Active Pharmaceutical Ingredients Market Sales Revenue Expected to Increase Significantly Over the Next Ten Years


The active pharmaceutical ingredients are drugs used for chronic diseases such as neuropathic pain, lung disease, cancer, diabetes and heart disease. However, these ingredients have both benefits and side effects.

Pharmaceutical companies have focused on modernizing their manufacturing methods to improve the overall quality of products. It also means automating process development, which was previously done manually. The installation of large capacity equipment in terms of volume also allows better production efficiency.

According to the revised report published by Persistence Market Research, the global active pharmaceutical ingredients market was valued at approximately US $ 180 billion in 2020 and is expected to grow at a CAGR of over 4% during the forecast period (2021-2031 ).

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Key points of the market research

  • Small molecule active pharmaceutical ingredients are expected to contribute over 91% of market revenue by 2031, due to their high availability and potency in relieving moderate to severe pain, typically after surgery or traumatic injury .
  • Uncontrolled substances are expected to account for more than half of the global market share.
  • Among all end users, pharmaceutical companies held more market share than others.
  • East Asia holds the highest share of the global active pharmaceutical ingredients market, owing to the presence of more CMOs, high healthcare expenditure, and increasing research and development efforts in the region.
  • Major players are focused on strengthening their clinical pipelines with new discoveries of new abuse deterrent formulations.
  • The Indian market is expected to grow at a CAGR of around 4% through 2021-2031. The United States holds a large chunk of global revenue and accounts for over 87% of the North American market share.

“A strong growth in demand is observed for small molecules, due to their power, efficiency and safety”, says a Persistence Market Research analyst.

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Increased healthcare expenditure on active pharmaceutical ingredients

Global healthcare spending grew at a CAGR of 6.92% from 2003 to 2013. This growth in healthcare spending far exceeded the rate of population growth during this period, which increased at a CAGR of 1 , 22%. As a result, per capita health expenditure increased from $ 597 in 2003 to $ 1,032 in 2013, increasing at a CAGR of 5.62%.

Increased health spending in all regions has improved access to quality health care and is expected to continue to drive demand for pharmaceuticals.

  • On March 25, 2019, TUL secured its position in the TOP 10 of API China member companies in 2018. The position was awarded to TUL for its excellent profile of exporting and importing APIs, pharmaceutical formulations and Chinese medicines in 2018.
  • In 2016, Novartis’ Sandoz ceased operations at its Maharashtra, India site as part of global manufacturing optimization plans. The site, located in west-central India, employed 170 people and manufactured antibiotics and APIs.

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What does the report cover?

Persistence Market Research provides a unique perspective and actionable insights into the Active Pharmaceutical Ingredients market in its latest study, presenting a historical demand assessment for 2016-2020 and projections for 2021-2031. The research study is based on API (small molecules, peptides and oligonucleotides, carbohydrates and steroid drugs) and end user (contract manufacturing organizations (CMOs), pharmaceutical companies, development manufacturing organizations under contract (CDMO) and preparation pharmacies), in seven key regions of the world.

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