Germany Active Pharmaceutical Ingredient (API) Market Overview, 2027

Active pharmaceutical ingredients are used in drugs to fight against health concerns or chronic diseases. These are either produced chemically or biologically, and the market is projected to grow in future years with innovation and technological advancements in drug manufacturing. The growing geriatric population of the country and an increase in incidences of chronic diseases at an early age have driven the demand for API in recent years. Several countries have implemented strict guidelines for the manufacturing of pharmaceutical ingredients to regulate the product quality for an effective outcome. This has caused several companies to set up their manufacturing units in overseas markets. Further, the sedentary lifestyle of millennials has increased the risks of developing chronic diseases, which creates a demand for pharmaceutical drugs.

According to the report titled 'Germany Active Pharmaceutical Ingredients Market Overview, 2027', the market is expected to grow exorbitantly over the forecast period. Though synthetic APIs are widely used to manufacture drugs, biotech APIs are expected to grow rapidly over the forecast period. This is due to the launches of new drugs and biological products, acquisitions, collaborations, and regional expansion initiatives being taken by the companies to maintain stability in the market. The captive segment has the largest market share and is anticipated to grow in the future owing to the easy availability of raw materials and huge investments by major companies to develop high-end manufacturing facilities. Recent advancements and research suggest that companies are more focused on in-house manufacturing than outsourcing to others. The captive API segment accounted for the major market share and is expected to grow at a steady CAGR over the forecast period.

Generic APIs are expected to be in demand over the forecast period as the branded API segment's demands are declining. This is due to the consolidation in the pharma industry and various drugs going off patent. Due to a rise in over-the-counter drugs and a lower cost of generic drugs, it is expected to lure consumers. The increasing obesity, diabetes, and other chronic diseases, which are long-lasting and require the patient to consume the drugs on a daily basis, drive the demand for cheaper alternatives to save costs. Thus, the demand for generic API will rise in future years coupled with government incentives.

The cardiovascular diseases segment accounts for the largest application due to increasing heart-related diseases worldwide. Rising awareness, preventive treatment, and government measures are further expected to drive future demand for API. On the other hand, oncology applications are expected to grow rapidly over the forecast period due to the changing lifestyles of Millennials and the growing number of cancer patients in recent years. The metabolic disorders caused by sedentary lifestyles and hormonal imbalances created in the human body are the factors increasing the risks of these diseases. Diabetes is another chronic disease which is on the rise among the populace in the country.

Though synthetic APIs led the market, biotech APIs are expected to grow rapidly in the forecast period owing to increased demand for biopharmaceuticals and the number of innovations in the field to meet medical needs for various diseases. It is considered to be a highly profitable segment that has attracted many key players to invest in these manufacturing facilities. The FDA approvals for vaccines, blood components, and recombinant proteins are further expected to boost the market growth. Many companies are now focusing exclusively on producing biological drugs as it is a lucrative market. A large proportion of manufacturing units in Europe and North America are concentrating on biological APIs.

Impact of COVID-19

The pandemic had a combination of effects on the API market, creating demand shocks across the world, but some drugs that were required to treat the virus' effects were in huge demand. There was an increased demand for fever, cold, and cough drugs. In 2020 it decreased by -2.80% due to supply chain logistics which were at a standstill. However, the future markets are projected to grow exorbitantly as they have recovered from the pandemic shocks. Many manufacturing units in China were shut down due to a lack of raw materials and the pandemic effects which affected the world markets for API. Also, the decrease in demand for pharmaceuticals for certain elective procedures has also led to a decline in the market's growth in 2020. The sales declined also because the supply chain logistics were at a standstill due to immobility. Although the demand for drugs like paracetamol, azithromycin, and hydroxychloroquine is up, the demand for them is down. To treat the symptoms and numerous health conditions that a COVID-19 patient may have, such as cough, cold, and high fever, a variety of medications are employed, leading to the pharmaceutical industry being the epicentre of the pandemic.

Considered in this report:

• Geography: Germany
• Historic Year: 2016
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

Aspects covered in this report:

• Germany Active Pharmaceutical Ingredients Market with its value, forecast and segments
• Application wise Active Pharmaceutical Ingredients distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendations

Based on synthesis of Active Pharmaceutical Ingredients in the report:

• Synthetic API
• Biotech API

Based on drug type of Active Pharmaceutical Ingredients in the report:

• Branded API
• Generic API

Based on type of manufacture of Active Pharmaceutical Ingredients in the report:

• Captive API
• Merchant API

By Therapeutic Application Type in the report:

• Communicable Diseases
• Oncology
• Diabetes
• Cardiovascular Disease
• Pain management
• Respiratory Diseases
• Other Therapeutic Applications

Approach of the Report

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this, the analyst has started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once they have the primary data, they start verifying the details obtained from secondary sources.

Intended Audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to pharmaceutical industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.