Global Active Pharmaceutical Ingredients (APIs) market was at US$ 190.5 Billion in 2022, and it will expand at a CAGR of 6.52 from 2022 to 2027. The API (active pharmaceutical ingredient) is the part of any medication that produces the intended health effects. The APIs are made from raw materials with a specified strength and chemical concentration. Some drugs, such as combination therapies, have multiple APIs that may act differently or treat different symptoms.Global Active Pharmaceutical Ingredients (APIs) Market was at US$ 190.5 Billion in 2022. Industry Trends By Product, Application, End User, Impact of Inflation, Company Analysis, Global Forecast 2023-2027
Active Pharmaceutical Ingredients (API) of good quality is core to manufacturing effective and safe essential drugs. The price of APIs is the main cost driver for manufacturing. Unfortunately, only a few large manufacturers of finished pharmaceutical products have their API manufacturing capabilities, and none can make all required APIs in-house. The API market provides a challenge, particularly to small manufacturers, who have limited means to verify the quality of the APIs they buy. One possible way to address this problem would be to broaden the WHO Prequalification system to include APIs for drugs on the WHO Model List for Essential Medicines.
Trends in Ageing Population
The global geriatric population is rising. According to the WHO, by 2030, every 1 out of 6 people worldwide will be 60 years or over. The population share of aged 60 years & above will increase to 1.4 billion from 1 billion in 2020. The global population aged 60 years and older will double by 2050. In addition, the number of people 80 years or older is anticipated to triple between 2020 and 2050 and reach 426 million. Aging weakens the immune system and increases a patient's susceptibility to acquiring infectious diseases. Moreover, impairment in body functions enhances the chances of getting other conditions, such as CVD and diabetes.Type of Molecule and Synthetic Insights
Active ingredients are the substances in drugs responsible for the beneficial health effects experienced by consumers. Based on Molecule, APIs are categorized into Small and Large. In addition, synthetic types have been classified into synthetic and biotech. Synthetic APIs, known as small molecules, constitute a large share of the pharmaceutical market, with many small-molecule drugs commercially available. On the other hand, Biotech APIs are used in biologics, which are increasingly becoming the top-selling drugs in the market. However, despite the growing demand, biologics are currently significantly fewer in number compared to small molecule drugs.Type Insights: Generic APIs will lead the global market
On the basis of type, the API market is categorized into generic and innovative APIs. Generic APIs will lead the global market because of promising government guidelines, recognized R&D facilities, and augmented subsidies for creative drug development. In addition, due to widespread research in this field, numerous novel, ground-breaking products are in the pipeline and are estimated to be introduced in future years. According to our research findings Worldwide Active pharmaceutical ingredients (APIs) market will surpass US$ 261.3 Billion by 2027.Type of Manufacturers Insights
Among different types of manufacturers involved in the API market, Captive API occupied most of the revenue shares because of the stress-free obtainability of raw materials and thorough capitalization of foremost companies for the progress of high-end manufacturing facilities. Merchant API is projected to be the fastest-growing sector in the years to come. The segment development is compelled by influences like the high cost of in-house engineering of these molecules and the increasing demand for biopharmaceuticals.Application Insights: Cardiology Dominates the Market Share
APIs find widespread application in Cardiology, Oncology, CNS & Neurology, Orthopaedics, Endocrinology, and Others. Cardiology occupied the majority share of the market due to escalating commonness of target diseases internationally. For example, as per the WHO, cardiovascular diseases may result in about 17.9 million deaths annually, where heart attacks and strokes instigate 85% of these deaths.Regional Insights: North America Dominates the API Market Globally
API Market has been categorized geographically into North America, Latin America, Europe, Asia-Pacific, and Middle East & Africa. North America dominates in the global market and expected to increase its market in the future, owing to the rising aging population and the increasing incidences of disease. Driven by lower costs, API manufacturing has slowly shifted from the historical leaders in Western countries to newer firms in India and China.In addition, several regulatory authorities are involved to ensure that firms manufacture APIs and final formulations in a quality manner. The geographic location of the manufacturer and market, as well as the financing source, determines which regulatory agencies are involved. For example, APIs intended for final formulations in sub-Saharan Africa are often less regulated due to weaker national regulatory agencies and cost-sensitive markets.
