies Mentioned | Pfizer Inc., Novartis International AG, Merck & Co., Teva Pharmaceutical Industries Ltd., Mylan N.V., Boehringer Ingelheim, F. Hoffmann-La Roche AG , Sanofi, AbbVie, Eli Lilly and Company, AstraZeneca, Bristol-Myers Squibb, and GlaxoSmithKline plc. |
COVID-19 Impact Assessment on Market Landscape
The report comprises the scrutiny of COVID-19 lock-down impact on the income of market leaders, disrupters and followers. Since lock down was instigated differently in diverse regions and nations, influence of same is also dissimilar across various industry verticals. The research report offers present short-term and long-term influence on the market to assist market participants across value chain makers to formulate the framework for short term and long-lasting tactics for recovery and by region.
Active Pharmaceutical Ingredient (API) market Report empowers readers with all-inclusive market intelligence and offers a granular outline of the market they are operational in. Further this research study delivers exceptional combination of tangible perceptions and qualitative scrutiny to aid companies accomplishes sustainable growth. This report employs industry-leading research practices and tools to assemble all-inclusive market studies, intermingled with pertinent data. Additionally, this report also emphases on the competitive examination of crucial players by analyzing their product portfolio, pricing, gross margins, financial position, growth approaches, and regional occurrence.
North America was the largest regional market for active pharmaceutical ingredients in 2020.
Geographically, the active pharmaceutical ingredients market is segmented into North America, Europe, Asia, and Rest of the World. In 2019, North America accounted for the largest share of the active pharmaceutical ingredients market, followed by Europe and the Asia Pacific. The large share of North America in the global market is attributed to the growing incidence of preventable chronic diseases, increasing government focus on generic drugs, rising demand for biologics and specialty drugs, and technological advancements in the manufacturing processes of APIs
Competitive Rivalry
Foremost players in the market are attentive on adopting corporation strategies to enhance their market share. Some of the prominent tactics undertaken by leading market participants in order to sustain the fierce market completion include collaborations, acquisitions, substantial spending in R&D and the improvement of new-fangled products or reforms among others.
Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.
Some of the prominent players in the Active Pharmaceutical Ingredient (API) Market include: Pfizer Inc., Novartis International AG, Merck & Co., Teva Pharmaceutical Industries Ltd., Mylan N.V., Boehringer Ingelheim, F. Hoffmann-La Roche AG , Sanofi, AbbVie, Eli Lilly and Company, AstraZeneca, Bristol-Myers Squibb, and GlaxoSmithKline plc.
Unravelling the Critical Segments
This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects including product type, application/end-user, and region. Further, this research study investigates market size, production, consumption and its development trends at global, regional, and country level for period 2017 to 2027 and covers subsequent region in its scope:
APIs Market, by Type
By Type of Manufacturer
By Type of Synthesis
By Type of Drug
By Therapeutic Application
By Geography
North America
Europe
Asia Pacific
Latin America
Middle East & Africa (MEA)
Highlights of the Report:
Research Methodology
In the study, a unique research methodology is utilized to conduct extensive research on the growth of the Active Pharmaceutical Ingredient (API) market, and reach conclusions on the future growth parameters of the market. This research methodology is a combination of primary and secondary research, which helps analysts ensure the accuracy and reliability of the conclusions.
Secondary resources referred to by analysts during the production of the Active Pharmaceutical Ingredient (API) market study are as follows - statistics from government organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have also interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, all of whom have contributed to the development of this report as a primary resource.
Comprehensive information acquired from primary and secondary resources acts as a validation from companies in the market, and makes the projections on the growth prospects of the Active Pharmaceutical Ingredient (API) markets more accurate and reliable.
Secondary Research
It involves company databases such as Hoover's: This assists us recognize financial information, structure of the market participants and industry competitive landscape.
The secondary research sources referred in the process are as follows:
Primary Research
Primary research includes face-to face interviews, online surveys, and telephonic interviews.
