Ibuprofen API Market Facing the Heat of Worsening COVID-19 Crisis; Demand Hit by Export Restrictions, Finds FMI in a New Study
According to the latest report by FMI, the global ibuprofen API market revenue totaled US$ 573 Mn in 2019. Gains remain primarily driven by large-scale manufacturing and increased demand for low-cost non-steroidal anti-inflammatory drugs (NSAIDs). In the light of COVID-19 outbreak, ibuprofen is facing contradictory evidence, following an online furor over its effects on detecting new virus infection.
The COVID-19 pandemic has brought medical supply chains into the spotlight. A typical pharmaceutical supply chain begins with manufacturers of the active pharmaceutical ingredients (API), including ibuprofen API. Concentration of API plants in China and India – which has currently put export restrictions on 26 APIs and drugs – is expected to have a massive impact on the market growth.
CMOs to Contribute 50% of the Market Revenue
Greater volume handling by contract manufacturing organizations as compared to pharmaceutical companies has been generating significant revenue pockets which account for more than half of the total market value. Moreover, pharmaceutical companies are heavily reliant on contract manufacturing organizations (CMOs) for manufacturing API and finished products, which continue to favor the market growth.
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“Ibuprofen has come under intense scrutiny during the COVID-19 pandemic, as several studies and news reports connected the use of NSAIDs such as Ibuprofen with worsening COVID-19 symptoms. While lack of scientific evidence is expected to derail the claims, plant shutdowns and supply chain disruptions are likely to cause market revenue slowdown,” says the FMI analyst.
The Shift of COVID-19 Epicenter to the US
Increasing incidences of chronic diseases in North America has long been accelerating the need for ibuprofen APIs. The regional market will continue to maintain its lead with 37% revenue share in 2020. As the COVID-19 pandemic’s epicenter shifts from China to the US, the region is witnessing an unprecedented spike in demand, which in turn will cause shortages.
Reopening of factories and resuming of business in China and its dominant role in production of a majority of drug ingredients will open a window of opportunities for market players in East Asia. However, efforts to counteract an over-reliance on Chinese imports – now hampered by COVID-19 lockdowns – are likely to compel pharmaceutical manufacturers to relocate their supply chains.
According to the FMI study, the ibuprofen API market is still in its nascent stage and is expected to record a moderate CAGR of 3% during the forecast period (2019-2029). The study emphasizes the impact of COVID-19 on ibuprofen API market.