The global active pharmaceutical ingredients (API) market size reached$209.9B in 2021, according to a report from Research & markets. Looking forward, the publisher expects the market to reach$291.7B by 2027, exhibiting a CAGR of 5.64% during 2021-2027.
The global demand of APIs is currently exhibiting strong growth. One of the major drivers of this market is the rising number of blockbuster patent expiries, creating a significant opportunity for generic APIs. Moreover, there has been a strong demand for APIs for biologicals.
The global market for biologicals is currently exhibiting strong growth catalyzed by their high potency and ability to treat diseases beyond the scope of small molecule drugs. This is creating a strong demand for APIs for branded biological drugs and their biosimilar versions. Other factors catalyzing the global demand of APIs include aging population, rising expenditures on healthcare, increasing prevalence of lifestyle diseases, etc.
Keeping in mind the uncertainties of COVID-19, we are continuously tracking and evaluating the direct as well as the indirect influence of the pandemic. These insights are included in the report as a major market contributor.
Firms that engage in API manufacturing generally specialize and target their manufacturing based on a combination of a firm's in-house skills and market opportunities. Catalyzed by lower costs, API manufacturing has gradually been shifting from the historical leaders in Western countries to manufacturers based in India and China.