Key Companies & Market Share Insights
Generally speaking, the API market is very competitive with many producers. As a result, API manufacturers specialize and target their manufacturing based on market opportunities and firm skills. The presence of prominent players in this market space significantly diminishes the prospects for a new entry into the market, as it is challenging to match the high capital requirements. Some prominent players in the global active pharmaceutical ingredients market are Sanofi SA, F. Hoffmann-LA Roche Ltd, Pfizer, Abbott, Bayer AG, Merck & Co. Inc, Boehringer Ingelheim Gmbh, GlaxoSmithKline Plc, Novartis AG, Eli Lilly Company, and Teva Pharmaceutical.For instance, in August 2021, Teva Pharmaceutical and MED in Cell received approval from the U.S FDA for a new drug application to treat schizophrenia.
In December 2021, Novasep invested around EUR 6 million in France to upgrade its capabilities to newer APIs in areas such as oncology, central nervous system (CNS), and infectious diseases.
The publisher's latest report ”Global Active Pharmaceutical Ingredients Market by Molecule type (Small and Large), Type (Innovative and Generic), Manufacture (Captive and Merchant),Application (Cardiology, Oncology, CNS &Neurology, Orthopedic, Endocrinology & Others), Synthetic (Biotech and Synthetic), Region (North America, Europe, Asia - Pacific, Latin America & Middle East & Africa) Company (Sanofi SA, F. Hoffmann-LA Roche Ltd, Pfizer, Abbortt, Bayer AG, Merck & Co. Inc, Boehringer Ingelheim Gmbh, Glaxosmithkline Plc, Novartis AG, Eli Lilly Company, and Teva Pharmaceutical)” provides complete details on provides complete details on Global Active Pharmaceutical Ingredients Industry.
Molecule - Active Pharmaceutical Ingredients (APIs) Market
1. Small Molecule2. Large Molecule
Type - Active Pharmaceutical Ingredients (APIs) Market
1. Innovative APIs2. Generic APIs
Manufacturers - Active Pharmaceutical Ingredients (APIs) Market
1. Captive Manufacturers2. Merchant Manufacturers
Application - Active Pharmaceutical Ingredients (APIs) Market
1. Cardiology2. Oncology
3. CNS & Neurology
4. Orthopaedic
5. Endocrinology
6. Others
Synthetic - Active Pharmaceutical Ingredients (APIs) Market
1. Biotech2. Synthetic
Region - Active Pharmaceutical Ingredients (APIs) Market
1. North America2. Europe
3. Asia Pacific
4. Latin America
5. Middle East & Africa
Companies Mentioned
1. Sanofi SA2. F. Hoffmann-LA Roche Ltd
3. Pfizer
4. Abbortt
5. Bayer AG
6. Merck & Co. Inc
7. Boehringer Ingelheim Gmbh
8. GlaxoSmithKline Plc
9. Novartis AG
10. Eli Lilly Company
11. Teva Pharmaceutical
Table of Contents
1. Introduction
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Growth Drivers
4.2 Challenges
5. Global Active Pharmaceutical Ingredients Market
6. Market Share - Active Pharmaceutical Ingredients Market
6.1 By Molecule
6.2 By Type
6.3 By Synthetic
6.4 By Manufacturer Type
6.5 By Application
6.6 By Region
7. Molecule - Active Pharmaceutical Ingredients Market
7.1 Small Molecule
7.2 Large Molecule
8. Type - Active Pharmaceutical Ingredients Market
8.1 Innovative
8.2 Generic
9. Synthetic - Active Pharmaceutical Ingredients Market
9.1 Biotech
9.2 Synthetic
10. Manufacturer - Active Pharmaceutical Ingredients Market
10.1 Captive
10.2 Merchant
11. Application - Active Pharmaceutical Ingredients Market
11.1 Cardiology
11.2 Oncology
11.3 CNS& Neurology
11.4 Orthopedic
11.5 Endocrinology
11.6 Others
12. Region - Active Pharmaceutical Ingredients Market
12.1 North America
12.2 Europe
