The global active pharmaceutical ingredient market size was US$ 179.0 billion in 2021. The global active pharmaceutical ingredient market size is forecast to reach US$ 322.9 billion by 2030, growing at a compound annual growth rate (CAGR) of 7.9% during the forecast period from 2022 to 2030. 

APIs (active pharmaceutical ingredients) are the components of pharmaceutical medicine that have the desired impact on the body in order to treat a condition. Chemical substances are processed to create APIs. The active ingredient of a biological medicine refers to a bulk process intermediate (BPI). APIs are of two types: synthetic and natural. It entails a sequence of processes, such as synthesis, to produce a certain chemical structural transformation from simple-looking molecules. The high temperature and pressure control procedures of the reactions utilized in the formulations of these APIs, which contain extremely flammable raw chemicals, make it a complicated and dangerous process.

Factors Influencing Market Growth

• The growing research and development activities for drug manufacturing, the rising importance of generics, and the increase in uptake of biopharmaceuticals drive the global active pharmaceutical ingredients market.
• Adverse drug price management policies and increased manufacturing costs in various countries may slow down the overall market growth.
• Growing production of biosimilars, which are generic versions of patented drugs (and thus don’t face the same severity in regulations), is forecast to offer lucrative opportunities for the global active pharmaceutical ingredients (API) market.

Impact Analysis of COVID-19

The COVID-19 pandemic had a positive impact on the global market. In order to treat the symptoms and numerous health conditions that a COVID-19 patient may have, such as high fever, cough, and cold, a variety of medications are employed, resulting in the pharmaceutical industry being the epicenter of the pandemic. As a result, the active pharmaceutical ingredients (API) market has grown during the COVID-19 pandemic.

Regional Insights

The Asia Pacific region is forecast to have lucrative growth in the market during the forecast period. As a result of the advances in active pharmaceutical ingredient (API) manufacturing, the rising biopharmaceutical sector, and the growing geriatric population. In addition, the government of India is bringing initiatives to boost biopharmaceutical products in the market, which will be advantageous for the market growth in the region. For example, the Department of Biotechnology (DBT) and Biotechnology Industry Research Assistance Council (BIRAC) brings various initiatives to encourage research and expansion activities in biotechnology-based drugs.

Leading Competitors

The leading prominent companies profiled in the global active pharmaceutical ingredient market are:

• Aurobindo Pharma
• Pfizer Inc.
• Novartis AG
• BASF SE
• Boehringer Ingelheim GmbH
• Dr. Reddy’s Laboratories Ltd
• Teva Pharmaceutical Industries Ltd
• Lupin Ltd.
• Viatris
• Sun Pharmaceutical Industries Ltd. 
• Other Prominent Players

Scope of the Report

The global active pharmaceutical ingredient market segmentation focuses on Business Mode, Synthesis Type, Type, Application, and Region.

Segmentation based on Business Mode

• Captive API
• Merchant API

Segmentation based on Synthesis Type

• Synthetic
• Biotech

Segmentation based on Type

• Generic
• Branded

Segmentation based on Application

• Cardiology
• Pulmonology
• Oncology
• Ophthalmology
• Neurology
• Orthopedic
• Other Applications

Segmentation based on Region

• North America
• The U.S.
• Canada
• Mexico
• Europe
• Western Europe
• The UK
• Germany
• France
• Italy
• Spain
• Rest of Western Europe
• Eastern Europe
• Poland
• Russia
• Rest of Eastern Europe
• Asia Pacific
• China
• India
• Japan
• Australia & New Zealand
• ASEAN
• Rest of Asia Pacific
• Middle East & Africa (MEA)
• UAE
• Saudi Arabia
• South Africa
• Rest of MEA
• South America
• Brazil
• Argentina
• Rest of South America