Active Pharmaceutical Ingredient Market: By Type of Synthesis, By Application Area and Geography  

Active Pharmaceutical Ingredient (API) Market Size, Share, Growth, Trends, and Global Industry Analysis: By Type of Synthesis (Biotechnological, Synthetic, Semi-Synthetic), By Application Area (Cardiovascular System, Oncology, CNS & Neurological System, Orthopaedic, Endocrinology, Pulmonology, Gastrointestinal System, Nephrology System, Ophthalmology, Others) and Region  

Active pharmaceutical ingredient market size was valued at US$ 191.3 billion in 2023 and is poised to grow at a CAGR of 6.1% from 2024-2030. Factors such as increased drug R&D, the rising incidence of chronic diseases, the growing importance of generics, and the rising consumption of biopharmaceuticals are all driving market expansion. Unfavorable medicine price control rules in several countries, as well as high production costs, are projected to limit the market's expansion. Government regulations that encourage API development, as well as changes in geopolitical situations, are propelling the market forward. The API market is facing significant changes as a result of COVID-19's supply chain disruption. Due to geopolitical circumstances and a desire to lessen reliance on China for API products, countries such as India are being favored over China for API export.

An active pharmaceutical ingredient (API) is a part of the drug that produces a pharmacological effect. Some drugs such as combination therapy have multiple active pharmaceutical ingredients (API) to treat different symptoms in different ways. APIs provide health benefits and play a vital role in prevention, treatment and diagnosis. Active Pharmaceutical ingredients may be synthesized by a chemical process, biotechnological process, and various other processes. Active pharmaceutical ingredients used for making a wide range of drugs that used to treat chronic diseases such as cancer, metabolic disorders, cardiovascular disorders, and neurological disorders, and others.

Some market players manufacture their own API and others buy from other API manufacturing companies to make drug formulations. Active pharmaceutical ingredient (API) market is driven by various factors such as the increase in the incidence of chronic diseases, and penetration of healthcare systems in underdeveloped countries increased the consumption of drugs are expected to fuel the growth of API market. Furthermore, a surge in healthcare spending, development of healthcare infrastructure around the world enables boost the active pharmaceutical ingredients market growth. However, unfavourable drug pricing policies in some countries and stringent regulatory requirements are hampering the market.

Active Pharmaceutical Ingredient (API) Market Key Developments:

  • In June 2017, Bristol-Myers Squibb Company signed a definitive purchase agreement to divest its small-molecule active pharmaceutical ingredient (API) production facility in Ireland, to South Korean firm SK BIOTEK CO. LTD.
  • In November 2014, US-based AbbVie has acquired a small molecule active pharmaceutical ingredient (API) manufacturing site in Tuas Biomedical Park, Singapore, to expand global operations of small molecule and biologics manufacturing.

Global Active Pharmaceutical Ingredient Api Market Summary

Study Period

2024-2030

Base Year

2023

CAGR

6.1%

Largest Market

North America

Fastest Growing Market

Asia Pacific

Active Pharmaceutical Ingredient Market Dynamics

Active Pharmaceutical Ingredient Market is witnessing a robust growth rate over the forecast period. Globally API market is highly fragmented with many players. Market players are banking on mergers and acquisitions to expand their manufacturing capabilities, and geographical expansions and to increase the market share. In September 2015, Sun Pharmaceuticals acquired GlaxoSmithKline's opiates business in Australia, to strengthen its active pharmaceutical ingredients (API) and analgesic drug segments. In July 2014, Hospira acquired an API manufacturing facility and an associated R&D facility from Orchid Chemicals & Pharmaceuticals, an Indian pharmaceutical company. This acquisition enables Hospira to vertically integrate into the beta-lactam antibiotic APIs. Furthermore, contract API manufacturing is growing at a significant rate owing to the low cost of manufacturing. New treatments for various diseases are expected to spur the demand for active pharmaceutical ingredients (API) across the globe.