12.3 Asia Pacific
12.4 Latin America
12.5 Middle East & Africa
13. Key Players Analysis
13.1 Sanofi SA
13.1.1 Overview
13.1.2 Initiative / Strategy
13.1.3 Net Sales
13.2 F. Hoffmann-La Roche Ltd
13.2.1 Overview
13.2.2 Initiative / Strategy
13.2.3 Net Sales
13.3 Pfizer Inc
13.3.1 Overview
13.3.2 Initiative / Strategy
13.3.3 Net Sales
13.4 Abbott
13.4.1 Overview
13.4.2 Initiative / Strategy
13.4.3 Net Sales
13.5 Bayer AG
13.5.1 Overview
13.5.2 Initiative / Strategy
13.5.3 Net Sales
13.6 Merck & Co.Inc
13.6.1 Overview
13.6.2 Initiative / Strategy
13.6.3 Net Sales
13.7 Boehringer Ingelheim GmbH
13.7.1 Overview
13.7.2 Initiative / Strategy
13.7.3 Net Sales
13.8 Glaxosmithkline Plc
13.8.1 Overview
13.8.2 Initiative / Strategy
13.8.3 Net Sales
13.9 Novartis AG
13.9.1 Overview
13.9.2 Initiative / Strategy
13.9.3 Net Sales
13.10 Eli Lilly and Company
13.10.1 Overview
13.10.2 Initiative / Strategy
13.10.3 Net Sales
13.11 Teva Pharmaceutical Industries Ltd
13.11.1 Overview
13.11.2 Initiative / Strategy
13.11.3 Net Sales
List of Figures
Figure 01: Global - Active Pharmaceutical Ingredients Market (Billion US$), 2017 - 2022
Figure 02: Global - Forecast for Active Pharmaceutical Ingredients Market (Billion US$), 2023 - 2027
Figure 03: Molecule - Small Molecule Market (Billion US$), 2017 - 2022
Figure 04: Molecule - Forecast for Small Molecule Market (Billion US$), 2023 - 2027
Figure 05: Molecule - Large Molecule Market (Billion US$), 2017 - 2022
Figure 06: Molecule - Forecast for Large Molecule Market (Billion US$), 2023 - 2027
Figure 07: Type - Innovative Market (Billion US$), 2017 - 2022
Figure 08: Type - Forecast for Innovative Market (Billion US$), 2023 - 2027
Figure 09: Type - Generic Market (Billion US$), 2017 - 2022
Figure 10: Type - Forecast for Generic Market (Billion US$), 2023 - 2027
Figure 11: Synthetic - Biotech Market (Billion US$), 2017 - 2022
Figure 12: Synthetic - Forecast for Biotech Market (Billion US$), 2023 - 2027
Figure 13: Synthetic - Synthetic Market (Billion US$), 2017 - 2022
Figure 14: Synthetic - Forecast for Synthetic Market (Billion US$), 2023 - 2027
Figure 15: Manufacturer - Captive Market (Billion US$), 2017 - 2022
Figure 16: Manufacturer - Forecast for Captive Market (Billion US$), 2023 - 2027
Figure 17: Manufacturer - Merchant Market (Billion US$), 2017 - 2022
Figure 18: Manufacturer - Forecast for Merchant Market (Billion US$), 2023 - 2027
Figure 19: Application - Cardiology Market (Billion US$), 2017 - 2022
Figure 20: Application - Forecast for Cardiology Market (Billion US$), 2023 - 2027
Figure 21: Application - Oncology Market (Billion US$), 2017 - 2022
Figure 22: Application - Forecast for Oncology Market (Billion US$), 2023 - 2027
Figure 23: Application - CNS& Neurology Market (Billion US$), 2017 - 2022
Figure 24: Application - Forecast for CNS& Neurology Market (Billion US$), 2023 - 2027
Figure 25: Application - Orthopedic Market (Billion US$), 2017 - 2022
Figure 26: Application - Forecast for Orthopedic Market (Billion US$), 2023 - 2027
Figure 27: Application - Endocrinology Market (Billion US$), 2017 - 2022
Figure 28: Application - Forecast for Endocrinology Market (Billion US$), 2023 - 2027
Figure 29: Application - Others Market (Billion US$), 2017 - 2022
Figure 30: Application - Forecast for Others Market (Billion US$), 2023 - 2027
Figure 31: North America - Active Pharmaceutical Ingredients Market (Billion US$), 2017 - 2022
Figure 32: North America - Forecast for Active Pharmaceutical Ingredients Market (Billion US$), 2023 - 2027
