According to a recent report by Grand View Research, Inc., the global Active Pharmaceutical Ingredient (API) market is estimated to register a CAGR of 6.7 percent by 2027. Major factors fueling the growth of this market include the advancements in active pharmaceutical ingredient (API) manufacturing, growth of the biopharmaceutical sector and increasing ageing population. Other factors driving the growth of this market include the rising prevalence of infectious diseases and hospital-acquired infections.
As per the 2017 NCBI article on a survey conducted in a tertiary hospital in Japan, 339 bacteremia UTI cases were identified. Furthermore, the surge in prevalence of congenital heart disease acts as a key driver for the overall market growth. Epidemiological studies reveal that various lifestyle habits such as smoking and dietary irregularities result in obesity, and these are associated with increased risk of diseases. Therefore, the rise in prevalence of obesity is projected to fuel the demand for APIs.
Strategic outsourcing
API manufacturing demands a huge capital amount, owing to the extremely systematic protocols required by the process. Thus, pharmaceutical companies outsource API manufacturing, as this not only removes the need for labor force but also the need for installing expensive manufacturing units. Strategic outsourcing allows organizations to mainly focus on their core competencies, which ultimately leads to increased productivity. The aforementioned factors are also projected to drive the active pharmaceutical ingredient market growth.
Rise in prevalence of cancer and various other lifestyle associated diseases invigorates Research & Development activities by key players, thereby augmenting the market growth. One of the countries that dominated the API market was North America due to the high economic development in the region coupled with technological advancements.
The Asia Pacific market is anticipated to be the fastest growing market in the coming years. Major API
manufacturing companies are setting up API manufacturing plants in developing economies such as China and India owing to the availability of affordable labor. Recently, India launched a new scheme to augment the production of active pharmaceutical ingredients that are greatly dependent on the Chinese supply chain.
Speaking at the 14th Annual BioPharma and Healthcare Summit, Amitabh Kant, CEO of NITI Aayog said “India is now gearing up for Innovation in its Pharmaceutical ecosystem focusing on speedy and scaled up delivery of new vaccines and personalized medicines.” “We are planning to do complete manufacturing in India,” said Kant at the virtual summit organized by the USA-India Chamber of Commerce.
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