Due to the rising number of new applications of drugs, increasing incidence of lifestyle-associated and chronic diseases, including diabetes, cancer, and cardiovascular diseases, expiration of patented biologics, rising geriatric population, surging investments in biosimilars, government initiatives to promote generic drugs, increasing healthcare expenditure, and escalating awareness about diseases, the global active pharmaceutical ingredient (API) market is expected to witness robust growth in the coming years.
Due to the COVID-19 pandemic, the supply chain of the API market saw disruptions in the first half of 2020, but many established pharmaceutical and biopharmaceutical companies, as well as start-ups, entered the fray to develop an effective coronavirus treatment, which led to the growth of the API market.
The API market is categorized into captive and merchant, on the basis of the type of manufacturer. The captive category held the larger share in the API market during the historical period (2015–2020), and it is expected to retain its position in the upcoming years. This will be because of the ease in the availability of raw materials and rising investments by the major players in state-of-the-art manufacturing plants.
Geographically, North America would be the most-productive API market in the near future due to the rising number of research and development (R&D) studies in the area of drugs. However, the highest CAGR would be experienced by Asia-Pacific (APAC), as the patient pool here is quite large, healthcare expenditure is surging, and a number of generic drug manufacturers exist. Additionally, the surging awareness about lifestyle-associated diseases is driving the industry’s progress in the region.
In recent years, players in the API market have been involved in product launches in order to augment their profit. For instance:
The major players operating in the API market include Pfizer Inc., Novartis International AG, Merck & Co. Inc., Teva Pharmaceutical Industries Ltd., Mylan N.V., Boehringer Ingelheim International GmbH, Sanofi S.A., Eli Lilly and Company, and AstraZeneca plc.