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The global active pharmaceutical ingredients market was valued at USD 209.7 billion and is projected to grow by USD 353.0 billion by 2030 at a CAGR of 6%. The market’s driving factors include advancements in the manufacturing of active pharmaceutical ingredients, expansion of the biopharmaceutical sector, and growth in the geriatric population. Other attributed factors include the frequent prevalence of chronic diseases, increased drug R&D, expansion of generics, and rising biopharmaceutical consumption.
Active Pharmaceutical Ingredients (API) are used to produce end results in drugs and are also termed bulk drugs that are manufactured through biological or chemical processes. The initiative to produce organ-on-a-chip models to test drug safety for developing predictive tissue models is considered a simulator for API’s market expansion. With various other innovations and advancements of biotechnological and pharmaceutical companies in therapeutic drugs, the API market is expected to witness positive global growth.
In addition, the COVID-19 pandemic had a positive impact on the active pharmaceutical ingredient market. The key market players and several countries demanded and produced a sizeable amount of components for the treatment of COVID-19. As a result, drug companies have started focusing on a wider patient population. Owing to the geopolitical situations, countries like India, and China have an increased market preference.
The rising occurrence of lifestyle-based and chronic conditions like cardiovascular diseases is encouraging the demand for API. For example, in 2020 the U.S. Pharmacist stated that 47% of the population is open to a minimum of one risk factor in relation to cardiovascular diseases. It is a common health burden driving extensive R&D for APIs. To address medical needs requiring attention several companies are now collaborating to develop much-needed novel treatments, to enhance their supply chain. However, the unanticipated changes in the drug pricing policies in several regions comprising significant manufacturers can hinder the API market expansion. Furthermore, a few of the negative impacts of the COVID-19 pandemic cannot be overlooked. The negative impact of the pandemic on the API market was caused by a disruption in the supply and availability of raw materials, shipping delays, and higher charges.
Research Support Specialist, USA