Industry participants involved in this research study include:
Key Points Covered in Active Pharmaceutical Ingredient (API) market Study:
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. Market Dynamics Analysis and Trends
5.1. Market Dynamics
5.1.1. Market Drivers
5.1.2. Market Restraints
5.1.3. Market Opportunities
5.2. Porter’s Five Forces Analysis
5.2.1. Bargaining power of suppliers
5.2.2. Bargaining power of buyers
5.2.3. Threat of substitute
5.2.4. Threat of new entrants
5.2.5. Degree of competition
Chapter 6. Competitive Landscape
6.1.1. Company Market Share/Positioning Analysis
6.1.2. Key Strategies Adopted by Players
6.1.3. Vendor Landscape
6.1.3.1. List of Suppliers
6.1.3.2. List of Buyers
Chapter 7. Global Active Pharmaceutical Ingredient (API) Market, By Type
7.1. Active Pharmaceutical Ingredient (API) Market, by Type, 2021-2027
7.1.1. Innovative APIs
7.1.1.1. Market Revenue and Forecast (2016-2027)
7.1.2. Innovative APIs
7.1.2.1. Market Revenue and Forecast (2016-2027)
Chapter 8. Global Active Pharmaceutical Ingredient (API) Market, By Type of Manufacturer
8.1. Active Pharmaceutical Ingredient (API) Market, by Type of Manufacturer, 2021-2027
8.1.1. Captive Manufacturers
8.1.1.1. Market Revenue and Forecast (2016-2027)
8.1.2. Merchant Manufacturers
8.1.2.1. Market Revenue and Forecast (2016-2027)
Chapter 9. Global Active Pharmaceutical Ingredient (API) Market, By Type of Synthesis
9.1. Active Pharmaceutical Ingredient (API) Market, by Type of Synthesis, 2021-2027
9.1.1. Synthetic APIs Market
9.1.1.1. Market Revenue and Forecast (2016-2027)
9.1.2. Biotech APIs Market
9.1.2.1. Market Revenue and Forecast (2016-2027)
Chapter 10.Global Active Pharmaceutical Ingredient (API) Market, By Type of Drug
10.1. Active Pharmaceutical Ingredient (API) Market, by Type of Drug, 2021-2027
10.1.1. Prescription Drugs
10.1.1.1. Market Revenue and Forecast (2016-2027)
10.1.2. Over-the-counter Drugs
10.1.2.1. Market Revenue and Forecast (2016-2027)
Chapter 11.Global Active Pharmaceutical Ingredient (API) Market, By Therapeutic Application
11.1. Active Pharmaceutical Ingredient (API) Market, by Therapeutic Application, 2021-2027
11.1.1. Communicable Diseases
11.1.1.1. Market Revenue and Forecast (2016-2027)
11.1.2. Oncology
11.1.2.1. Market Revenue and Forecast (2016-2027)
11.1.3. Diabetes
11.1.3.1. Market Revenue and Forecast (2016-2027)
11.1.4. Cardiovascular Disease
11.1.4.1. Market Revenue and Forecast (2016-2027)
11.1.5. Pain management
11.1.5.1. Market Revenue and Forecast (2016-2027)
11.1.6. Pain management
11.1.6.1. Market Revenue and Forecast (2016-2027)
11.1.7. Other Therapeutic Applications
11.1.7.1. Market Revenue and Forecast (2016-2027)
Chapter 12.Global Active Pharmaceutical Ingredient (API) Market, Regional Estimates and Trend Forecast
12.1. North America
12.1.1. Market Revenue and Forecast, by Type (2016-2027)
12.1.2. Market Revenue and Forecast, by Type of Manufacturer (2016-2027)
12.1.3. Market Revenue and Forecast, by Type of Synthesis (2016-2027)
12.1.4. Market Revenue and Forecast, by Type of Drug (2016-2027)
12.1.5. Market Revenue and Forecast, by Therapeutic Application (2016-2027)
12.1.6. U.S.
12.1.6.1. Market Revenue and Forecast, by Type (2016-2027)
12.1.6.2. Market Revenue and Forecast, by Type of Manufacturer (2016-2027)
12.1.6.3. Market Revenue and Forecast, by Type of Synthesis (2016-2027)
12.1.6.4. Market Revenue and Forecast, by Type of Drug (2016-2027)
12.1.6.5. Market Revenue and Forecast, by Therapeutic Application (2016-2027)
12.1.7. Rest of North America
12.1.7.1. Market Revenue and Forecast, by Type (2016-2027)
12.1.7.2. Market Revenue and Forecast, by Type of Manufacturer (2016-2027)
12.1.7.3. Market Revenue and Forecast, by Type of Synthesis (2016-2027)
12.1.7.4. Market Revenue and Forecast, by Type of Drug (2016-2027)
12.1.7.5. Market Revenue and Forecast, by Therapeutic Application (2016-2027)
12.2. Europe
12.2.1. Market Revenue and Forecast, by Type (2016-2027)
