Small Molecule Active Pharmaceutical Ingredient Api Market
Small Molecule Active Pharmaceutical Ingredient (API) Market Forecasts to 2030 - Global Analysis By Production (Outsourced and Captive/In-House), Therapeutic Area (Respiratory Disorders, Metabolic Disorders, Infectious Diseases, Cardiovascular Diseases and Other Therapeutic Areas) and By Geography
According to Stratistics MRC, the Global Small Molecule Active Pharmaceutical Ingredient (API) Market is accounted for $169.5 billion in 2024 and is expected to reach $290.6 billion by 2030 growing at a CAGR of 9.4% during the forecast period. A Small Molecule Active Pharmaceutical Ingredient (API) refers to a low molecular weight compound that is pharmacologically active and used in the formulation of medications. These compounds typically have a molecular weight less than 900 Daltons and are characterized by their ability to interact with specific biological targets to elicit a therapeutic effect. Small molecule APIs are often synthesized through chemical processes and can be administered orally, topically, or through other routes.
According to the Drug, Chemical & Associated Technologies Association (DCAT), in 2021, 50 New Molecular Entities (NME) were approved, of which 36 products were small molecule entities.
Market Dynamics:
Driver:
Rising prevalence of chronic diseases
The increasing prevalence of chronic diseases such as diabetes, cardiovascular conditions, and cancer is significantly driving the growth of the Small Molecule Active Pharmaceutical Ingredient (API) market. Chronic diseases require long-term management and consistent medication, leading to a heightened demand for effective small molecule drugs. These APIs, which are crucial in the development of pharmaceuticals, offer targeted and often more manageable treatments compared to biologics. Furthermore, their ability to penetrate cells and modulate specific biological pathways makes them indispensable for treating chronic conditions.
Restraint:
Environmental and safety concerns
Environmental and safety concerns significantly impact the production and development of Small Molecule Active Pharmaceutical Ingredients (APIs). The synthesis of these molecules often involves hazardous chemicals and processes, leading to potential environmental pollution and safety risks. Waste products and emissions from manufacturing can contaminate soil and water, posing long-term ecological and health hazards. Regulatory pressures require stringent measures to minimize these impacts, leading to increased costs and complexities in API production. However, companies must invest in advanced technologies and practices to reduce their environmental footprint and ensure worker safety, which can be financially burdensome.
Opportunity:
Increasing demand for generic drugs
The rising demand for generic drugs is substantially boosting the market for Small Molecule Active Pharmaceutical Ingredients (APIs). As patents for branded pharmaceuticals expire, generic drug manufacturers can produce and market copies of these medications at lower costs, making healthcare more accessible. This shift drives up the need for small molecule APIs, which are the foundational ingredients in these generic drugs. Additionally, small molecule APIs, known for their stability and well-established production processes, are crucial for creating cost-effective generic medications.
Threat:
Intellectual property issues
Intellectual property (IP) issues significantly hinder the development and production of Small Molecule Active Pharmaceutical Ingredients (APIs) by creating barriers to innovation and market access. Pharmaceutical companies invest heavily in research and development to discover and develop new small molecule APIs, but IP conflicts, such as patent disputes and overlapping claims, can stall progress. However, patent thickets dense webs of overlapping patents can make it challenging for companies to navigate licensing agreements and may delay the introduction of new APIs.
Covid-19 Impact:
The COVID-19 pandemic significantly impacted the small molecule Active Pharmaceutical Ingredient (API) industry by disrupting global supply chains and manufacturing processes. With stringent lockdowns, travel restrictions, and factory shutdowns, the production and distribution of APIs faced severe delays and shortages. Many small molecule APIs, critical for various treatments and medications, experienced shortages due to the dependency on a few key manufacturing hubs, primarily in Asia. This disruption not only hindered the production of essential drugs but also led to increased costs and price volatility.
The Outsourced segment is expected to be the largest during the forecast period
Outsourced segment is expected to be the largest during the forecast period. Small molecule APIs, essential for pharmaceutical formulations, require precise development to ensure efficacy, safety, and cost-effectiveness. By outsourcing this segment, pharmaceutical companies can leverage the expertise, advanced technologies, and resources of specialized contract development and manufacturing organizations (CDMOs) to enhance these molecules. This process may include improving synthesis methods, increasing yield, refining purification techniques, or optimizing the overall production process.
The Cardiovascular Diseases segment is expected to have the highest CAGR during the forecast period
Cardiovascular Diseases segment is expected to have the highest CAGR during the forecast period. Small molecules are a cornerstone in cardiovascular therapy due to their ability to interact with specific biological targets, modulating their activity to manage diseases such as hypertension, heart failure, and coronary artery disease. Enhancing these APIs involves optimizing their chemical properties to increase bioavailability and reduce side effects, improving the drug's stability and solubility, and developing advanced delivery systems for targeted action. This process often includes the use of cutting-edge technologies like structure-based drug design and high-throughput screening.
