Global Active Pharmaceutical Ingredients (API) Market Insights Forecasts to 2033

• The Global Active Pharmaceutical Ingredients (API) Market Size was Valued at USD 204.98 Billion in 2023
• The Market Size is Growing at a CAGR of 6.75% from 2023 to 2033
• The Worldwide Active Pharmaceutical Ingredients (API) Market Size is Expected to Reach USD 393.84 Billion by 2033
• Asia Pacific is Expected to Grow the fastest during the forecast period.

The Active Pharmaceutical Ingredients (API) Market Size is Anticipated to Exceed USD 393.84 Billion by 2033, Growing at a CAGR of 6.75% from 2023 to 2033.

Market Overview

The main components of pharmaceuticals that have a therapeutic effect are called active pharmaceutical ingredients, or APIs. These are drugs that are biologically active and are used to treat illnesses. APIs are available in a range of dosage forms, including tablets, capsules, and injections, and they can be synthetic or derived from natural materials. The active pharmaceutical ingredients (API) market is expected to show a positive outlook as pharmaceutical and biotechnology companies continue to advance and innovate therapeutic drugs. The rising prevalence of chronic diseases, the growing demand for personalized medicine, and the emergence of novel drug delivery devices are all expected to play a significant role in driving active pharmaceutical ingredients (API) market growth over the forecast period. Furthermore, the widespread use of APIs by generic drug manufacturers to produce low-cost alternatives to brand-name medications is driving the active pharmaceutical ingredient (API) market growth. Furthermore, the increasing commercialization of biopharmaceuticals and biologics, such as monoclonal antibodies, recombinant proteins, and vaccines, is driving market growth.

Report Coverage

This research report categorizes the market for the active pharmaceutical ingredients (API) market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the global active pharmaceutical ingredients (API) market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the active pharmaceutical ingredients (API) market.

Driving Factors

The increasing global prevalence of chronic diseases is driving the active pharmaceutical ingredients (APIs) market. Diabetes, cardiovascular disease, and cancer are becoming more prevalent as populations age and lifestyles change. APIs are critical components in the formulation of medications to treat chronic diseases, which drives demand for these ingredients. As a result, active pharmaceutical ingredient manufacturers require a consistent supply of APIs to meet the increasing demand for effective treatments, which is driving market growth. Furthermore, the leading players' shifting preferences toward more patient-specific therapies are driving the active pharmaceutical ingredient industry forward. Aside from that, ongoing advancements in targeted drug delivery systems to improve medicine efficacy, reduce side effects, and improve patient compliance are all positively influencing the growth of the global active pharmaceutical ingredients (API) market.

Restraining Factors

Producing high-quality active pharmaceutical ingredients (API) necessitates significant investments in technology and infrastructure, resulting in high manufacturing costs. The active pharmaceutical ingredients (APIs) market is highly regulated, making compliance with strict regulatory standards difficult and costly for manufacturers.  

Market Segmentation

The active pharmaceutical ingredients (API) market share is classified into type, drug type, and application.

• The natural segment is expected to hold the largest share of the active pharmaceutical ingredients (API) market during the forecast period.   

Based on the type, the active pharmaceutical ingredients (API) market is divided into synthetic and natural. Among these, the natural segment is expected to hold the largest share of the active pharmaceutical ingredients (API) market during the forecast period. Consumers' shifting preferences for natural and organic products are helping to drive the growth of natural APIs in the global active pharmaceutical ingredients (API) market. Furthermore, natural APIs are less common than synthetic APIs, despite their presence in numerous critical drugs such as insulin and penicillin. Natural APIs include morphine, codeine, and quinine.

• The generic segment is expected to grow at the fastest CAGR in the active pharmaceutical ingredients (API) market during the forecast period.   