Global Active Pharmaceutical Ingredient Api Market Segmentation Analysis

Report Benchmarks

Details

Report Study Period

2024-2030

Market Size in 2023

US$ 191.3 billion

Market CAGR

6.1%

By Type Of Synthesis

  • Biotechnological
  • Synthetic
  • Semi-Synthetic

By Application Area

  • Cardiovascular system
  • Oncology
  • CNS & Neurological system
  • Orthopaedic
  • Endocrinology
  • Pulmonology
  • Gastrointestinal system
  • Nephrology system
  • Ophthalmology
  • Others

By Region

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East and Africa (MEA)

Key Features of the Report

  • The active pharmaceutical ingredient market report provides granular level information about the market size, regional market share, historic market (2019-2023), and forecast (2024-2030)
  • The report covers in-detail insights about the competitor's overview, company share analysis, key market developments, and their key strategies
  • The report outlines drivers, restraints, unmet needs, and trends that are currently affecting the market
  • The report tracks recent innovations, key developments, and start-up details that are actively working in the market
  • The report provides a plethora of information about market entry strategies, regulatory framework, and reimbursement scenario
  • The report analyses the impact of the socio-political environment through PESTLE Analysis and competition through Porter's Five Force Analysis in addition to recent technology advancements and innovations in the market

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Frequently Asked Questions

The active pharmaceutical ingredient market size was valued at US$ 191.3 billion in 2023

Pfizer, Sanofi, Lonza Group, Novartis, GlaxoSmithKline, Catalent

North America is the fastest-growing region for the active pharmaceutical ingredient market

Author image

Author

Muni Kumar Meravath

Muni Kumar Meravath is a seasoned Healthcare Market Research Analyst with over 6 years of experience in the healthc.....

