Pharmaceutical Intermediates Market Report 2026

The pharmaceutical intermediates market size has grown strongly in recent years. It will grow from $34.95 billion in 2025 to $37.38 billion in 2026 at a compound annual growth rate (CAGR) of 7%. The growth in the historic period can be attributed to expansion of pharmaceutical manufacturing capacity, growth of generic drug markets, increasing demand for bulk drug intermediates, rising investments in chemical synthesis, availability of skilled chemical manufacturing workforce.

The pharmaceutical intermediates market size is expected to see strong growth in the next few years. It will grow to $49.52 billion in 2030 at a compound annual growth rate (CAGR) of 7.3%. The growth in the forecast period can be attributed to increasing development of complex drug molecules, rising demand for contract manufacturing services, expansion of biotech drug pipelines, growing focus on sustainable synthesis routes, increasing adoption of advanced process technologies. Major trends in the forecast period include rising demand for high-purity drug intermediates, increasing outsourcing of intermediate manufacturing, expansion of generic drug production, growing use of specialized chemical intermediates, focus on process optimization and yield improvement.

The increase in pharmaceutical drug production is expected to propel the growth of the pharmaceutical intermediates market going forward. Drug production refers to the process of manufacturing pharmaceutical substances, medications, or drugs. Pharmaceutical drugs are complex molecules that require multiple steps for their synthesis. Pharmaceutical intermediates are chemical compounds produced during these intermediate steps in the manufacturing process. With the development of more complex and targeted drugs, demand for intermediates has grown. For instance, in November 2023, according to the European Federation of Pharmaceutical Industries and Associations (EFPIA), a Belgium-based trade association representing the pharmaceutical industry in Europe, total pharmaceutical production in Europe accounted for €390.0 billion ($422,803 million) in 2023, up from €363.3 billion ($393,857 million) in 2022. Therefore, the rise in pharmaceutical drug production is driving the growth of the pharmaceutical intermediates market.

Major companies operating in the pharmaceutical intermediates market are innovating new product lines, such as API intermediates, to increase their profitability. API intermediates are chemical compounds used in the synthesis of active pharmaceutical ingredients (APIs). For instance, in October 2023, Huateng Pharmaceutical Co. Ltd., a China-based pharmaceutical company, launched its Gastrointestinal API Intermediates product line. These intermediates function as the building blocks for pharmaceutically active ingredients found in digestive system medications. They are essential for producing medications that treat gastrointestinal disorders, including laxatives, 5-HT3 receptor antagonists, H2-receptor antagonists, and proton pump inhibitors.

In March 2024, International Chemical Investors Group (ICIG), a Luxembourg-based chemical company, acquired Vasant Chemicals for an undisclosed sum. This acquisition is designed to strengthen WeylChem’s foothold in the global specialty chemicals market. The strategic partnership aims to provide added value for customers and stakeholders by merging the technologies and resources of both companies, thus advancing Vasant Chemicals' global expansion efforts. Vasant Chemicals is an India-based producer of pharmaceutical intermediates.

Major companies operating in the pharmaceutical intermediates market are BASF SE, Lonza Group AG, Evonik Industries AG, LANXESS AG, Arkema S.A., Solvay S.A., Mitsubishi Chemical Group Corporation, Sumitomo Chemical Co., Ltd., Toray Industries, Inc., Asahi Kasei Corporation, Aarti Industries Limited, Divi’s Laboratories Limited, PI Industries Limited, Jubilant Pharmova Limited, WuXi AppTec Co., Ltd., Cambrex Corporation, Siegfried Holding AG, DSM-Firmenich AG, Clariant AG, Sanofi S.A.

North America was the largest region in the pharmaceutical intermediates market in 2025. The regions covered in the pharmaceutical intermediates market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the pharmaceutical intermediates market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The pharmaceutical intermediates market consists of sales of intermediates for API synthesis, API precursors, fine chemicals, and specialty chemicals. 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 1-3 business days.