Active pharmaceutical ingredient production process is quite sophisticated and technically challenging process
However global Active pharmaceutical ingredient market is surging due to following reasons:-
- Increasing demand of pharmaceutical drugs
- Aging population
- Increasing incidences of chronic diseases like neurological, cardiovascular, cancer, diabetes, and even infectious diseases
- Pharmaceutical supplies market is fragmented bringing lesser profits to each player
North American market accounts for the largest share of Active pharmaceutical ingredient market. With its most advanced R&D and improved medical technologies North America is the leading consumer of Active pharmaceutical ingredient . China and India are leading suppliers in this market to North America due to very low labor costs. Also, one of the top in demand drugs in US and Canada are biologics. Thus, bio similar entry with flexible regulations has given a huge impetus to Active pharmaceutical ingredient market in North America
Newer biotechnological drugs due to recent advancements have resulted in highly intensified competition among the local and global players which again resulted in heavy growth.
Asian countries, especially China and India come second due to cheaper labor and lower cost production facilities. Drugs manufactured in India or China are 30-60% lower in cost. So a huge growth is expected in this sector as well
In Europe, Regulations play an important role in the Active pharmaceutical ingredient market, as the law prohibits production and development of generic Active pharmaceutical ingredient in Europe until patent is expired. However, Government in various countries are now supporting manufacture of Active pharmaceutical ingredient due to setbacks from financial crisis. As patent of major drugs in Europe expires, Active pharmaceutical ingredient market would fuel drastically.
So Active pharmaceutical ingredient market is bound to expand in near future in all markets api manufacturing companies. A recent study suggests that it can reach around US$ 186 Bn by around 2020 with heavy growth in North America, Asia and Europe and steady in South America