Figure 33: Europe - Active Pharmaceutical Ingredients Market (Billion US$), 2017 - 2022
Figure 34: Europe - Forecast for Active Pharmaceutical Ingredients Market (Billion US$), 2023 - 2027
Figure 35: Asia Pacific - Active Pharmaceutical Ingredients Market (Billion US$), 2017 - 2022
Figure 36: Asia Pacific - Forecast for Active Pharmaceutical Ingredients Market (Billion US$), 2023 - 2027
Figure 37: Latin America - Active Pharmaceutical Ingredients Market (Billion US$), 2017 - 2022
Figure 38: Latin America - Forecast for Active Pharmaceutical Ingredients Market (Billion US$), 2023 - 2027
Figure 39: Middle East &Africa - Active Pharmaceutical Ingredients Market (Billion US$), 2017 - 2022
Figure 40: Middle East &Africa - Forecast for Active Pharmaceutical Ingredients Market (Billion US$), 2023 - 2027
Figure 41: Sanofi SA - Global Revenue Market (Billion US$), 2017 - 2022
Figure 42: Sanofi SA - Forecast for Global Revenue Market (Billion US$), 2023 - 2027
Figure 43: F. Hoffmann-La Roche Ltd - Global Revenue Market (Billion US$), 2017 - 2022
Figure 44: F. Hoffmann-La Roche Ltd - Forecast for Global Revenue Market (Billion US$), 2023 - 2027
Figure 45: Pfizer Inc - Global Revenue Market (Billion US$), 2017 - 2022
Figure 46: Pfizer Inc - Forecast for Global Revenue Market (Billion US$), 2023 - 2027
Figure 47: Abbott - Global Revenue Market (Billion US$), 2017 - 2022
Figure 48: Abbott - Forecast for Global Revenue Market (Billion US$), 2023 - 2027
Figure 49: Bayer AG - Global Revenue Market (Billion US$), 2017 - 2022
Figure 50: Bayer AG - Forecast for Global Revenue Market (Billion US$), 2023 - 2027
Figure 51: Merck & Co.Inc - Global Revenue Market (Billion US$), 2017 - 2022
Figure 52: Merck & Co.Inc - Forecast for Global Revenue Market (Billion US$), 2023 - 2027
Figure 53: Boehringer Ingelheim GmbH - Global Revenue Market (Billion US$), 2017 - 2022
Figure 54: Boehringer Ingelheim GmbH - Forecast for Global Revenue Market (Billion US$), 2023 - 2027
Figure 55: Glaxosmithkline Plc - Global Revenue Market (Billion US$), 2017 - 2022
Figure 56: Glaxosmithkline Plc - Forecast for Global Revenue Market (Billion US$), 2023 - 2027
Figure 57: Novartis AG - Global Revenue Market (Billion US$), 2017 - 2022
Figure 58: Novartis AG - Forecast for Global Revenue Market (Billion US$), 2023 - 2027
Figure 59: Eli Lilly and Company - Global Revenue Market (Billion US$), 2017 - 2022
Figure 60: Eli Lilly and Company - Forecast for Global Revenue Market (Billion US$), 2023 - 2027
Figure 61: Teva Pharmaceutical Industries Ltd - Global Revenue Market (Billion US$), 2017 - 2022
Figure 62: Teva Pharmaceutical Industries Ltd - Forecast for Global Revenue Market (Billion US$), 2023 - 2027
List of Tables
Table 01: Global - Active Pharmaceutical Ingredients Market Share by Molecule (Percent), 2017 - 2022
Table 02: Global - Forecast for Active Pharmaceutical Ingredients Market Share by Molecule (Percent), 2023 - 2027
Table 03: Global - Active Pharmaceutical Ingredients Market Share by Type (Percent), 2017 - 2022
Table 04: Global - Forecast for Active Pharmaceutical Ingredients Market Share by Type (Percent), 2023 - 2027
Table 05: Global - Active Pharmaceutical Ingredients Market Share by Synthetic (Percent), 2017 - 2022
Table 06: Global - Forecast for Active Pharmaceutical Ingredients Market Share by Synthetic (Percent), 2023 - 2027
Table 07: Global - Active Pharmaceutical Ingredients Market Share by Manufacturer Type (Percent), 2017 - 2022
Table 08: Global - Forecast for Active Pharmaceutical Ingredients Market Share by Manufacturer Type (Percent), 2023 - 2027