12.2.2. Market Revenue and Forecast, by Type of Manufacturer (2016-2027)
12.2.3. Market Revenue and Forecast, by Type of Synthesis (2016-2027)
12.2.4. Market Revenue and Forecast, by Type of Drug (2016-2027)
12.2.5. Market Revenue and Forecast, by Therapeutic Application (2016-2027)
12.2.6. UK
12.2.6.1. Market Revenue and Forecast, by Type (2016-2027)
12.2.6.2. Market Revenue and Forecast, by Type of Manufacturer (2016-2027)
12.2.6.3. Market Revenue and Forecast, by Type of Synthesis (2016-2027)
12.2.6.4. Market Revenue and Forecast, by Type of Drug (2016-2027)
12.2.6.5. Market Revenue and Forecast, by Therapeutic Application (2016-2027)
12.2.7. Germany
12.2.7.1. Market Revenue and Forecast, by Type (2016-2027)
12.2.7.2. Market Revenue and Forecast, by Type of Manufacturer (2016-2027)
12.2.7.3. Market Revenue and Forecast, by Type of Synthesis (2016-2027)
12.2.7.4. Market Revenue and Forecast, by Type of Drug (2016-2027)
12.2.7.5. Market Revenue and Forecast, by Therapeutic Application (2016-2027)
12.2.8. France
12.2.8.1. Market Revenue and Forecast, by Type (2016-2027)
12.2.8.2. Market Revenue and Forecast, by Type of Manufacturer (2016-2027)
12.2.8.3. Market Revenue and Forecast, by Type of Synthesis (2016-2027)
12.2.8.4. Market Revenue and Forecast, by Type of Drug (2016-2027)
12.2.8.5. Market Revenue and Forecast, by Therapeutic Application (2016-2027)
12.2.9. Rest of Europe
12.2.9.1. Market Revenue and Forecast, by Type (2016-2027)
12.2.9.2. Market Revenue and Forecast, by Type of Manufacturer (2016-2027)
12.2.9.3. Market Revenue and Forecast, by Type of Synthesis (2016-2027)
12.2.9.4. Market Revenue and Forecast, by Type of Drug (2016-2027)
12.2.9.5. Market Revenue and Forecast, by Therapeutic Application (2016-2027)
12.3. APAC
12.3.1. Market Revenue and Forecast, by Type (2016-2027)
12.3.2. Market Revenue and Forecast, by Type of Manufacturer (2016-2027)
12.3.3. Market Revenue and Forecast, by Type of Synthesis (2016-2027)
12.3.4. Market Revenue and Forecast, by Type of Drug (2016-2027)
12.3.5. Market Revenue and Forecast, by Therapeutic Application (2016-2027)
12.3.6. India
12.3.6.1. Market Revenue and Forecast, by Type (2016-2027)
12.3.6.2. Market Revenue and Forecast, by Type of Manufacturer (2016-2027)
12.3.6.3. Market Revenue and Forecast, by Type of Synthesis (2016-2027)
12.3.6.4. Market Revenue and Forecast, by Type of Drug (2016-2027)
12.3.6.5. Market Revenue and Forecast, by Therapeutic Application (2016-2027)
12.3.7. China
12.3.7.1. Market Revenue and Forecast, by Type (2016-2027)
12.3.7.2. Market Revenue and Forecast, by Type of Manufacturer (2016-2027)
12.3.7.3. Market Revenue and Forecast, by Type of Synthesis (2016-2027)
12.3.7.4. Market Revenue and Forecast, by Type of Drug (2016-2027)
12.3.7.5. Market Revenue and Forecast, by Therapeutic Application (2016-2027)
12.3.8. Japan
12.3.8.1. Market Revenue and Forecast, by Type (2016-2027)
12.3.8.2. Market Revenue and Forecast, by Type of Manufacturer (2016-2027)
12.3.8.3. Market Revenue and Forecast, by Type of Synthesis (2016-2027)
12.3.8.4. Market Revenue and Forecast, by Type of Drug (2016-2027)
12.3.8.5. Market Revenue and Forecast, by Therapeutic Application (2016-2027)
12.3.9. Rest of APAC
12.3.9.1. Market Revenue and Forecast, by Type (2016-2027)
12.3.9.2. Market Revenue and Forecast, by Type of Manufacturer (2016-2027)
12.3.9.3. Market Revenue and Forecast, by Type of Synthesis (2016-2027)
12.3.9.4. Market Revenue and Forecast, by Type of Drug (2016-2027)
12.3.9.5. Market Revenue and Forecast, by Therapeutic Application (2016-2027)
12.4. MEA
12.4.1. Market Revenue and Forecast, by Type (2016-2027)
12.4.2. Market Revenue and Forecast, by Type of Manufacturer (2016-2027)
12.4.3. Market Revenue and Forecast, by Type of Synthesis (2016-2027)
12.4.4. Market Revenue and Forecast, by Type of Drug (2016-2027)
12.4.5. Market Revenue and Forecast, by Therapeutic Application (2016-2027)
12.4.6. GCC
12.4.6.1. Market Revenue and Forecast, by Type (2016-2027)
