Pharmaceutical intermediates are basic organic or inorganic chemical products required for the manufacturing of active pharmaceutical ingredients (API) and finished dosage formulations. These intermediates aid in reducing manufacturing costs and time involved in drug production. The rising demand for generics and the need to manufacture effective treatments at affordable costs is driving pharmaceutical companies to rely on cost-effective intermediates. The expanding geriatric population worldwide prone to chronic diseases is augmenting the demand for low-cost medicines, boosting the global pharmaceutical intermediates market.
The Global pharmaceutical intermediates market is estimated to be valued at US$ 43.67 Bn in 2024 and is expected to exhibit a CAGR of 8.1% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Global Pharmaceutical Intermediates are Evonik, Borregaard AS, Sudarshan Pharma, A.R. Life Science, Actylis, Saurav Chemicals Ltd., Lianhetech, Midas Pharma GmbH, Sanofi, BASF SE, Chiracon GmbH, Lonza, Chemcon Speciality Chemicals Limited., Modepro India Pvt. Ltd., Lifechem Pharma, and Sarex.
The key opportunities in the market include expanding outsourcing of drug manufacturing to low-cost countries where availability of skilled labor and pharmaceutical intermediates are in surplus. Global Pharmaceutical Intermediates Market Demand This is encouraging pharmaceutical companies to set up manufacturing bases in such locations. Furthermore, growing pharmaceutical industry in developing nations of Asia Pacific and Latin America due to increase in healthcare expenditure is creating demand for pharmaceutical intermediates.
Global expansion of major players through partnerships, acquisitions, and new production facilities across Asia Pacific, Europe, North America and Latin America is a prominent trend witnessed in the pharmaceutical intermediates market. This is helping companies strengthen their distribution networks and customer base while catering to the growing local demands.
Market Drivers:
– Strong demand for generics due to their affordability over branded drugs is a key driver as generic drugs require effective and economical intermediates.
– Rising chronic disease burden worldwide escalating the demand for low-cost drugs is propelling pharmaceutical intermediates consumption.
Market Restrains:
– Stringent regulatory norms pertaining to the manufacturing and quality control of intermediates add to costs.
– Volatility in raw material prices poses challenges in maintaining stable intermediates prices.
Segment Analysis
The global pharmaceutical intermediates market is dominated by active pharmaceutical intermediates segment which accounted for over 45% share in 2020. Active pharmaceutical intermediates are key ingredients used in the production of bulk drugs and finished pharmaceutical formulations. They exhibit pharmacological activity and are an important part of active drug molecules. The demand for active pharmaceutical intermediates is high due to the increasing preference for generic drugs across major markets.
Global Analysis
The Asia Pacific region is the fastest growing as well as the dominating regional market for pharmaceutical intermediates. It accounted for around 35% share in the global market in 2020 and is projected to witness growth at a CAGR of over 9% during the forecast period. The high market share can be attributed to the presence of major generic drug manufacturers in countries such as India and China. India, in particular, is one of the leading producers and exporters of generic drugs owing to the large skilled workforce and cost competitive manufacturing environment. North America represented the second largest market and is anticipated to exhibit sizable growth over the next few years due to the rising generics market in the US. Europe, on the other hand, also hold significant market potential driven by strong healthcare infrastructure and government support for pharmaceutical industry in countries like Germany, UK, France and Italy.
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