1.Executive Summary
2.Global Active Pharmaceutical Ingredient (API) Market Introduction 
2.1.Global Active Pharmaceutical Ingredient (API) Market  - Taxonomy
2.2.Global Active Pharmaceutical Ingredient (API) Market  - Definitions
2.2.1.Type Of Synthesis
2.2.2.Application
2.2.3.Distribution Channel
2.2.4.Region
3.Global Active Pharmaceutical Ingredient (API) Market Dynamics
3.1. Drivers
3.2. Restraints
3.3. Opportunities/Unmet Needs of the Market
3.4. Trends
3.5. Product Landscape
3.6. New Product Launches
3.7. Impact of COVID 19 on Market
4.Global Active Pharmaceutical Ingredient (API) Market Analysis, 2019 - 2023 and Forecast 2024 - 2030
4.1.  Market Analysis, 2019 - 2023 and Forecast, 2024 - 2030, (Sales Value USD Million)
4.2.  Year-Over-Year (Y-o-Y) Growth Analysis (%) 
4.3.  Market Opportunity Analysis 
5.Global Active Pharmaceutical Ingredient (API) Market  By Type Of Synthesis, 2019 - 2023 and Forecast 2024 - 2030 (Sales Value USD Million)
5.1. Biotechnological
5.1.1. Market Analysis, 2019 - 2023 and Forecast, 2024 - 2030, (Sales Value USD Million)
5.1.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) 
5.1.3. Market Opportunity Analysis 
5.2. Synthetic
5.2.1. Market Analysis, 2019 - 2023 and Forecast, 2024 - 2030, (Sales Value USD Million)
5.2.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) 
5.2.3. Market Opportunity Analysis 
5.3. Semi-Synthetic
5.3.1. Market Analysis, 2019 - 2023 and Forecast, 2024 - 2030, (Sales Value USD Million)
5.3.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) 
5.3.3. Market Opportunity Analysis 
6.Global Active Pharmaceutical Ingredient (API) Market  By Application, 2019 - 2023 and Forecast 2024 - 2030 (Sales Value USD Million)
6.1. Cardiovascular system
6.1.1. Market Analysis, 2019 - 2023 and Forecast, 2024 - 2030, (Sales Value USD Million)
6.1.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) 
6.1.3. Market Opportunity Analysis 
6.2. Oncology
6.2.1. Market Analysis, 2019 - 2023 and Forecast, 2024 - 2030, (Sales Value USD Million)
6.2.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) 
6.2.3. Market Opportunity Analysis 
6.3. CNS & Neurological system
6.3.1. Market Analysis, 2019 - 2023 and Forecast, 2024 - 2030, (Sales Value USD Million)
6.3.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) 
6.3.3. Market Opportunity Analysis 
6.4. Orthopaedic
6.4.1. Market Analysis, 2019 - 2023 and Forecast, 2024 - 2030, (Sales Value USD Million)
6.4.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) 
6.4.3. Market Opportunity Analysis 
6.5. Endocrinology
6.5.1. Market Analysis, 2019 - 2023 and Forecast, 2024 - 2030, (Sales Value USD Million)
6.5.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) 
6.5.3. Market Opportunity Analysis 
6.6. Pulmonology
6.6.1. Market Analysis, 2019 - 2023 and Forecast, 2024 - 2030, (Sales Value USD Million)
6.6.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) 
6.6.3. Market Opportunity Analysis 
6.7. Gastrointestinal system
6.7.1. Market Analysis, 2019 - 2023 and Forecast, 2024 - 2030, (Sales Value USD Million)
6.7.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) 
6.7.3. Market Opportunity Analysis 
6.8. Nephrology system
6.8.1. Market Analysis, 2019 - 2023 and Forecast, 2024 - 2030, (Sales Value USD Million)
6.8.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) 
6.8.3. Market Opportunity Analysis 
6.9. Ophthalmology
6.9.1. Market Analysis, 2019 - 2023 and Forecast, 2024 - 2030, (Sales Value USD Million)
6.9.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) 
6.9.3. Market Opportunity Analysis 
6.10. Others
6.10.1. Market Analysis, 2019 - 2023 and Forecast, 2024 - 2030, (Sales Value USD Million)
6.10.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) 
6.10.3. Market Opportunity Analysis 
7.Global Active Pharmaceutical Ingredient (API) Market  By Distribution Channel, 2019 - 2023 and Forecast 2024 - 2030 (Sales Value USD Million)
7.1. Hospital Pharmacies
7.1.1. Market Analysis, 2019 - 2023 and Forecast, 2024 - 2030, (Sales Value USD Million)
