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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 America

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.

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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

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