by  Pharmaceutical intermediates are chemical compounds that are partially processed and require further chemical or enzymatic conversion to become active ingredients. They offer advantages like cost-effectiveness, stability, and ease of production.
The global pharmaceutical intermediates market is estimated to be valued at US$ 43.67 Billion 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, LANXESS. Key players are focusing on expanding their production facilities and product portfolios to gain a competitive edge in the market.
The growth of the Pharmaceutical Intermediates Market Size is driven by the increasing demand for generic drugs globally. The availability of low-cost generic drugs is helping increase access to healthcare, especially in developing economies. Generic drugs account for over 80% of total prescriptions filled in the US. Also, many blockbuster drugs are expected to lose their patents in the coming years, further fueling demand.
The pharmaceutical intermediates market is also witnessing significant growth in emerging markets of Asia Pacific, Latin America, and Middle East & Africa. Factors such as rising healthcare spending, growing geriatric population, and increasing prevalence of chronic diseases are driving the pharmaceutical industry in these regions. Key players are actively expanding their footprint in high growth markets to tap the business opportunities.
Market Key Trends
Growing adoption of green chemistry principles is one of the key trends shaping the pharmaceutical intermediates market. Manufacturers are increasingly focusing on developing sustainable and environment-friendly production processes to reduce pollution loads. Some of the green techniques adopted include using renewable raw materials, designing safer chemicals, optimizing energy efficiency, and minimization of derivatization during synthesis. This is helping reduce environmental footprint as well as production costs. Enhanced focus on sustainability will remain a major driver of innovation in the pharmaceutical intermediates industry going forward.
Porter’s Analysis
Threat of new entrants: Low barriers to entry in terms of capital requirements and technology favor new entrants. However, established players hold a greater market share with wide distribution network, production facilities, brand, and customer loyalty.
Bargaining power of buyers: Buyers have moderate bargaining power due to standardization across products. However, high volume production of well-established players gives them an advantage during negotiations.
Bargaining power of suppliers: Suppliers of raw materials like organic chemical intermediates and solvents have moderate bargaining power due to availability of substitutes and organized nature of industry.
Threat of new substitutes: Threat of substitutes is low due to high switching costs for specialized intermediates used in pharmaceutical manufacturing.
Competitive rivalry: High degree of competition due to large number of regional and global players. Competition is based on quality, reliability, technical support, and price.
Geographical regions with concentrated market value
North America dominates the global market owing to presence of major pharmaceutical companies and established healthcare infrastructure. Asia Pacific is the fastest growing region due to rising generic drug production in India and China along with growing pharmaceutical spending in India, China, and other Southeast Asian countries.
Fastest growing geographical region
Asia Pacific is the fastest growing region for the global pharmaceutical intermediates market driven by rising healthcare infrastructure, spending on pharmaceutical R&D, and presence of contract manufacturing hubs like India and China. Growth in generics production and patent expirations provide opportunities for local manufacturing of pharmaceutical intermediates in Asia Pacific countries.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
