Active Pharmaceutical Ingredients Market Projected to Surpass $372.4 Billion by 2030 at 6.8% CAGR, Reports Coherent Market Insights

The global Active Pharmaceutical Ingredients (API) market, valued at US$ 235 Billion in 2023, is anticipated to reach US$ 372.4 Billion by 2030, reflecting a Compound Annual Growth Rate (CAGR) of 6.8% between 2023 and 2030, as per findings by Coherent Market Insights (CMI).

Market Drivers:

• The surge in infectious diseases and chronic disorders fuels demand.
• High potent APIs segment witnesses fastest growth, driven by rising chronic diseases.
• Increasing demand for vaccines boosts API production for disease prevention.

Key Developments:

• RK Pharma Inc. secures up to US$ 200 million investment from PAG on June 6, 2023.
• Positive results announced by Ferring Pharmaceuticals for Phase 3 trial of SI-6603 on May 26, 2023.
• Propanc Biopharma purchases pharma-grade raw materials for PRP study in May 2022.
• Altasciences’ facility chosen by Respira Technologies for inhaled smoking cessation therapy in December 2021.

Market Opportunity:

• Biopharmaceuticals and innovative drug therapies drive API market growth.
• AstraZeneca’s Evusheld approval for COVID-19 treatment in the EU in September 2022 contributes to market expansion.

Market Cross-Sectional Analysis:

• High-potency APIs (HPAPIs) demand rises due to increasing cancer prevalence in North America.
• Merck doubles HPAPI production capacity in June 2022 with a new facility in Verona, USA.

Market Restraint:

• Strict quality standards imposed by regulatory authorities lead to significant investments for compliance.

Key Takeaways:

• HPAPI medicines are crucial in small molecule therapeutic research.
• Small molecules dominate new drug approvals, accounting for 79% in 2019.
• Injectable segment witnesses fastest growth in 2021 due to new regulatory approvals.

Regional Insights:

• Asia Pacific expected to exhibit the highest CAGR, driven by lower production costs and high-quality production centers.

Major Players:

• Key players include Teva Pharmaceutical Industries, Pfizer, Dr. Reddy’s Laboratories, Novartis, Mylan, and others.

Detailed Segmentation:

• Product Type: Low Potent APIs, High Potent APIs
• Molecular Type: Small Molecules, Large Molecules
• Formulation: Oral, Topical, Injectables, Drops
• Application: Diabetes, Oncology, Cardiovascular, CNS, Analgesics, Ophthalmic, Respiratory, Dermatology, Others
• Region: North America, Latin America, Europe, Asia Pacific, Middle East & Africa

The active pharmaceutical ingredients market is poised for significant growth, fueled by rising demand for innovative drug therapies, particularly in the biopharmaceutical sector. Strict regulatory standards, while acting as a restraint, contribute to ensuring the quality, safety, and efficacy of APIs. The Asia Pacific region stands out as a key driver with its lower production costs and high-quality production centers.

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