Global Active Pharmaceutical Ingredients (API) Market Report and Forecast 2024-2032

Global Active Pharmaceutical Ingredients (API) Market Outlook

The global active pharmaceutical ingredient market size was valued at USD 217.22 billion in 2023, driven by the increasing prevalence of diseases across the globe. The market size is anticipated to grow at a CAGR of 5.5% during the forecast period of 2024-2032 to achieve a value of USD 351.71 billion by 2032.

Active Pharmaceutical Ingredients (API) Market: Introduction and Overview

Active pharmaceutical ingredients (API) refers to the biologically active ingredient of a medicine. Generally, a medicine consists of several components, where the primary component is the API. Other additives are typically known as excipients. Often a drug may include many APIs, and its effect on a patient is dependent on the prescription dosage and may differ from person to person. In combination therapy, two or more active drugs are used to treat various symptoms in multiple ways.

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For a range of large and small suppliers, the global active pharmaceutical ingredients (API) market is highly competitive. Companies involved in its production typically specialise in their manufacturing processes and plan their production on the basis of a combination of internal competencies and business possibilities.

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Active Pharmaceutical Ingredients (API) Market Segmentation

Market Breakup by Molecule

• Small Molecule

• Large Molecule

Market Breakup by Drug Type

• Branded or Innovative Active Pharmaceutical Ingredients

• Generic Active Pharmaceutical Ingredients

• Over The Counter (OTC) Drugs

Market Breakup by Type of Manufacturer

• Captive API Manufacturer 

• Merchant API Manufacturer

Market Breakup by Potency

• Low to Moderate 

• Potent to Highly Potent

Market Breakup by API Type

• Synthetic

• Biological

• Plant Extracts

Market Breakup by Therapeutic Application

• Cardiology 

• CNS & neurology 

• Oncology 

• Orthopedic 

• Endocrinology 

• Pulmonology 

• Gastroenterology 

• Nephrology 

• Ophthalmology 

• Other

Market Breakup by End User

• Pharmaceutical and Biotechnology Industry

• CROs

• CMOs

• Others

Market Breakup by Region

• North America 

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Active Pharmaceutical Ingredients (API) Market Analysis

The rising proliferation of chronic conditions has led to a rise in drug demand and, thus, to an increase in the global active pharmaceutical ingredients (API) market growth. In addition, some manufacturers are investing in R&D activities in order to offer higher quality, low-cost APIs, which can help cure illnesses outside the reach of small molecular medicinal products. Therefore, pharmaceutical firms move their manufacturing facilities to developing economies and outsource their operations to maximize production and increase input costs. In addition, there is likely to be a substantial increase in the market for generic APIs as a result of a loss of patent rights for blockbuster drugs worth several billion dollars over the next few years.

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The growing number of blockbusters patent expiries is among the key drivers of this industry and provides a substantial chance to generic active pharmaceutical ingredients. In addition, the demand for active pharmaceutical ingredients for bio-based substances has been rising. The global biologics market is currently showing a strong growth, which is catalysed by its high power and ability to treat diseases other than small molecule medicines. This has led to a high demand for APIs and their biosimilar versions of marketed biological drugs. The ageing population, higher expenditure on healthcare, and increased prevalence of lifestyle diseases are the other factors that are catalysing the market development.

Active Pharmaceutical Ingredients (API) Market: Competitive Landscape

The key features of the market report include patent analysis, grants analysis, clinical trials analysis, funding and investment analysis, partnerships, and collaborations analysis by the leading key players. The major companies in the market are as follows:

• Novartis AG

• Sanofi 

• Pfizer Inc. 

• Johnson & Johnson Private Limited 

• Abbott 

• Teva Pharmaceutical Industries Ltd. 

• Bausch Health Companies Inc. 

• UCB S.A. 

• Sunovion Pharmaceuticals Inc. 

• Jazz Pharmaceuticals, Inc.

• AstraZeneca

• GSK plc

• Takeda Pharmaceutical Company Limited 

• Sumitomo Dainippon Pharma Co., Ltd. 

• Cadila Pharmaceuticals

Key Highlights of the Report