Active Pharmaceutical Ingredients (API) Market to Surge at a CAGR of 6.4% by 2023

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The global active pharmaceutical ingredients (API) market is prognosticated to showcase promising growth in the coming years, according to a report published by Transparency Market Research (TMR). The market features vendors that have gained expertise in specific technologies, and are operating with cutting edge specialization in their production capacities. Leading names in the industry are Dow Chemicals, BASF and DuPont. Some other prominent players such as Teva, Sun Pharma, Cipla, Takeda, and Orchid Pharma, are seen expanding their business to emerging economies in the Asia Pacific such as India.

Vendors are expected to face the challenge of application of sophisticated technologies and gaining long-term contracts with international manufacturers, leading to optimized scale of economies. Manufacturers have been producing their own drugs to gain substantial profit margins and explore the pharmaceutical landscape better. The vendor landscape of the global active pharmaceutical ingredients market is moderately consolidated at the present. Due to stringency in quality checks and regulations, new players are hard-pressed to enter the market.

According to TMR’s report, the global active pharmaceuticals market is predicted to rise at a 6.4% CAGR over the forecast period from 2017 to 2023. The market stood at US$151,591.7 in 2017, and is predicted to attain US$219,601.9 by 2023.

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Higher Adoption of Quality Standards to Propel Growth

The global API market has witnessed tremendous growth over the last few decades owing to the increased use of drugs and biologics in the treatment of diseases. The increasing adoption of quality standards in API manufacturing such as Good Manufacturing Practices (GMP), current GMP (cGMP), and the global adoption of International Conference on Harmonisation (ICH) guidelines, have helped improve the safety standards. On the other hand, the API industry is facing the challenges such as, shortening the development time, reducing the cost of development, improving the process design and meeting the quality standard without compromising on the profitability. The global API market is likely to be impacted by a large number of innovative drugs going off patent in the recent years.

Rising use of specialty medicines is anticipated to grow the pharmaceutical spending worldwide with quicker growth in richer, developed nations as compared to their emerging counterparts. This is primarily because the former have adequate manufacturing units, a higher spending power, and greater emphasis on transparent pricing by assessing measuring effects on the population.

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Demand for Generic Drugs to Offer Rich Market Opportunity

Generic drugs benefit from the patent expiration of innovative drug as it makes them readily available in the market. The demand to produce quality medicines at lower and affordable costs creates a scenario, where the needs for generic drugs increase. It has been estimated that generic drugs save approximately USD 3 billion every week in the United States. In 2013, unbranded generic drugs accounted for more than 80% of the prescription drugs being distributed, primarily due to their low price for patients, payers, and the healthcare system. Therefore, the rise in the demand for generic drugs is expected to be one of the major drivers for the API market.

Other factors playing a vital role for the growth of this market include the rise in the geriatric population with an increase in chronic and lifestyles related disorders, technological advancements in the process of API manufacture, and rising preference for targeted therapy approach in cancer treatment.

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