by Pharmaceutical intermediates are chemical compounds produced during the process of drug manufacturing that are further used to derive an active pharmaceutical ingredient (API). They help streamline drug development and manufacturing process while reducing costs for pharmaceutical companies. Growing aging population and increasing prevalence of chronic diseases are major factors driving the demand for affordable drugs. This has boosted the production of generic drugs worldwide and fueled the need for cost-effective pharmaceutical intermediates.
The Global Pharmaceutical Intermediates Market is estimated to be valued at US$ 43.67 Bn in 2024 and is expected to exhibit a CAGR of 8.1% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the global pharmaceutical intermediates are Evonik, Borregaard AS, Sudarshan Pharma, A.R. Life Science, Actylis, Saurav Chemicals Ltd., Lianhetech, Midas Pharma GmbH, Sanofi , BASF SE, Chiracon GmbH, Lonza, Chemcon Speciality Chemicals Limited., Modepro India Pvt. Ltd., Lifechem Pharma, Sarex, and LANXESS.
Growing demand for generic and OTC drugs across major markets is a key factor accelerating the growth of the Global Pharmaceutical Intermediates Market Demand. Low-cost intermediates allow generic drug makers to offer drugs at affordable prices. Increasing healthcare expenditures in emerging economies also contribute to rising adoption of low-cost generics.
Key players are expanding their geographical footprint to capitalize on high growth opportunities in Asia Pacific and Middle East & Latin American regions. These regions are expected to emerge as major producers and consumers of generic drugs over the coming years supported by their large population base and improving healthcare infrastructure.
Market key trends
Increased investment in process optimization and cost reduction by key players is a major trend witnessed in the global pharmaceutical intermediates market. Players are focusing on developing novel intermediate compounds through continuous process innovation. This helps reduce production costs and time required for drug synthesis. Another key trend is the growing application of multifunctional pharmaceutical intermediates in synthesizing complex drugs. These intermediates enable synthesizing API with multiple functional groups in fewer steps, lowering manufacturing costs. Sustainable production through green chemistry is also gaining increased emphasis in the market.
Porter’s Analysis
Threat of new entrants: The capital requirements and regulations such as patents makes it difficult for new players to enter the market.
Bargaining power of buyers: Individual buyers have limited bargaining power due to availability of substitutes but large pharmaceutical companies enjoy favorable bargaining power.
Bargaining power of suppliers: A few major suppliers control the key starting materials and intermediates required in the pharmaceutical industry giving them some bargaining power.
Threat of new substitutes: Moderate threat as new chemistries and synthesis routes can be developed as substitutes.
Competitive rivalry: Intense competition exists among the top players to gain market share and maintain leadership positions through continuous R&D investments.
Geographically, North America accounts for over 30% value share in global pharmaceutical intermediates market led by US due to presence of leading pharmaceutical companies and contract manufacturing organisations. Asia Pacific is expected to witness fastest growth over forecast period led by China and India on back of expansion of domestic pharmaceutical industry, growing contract manufacturing, and low manufacturing and labor costs attracting investments.
The pharmaceutical intermediates market in Europe accounts for around 25% value share globally. Countries like Germany, UK, Switzerland, Italy contribute significantly to the regional market. Growing generic drugs industry and expanding biotech sector supports the market growth. Latin America and Middle East & Africa are emerging as high potential markets attributable to increasing access to healthcare, growing pharmaceutical industry and demand for affordable medicines.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
