Authored By: Sarah
11 Jul 2024

 Active Pharmaceutical Ingredients Market to grow by USD 86.47 billion between 2024-2028

According to a research report “ Active Pharmaceutical Ingredients Market” by Manufacturing Type (Captive APIs, Contract APIs) Type (Innovative APIs, Generic APIs) Geography (Asia, North America, Europe, Rest of World (ROW))- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 86.47 billion at a CAGR of over 6.73% during the forecast period. The pharmaceutical landscape in China and India has undergone significant transformation, shifting from low-cost drug production to custom manufacturing of Active Pharmaceutical Ingredients (APIs) and finished drug products for regulated markets. This evolution, driven by economic growth and WTO membership, aims to enhance competitiveness and accelerate the learning curve for producing high-quality APIs, benefiting the global Active Pharmaceutical Ingredients Market..

Browse market data tables, figures, and in-depth TOC on “Active Pharmaceutical Ingredients Market” by Manufacturing Type (Captive APIs, Contract APIs) Type (Innovative APIs, Generic APIs) Geography (Asia, North America, Europe, Rest of World (ROW)) Global Forecast to 2028.

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By Manufacturing Type, the Captive APIs segment is projected to dominate the market size in 2024.

The active pharmaceutical ingredients (API) market encompasses groundbreaking innovations in the form of new chemical entities (CIs), biologics, biosimilars, and other novel formulations. These advanced APIs, which have yet to be utilized in commercial products, are the lifeblood of the pharmaceutical sector, fueling the creation of superior drug therapies. The development of these complex APIs necessitates extensive research and development (R&D) and regulatory approval before commercial application. The burgeoning demand for sophisticated treatments for a myriad of diseases and conditions propels the innovative APIs market forward.

By Type, Innovative APIs  segment is expected to hold the largest market size for the year 2024.

In the Active Pharmaceutical Ingredients (API) market landscape of 2023, captive API manufacturing held the largest market share. The expansion of healthcare services has driven substantial growth in this sector. The priority to expand access to affordable healthcare services has fueled the demand for cost-effective medicines, consequently increasing the need for economical APIs for producing finished drugs. To meet this growing demand for affordable drugs, innovators are outsourcing either the bulk actives or late-stage intermediates to Contract Manufacturing Organizations (CMOs), thereby shrinking the market share of captive API manufacturing.

Asia is forecasted to hold the largest market size by region in 2024.

In the global Active Pharmaceutical Ingredients (API) market, Asia, particularly India, holds the largest market share. Indian manufacturers, such as Lupin Ltd. and Sun Pharmaceutical Industries Ltd., have demonstrated expertise in producing pharmaceutical products adhering to Good Manufacturing Practices (GMP) standards. These companies cater to the regulatory requirements of US and European generic drug firms, supplying bulk products on a large scale. Their success in the US generic drug market underscores their capability to manufacture both APIs and finished dose forms with the required quality for regulated markets.

The Active Pharmaceutical Ingredients Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • AbbVie Inc.
  • Amneal Pharmaceuticals Inc.
  • Apotex Inc.
  • Aurobindo Pharma Ltd.
  • Cadila Pharmaceuticals Ltd.
  • Cambrex Corp.
  • Cipla Ltd.
  • Dr Reddys Laboratories Ltd.
  • GlaxoSmithKline Plc
  • Indena S.p.A.
  • Koninklijke DSM NV
  • Lupin Ltd.
  • Novartis AG
  • Pfizer Inc.
  • Sanofi SA
  • Sun Pharmaceutical Industries Ltd.
  • Teva Pharmaceutical Industries Ltd.
  • Thermo Fisher Scientific Inc.
  • Viatris Inc.

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Research Analysis Overview

The Active Pharmaceutical Ingredients (API) market encompasses a wide range of products, including small molecules like Acetaminophen and large molecules such as Artemisinin, used in various therapeutic areas. Merchant APIs and Captive APIs are essential components in the manufacturing process of these pharmaceuticals. Key therapeutic areas include Diabetes, Oncology drug research for Cancer, Biosimilars, Biologics, Chronic disorders like Schizophrenia, Cardiovascular diseases, Genetic disorders, and Infectious diseases. Research and investment in these areas are crucial for the development of new treatments. Counterfeit drugs pose a significant threat to public health, emphasizing the importance of robust API manufacturing processes. MEDinCell, Teva Pharmaceutical, and Chasse-sur-Rhône are among the players in this market. Formulation and Excipients are also essential aspects of API manufacturing, ensuring the efficacy and safety of the final pharmaceutical product.

Market Research Overview

The Active Pharmaceutical Ingredients (API) market encompasses a wide range of applications in various therapeutic areas, including Ophthalmology, Nephrology, Gastroenterology, Pulmonology, Endocrinology, Orthopedic, Oncology, CNS Neurology, Cardiology, and Clinical research. APIs are essential components of Prescription Drugs, such as Tamoxifen, Naproxen, Rufinamide, Enoxaparin Sodium, Losartan Potassium, Ibuprofen, Sodium Chloride, Saxagliptin, Artemisinin, Acetaminophen, and more. Manufacturers produce APIs through different methods, such as Merchant API Manufacturer and Captive API Manufacturer, and various forms, including Large Molecule and Small Molecule. Companies like Eurofins, NovasepPharmaZell Group, GeneCraft, GenScript ProBio, Mendus AB, CuraTeQ Biologics, and others play significant roles in the API market. The market caters to various chronic disorders, such as Diabetes, Cancer, and Schizophrenia, as well as cardiovascular diseases, genetic disorders, and infectious diseases. However, lack of demand in some areas and challenges like Research and investment, Counterfeit drugs, and regulatory compliance can impact market growth. Formulation development and Excipients are crucial aspects of the API market, ensuring the efficacy and safety of the final pharmaceutical product. Key players like MEDinCell, Teva Pharmaceutical, and Chasse-sur-Rhône contribute to the market's advancement by focusing on innovation and quality.


Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200

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