The pharmaceutical water market involves products such as pharmaceutical pure boiler feed water, purified water, and highly purified water which find extensive applications in the pharmaceutical industry. Purified water is used as an excipient in some products whereas highly purified water is utilized as an active ingredient and processing agent. Pure water helps in improving product quality and efficiency of manufacturing operations. It plays a vital role in sanitization, cleaning, rinsing, dissolving raw materials and heat transfer among others. The growing penetration of the pharmaceutical industry along with stringent regulations regarding purity levels of water used in drug formulations and manufacturing processes has been driving the demand for pharmaceutical water solutions.
The Global pharmaceutical water market is estimated to be valued at US$ 7.22 Bn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the pharmaceutical water market are Heidelberg Printing Machinery AG, Komori Corporation, Koenig & Bauer AG, Manroland Goss web systems, HP Inc., Xerox Corporation, Canon Inc., Ricoh Company, Ltd., Epson, and Konica Minolta, Inc.
The Pharmaceutical Water Market Growth is expected to witness significant owing to the rising demand for highly purified water from the pharmaceutical industry. Stringent regulations regarding the purity of water used during the manufacturing of pharmaceutical drugs and formulations are necessitating the use of ultrapure water production systems.
Several players in the pharmaceutical water market are expanding their geographical presence by strengthening their supply networks and distribution channels across global markets. The growing pharmaceutical manufacturing activity in emerging nations of Asia Pacific and Latin America is attracting new investments and partnerships in these regions.
Market drivers
The key driver for the pharmaceutical water market is the stringent regulations governing water purity in the pharmaceutical production process. Regulatory bodies such as the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA) have instituted quality standards for different grades of water used during manufacturing. Non-compliance with these norms can impact the efficacy and safety of pharmaceutical products. This has increased the demand for ultrapure water treatment solutions that comply with the best practices mandated by regulatory authorities.
Impacts of the current geopolitical situation on the pharmaceutical water market
The pharmaceutical water market is being impacted by the ongoing geopolitical uncertainties and tensions across several regions. Many countries have adopted protectionist trade policies in recent times, making cross-border trade and investments challenging. This could negatively impact the supply chains of multinational pharma companies and affect their operations. Additionally, rising geopolitical risks have increased economic instability in certain parts of the world. This may lead to lower healthcare spending in the short-term in some markets.
Furthermore, the ongoing Russia-Ukraine conflict has disrupted global commodity supply chains and exacerbated inflationary pressures. This poses challenges for drug makers in procuring raw materials at competitive prices. Rising energy costs have also increased the operational expenses of pharmaceutical companies. To mitigate the impacts, manufacturers will need to diversify their supplier networks, adopt competitive pricing strategies, and focus on supply chain resilience through localized production and strategic sourcing. Investing in renewable energy adoption can help reduce long-term dependency on fossil fuels as well.
In terms of regions, North America currently accounts for the largest share of the global pharmaceutical water market in terms of value. This is attributed to the large size of the pharmaceutical industry, rising healthcare expenditure, and stringent regulatory norms regarding water purification systems. Going forward, Asia Pacific is projected to be the fastest growing regional market during the forecast period, driven by expanding pharmaceutical production, increasing investments in healthcare infrastructure, and a large patient pool in countries like China and India.
The Middle East and Africa region is also expected to present lucrative opportunities for players operating in the pharmaceutical water market. This is owing to improving access to medicines, growing medical tourism, and favourable government policies to boost domestic pharma production in several nations like Saudi Arabia, UAE and South Africa.
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