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Active Pharmaceutical Ingredients Market Worldwide Trend by Leading Players Sanofi, Bayer, Pfizer, GlaxoSmithKline and More – Outlet 2018 to 2023

October 1st, 2018 Market Research Future Releases

MarketResearchFuture.com Added a Report “Active Pharmaceutical Ingredients Market” The Active Pharmaceutical Ingredient (API) Market Globally is Expected to Expand with a CAGR of 4.93 % During the Forecast Period while Earning Revenues Past the USD 215 Billion Mark by the year 2023.

Active Pharmaceutical Ingredients Market – Overview

The Global Active Pharmaceutical Ingredient (API) Market is expected to witness a moderate CAGR of 4.93% during the prognosis period (2018-2023), reports Market Research Future (MRFR). The APIs have proven to be an asset for multiple pharmaceutical brands owing to the effectiveness of the products.

The compound is organic with a unique chemical structure and stereochemistry and is used in the manufacturing of pharmaceutical drugs as a biologically active compound.

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Active Pharmaceutical Ingredients Market – Market Competition

The market is well poised with the presence of international and regional brands. Furthermore, the emergence of APAC has changed the market scenario considerably. For instance, Piramal Pharma Solutions (PPS) is investing $55 million across its sites in North America and Asia with an eye on expansion of its API manufacturing capabilities and capacities. After experiencing growth in Japan, Sterling Pharma Solutions is planning to explore the region. Other big players are banking on conventional merger and acquisition method. Ardena’s acquisition of ChemConnection can be considered exemplary. Cambrex in a decisive mode has announced an expansion in Milan, North Carolina, and in a Swedish site.

The key players influencing the market are Boehringer Ingelheim GmbH, Bayer AG, Pfizer Inc., Sanofi, F. Hoffmann-La Roche AG, Eli Lilly and Company, and others.

Active Pharmaceutical Ingredients Market – Segmentation

The global market of active pharmaceutical ingredients is segmented by manufacturing process, synthesis, formulation, application, and molecule.

By manufacturing process, the market is segmented into captive manufacturing and contract manufacturing. The captive manufacturing segment is expected to dominate the market. Once a stronghold of Europe, this market is now slowly shifting towards Asia Pacific (APAC). Low manufacturing cost and high demand for generic drugs are going to propel APAC market.

Synthesis-wise segmentation includes synthetic and biotech. New product approvals, easy manufacturing process, and the introduction of the new synthetic molecule can boost the segment further. However, advances in biotechnology and growing demand for biopharmaceutical can encourage the growth of biotech APIs which are expected to garner a faster expansion rate.

Formulation-based segmentation includes Generic API and Innovative API. Innovative APIs are expected to dictate the market owing to the demand for the same in various chronic diseases such as cancer. Furthermore, FDA is showing relaxation in the production of such medicines resulting in the growth of this segment.

Based on the application, the market is segmented into cardiovascular disease, oncology, neurological disorders, orthopedic disorders, respiratory, gastrointestinal disorders, urology, and others. As per the reports of the World Health Organization (WHO), people mostly succumb to cancer. Hence, oncology draws in the maximum amount of revenue.

Molecule-wise the market comprises small and large molecule. The market is currently experiencing a demand for small molecules owing to newly developed small molecules drugs, increasing outsourcing and burgeoning pharmaceutical industry in developing nations.

Active Pharmaceutical Ingredients Market – Drivers and Restraints

Rapid urbanization and growing healthcare awareness have resulted in increasing healthcare expenditure, and this has been a global phenomenon. Branded generic drugs are enjoying a higher adoption rate, and the case is the same for the specialty medicines. Among the other factors, rising contraction of chronic diseases such as cardiovascular diseases, obesity, diabetes and others have given a boost to the need for APIs in the market.

The market is also getting propelled by the intense need for commercialization of drugs that would curb the cost and increasing expenditure in research and development can prove to be boons for the global API market.

Patent expiry of various biological drugs can open the market further for APIs. The market also benefits from supply chain consolidation. However, skilled professionals in this segment is a rarity and are impeding the production. The medicines are also not readily accessible in developing countries and are failing to explore the opportunities given by the developing countries. Also, in various countries, stringent regulations are posing as barriers.

Active Pharmaceutical Ingredients Market – Industry Trends

Swiss-based company Kemiex has recently launched an online trading solution for business-to-business (B2B) communications in partnership with insurance firm Atradius. The industry was expecting a reform in supply chain consolidation, and this step can revolutionize the market. E-commerce giants such as Amazon are also expected to enter the market and can cause massive disruption regarding the price.

Active Pharmaceutical Ingredients Market – Regional Analysis:

The global market for APIs covers namely Europe, the Americas, Asia Pacific (APAC), and the Middle East & Africa (MEA).

The Americas generate the maximum amount of the global market share and is expected to do so in the foreseeable future. A number of advantages have gone in its favor such as well-sustained small molecule segment in Canada and the U.S. The pharmaceutical sector develops rapidly and enjoys a formidably structured system.

In Europe, Germany and France contribute the most. Governments of the region strongly support the consumption of generic drugs over the branded drugs which in turn helps in revenue generation.

APAC is expected to be the fastest growing segment owing to low labor cost, contract manufacturing services and high investments in drug researches. In fact, Europe has outsourced most of their productions to India and China to restrain labor cost and energy expenditure. India is currently one of the leading exporters with network spread across 200 countries.

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About Market Research Future:

At Market Research Future (MRFR), we enable our customers to unravel the complexity of various industries through our Cooked Research Report (CRR), Half-Cooked Research Reports (HCRR), Raw Research Reports (3R), Continuous-Feed Research (CFR), and Market Research & Consulting Services.

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