Monday, June 15, 2020

Active Pharmaceutical Ingredients (API) Market Growth Rate And Product Revenue Report By 2025


Global Active Pharmaceutical Ingredient (API) Market study is providing you with the up-to-date, actionable market information and projections with the latest impact of the Covid 19 outbreak. It offers all the requisite data to support tactical business decisions and come up with strategic growth plans. This study also proposes a comprehensive insight into the development policies and plans in addition to manufacturing processes and cost structures.

Industry Insights
The global Active Pharmaceutical Ingredient (API) market size was worth at USD 134.2 billion in the year 2015 which is anticipated to reach a value of USD 239.8 billion by 2025, with CAGR of 6.0%. Rising prevalence of chronic diseases such as neurological diseases, cardiovascular diseases, can lead to the growth.

The key drivers can be the rising demand of efficient and rapid acting drugs and introduction of innovative drug production facility. Major key players are choosing for outsourcing the product from the developing regions such as India, Brazil and China, which also anticipated to drive the market.

In addition, pharmaceutical companies face tremendous loss in terms of revenue owing to the patent expiration of blockbuster drugs. Expiration of patent results in increasing focus for development of generic versions of the molecules. The R&D investment of the company are no longer valuable after patent expiration. Thus, the API outsourcing trend in rising.


Manufacturer Type Insights
Based on the type of manufacturer, it is categorized into outsourced or merchant or in-house or captive APIs. According to market estimates, in 2015, in-house APIs was the largest segment and outsourced APIs are anticipated to be the fastest growing market.

All pharmaceutical companies does not have separate unit for the formulation of API. This has led to rise in the outsourcing of the molecules from the production sites. The need of investment in expensive production processes is eliminated by the outsourcing.

Type Insights
Based on the type, APIs are classified into innovative and generics. Branded products come under innovative type, whereas the generic drugs are the ones, which are available OTC (over the counter). Owing of high rate of prescription, high drug development initiatives, and high price, the innovative APIs segment dominated in 2015.

Generic segment is anticipated to be fastest-growing type, due to expirations of patents of various blockbuster drugs. Patent expirations of branded drugs have very serious negative impacts on the drug producers, as the companies face the tremendous loss after expiration. Hence the drug manufacturers prefer more generic drugs than the branded ones.

Application Insights
Cancer, neurological disorders & CNS, endocrinal disorders and cardiovascular diseases are some of the major applications of the API. In 2015, CVD (cardiovascular diseases) dominated the market owing to its high rate of prevalence and high product availability. CVD has been reported as the major cause of death in the U.S since many years.

In addition, oncology is expected to be the fastest-growing segment and is estimated to witness the CAGR of 7% owing to high number of products waiting approval. Moreover, increasing prevalence of cancer worldwide is anticipated to further boost market.

Regional Insights
In 2015, API market was dominated by the North America and is anticipated to retain its position in upcoming years owing to encouraging government initiatives for generic drug usage, rising R&D expenditure, and technological advancements in the drug manufacturing practices.

Asia Pacific is anticipated to be the region with fastest growth owing to the increasing availability of cheap and affordable labour. Hence, key major companies are setting up their API production plants in developing countries of Asia Pacific such as China and India.

Competitive Insights
One of the key manufacturers of the API (Active pharmaceutical ingredients) is Teva Pharmaceuticals Ltd. Some of the additional key players in this industry includes Boehringer Ingelheim GmbH, AbbVie, Inc., Merck & Co., Inc. and Cipla, Inc., New molecule launches, collaborations, acquisitions, and regional expansions are some strategic initiatives taken by these Key players to retain their position.




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