Active Pharmaceutical Ingredients Market by Manufacturing Type and Geography - Forecast Analysis 2021-2025
- Published: Oct 2021
- Pages: 120
- SKU: IRTNTR40608
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The active pharmaceutical ingredients (API) market share is expected to increase by USD 64.53 billion from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 6.1%.
This API market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers API market segmentations by manufacturing type (captive APIs and contract APIs) and geographic (APAC, North America, Europe, and ROW). The API market report also offers information on several market vendors, including Amneal Pharmaceuticals Inc., Cadila Healthcare Ltd., Dr. Reddy's Laboratories Ltd., GlaxoSmithKline Plc, Koninklijke DSM NV, Mylan NV, Novartis AG, Pfizer Inc., Sun Pharmaceutical Industries Ltd., and Teva Pharmaceutical Industries Ltd. among others.
What will the Active Pharmaceutical Ingredients (API) Market Size be During the Forecast Period?
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Active Pharmaceutical Ingredients (API) Market: Key Drivers, Trends, and Challenges
Based on our research output, there has been a neutral impact on the market growth during and post COVID-19 era. The evolving API manufacturing scenario in developing countries is notably driving the API market growth, although factors such as high investment costs and concern of huge financial loss may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the active pharmaceutical ingredients (API) industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Active Pharmaceutical Ingredients Market Driver
One of the key factors driving the API market growth is the evolving API manufacturing scenario in developing countries. Considering the presence of developed infrastructure and growing economic development, India and China have started producing high-quality APIs and drug intermediates for regulated markets. The strong preference for generic drugs compared with innovative or branded drugs is one of the factors fueling the US pharmaceutical market growth. On average, the manufacturing cost of APIs for generic oral solids, such as tablets and capsules, accounts for approximately 40%-50% of the production cost. In a highly competitive market, where the ability to offer a low price is vital, generic drug manufacturers seek competitive advantages by outsourcing bulk drug manufacturing activities to reliable API manufacturers in developing countries, who can deliver the APIs at a low cost. This is expected to drive the growth of the market during the forecast period.
Key Active Pharmaceutical Ingredients Market Trend
The increasing geriatric population is the major trend influencing the API market growth. The risk of acquiring or developing chronic illness in people increases with their age, which, in turn, propels the demand for various therapeutics for their treatment, consequently leading to an increase in demand for APIs. Comorbid conditions among geriatric people (aged 65 years and above) along with sleep, cognition, strength, and physical balance are the factors that negatively impact a person's ability to function properly and make disease management more difficult. The rise in the number of geriatric people increases the incidence of various chronic diseases, which leads public healthcare professionals to rely on medication regime management to maintain the geriatric people's quality of life. The availability of advanced healthcare infrastructure and the high disposable income of people also support the accessibility to technologically advanced diagnostic equipment, leading to increased diagnosis of age-related diseases in the susceptible patient population, thereby increasing patient adoption of different therapeutics.
Key Active Pharmaceutical Ingredients Market Challenge
High investment cost and concern of huge financial loss is one of the key challenges hindering the API market growth. The low-cost structure has led to more rapid and expansive growth in the Indian pharmaceutical ingredient market growth. Regulatory scrutiny of API manufacturers, particularly in Asia, remains very high; however, quality problems continue to persist, mainly due to the intensive API manufacturing in the region. An increase in the general WLs issued by the US FDA to API manufacturers has led these manufacturers to improve their API manufacturing facilities and adherence to the GMP protocol. This, in turn, requires an increased investment of time, labour, and continuous availability of funds to upgrade the manufacturing facilities as per the validated GMP protocol. Thus, making it difficult to achieve economies of scale by API manufacturers under such a stringent regulatory framework. Failure to adhere to the validated GMP protocol may restrict the entry of bulk actives into the regulated market, thus, exposing API manufacturers to huge financial losses. This discourages manufacturers from venturing into the API industry, thereby limiting the growth prospects of the global active pharmaceutical ingredients market.
This active pharmaceutical ingredient (API) market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Parent Market Analysis
Technavio categorizes the global API market as a part of the global pharmaceuticals market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the active pharmaceutical ingredients market during the forecast period.
Who are the Major Active Pharmaceutical Ingredients (API) Market Vendors?
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
- Amneal Pharmaceuticals Inc.
- Cadila Healthcare Ltd.
- Dr. Reddy's Laboratories Ltd.
