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Active Pharmaceutical Ingredient Market to Attain US$ 307.5


Rockville, Nov. 27, 2023 (GLOBE NEWSWIRE) — The global Active Pharmaceutical Ingredient Market is exhibiting steady growth and is projected to expand at a CAGR of 4% to reach a size of US$ 307.5 billion by 2034-end. The global market continues to grow as an indispensable component within the pharmaceutical industry. APIs are the core substances that impart therapeutic effects in medications, making them crucial in drug formulation and production.

According to Fact.MR, a market research and competitive intelligence provider, the growing geriatric population and increasing prevalence of chronic diseases globally are key drivers influencing the market. As healthcare needs evolve, the active pharmaceutical ingredient market is witnessing significant expansion, driven by various factors influencing pharmaceutical manufacturing and research worldwide.

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Key Segments of Active Pharmaceutical Ingredient Industry Research Report

By API TypeBy Synthesis TypeBy Manufacturer TypeBy End User
  • Small Molecules
  • Peptides & Oligonucleotides
  • Carbohydrate Drugs
  • Steroidal Drugs
  • Others
  • Captive APIs
  • Merchant APIs
  • Pharmaceutical Companies
  • Biopharmaceutical Companies
  • CMOs
  • CDMOs

The surge in demand for generic drugs due to their cost-effectiveness and equivalent efficacy to branded medications is driving market growth. Technological advancements and a shift towards personalized medicine are influencing API manufacturing processes, fostering innovation, and enhancing drug efficacy.

Key Takeaways from Market Study

  • The global active pharmaceutical ingredient market is forecasted to expand at a CAGR of 4% from 2024 to 2034.
  • The market is projected to reach US$ 307.5 billion by the end of 2034.
  • Revenue from active pharmaceutical ingredients is estimated at US$ 207.9 billion in 2024.
  • North America set to account for 24.4% share of the global market in 2024.
  • The market in North America is anticipated to expand at 3% CAGR from 2024 to 2034.
  • The small molecules segment is projected to account for 90.3% share of the market in 2024.
  • The pharmaceutical companies segment is set to hold 37.3% market share in 2024.
  • Demand for active pharmaceutical ingredients in Latin America is predicted to rise at 4.6% CAGR over the next 10 years.

“Steady growth of the active pharmaceutical ingredient market signifies a transformative phase in the pharmaceutical landscape, with technological advancements and increasing healthcare demands steering the industry toward innovation and precision medicine,” says a Fact.MR analyst.

Rising Global Healthcare Needs Driving Demand for Precision Medicine

The evolving landscape of healthcare demands innovative medications and therapeutic solutions as it witnesses a surge in chronic diseases. The global demographic trend toward an older population leads to an increase in age-related illnesses and complex medical conditions. Global healthcare systems are still under a great deal of pressure from chronic illnesses such as cancer, diabetes, cardiovascular disease, and respiratory infections. This necessitates a steady supply of effective drugs, requiring pharmaceutical companies to invest extensively in R&D, particularly in innovative API formulations.

Increasing prevalence of infectious diseases and the need for vaccines and antiviral medications, exemplified by recent global health crises, underscores the urgency for responsive and adaptable pharmaceutical solutions. Demand for precision medicine and personalized therapies further amplifies the requirement for diverse and innovative APIs, tailored to address individual patient needs.

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Report AttributeDetails
Value Projection (2034)USD 307.5 Billion
Growth Rate (2024-2034)4% CAGR
No. of pages170 Pages
No. of Tables80 Tables
No. of Figures219 Figures


Competitive Landscape

The active pharmaceutical ingredient (API) market exhibits a competitive scenario marked by a combination of established pharmaceutical industry leaders, contract manufacturing organizations (CMOs), and emerging players aiming for market prominence through innovative approaches, strategic partnerships, and global expansions.

Key market players, including Pfizer, Novartis, Teva Pharmaceutical, and Merck & Co., command significant shares in the active pharmaceutical ingredient market. They leverage their extensive research capabilities, manufacturing expertise, and diverse product portfolios to maintain robust market positions.

  • In June 2022, Pfizer Inc. reaffirmed its commitment to U.S. manufacturing by investing US$ 120 million in its Kalamazoo, Michigan, facility. This investment supports U.S.-based production of PAXLOVIDTM, Pfizer’s COVID-19 oral medication, and is expected to enhance API and registered starting materials (RSMs) production for nirmatrelvir, a groundbreaking Mpro inhibitor. This development is projected to generate over 250 new high-skilled jobs at Pfizer’s Kalamazoo site.
  • Teva Pharmaceuticals is actively investing in biologics production technology for APIs, focusing on cells for biosimilars and new biologics to meet the growing demand for biopharmaceutical products.

More Valuable Insights on Offer

Fact.MR, in its new offering, presents an unbiased analysis of the active pharmaceutical ingredient market for 2018 to 2023 and forecast statistics for 2024 to 2034.

The study divulges essential insights into the market based on API type (small molecules, peptides & oligonucleotides, carbohydrate drugs, steroidal drugs), synthesis type (biotech, synthetic), manufacturer type (captive APIs, merchant APIs), and end user (pharmaceutical companies, biopharmaceutical companies, CMOs, CDMOs), across six major regions of the world (North America, Latin America, Europe, East Asia, South Asia & Oceania, and MEA).

Checkout More Related Studies Published by Fact.MR Research:

Sterile Active Pharmaceutical Ingredients Market: The global sterile active pharmaceutical ingredients market is valued at US$ 69.7 billion in 2022 and is forecasted to expand at a high CAGR of 6.4% to reach US$ 130.2 billion by 2032.

Pharmaceutical Coating Equipment Market: The pharmaceutical coating equipment market was estimated to be worth USD 0.85 Billion in 2022 and is expected to increase at a CAGR of 5.2% from 2022 to 2032. By 2032, it was estimated that the market would be worth USD 1.41 Billion.

Oral Solid Dosage Pharmaceutical Market: The global oral solid dosage pharmaceutical market was valued at US$ 524.6 billion in 2021 and is expected to top US$ 1.03 trillion in value by the end of 2032, expanding rapidly at a CAGR of 6.4% over the 2022-2032 study period.

About Us:

Fact.MR is a distinguished market research company renowned for its comprehensive market reports and invaluable business insights. As a prominent player in business intelligence, we deliver deep analysis, uncovering market trends, growth paths, and competitive landscapes. Renowned for its commitment to accuracy and reliability, we empower businesses with crucial data and strategic recommendations, facilitating informed decision-making and enhancing market positioning. With its unwavering dedication to providing reliable market intelligence, FACT.MR continues to assist companies in navigating dynamic market challenges with confidence and achieving long-term success. With a global presence and a team of experienced analysts, FACT.MR ensures its clients receive actionable insights to capitalize on emerging opportunities and stay ahead in the competitive landscape.

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