Pharmaceutical intermediates are the active ingredients or raw materials used in the manufacture of pharmaceutical drugs. They play a critical role in synthesizing the final drug formulation and ensuring therapeutic efficacy. Growing prevalence of chronic diseases worldwide has significantly increased the demand for affordable medicines. This has enhanced the production of generic drugs, fueling demand for pharmaceutical intermediates. Key functions of intermediates include purification, isolation or direct chemical manipulation of compounds used to manufacture finished dosage form drugs.
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, Sarex, LANXESS. The pharmaceutical intermediates industry is consolidating with key players focusing on mergers and acquisitions to expand their product portfolio and global footprint. Growing generic drug market in emerging nations of Asia Pacific and Latin America offer lucrative growth opportunities for pharmaceutical intermediates manufacturers. Major players are investing in expanding their production facilities in these regions to capitalize on high market potential.
Market Drivers
Rising geriatric population suffering from various chronic conditions such as diabetes, cancer, cardiovascular diseases is a key factor driving Global Pharmaceutical Intermediates Market Size. According to WHO, the global aging population aged 60 years and older is projected to reach nearly 2.1 billion by 2050 from 962 million in 2017. Furthermore, increasing adoption of generic drugs owing to their cost-effectiveness is anticipated to boost demand for pharmaceutical intermediates during the forecast period. As per IQVIA, generic drugs account for nearly 90% of total prescriptions in the U.S.
Market Restrain
Stringent regulations pertaining to approval and production of intermediates used in active pharmaceutical ingredients pose a major challenge for market players. Developing efficient production processes without compromising quality and efficacy is a difficult task for intermediates manufacturers. High capital investment requirements for setting up manufacturing facilities also acts as a barrier, especially for small and mid-sized players.
Segment Analysis
The global pharmaceutical intermediates market is dominated by the API (Active Pharmaceutical Ingredients) segment. This is because APIs are the core component of any drug and need to be produced in large volumes. With increasing drug production, the demand for API intermediates is consistently rising. The largest sub-segment within APIs is cardiovascular drugs intermediates owing to the high prevalence of cardiovascular diseases globally. These intermediates see strong and steady demand.
Global Analysis
Regionally, Asia Pacific dominates the global pharmaceutical intermediates market and is also expected to witness the highest growth during the forecast period. This is because many large pharmaceutical companies are setting up production facilities in countries like India and China to benefit from low costs. Also, the presence of major generic drug producers in India and China fuels regional demand. Additionally, growing healthcare expenditure and a rising elderly population looking to manage diseases and illnesses drive the APAC market. North America is another major pharmaceutical intermediates market led by the US due to increasing R&D investments aimed at developing new drugs. However, stringent regulations related to drug production limit market growth to an extent in North America.
Get more insights on This Topic- Global Pharmaceutical Intermediates Market