- GlaxoSmithKline Plc
- Koninklijke DSM NV
- Mylan NV
- Novartis AG
- Pfizer Inc.
- Sun Pharmaceutical Industries Ltd.
- Teva Pharmaceutical Industries Ltd.
This statistical study of the API encompasses successful business strategies deployed by the key vendors. The active pharmaceutical ingredients market is fragmented and the vendors are deploying growth strategies such as investing heavily in R&D activities to compete in the market.
Product Insights and News
- Amneal Pharmaceuticals Inc. - The company performs captive manufacturing of APIs for its own finished pharmaceutical products.
- Amneal Pharmaceuticals Inc. - In July 2020, the company received the Abbreviated New Drug Application (ANDA) approval from the US FDA for a generic version of Fluphenazine Hydrochloride Tablets.
To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The active pharmaceutical ingredients market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Active Pharmaceutical Ingredients (API) Market Value Chain Analysis
Our report provides extensive information on the value chain analysis for the API market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The report has further elucidated other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
Which are the Key Regions for the Active Pharmaceutical Ingredients (API) Market?
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66% of the market's growth will originate from APAC during the forecast period. China, India, and Japan are the key markets for active pharmaceutical ingredients (API) in APAC. Market growth in this region will be faster than the growth of the market in other regions.
China accounts for the largest share in the active pharmaceutical ingredients market in APAC. The Chinese pharmaceutical industry mainly produces basic chemicals and APIs. The major reason for China's ability to capture the global API market is the cheap and cost-effective production of APIs, resulting from its large-scale manufacturing which will facilitate the active pharmaceutical ingredients market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
Due to the ongoing COVID-19 pandemic, the Directorate General of Foreign Trade (DGFT) made changes in its export policy on March 3, 2020, and banned several formulations. Later, on March 25, 2020, this export policy was changed again, and the 'wonder drug, hydroxychloroquine (which is considered in the treatment of COVID-19) too was included in the list. These changes were made in light of a shortage of API imports from the global market, especially from China, which is used in the manufacturing of these formulations.
What are the Revenue-generating Manufacturing Type Segments in the Active Pharmaceutical Ingredients (API) Market?
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The API market share growth by the captive APIs will be significant during the forecast period. The increased adoption of healthcare services has benefited the global active pharmaceutical ingredients market significantly. There is a huge focus on increasing the accessibility to affordable healthcare services, and this has led to increased demand for access to low-cost medicines, in turn inducing the demand for low-cost APIs for manufacturing finished drugs.
Besides the above-mentioned factors, the post-COVID-19 impact has brought forth a slowdown in or fast-tracked the demand for the service or product. This report provides an accurate prediction of the contribution of all the segments to the growth of the API market size and actionable market insights on the post-COVID-19 impact on each segment.
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Active Pharmaceutical Ingredients (API) Market Scope
Growth momentum & CAGR
Accelerate at a CAGR of 6.1%
Market growth 2021-2025
$ 64.53 billion
YoY growth (%)
APAC, North America, Europe, and ROW
Performing market contribution
APAC at 66%
Key consumer countries
China, India, US, Japan, and Germany
Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled
Amneal Pharmaceuticals Inc., Cadila Healthcare Ltd., Dr. Reddy's Laboratories Ltd., GlaxoSmithKline Plc, Koninklijke DSM NV, Mylan NV, Novartis AG, Pfizer Inc., Sun Pharmaceutical Industries Ltd., and Teva Pharmaceutical Industries Ltd.
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.
What are the Key Data Covered in this Active Pharmaceutical Ingredients (API) Market Report?
