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Active Pharmaceutical Ingredients Market Sales to Expand at Remarkable 7.2% CAGR through 2031; COVID-19 Outbreak to Impact Demand till Pandemic Subsides:

Pune, Maharashtra, India, September 13 2022 (Wiredrelease) Prudour Pvt. Ltd –:Active pharmaceutical ingredients (API) are the chemicals used to make a drug. They are also known as the “active ingredient.” API’s are what make a drug work. They are usually in the form of a powder or crystal, and they are mixed with other ingredients to make a pill, capsule, or liquid.

The global market report for the active pharmaceutical ingredients segment was worth USD 210,423 million in 2021. It is projected to grow at a 7.2% CAGR from 2023 to 2032.

The global active pharmaceutical ingredients market is expected to grow significantly in the next few years. This is due to the increase in the number of people suffering from chronic diseases and the need for better treatment options. The market is also expected to benefit from the increasing research and development activities in the pharmaceutical industry.

Market growth is primarily driven by factors like investments in real-world evidence by pharmaceuticals, focus on precision medicine and greater importance of generics. However, the market growth will be slowed by the increased penetration of anti-counterfit drugs and the unfavorable policies of drug price control committees across different countries.

This growth can be attributed both to advancements in active pharmaceutical ingredients (API) manufacturing, and the increasing prevalence of chronic diseases such as cancer and cardiovascular disease. Market growth is being supported by favorable government policies and changes in geopolitical circumstances. Due to COVID-19’s supply chain disruption, the API market is experiencing huge changes. Due to geopolitical circumstances and the desire to decrease China’s dependence on API products, India is preferred to China in exporting API. Many countries have also developed plans to encourage the production of API and given incentives.

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Global Active pharmaceutical ingredient (API) Market Dynamics:

DRIVER – Adoption of organ onchip models in drug development

Despite large investments in R&D in pharma, there has been an annual decrease in FDA-approved new drugs. This was almost directly proportional to R&D spending. In order to lower the high cost of drug research, it is becoming more important to create predictive tissue models from human cells. These models can help determine safety and efficacy of drugs before they are tested in clinical trials.

RESTRAINT: Unfavourable drug price control policy

The regulation of prices for pharmaceutical drugs has seen a steady increase over the past few decades. The US is a large unregulated market. However, many prominent countries have regulated drug price. In order to reduce pharmaceutical expenditures, government price controls are instigated. Although drug prices are regulated, most pharmaceutical companies suffer revenue losses. These revenue losses result in a decrease in global R&D expenditures, which means that fewer molecular entities (NMEs), are being developed annually.

These price control policies, which reduce pharmaceutical revenues, may be able to provide some relief to individual buyers but pose risks for long-term innovation within the pharmaceutical industry. In India, for example, the Drugs Price Control Order Act (DPCO Act) was implemented by the National Pharmaceutical Pricing Authority. This Act gave the NPPA the power to establish a retail price limit. Since then, the number of drugs that are under price control has grown steadily, from 74 in 2015 to close to 860 by 2019.

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The key market segmentation of the API market is given below,

By Type of Synthesis
– Synthetic Segment
– Biotech Segment
–Recombinant Proteins
–Monoclonal Antibodies

By Type
-Innovative APIs
-Generic APIs

By Type of Manufacturer
-Captive APIs
-Merchant APIs

By Application
Oncology Segment
Cardiovascular Diseases
CNS and Neurology
Other Applications

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Last Updated: 13-Sep-2022