Table 09: Global - Active Pharmaceutical Ingredients Market Share by Application (Percent), 2017 - 2022
Table 10: Global - Forecast for Active Pharmaceutical Ingredients Market Share by Application (Percent), 2023 - 2027
Table 11: Global - Active Pharmaceutical Ingredients Market Share by Regions (Percent), 2017 - 2022
Table 12: Global - Forecast for Active Pharmaceutical Ingredients Market Share by Regions (Percent), 2023 - 2027
Companies Mentioned
- Sanofi SA
- F. Hoffmann-LA Roche Ltd
- Pfizer
- Abbortt
- Bayer AG
- Merck & Co. Inc
- Boehringer Ingelheim Gmbh
- GlaxoSmithKline Plc
- Novartis AG
- Eli Lilly Company
- Teva Pharmaceutical
Methodology
In this report, for analyzing the future trends for the studied market during the forecast period, the publisher has incorporated rigorous statistical and econometric methods, further scrutinized by secondary, primary sources and by in-house experts, supported through their extensive data intelligence repository. The market is studied holistically from both demand and supply-side perspectives. This is carried out to analyze both end-user and producer behavior patterns, in the review period, which affects price, demand and consumption trends. As the study demands to analyze the long-term nature of the market, the identification of factors influencing the market is based on the fundamentality of the study market.
Through secondary and primary researches, which largely include interviews with industry participants, reliable statistics, and regional intelligence, are identified and are transformed to quantitative data through data extraction, and further applied for inferential purposes. The publisher's in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. These analytical tools and models sanitize the data & statistics and enhance the accuracy of their recommendations and advice.
Primary Research
The primary purpose of this phase is to extract qualitative information regarding the market from the key industry leaders. The primary research efforts include reaching out to participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions. The publisher also established professional corporate relations with various companies that allow us greater flexibility for reaching out to industry participants and commentators for interviews and discussions, fulfilling the following functions:
- Validates and improves the data quality and strengthens research proceeds
- Further develop the analyst team’s market understanding and expertise
- Supplies authentic information about market size, share, growth, and forecast
The researcher's primary research interview and discussion panels are typically composed of the most experienced industry members. These participants include, however, are not limited to:
- Chief executives and VPs of leading corporations specific to the industry
- Product and sales managers or country heads; channel partners and top level distributors; banking, investment, and valuation experts
- Key opinion leaders (KOLs)
Secondary Research
The publisher refers to a broad array of industry sources for their secondary research, which typically includes, however, is not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Patent and regulatory databases for understanding of technical & legal developments
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic new articles, webcasts, and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecasts
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