Huge Growth Expected in Active Pharmaceutical Ingredient Market in Future
According to the World Health Organization (WHO), ‘active pharmaceutical ingredient (API)’ refers to any substance or a blend of substances that is used in finished pharmaceutical products. These substances intend to furnish pharmacological activity in products used to diagnose, cure, mitigate, prevent, or treat diseases and items that have a direct effect in modifying, correcting, and restoring physiological functions in human beings. According to the U.S. Food and Drug Administration (USFDA), major steps or operations in an API production process include multi-step fermentation and chemical synthesis, testing, purification, labeling, drying, crystallization, packing, and milling.
The surging demand for APIs can be primarily attributed to the booming geriatric population. Owing to this reason, the active pharmaceutical ingredient market size is expected to rise from about $190 billion in 2020 to around $300 billion by 2030. The World Population Ageing 2020 report estimates that the global population of people aged 65 years and above will reach around 1.5 billion by 2050. In 2020, the population of this age pool stood at 727 million. Due to a weak immune system, the elderly create a high demand for medicated drugs for treating different disorders and diseases.
To meet the escalating need for drugs, pharmaceutical companies use generic APIs and innovative APIs. In recent years, innovative APIs have been used in larger quantities due to the rising drug research and development (R&D) activities by API companies, surging number of favorable government regulations, and soaring number of new and effective medicines. These APIs are produced by companies such as Pfizer Inc., Teva Pharmaceutical Industries Ltd., Eli Lilly and Company, Novartis International AG, Mylan N.V., Merck & Co. Inc., Sanofi S.A., AstraZeneca plc., and Boehringer Ingelheim International GmbH.
Nowadays, companies operating in the active pharmaceutical ingredient market are focusing on product launches to gain a competitive edge. For instance, in October 2019, Amneal Pharmaceuticals Inc. introduced a generic version of Invega extended-release tablets in four dosages: 9 mg, 6 mg, 3 mg, and 1.5 mg. Similarly, in June 2021, Bajaj Healthcare Ltd. launched Ivejaj, an anti-parasitic drug, which can be used to treat COVID infection. The company developed this formulation and API for Ivermectin through its in-house R&D team.
According to P&S Intelligence, North America accounted for the largest share in the active pharmaceutical ingredient market in 2020 due to the mounting R&D investments in drug development, enhancing healthcare infrastructure, and rising technological advancements in the region. The Asia-Pacific (APAC) is expected to witness the fastest growth during the forecast period (2021–2030) due to the existence of a large patient pool, presence of a large number of generic drug manufacturing companies, and surge in the healthcare expenditure in the region.
Thus, the expanding geriatric population and rising innovations by pharmaceutical companies will fuel the need for APIs in the coming years.
Source: P&S Intelligence
Factors, such as the rising cases of lifestyle-associated and chronic diseases, mounting healthcare ...
According to the estimates of the market research organization, P&S Intelligence, the market will de ...
According to a study conducted by P&S Intelligence, the catheters and bands market in Nepal, Banglad ...