Global Active Pharmaceutical Ingredients (API) Market Report 2021-2026: Knock-on Effect of COVID-19 on API Availability Incites Players to Reconfigure Supply Chain

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Jan 20, 2022, 06:15 ET

DUBLIN, Jan. 20, 2022 /PRNewswire/ -- The "Active Pharmaceutical Ingredients (API) - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering.

Global Active Pharmaceutical Ingredients (API) Market to Reach US$265.3 Billion by the Year 2026

Amid the COVID-19 crisis, the global market for Active Pharmaceutical Ingredients (API) estimated at US$177.5 Billion in the year 2020, is projected to reach a revised size of US$265.3 Billion by 2026, growing at a CAGR of 6.7% over the analysis period.

Innovative, one of the segments analyzed in the report, is projected to grow at a 6.4% CAGR to reach US$190.9 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Generic segment is readjusted to a revised 7.4% CAGR for the next 7-year period.

This segment currently accounts for a 30.2% share of the global Active Pharmaceutical Ingredients (API) market. As patents for branded APIs expire, opportunities for generic APIs increase, resulting in an augmented API market demand.

APIs represent biologically-active substances and primary components for drug manufacturing. The production of APIs globally is mainly concentrated to developing nations due to their capability to scale production as per customization and low-cost manufacturing.

The API market is slated to gain from increasing focus on generic and branded drugs as a result of rising prevalence of non-communicable and chronic medical conditions due to lifestyle changes and rapid urbanization. The market growth is anticipated to be augmented further from the transition away from conventional manufacturing techniques, rising investment in drug discovery, and strong adherence to product quality.

The market is also benefitting from increasing influx of generic drugs that are produced following permission of a pharmaceutical company for creating the own version of the medicine. The COVID-19 pandemic and the resulting disruptions in supply chain are driving various governments to boycott sourcing of APIs from China.

Despite these challenges, the API market is bound to progress ahead swiftly due to positive factors like pending approval of various generic and blockbuster drugs that rely on APIs.

The U.S. Market is Estimated at $71.5 Billion in 2021, While China is Forecast to Reach $35.4 Billion by 2026

The Active Pharmaceutical Ingredients (API) market in the U.S. is estimated at US$71.5 Billion in the year 2021. The country currently accounts for a 36.3% share in the global market. China, the world's second largest economy, is forecast to reach an estimated market size of US$35.4 Billion in the year 2026 trailing a CAGR of 7.6% through the analysis period.

Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 6.1% and 6.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 6.1% CAGR while Rest of European market (as defined in the study) will reach US$37.5 Billion by the end of the analysis period.

China is a leading producer and exporter of APIs, accounting for about 20% of global API production. The country's strong presence in API production could be attributed to factors such as low cost of utilities and strong government support. COVID-19 has highlighted various vulnerabilities associated with sourcing of APIs from other regions or countries, such as fractured supply chain and limited scope for immediate response to changes.

These challenges are now prompting a number of European nations and the US to focus on relocation of pharmaceutical and API production back to home country.

Key Topics Covered:

I. METHODOLOGY

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW

COVID-19 Alters Pharmaceutical Industry and API Production Dynamics
COVID-19 Exposes US Pharmaceutical Makers to Risk of Supply Shortages, Driving the Need to Revamp Domestic Industry Structure
Pandemic Leads US to Focus on Stockpiling & Localized Manufacturing to Rectify Supply Chain Flaws
Revamping Local Production Capacity
Knock-on Effect of COVID-19 on API Availability Incites Players to Reconfigure Supply Chain
COVID-19 Pandemic: A Wake-Up Call for API Seekers to Mitigate Supply Risks
Short-Term Strategies
Long-Term Strategies
Unprecedented Global Push to Expedite COVID-19 Vaccine Development to Spur Demand for APIs
Active Pharmaceutical Ingredients: A Prelude
Outlook
Regional Landscape
US CDMOs to Gain from Mounting Concerns Over Excess Reliance On Chinese APIs
China Continues to Remain a Major Hub
COVID-19 Brings Europe's High Reliance on APIs Sourced from Outside under Spotlight
India Strives to Increase API Production to Attain Self Reliance in Pharmaceutical Production
Global PE Firms to Invest Heavily in Indian Intermediate Pharma Companies
Recent Market Activity
world Brands

2. FOCUS ON SELECT PLAYERS (Total 266 Featured)

AbbVie Inc.
Aurobindo Pharma Ltd.
BASF SE
Boehringer Ingelheim International GmbH
Cipla Ltd.
Dr. Reddy's Laboratories Ltd.
Lupin Ltd.
Merck KGaA
Novartis International AG
Pfizer Inc.
Sun Pharmaceutical Industries Ltd.
Teva Pharmaceutical Industries Ltd.
Viatris Inc.

3. MARKET TRENDS & DRIVERS

Sustained Increase in Drug R&D Spending to Drive API Market
Increased API Sourcing Creates the need for More Scrutiny of Suppliers for Best Quality Products
Preference for Specialized CDMO Contractors on the Rise
Strong Rise in Pharmaceutical Sales to Drive Demand
The AIC Approach for Faster Assessment of Viable Drug Candidates
Drug Makers Embrace Digital Technology Amidst COVID-19 Crisis
AI Finds Growing Application in Drug Discovery and Development
Microdosing Beneficial for the Formulation of High Potency Ingredients
Growing Penetration of Generic Drugs Augments Market Prospects
Increasing Interest in Biopharmaceuticals Supports Market Demand
Rising Number of Biologics Approvals Augurs Well
Growing Biosimilars Market Create Opportunities for APIs
Growing Attention Towards Personalized Medicine Spurs Demand for Complex API
Increasing Sales of OTC Drugs Presents an Opportunity for APIs
Growing Prevalence of Infectious Diseases to Spur Growth
Rising Incidence of Cancer & Need to Reduce Cancer-Related Mortality Spell Increased Demand
Increasing Prevalence of Chronic Disorders Fuels Market Growth
Rising Incidence of Cardiovascular Diseases Revs Up Opportunities
Upsurge in ANDA Approvals Bodes Well
Aging Population & Increasing Burden of Chronic Diseases Spurs Pharma Product Sales, Driving Market Growth

4. GLOBAL MARKET PERSPECTIVE

III. REGIONAL MARKET ANALYSIS

IV. COMPETITION

Total Companies Profiled: 266

For more information about this report visit https://www.researchandmarkets.com/r/pqzbnv

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