Active pharmaceutical ingredients and excipients are the two most important ingredients in the production of a medicine. The API is the active ingredient in medicine, whereas the excipient is a substance that isn't the drug but acts as a medium to aid in its absorption by the body. The API is created by a series of chemical reactions rather than a single reaction from the raw components. An intermediate is a chemical compound in the process of creating an API from a raw source. It is purified until it reaches a high degree of purity and becomes an API after this lengthy production procedure. To test the strength of the medicine on humans or in laboratory circumstances, every drug must first receive FDA approval.

According to the report title “Global Active Pharmaceutical Ingredients Market Outlook, 2027”, published by Actual Market Research, The global active pharmaceutical ingredients market size was valued at USD 187.2 billion in 2020 and is expected to expand at a CAGR of more than 6.8% from 2021 to 2027.

API is used widely in various therapeutic applications like oncology, CVD, respiratory disease, infectious disease, diabetes & pain management, etc. The oncology segment is expected to grow with the highest CAGR of 8.4% because of the emerging demand for High Potent APIs for cancer treatment. Although, cardiovascular disease covers huge market shares in terms of value. The market is divided into two segments by the API type, i.e., branded & generic APIs. The branded API dominated the market share in 2020. Due to the expiration of branded drug patents, the generic APIs segment is expected to grow rapidly during the forecast period. Also, unmet clinical needs in developing countries increased acceptance of OTC drugs, and lower generic drug costs drive the generic segment. The generic API contains the same chemical substance but differs in taste, color, packaging process, or manufacturing ingredients.

The active pharmaceutical ingredients market is segmented into two divisions by manufacturing type, i.e., captive and merchant. The captive APIs contribute the major market share because manufacturing parameters are affordable comparatively. Two methods generally synthesize the APIs. One of them is synthetic API which has a huge market share captured. On the other hand, the biotech APIs are very advanced in terms of treating as desired. Deaths worldwide are caused by cardiovascular disease (32%), cancer, respiratory disease, diabetes, and other diseases. The rising number in geriatric population & growing R&D department of treatment for disease are the drivers for the market growth in the forecast period. Besides, the increasing complexity of chronic diseases and the increased frequency of new instances have led to a significant increase in demand for innovative drugs, particularly biological therapeutics.

North America is leading the global active pharmaceutical ingredients market with a 37.8% share as the USA is the worldwide leader in per capita prescription drug spending. Asia-pacific is the fastest-growing region among all the active pharmaceutical ingredients. Developing countries like China, Japan & India are the core reasons for that. China has no comparison in manufacturing APIs in terms of pricing & India has made its remarkable position in the generic market. India, one of the world's largest producers of the anti-malarial drug hydroxychloroquine (HCQ), has mysteriously become the world's savior. This generic drug is used to counter the Sars-Cov2 virus and is thus in high demand.

COVID-19 Impact:
The Covid-19 pandemic had resulted in a strict lockdown and shut down of many companies, majorly in Asia-Pacific, impacted global active pharmaceutical ingredients. The y-o-y growth in the global APIs market was not met in 2020 as the lack of raw material supply chain & labor. However, the demand for the drugs like paracetamol, azithromycin, and hydroxychloroquine is up to take charge. A variety of medications are employed to treat the symptoms and numerous health conditions that a COVID-19 patient may have, such as cough, cold & high fever, leading to the pharmaceutical industry being the epicenter of the pandemic.

Major Companies Present in the market:
Aurobindo Pharma Limited, Cipla Limited, Dr. Reddy’s Laboratories Limited, Lupin Limited, Sun Pharmaceutical Industries Limited, Pfizer Inc., Novartis International AG, Biocon Limited, Sanofi S.A., Teva Pharmaceutical Industries Limited, AbbVie Inc., GlaxoSmithKline plc., Merck & Co., Inc., Viatris Inc., Bristol-Myers Squibb Company

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