7.1.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) 
7.1.3. Market Opportunity Analysis 
7.2. Retail Pharmacies
7.2.1. Market Analysis, 2019 - 2023 and Forecast, 2024 - 2030, (Sales Value USD Million)
7.2.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) 
7.2.3. Market Opportunity Analysis 
7.3. Online Pharmacies
7.3.1. Market Analysis, 2019 - 2023 and Forecast, 2024 - 2030, (Sales Value USD Million)
7.3.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) 
7.3.3. Market Opportunity Analysis 
8.Global Active Pharmaceutical Ingredient (API) Market  By Region, 2019 - 2023 and Forecast 2024 - 2030 (Sales Value USD Million)
8.1. North America
8.1.1. Market Analysis, 2019 - 2023 and Forecast, 2024 - 2030, (Sales Value USD Million)
8.1.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) 
8.1.3. Market Opportunity Analysis 
8.2. Europe
8.2.1. Market Analysis, 2019 - 2023 and Forecast, 2024 - 2030, (Sales Value USD Million)
8.2.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) 
8.2.3. Market Opportunity Analysis 
8.3. Asia Pacific (APAC)
8.3.1. Market Analysis, 2019 - 2023 and Forecast, 2024 - 2030, (Sales Value USD Million)
8.3.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) 
8.3.3. Market Opportunity Analysis 
8.4. Middle East and Africa (MEA)
8.4.1. Market Analysis, 2019 - 2023 and Forecast, 2024 - 2030, (Sales Value USD Million)
8.4.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) 
8.4.3. Market Opportunity Analysis 
8.5. Latin America
8.5.1. Market Analysis, 2019 - 2023 and Forecast, 2024 - 2030, (Sales Value USD Million)
8.5.2. Year-Over-Year (Y-o-Y) Growth Analysis (%) and Market Share Analysis (%) 
8.5.3. Market Opportunity Analysis 
9.North America Active Pharmaceutical Ingredient (API) Market ,2019 - 2023 and Forecast 2024 - 2030 (Sales Value USD Million)
9.1. Type Of Synthesis Analysis 2019 - 2023 and Forecast 2024 - 2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) 
9.1.1.Biotechnological
9.1.2.Synthetic
9.1.3.Semi-Synthetic
9.2.  Application Analysis 2019 - 2023 and Forecast 2024 - 2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) 
9.2.1.Cardiovascular system
9.2.2.Oncology
9.2.3.CNS & Neurological system
9.2.4.Orthopaedic
9.2.5.Endocrinology
9.2.6.Pulmonology
9.2.7.Gastrointestinal system
9.2.8.Nephrology system
9.2.9.Ophthalmology
9.2.10.Others
9.3.  Distribution Channel Analysis 2019 - 2023 and Forecast 2024 - 2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) 
9.3.1.Hospital Pharmacies
9.3.2.Retail Pharmacies
9.3.3.Online Pharmacies
9.4.  Country Analysis 2019 - 2023 and Forecast 2024 - 2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) 
9.4.1.United States of America (USA)
9.4.2.Canada
10.Europe Active Pharmaceutical Ingredient (API) Market ,2019 - 2023 and Forecast 2024 - 2030 (Sales Value USD Million)
10.1. Type Of Synthesis Analysis  and Forecast  by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) 
10.1.1.Biotechnological
10.1.2.Synthetic
10.1.3.Semi-Synthetic
10.2.  Application Analysis 2019 - 2023 and Forecast 2024 - 2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) 
10.2.1.Cardiovascular system
10.2.2.Oncology
10.2.3.CNS & Neurological system
10.2.4.Orthopaedic
10.2.5.Endocrinology
10.2.6.Pulmonology
10.2.7.Gastrointestinal system
10.2.8.Nephrology system
10.2.9.Ophthalmology
10.2.10.Others
10.3.  Distribution Channel Analysis 2019 - 2023 and Forecast 2024 - 2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) 
10.3.1.Hospital Pharmacies
10.3.2.Retail Pharmacies
10.3.3.Online Pharmacies
10.4.  Country Analysis 2019 - 2023 and Forecast 2024 - 2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) 
10.4.1.Germany
10.4.2.France
10.4.3.Italy
10.4.4.United Kingdom (UK)
10.4.5.Spain
10.4.6.Rest of EU
10.4.7.
11.Asia Pacific (APAC) Active Pharmaceutical Ingredient (API) Market ,2019 - 2023 and Forecast 2024 - 2030 (Sales Value USD Million)
11.1. Type Of Synthesis Analysis  and Forecast  by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) 
11.1.1.Biotechnological
11.1.2.Synthetic
11.1.3.Semi-Synthetic