- CAGR of the market during the forecast period 2021-2025
- Detailed information on factors that will drive API market growth during the next five years
- Precise estimation of the active pharmaceutical ingredients market size and its contribution to the parent market
- Accurate predictions on upcoming trends and changes in consumer behaviour
- The growth of the active pharmaceutical ingredients (API) industry across APAC, North America, Europe, and ROW
- A thorough analysis of the market's competitive landscape and detailed information on vendors
- Comprehensive details of factors that will challenge the growth of active pharmaceutical ingredients market vendors
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1 Executive Summary
2 Market Landscape
- 2.1 Market ecosystem
- Exhibit 01: Parent market
- 2.2 Market characteristics
- Exhibit 02: Market characteristics
- 2.3 Value chain analysis
- Exhibit 03: Value chain analysis - Pharmaceuticals market
3 Market Sizing
- 3.1 Market definition
- Exhibit 04: Offerings of vendors included in the market definition
- 3.2 Market segment analysis
- Exhibit 05: Market segments
- 3.3 Market size 2020
- 3.4 Market outlook: Forecast for 2020 - 2025
- Exhibit 06: Global - Market size and forecast 2020 - 2025 ($ billion)
- Exhibit 07: Global market: Year-over-year growth 2020 - 2025 (%)
4 Five Forces Analysis
- 4.1 Five forces summary
- Exhibit 08: Five forces analysis 2020 & 2025
- 4.2 Bargaining power of buyers
- Exhibit 09: Bargaining power of buyers
- 4.3 Bargaining power of suppliers
- Exhibit 10: Bargaining power of suppliers
- 4.4 Threat of new entrants
- Exhibit 11: Threat of new entrants
- 4.5 Threat of substitutes
- Exhibit 12: Threat of substitutes
- 4.6 Threat of rivalry
- Exhibit 13: Threat of rivalry
- 4.7 Market condition
- Exhibit 14: Market condition - Five forces 2020
5 Market Segmentation by Manufacturing Type
- 5.1 Market segments
- Exhibit 15: Manufacturing type - Market share 2020-2025 (%)
- 5.2 Comparison by manufacturing type
- Exhibit 16: Comparison by manufacturing type
- 5.3 Captive APIs - Market size and forecast 2020-2025
- Exhibit 17: Captive APIs - Market size and forecast 2020-2025 ($ billion)
- Exhibit 18: Captive APIs - Year-over-year growth 2020-2025 (%)
- 5.4 Contract APIs - Market size and forecast 2020-2025
- Exhibit 19: Contract APIs - Market size and forecast 2020-2025 ($ billion)
- Exhibit 20: Contract APIs - Year-over-year growth 2020-2025 (%)
- 5.5 Market opportunity by manufacturing type
- Exhibit 21: Market opportunity by manufacturing type
6 Customer landscape
7 Geographic Landscape
- 7.1 Geographic segmentation
- Exhibit 23: Market share by geography 2020-2025 (%)
- 7.2 Geographic comparison
- Exhibit 24: Geographic comparison
- 7.3 APAC - Market size and forecast 2020-2025
- Exhibit 25: APAC - Market size and forecast 2020-2025 ($ billion)
- Exhibit 26: APAC - Year-over-year growth 2020-2025 (%)
- 7.4 North America - Market size and forecast 2020-2025
- Exhibit 27: North America - Market size and forecast 2020-2025 ($ billion)
- Exhibit 28: North America - Year-over-year growth 2020-2025 (%)
- 7.5 Europe - Market size and forecast 2020-2025
- Exhibit 29: Europe - Market size and forecast 2020-2025 ($ billion)
- Exhibit 30: Europe - Year-over-year growth 2020-2025 (%)
- 7.6 ROW - Market size and forecast 2020-2025
- Exhibit 31: ROW - Market size and forecast 2020-2025 ($ billion)
- Exhibit 32: ROW - Year-over-year growth 2020-2025 (%)
- 7.7 Key leading countries
- Exhibit 33: Key leading countries
- 7.8 Market opportunity by geography
8 Drivers, Challenges, and Trends
- 8.1 Market drivers
- 8.2 Market challenges
- Exhibit 36: Impact of drivers and challenges
- 8.3 Market trends
9 Vendor Landscape
- 9.1 Competitive scenario
- 9.2 Vendor landscape
- Exhibit 37: Vendor landscape
- 9.3 Landscape disruption
- Exhibit 38: Landscape disruption
- Exhibit 39: Industry risks
10 Vendor Analysis
- 10.1 Vendors covered
- Exhibit 40: Vendors covered
- 10.2 Market positioning of vendors
- Exhibit 41: Market positioning of vendors
- 10.3 Amneal Pharmaceuticals Inc.
- Exhibit 42: Amneal Pharmaceuticals Inc. - Overview
- Exhibit 43: Amneal Pharmaceuticals Inc. - Business segments
- Exhibit 44: Amneal Pharmaceuticals Inc. - Key news
- Exhibit 45: Amneal Pharmaceuticals Inc. - Key offerings
- Exhibit 46: Amneal Pharmaceuticals Inc. - Segment focus
- 10.4 Cadila Healthcare Ltd.
- 10.5 Dr. Reddy’s Laboratories Ltd.