12.4.6.2. Market Revenue and Forecast, by Type of Manufacturer (2016-2027)
12.4.6.3. Market Revenue and Forecast, by Type of Synthesis (2016-2027)
12.4.6.4. Market Revenue and Forecast, by Type of Drug (2016-2027)
12.4.6.5. Market Revenue and Forecast, by Therapeutic Application (2016-2027)
12.4.7. North Africa
12.4.7.1. Market Revenue and Forecast, by Type (2016-2027)
12.4.7.2. Market Revenue and Forecast, by Type of Manufacturer (2016-2027)
12.4.7.3. Market Revenue and Forecast, by Type of Synthesis (2016-2027)
12.4.7.4. Market Revenue and Forecast, by Type of Drug (2016-2027)
12.4.7.5. Market Revenue and Forecast, by Therapeutic Application (2016-2027)
12.4.8. South Africa
12.4.8.1. Market Revenue and Forecast, by Type (2016-2027)
12.4.8.2. Market Revenue and Forecast, by Type of Manufacturer (2016-2027)
12.4.8.3. Market Revenue and Forecast, by Type of Synthesis (2016-2027)
12.4.8.4. Market Revenue and Forecast, by Type of Drug (2016-2027)
12.4.8.5. Market Revenue and Forecast, by Therapeutic Application (2016-2027)
12.4.9. Rest of MEA
12.4.9.1. Market Revenue and Forecast, by Type (2016-2027)
12.4.9.2. Market Revenue and Forecast, by Type of Manufacturer (2016-2027)
12.4.9.3. Market Revenue and Forecast, by Type of Synthesis (2016-2027)
12.4.9.4. Market Revenue and Forecast, by Type of Drug (2016-2027)
12.4.9.5. Market Revenue and Forecast, by Therapeutic Application (2016-2027)
12.5. Latin America
12.5.1. Market Revenue and Forecast, by Type (2016-2027)
12.5.2. Market Revenue and Forecast, by Type of Manufacturer (2016-2027)
12.5.3. Market Revenue and Forecast, by Type of Synthesis (2016-2027)
12.5.4. Market Revenue and Forecast, by Type of Drug (2016-2027)
12.5.5. Market Revenue and Forecast, by Therapeutic Application (2016-2027)
12.5.6. Brazil
12.5.6.1. Market Revenue and Forecast, by Type (2016-2027)
12.5.6.2. Market Revenue and Forecast, by Type of Manufacturer (2016-2027)
12.5.6.3. Market Revenue and Forecast, by Type of Synthesis (2016-2027)
12.5.6.4. Market Revenue and Forecast, by Type of Drug (2016-2027)
12.5.6.5. Market Revenue and Forecast, by Therapeutic Application (2016-2027)
12.5.7. Rest of LATAM
12.5.7.1. Market Revenue and Forecast, by Type (2016-2027)
12.5.7.2. Market Revenue and Forecast, by Type of Manufacturer (2016-2027)
12.5.7.3. Market Revenue and Forecast, by Type of Synthesis (2016-2027)
12.5.7.4. Market Revenue and Forecast, by Type of Drug (2016-2027)
12.5.7.5. Market Revenue and Forecast, by Therapeutic Application (2016-2027)
Chapter 13. Company Profiles
13.1. Pfizer Inc.
13.1.1. Company Overview
13.1.2. Product Offerings
13.1.3. Financial Performance
13.1.4. Recent Initiatives
13.2. Novartis International AG
13.2.1. Company Overview
13.2.2. Product Offerings
13.2.3. Financial Performance
13.2.4. Recent Initiatives
13.3. Merck & Co.
13.3.1. Company Overview
13.3.2. Product Offerings
13.3.3. Financial Performance
13.3.4. Recent Initiatives
13.4. Teva Pharmaceutical Industries Ltd.
13.4.1. Company Overview
13.4.2. Product Offerings
13.4.3. Financial Performance
13.4.4. Recent Initiatives
13.5. Mylan N.V.
13.5.1. Company Overview
13.5.2. Product Offerings
13.5.3. Financial Performance
13.5.4. Recent Initiatives
13.6. Boehringer Ingelheim
13.6.1. Company Overview
13.6.2. Product Offerings
13.6.3. Financial Performance
13.6.4. Recent Initiatives
13.7. F. Hoffmann-La Roche AG
13.7.1. Company Overview
13.7.2. Product Offerings
13.7.3. Financial Performance
13.7.4. Recent Initiatives
13.8. Sanofi
13.8.1. Company Overview
13.8.2. Product Offerings
13.8.3. Financial Performance
13.8.4. Recent Initiatives
13.9. AbbVie
13.9.1. Company Overview
13.9.2. Product Offerings
13.9.3. Financial Performance
13.9.4. Recent Initiatives
13.10. Eli Lilly and Company
13.10.1. Company Overview
13.10.2. Product Offerings
13.10.3. Financial Performance
13.10.4. Recent Initiatives
Chapter 14. Research Methodology
14.1. Primary Research
14.2. Secondary Research
14.3. Assumptions
Chapter 15. Appendix
15.1. About Us
15.2. Glossary of Terms