11.2.  Application Analysis 2019 - 2023 and Forecast 2024 - 2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) 
11.2.1.Cardiovascular system
11.2.2.Oncology
11.2.3.CNS & Neurological system
11.2.4.Orthopaedic
11.2.5.Endocrinology
11.2.6.Pulmonology
11.2.7.Gastrointestinal system
11.2.8.Nephrology system
11.2.9.Ophthalmology
11.2.10.Others
11.3.  Distribution Channel Analysis 2019 - 2023 and Forecast 2024 - 2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) 
11.3.1.Hospital Pharmacies
11.3.2.Retail Pharmacies
11.3.3.Online Pharmacies
11.4.  Country Analysis 2019 - 2023 and Forecast 2024 - 2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) 
11.4.1.China
11.4.2.India
11.4.3.Australia and New Zealand (ANZ)
11.4.4.Japan
11.4.5.Rest of APAC
12.Middle East and Africa (MEA) Active Pharmaceutical Ingredient (API) Market ,2019 - 2023 and Forecast 2024 - 2030 (Sales Value USD Million)
12.1. Type Of Synthesis Analysis  and Forecast  by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) 
12.1.1.Biotechnological
12.1.2.Synthetic
12.1.3.Semi-Synthetic
12.2.  Application Analysis 2019 - 2023 and Forecast 2024 - 2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) 
12.2.1.Cardiovascular system
12.2.2.Oncology
12.2.3.CNS & Neurological system
12.2.4.Orthopaedic
12.2.5.Endocrinology
12.2.6.Pulmonology
12.2.7.Gastrointestinal system
12.2.8.Nephrology system
12.2.9.Ophthalmology
12.2.10.Others
12.3.  Distribution Channel Analysis 2019 - 2023 and Forecast 2024 - 2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) 
12.3.1.Hospital Pharmacies
12.3.2.Retail Pharmacies
12.3.3.Online Pharmacies
12.4.  Country Analysis 2019 - 2023 and Forecast 2024 - 2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) 
12.4.1.GCC Countries
12.4.2.South Africa
12.4.3.Rest of MEA
13.Latin America Active Pharmaceutical Ingredient (API) Market ,2019 - 2023 and Forecast 2024 - 2030 (Sales Value USD Million)
13.1. Type Of Synthesis Analysis  and Forecast  by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) 
13.1.1.Biotechnological
13.1.2.Synthetic
13.1.3.Semi-Synthetic
13.2.  Application Analysis 2019 - 2023 and Forecast 2024 - 2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) 
13.2.1.Cardiovascular system
13.2.2.Oncology
13.2.3.CNS & Neurological system
13.2.4.Orthopaedic
13.2.5.Endocrinology
13.2.6.Pulmonology
13.2.7.Gastrointestinal system
13.2.8.Nephrology system
13.2.9.Ophthalmology
13.2.10.Others
13.3.  Distribution Channel Analysis 2019 - 2023 and Forecast 2024 - 2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) 
13.3.1.Hospital Pharmacies
13.3.2.Retail Pharmacies
13.3.3.Online Pharmacies
13.4.  Country Analysis 2019 - 2023 and Forecast 2024 - 2030 by Sales Value USD Million, Y-o-Y Growth (%), and Market Share (%) 
13.4.1.Brazil
13.4.2.Mexico
13.4.3.Rest of LA
14. Competition Landscape
14.1.  Market Player Profiles (Introduction, Brand/Product Sales, Financial Analysis, Product Offerings, Key Developments, Collaborations, M & A, Strategies, and SWOT Analysis) 
14.2.1.Pfizer, Inc. (U.S.),
14.2.2.Sanofi (France),
14.2.3.Lonza Group (Switzerland),
14.2.4.Boehringer Ingelheim (Germany),
14.2.5.Novartis AG (Switzerland),
14.2.6.GlaxoSmithKline plc (U.K.),
14.2.7.Bristol-Myers Squibb (U.S.),
14.2.8.Zhejiang Hisun Pharmaceutical Co., Ltd. (China),
14.2.9.Aenova Group GmbH (Germany),
14.2.10.Catalent, Inc. (U.S.),
14.2.11.Teva Pharmaceutical Industries Ltd., (Israel)
14.2.12.Aurobindo Pharma Limited (India),
15. Research Methodology 
16. Appendix and Abbreviations 

Key Market Players

  • Pfizer, Inc. (U.S.)
  • Sanofi (France)
  • Lonza Group (Switzerland)
  • Boehringer Ingelheim (Germany)
  • Novartis AG (Switzerland)
  • GlaxoSmithKline plc (U.K.)
  • Bristol-Myers Squibb (U.S.)
  • Zhejiang Hisun Pharmaceutical Co., Ltd. (China)
  • Aenova Group GmbH (Germany)
  • Catalent, Inc. (U.S.)
  • Teva Pharmaceutical Industries Ltd., (Israel)
  • Aurobindo Pharma Limited (India)
  • Eli Lilly and Company (U.S.)
  • AbbVie Inc. (U.S.)
  • Merck & Co., Inc. (U.S.)

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