Based on the drug type, the active pharmaceutical ingredients (API) market is divided into branded and generic. Among these, the generic segment is expected to grow at the fastest CAGR in the active pharmaceutical ingredients (API) market during the forecast period. Generic APIs are generally less expensive than their branded counterparts. This cost-effectiveness appeals to healthcare systems, insurers, and patients seeking less expensive treatment options. As healthcare costs rise globally, there is a growing push to use generics to cut overall costs.

• The oncology segment is expected to grow at the fastest CAGR in the active pharmaceutical ingredients (API) market during the forecast period.   

Based on the application, the active pharmaceutical ingredients (API) market is divided into pulmonology, oncology, orthopedics,  ophthalmology, cardiology, neurology, and others. Among these, the oncology segment is expected to grow at the fastest CAGR in the active pharmaceutical ingredients (API) market during the forecast period. The incidence of cancer has significantly increased worldwide. As populations age and lifestyles change, the prevalence of cancers like lung, breast, prostate, and colorectal cancers has increased. This increases the demand for oncology drugs, which raises the demand for oncology APIs.  

Regional Segment Analysis of the Global Active Pharmaceutical Ingredients (API) Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is anticipated to hold the largest share of the global active pharmaceutical ingredients (API) market over the predicted timeframe.

North America is anticipated to hold the largest share of the active pharmaceutical ingredients (API) market over the predicted timeframe. The North American market is distinguished by an increasing prevalence of chronic diseases and increased government initiatives for the development of novel drugs. In addition, the rapid adoption of biological drugs by patients for the treatment of various chronic disorders is driving demand for the biological API segment in North America. For example, the Alzheimer's Association reports that approximately 6.2 million people over the age of 65 in the United States suffer from Alzheimer's dementia, with that figure expected to rise to 12.7 million by 2050. As a result, the increased prevalence of such chronic disorders has fueled the growth of this market in North America.

Asia Pacific is expected to grow at the fastest pace in the active pharmaceutical ingredients (API) market during the forecast period. The growing number of contract manufacturing organizations and pharmaceutical industries in countries such as China and India is expected to drive growth in the Asia Pacific market. These countries have become a popular destination for outsourcing active ingredient manufacturing due to factors such as lower labor costs and an abundance of raw materials for production. Furthermore, favorable regulatory policies in Asia Pacific are encouraging many manufacturers to expand their manufacturing capacities in the region, thereby driving the growth of this market.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the active pharmaceutical ingredients (API) market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Johnson & Johnson Private Limited
• Sanofi
• Eli Lilly & Company
• Abbott
• Pfizer Inc.
• Sunovion Pharmaceuticals Inc.
• Novartis AG
• Lonza Group AG
• Teva Pharmaceutical Industries Ltd.
• Bausch Health Companies Inc.
• GSK plc
• Jazz Pharmaceuticals, Inc.
• Sumitomo Dainippon Pharma Co., Ltd.
• AstraZeneca
• Cadila Pharmaceuticals
• Takeda Pharmaceutical Company Limited
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In November 2023, EUROAPI announced the completion of its acquisition of BianoGMP ("Biano"), which strengthened its CDMO capabilities in the rapidly expanding oligonucleotide market.

• In June 2023, Lonza, a global manufacturing partner in the pharmaceutical, biotech, and nutraceutical industries, has announced the acquisition of Synaffix B.V. (Synaffix), a biotechnology company focused on commercializing its clinical-stage technology platform for ADC development. Synaffix revenues and margins will be recognized within the Lonza company beginning on the date of purchase.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the Active Pharmaceutical Ingredients (API) market based on the below-mentioned segments: 

Global Active Pharmaceutical Ingredients (API) Market, By Type

• Synthetic
• Natural

Global Active Pharmaceutical Ingredients (API) Market, By Drug Type

• Branded
• Generic

Global Active Pharmaceutical Ingredients (API) Market, By Application

• Pulmonology
• Oncology
• Orthopedic
• Ophthalmology
• Cardiology
• Neurology
• Others

Global Active Pharmaceutical Ingredients (API) Market, Regional

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa