by The global Active Pharmaceutical Ingredient (API) Market is estimated to be valued at US$ 206.0 billion in 2021 and is expected to exhibit a CAGR of 6.8% over the forecast period 2021-2028, as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
The active pharmaceutical ingredient (API) market refers to the chemical compounds or biologically active substances used in the formulation of pharmaceutical drugs. These API are responsible for therapeutic effects and are crucial in treating various diseases and conditions. With the rising prevalence of chronic diseases and the increasing demand for generic drugs and biologics, the API market is experiencing significant growth.
B) Market Dynamics:
Driver One: Increasing Demand for Generic Drugs
The growing global demand for cost-effective medicines has led to an increased adoption of generic drugs. Generic drugs have the same API as their branded counterparts, but they are sold at lower prices. This increased demand for generic drugs is driving the growth of the API market.
For example, companies like Reddy’s Laboratories Ltd., Mylan N.V., and Lupin Limited are major players in the API market and have a strong presence in the generic drugs segment.
Driver Two: Rising Demand for Biologics
Biologics are complex molecules derived from living organisms and are used for the treatment of various diseases, including cancer, autoimmune disorders, and genetic diseases. The demand for biologics is increasing due to their high efficacy and targeted approach.
Companies like Novartis AG and Lonza Group are prominent players in the Active Pharmaceutical Ingredient (API) Market and have a strong focus on the development of biologics.
C) SWOT Analysis:
Strengths:
- Increasing demand for generic drugs
- Rising demand for biologics
Weaknesses:
- Regulatory challenges in API manufacturing
- Product quality and safety concerns
Opportunities:
- Increasing investments in research and development
- Growing demand for personalized medicine
Threats:
- Intense competition from Asian manufacturers
- Stringent regulatory requirements
D) Key Takeaways:
- The global API market is expected to witness high growth, exhibiting a CAGR of 6.8% over the forecast period 2021-2028, due to increasing demand for generic drugs and biologics.
- North America is expected to dominate the market during the forecast period, followed by Europe and Asia Pacific.
- Key players operating in the global API market include Reddy’s Laboratories Ltd., Novartis AG, Mylan N.V., Amneal Pharmaceuticals LLC, Lonza Group, Lupin Limited, Fresenius Kabi, Hikma Pharmaceuticals, Cipla Limited, Glenmark Pharmaceuticals Limited, Sun Pharmaceutical Industries Ltd., Endo International plc, Aurobindo Pharma Limited, Apotex Inc, Taro Pharmaceutical Industries Ltd, Stada Arzneimittel AG, Krka Pharmaceuticals, CordenPharma International, Evonik Industries AG, and Biological E. Limited.
In conclusion, the global API market is witnessing high growth due to the increasing demand for both generic drugs and biologics. The market is driven by factors such as the need for cost-effective medicines and the efficacy of biologics in treating various diseases. However, the market also faces challenges in terms of regulatory requirements and product quality. Nonetheless, with increasing investments in research and development and the growing demand for personalized medicine, the API market is expected to continue its growth trajectory in the coming years.
