The active pharmaceutical ingredients (API) market is an integral part of the pharmaceutical industry that involves the production of drug substances intended for use in the manufacturing of pharmaceutical formulations. The APIs segment is witnessing significant growth owing to the increasing demand for generic drugs across the world.

Global Active Pharmaceutical Ingredients Market is estimated to be valued at US$ 268.05 Bn in 2024 and is expected to exhibit a CAGR of 6.8% over the forecast period 2024 To 2031.

Key Takeaways

Key players operating in the active pharmaceutical ingredients market are Teva Pharmaceutical Industries Ltd., Pfizer, Inc., Dr. Reddy's Laboratories Ltd., Novartis AG, Mylan N.V., Amneal Pharmaceuticals LLC, Lonza Group, Lupin Limited, Fresenius Kabi, Hikma Pharmaceuticals, Cipla Limited, Glenmark Pharmaceuticals Limited, Sun Pharmaceutical Industries Ltd., Endo International plc, Aurobindo Pharma Limited, Apotex Inc, Taro Pharmaceutical Industries Ltd, Stada Arzneimittel AG, Krka Pharmaceuticals, CordenPharma International, Evonik Industries AG, and Biological E. Limited.

Key opportunities in the market include increasing investments in generic drug research and development by major players. Growing investments from both private and public sectors are fueling research activities for innovative API development. Governments across various countries are supporting local API manufacturing through initiatives to enhance access to affordable medicines.

The global active pharmaceutical ingredients market is expanding rapidly with emerging economies providing lucrative opportunities for players. Asia Pacific is expected to witness the fastest growth during the forecast period owing to rising generic drug production in India and China. North America and Europe will also provide steady growth opportunities driven by rising pharmaceutical R&D activities.

Market drivers

The major driver for the Active Pharmaceutical Ingredients Market Demand is the increasing production of generic drugs globally. Patent expiration of many blockbuster drugs and growing need to reduce healthcare costs is driving the demand for low-cost generic versions. Generics account for over 80% of the global pharmaceutical market in terms of volume. Thus, rising generic drug manufacturing is a key factor fueling the growth of the API market. Additionally, growing pharmaceutical R&D expenditures and increasing uptake of biopharmaceuticals will further support the demand for APIs over the forecast period.

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