- Exhibit 52: Dr. Reddy’s Laboratories Ltd. - Overview
- Exhibit 53: Dr. Reddy’s Laboratories Ltd. - Business segments
- Exhibit 54: Dr. Reddy’s Laboratories Ltd. - Key news
- Exhibit 55: Dr. Reddy’s Laboratories Ltd. - Key offerings
- Exhibit 56: Dr. Reddy’s Laboratories Ltd. - Segment focus
- 10.6 GlaxoSmithKline Plc
- Exhibit 57: GlaxoSmithKline Plc - Overview
- Exhibit 58: GlaxoSmithKline Plc - Business segments
- Exhibit 59: GlaxoSmithKline Plc - Key news
- Exhibit 60: GlaxoSmithKline Plc - Key offerings
- Exhibit 61: GlaxoSmithKline Plc - Segment focus
- 10.7 Koninklijke DSM NV
- Exhibit 62: Koninklijke DSM NV - Overview
- Exhibit 63: Koninklijke DSM NV - Business segments
- Exhibit 64: Koninklijke DSM NV - Key news
- Exhibit 65: Koninklijke DSM NV - Key offerings
- Exhibit 66: Koninklijke DSM NV - Segment focus
- 10.8 Mylan NV
- Exhibit 67: Mylan NV - Overview
- Exhibit 68: Mylan NV - Business segments
- Exhibit 69: Mylan NV - Key news
- Exhibit 70: Mylan NV - Key offerings
- Exhibit 71: Mylan NV - Segment focus
- 10.9 Novartis AG
- Exhibit 72: Novartis AG - Overview
- Exhibit 73: Novartis AG - Business segments
- Exhibit 74: Novartis AG - Key news
- Exhibit 75: Novartis AG - Key offerings
- Exhibit 76: Novartis AG - Segment focus
- 10.10 Pfizer Inc.
- Exhibit 77: Pfizer Inc. - Overview
- Exhibit 78: Pfizer Inc. - Business segments
- Exhibit 79: Pfizer Inc. - Key news
- Exhibit 80: Pfizer Inc. - Key offerings
- Exhibit 81: Pfizer Inc. - Segment focus
- 10.11 Sun Pharmaceutical Industries Ltd.
- Exhibit 82: Sun Pharmaceutical Industries Ltd. - Overview
- Exhibit 83: Sun Pharmaceutical Industries Ltd. - Business segments
- Exhibit 84: Sun Pharmaceutical Industries Ltd- Key news
- Exhibit 85: Sun Pharmaceutical Industries Ltd. - Key offerings
- Exhibit 86: Sun Pharmaceutical Industries Ltd. - Segment focus
- 10.12 Teva Pharmaceutical Industries Ltd.
- Exhibit 87: Teva Pharmaceutical Industries Ltd. - Overview
- Exhibit 88: Teva Pharmaceutical Industries Ltd. - Business segments
- Exhibit 89: Teva Pharmaceutical Industries Ltd- Key news
- Exhibit 90: Teva Pharmaceutical Industries Ltd. - Key offerings
- Exhibit 91: Teva Pharmaceutical Industries Ltd. - Segment focus
- 11.1 Scope of the report
- 11.2 Currency conversion rates for US$
- Exhibit 92: Currency conversion rates for US$
- 11.3 Research methodology
- Exhibit 93: Research Methodology
- Exhibit 94: Validation techniques employed for market sizing
- Exhibit 95: Information sources
- 11.4 List of abbreviations
- Exhibit 96: List of abbreviations
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
- Manufacturers and suppliers
- Channel partners
- Industry experts
- Strategic decision makers
- Industry journals and periodicals
- Government data
- Financial reports of key industry players
- Historical data
- Press releases
- Collation of data
- Estimation of key figures
- Analysis of derived insights
- Triangulation with data models
- Reference against proprietary databases
- Corroboration with industry experts
- Market drivers
- Market challenges
- Market trends
- Five forces analysis
- Market size and forecast
- Market segmentation
- Geographical insights
- Competitive landscape
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Frequently Asked Questions?
- evolving API manufacturing scenario in developing countries
- Paradigm shift in API manufacturing
Key Questions Answered
- What are the key global market and the regional market share?
- What are the revenue-generating key market segments?
- What are the key factors driving and challenging this market’s growth?
- Who are the key market vendors and their growth strategies?
- What are the latest trends influencing the growth of this market?
- What are the variables influencing the market growth in the primary regions?
- What are the factors influencing the growth of the parent market?
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