Pharmaceutical Fine Chemicals Market Research Report: By Drug Type (Proprietary, Non-Proprietary), Product (Basic Building Blocks, Advanced Intermediates, Active Ingredients), Application (Cardiovascular, Neurological, Oncological, Respiratory, Gastrointestinal, Musculoskeletal) - Global Industry Analysis and Growth Forecast to 2030

Proprietary Drugs Dominate Pharmaceutical Fine Chemicals Market

From $100.3 billion in 2019, the global pharmaceutical fine chemicals market is predicted to advance at a CAGR of 6.2% during the forecast period (2020–2030). The major factors driving the growth of the industry are the swift expansion of the pharmaceutical domain in Asia-Pacific (APAC) and booming population of the elderly.

Segmentation Analysis of Pharmaceutical Fine Chemicals Market

In 2019, the proprietary drug bifurcation, under the drug type segment, generated higher revenue in the pharmaceutical fine chemicals market, as a result of the fact that the production of such drugs entails high capital investment, strong research and development (R&D) efforts, compliance to stringent regulations, and adequate quality control measures. Proprietary drugs are more in demand throughout the world, and pharma firms are mandated to ensure the integrity of the ingredients, to ultimately make the final product effective and safe.

The active ingredients category is expected to witness the fastest growth in the pharmaceutical fine chemicals market during the forecast period, based on product, as active ingredients are the most important component of the drug, as they are the ones which actually accomplish the purpose of the medication. Active ingredients are combined with excipients, which are inactive components and serve as the medium to ferry the active agent to the drug target site. Due to the high-volume consumption of active ingredients, the demand for them outweighs that for other pharmaceutical fine chemical products.

Till 2030, the cardiovascular classification, on the basis of application, would hold the largest revenue share in the pharmaceutical fine chemicals market, on account of the rising prevalence of cardiovascular diseases, including coronary artery disease, arrhythmias, stroke, and hypertension. This is resulting in the rising demand for heart medication, which is, in turn, leading to the heavy consumption of an array of fine chemicals for their manufacturing.

North America dominated the pharmaceutical fine chemicals market during the historical period (2014–2019), as the region is home to the largest pharmaceutical sector in the world, and it also accounts for a high healthcare expenditure. Further, a number of drug manufacturers, including Johnson & Johnson, Abbott Laboratories, and Pfizer Inc., are pursuing R&D to come up with medication for an increasing number of presently-untreatable diseases.

Growing Geriatric Population is Key Market Driver

One of the most important growth drivers for the pharmaceutical fine chemicals market is the increasing population of the elderly. As per the latest World Population Ageing report published by the United Nations Department of Economic and Social Affairs (UNDESA) in 2019, there were 703 billion people in the age group of 65 and above in the world in 2019, and their number is on path to rising to 1.5 billion by 2050. Due to their immunocompromised nature and physical weakness, they fall sick quite often, thus create a high requirement for various medical drugs. Therefore, with the increasing demand for different drugs for the elderly, the consumption of the chemicals that go into their production will also go up.

Increasing Awareness in Africa Offers Market Growth Opportunities

A key opportunity area for the pharmaceutical fine chemicals market is the increasing awareness in several countries of Africa. The government of many regional countries, including Kenya and Nigeria, is promoting the local production of medical drugs, which is aimed at enhancing the accessibility of such products. Countries in Africa are focusing on improving the health of the public, with the ultimate aim to have a large, healthy workforce for the benefit of the national economy. Thus, with continued public and private support for the augmentation in local drug production, the consumption of pharmaceutical fine chemicals has a potential to increase drastically in Africa.

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Partnerships and Joint Ventures are Important Strategic Measures

In recent years, several pharmaceutical fine chemicals market players have engaged in joint ventures and partnerships to enhance their growth prospects.

For instance, in December 2019, Solvay S.A. established a joint venture with Anthea, an India-based specialty chemicals manufacturer, to produce catechol derivatives. The JV, named Catàsynth Speciality Chemicals, manufactures heliotropin (piperonal), methylenedioxybenzene, helional, and several other chemicals, which find usage in the pharmaceutical, agrochemical, and fragrance industries.

On similar lines, in December 2018, Lonza Group Ltd. signed an agreement with GE Healthcare, under which the latter company would provide the former with a biologics production plant in Guangzhou, China. With this move, Lonza aimed to fulfill the increasing demand for contract manufacturing and developing services in the country.

The major players in the global pharmaceutical fine chemicals market are BASF SE, Eastman Chemical Company, WeylChem International GmbH, Borregaard ASA, Lonza Group Ltd., Clariant AG, Solvay S.A., Evonik Industries AG, Albemarle Corporation, DuPont de Nemours Inc., Koninklijke DSM N.V., Merck KGaA, Aceto Corporation, ACIC Pharmaceuticals Inc., Albany Molecular Research Inc., AlzChem Group AG, Ampac Fine Chemicals, Angelini S.p.a., Boehringer Ingelheim International GmbH, CABB Group GmbH, Cerbios-Pharma SA, Chemada Fine Chemicals Ltd., and CM Fine Chemicals GmbH.

Contract Chemicals Limited, Dipharma Francis S.r.l., EUTICALS S.p.A., Fabbrica Italiana Sintetici S.p.A., Flamma Group, HELSINN HEALTHCARE SA, Hovione, Ivy Fine Chemicals, Minakem, Novasep Holding SAS, Olon S.p.A., Procos S.p.A., Robinson Brothers Limited, Roquette Frères, SEQENS Group, Siegfried AG, SUMITOMO SEIKA CHEMICALS CO. LTD., Syntor Fine Chemicals Ltd., Valaji Pharma Chem, Vertellus Holdings LLC, W. R. Grace & Co., and AkzoNobel N.V. are some other companies in the pharmaceutical fine chemicals market.

Market Size Breakdown by Segment

The pharmaceutical fine chemicals market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.

Based on Drug Type

• Proprietary
• Non-Proprietary

Based on Product

• Basic Building Blocks
• Advanced Intermediates
• Active Ingredients

Based on Application

• Cardiovascular
• Neurological
• Oncological
• Respiratory
• Gastrointestinal
• Musculoskeletal

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • Italy
  • France
  • Spain
  • Belgium
• Asia-Pacific (APAC)
  • China
  • Japan
  • India
  • South Korea
• Latin America (LATAM)
  • Brazil
  • Mexico
  • Argentina
• Middle East & Africa (MEA)
  • South Africa
  • U.A.E.
  • Saudi Arabia
  • Turkey