Region with largest share:
North America region commanded the largest share of the market over the extrapolated period. As the demographic shifts towards an older population, there is an increased demand for pharmaceuticals to manage chronic diseases and age-related health issues, such as cardiovascular conditions, diabetes, and neurological disorders across the region. This rising demand is driving growth in the API market, as pharmaceutical companies intensify their focus on developing and manufacturing small molecules that can address these health concerns throughout the region. The regional need for effective treatments for age-related conditions fuels innovation and investment in API research and development, contributing to advancements in drug efficacy and safety.
Region with highest CAGR:
Europe region is projected to hold profitable growth during the forecast period. European Medicines Agency (EMA) and national regulatory bodies enforce stringent guidelines that promote rigorous testing, documentation, and manufacturing practices. These regulations foster a robust environment for innovation and reliability, ensuring that APIs meet the highest standards before reaching the market. Furthermore, this regulatory framework not only protects public health but also boosts investor confidence and facilitates market access for pharmaceutical companies.
Key players in the market
Some of the key players in Small Molecule Active Pharmaceutical Ingredient (API) market include Aurobindo Pharma, Boehringer Ingelheim GmbH, Cambrex Corporation, Dr. Reddy’s Laboratories Ltd, Gilead Sciences, Inc, GlaxoSmithKline PLC, Novartis AG, Pfizer Inc, Sanofi S.A, Sun Pharmaceutical Industries Ltd and Teva Pharmaceutical Industries Ltd.
Key Developments:
In October 2023, Axplora announced the cGMP (current Good Manufacturing Practices) approval from Agenzia Italiana Del Farmaco (AIFA) for the expansion of the manufacturing capacities for HPAPIs and steroids in to meet the growing demand.
In March 2023, medicine developer CatSci announced a distribution agreement with small molecule developer AGC Pharma Chemicals (CDMO). For the development of new therapeutics, AGC says CatSci has the expertise to develop chemicals and analytical methods, crystallization and solids, pre-formulation, and high-potency active pharmaceutical ingredients (API), along with chemical manufacturing and control (CMC).
Productions Covered:
• Outsourced
• Captive/In-House
Therapeutic Areas Covered:
• Respiratory Disorders
• Metabolic Disorders
• Infectious Diseases
• Cardiovascular Diseases
• Other Therapeutic Areas
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Emerging Markets
3.7 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Small Molecule Active Pharmaceutical Ingredient (API) Market, By Production
5.1 Introduction
5.2 Outsourced
5.3 Captive/In-House
6 Global Small Molecule Active Pharmaceutical Ingredient (API) Market, By Therapeutic Area
6.1 Introduction
6.2 Respiratory Disorders
6.3 Metabolic Disorders
6.4 Infectious Diseases
6.5 Cardiovascular Diseases
6.6 Other Therapeutic Areas
7 Global Small Molecule Active Pharmaceutical Ingredient (API) Market, By Geography
7.1 Introduction
7.2 North America
7.2.1 US
7.2.2 Canada
7.2.3 Mexico
7.3 Europe
7.3.1 Germany
7.3.2 UK
7.3.3 Italy
7.3.4 France
7.3.5 Spain
7.3.6 Rest of Europe
7.4 Asia Pacific
7.4.1 Japan
7.4.2 China
7.4.3 India
7.4.4 Australia
7.4.5 New Zealand
7.4.6 South Korea
7.4.7 Rest of Asia Pacific
7.5 South America
7.5.1 Argentina
7.5.2 Brazil
7.5.3 Chile
7.5.4 Rest of South America
7.6 Middle East & Africa
7.6.1 Saudi Arabia
7.6.2 UAE
7.6.3 Qatar
7.6.4 South Africa
7.6.5 Rest of Middle East & Africa
8 Key Developments
8.1 Agreements, Partnerships, Collaborations and Joint Ventures
8.2 Acquisitions & Mergers
8.3 New Product Launch
8.4 Expansions
8.5 Other Key Strategies
9 Company Profiling
9.1 Aurobindo Pharma
9.2 Boehringer Ingelheim GmbH
9.3 Cambrex Corporation
9.4 Dr. Reddy’s Laboratories Ltd
9.5 Gilead Sciences, Inc
9.6 GlaxoSmithKline PLC
9.7 Novartis AG
9.8 Pfizer Inc
9.9 Sanofi S.A
9.10 Sun Pharmaceutical Industries Ltd
9.11 Teva Pharmaceutical Industries Ltd
List of Tables
1 Global Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Region (2022-2030) ($MN)
2 Global Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Production (2022-2030) ($MN)
3 Global Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Outsourced (2022-2030) ($MN)
4 Global Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Captive/In-House (2022-2030) ($MN)
5 Global Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Therapeutic Area (2022-2030) ($MN)
6 Global Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Respiratory Disorders (2022-2030) ($MN)
7 Global Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Metabolic Disorders (2022-2030) ($MN)
8 Global Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Infectious Diseases (2022-2030) ($MN)
9 Global Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Cardiovascular Diseases (2022-2030) ($MN)
10 Global Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Other Therapeutic Areas (2022-2030) ($MN)
11 North America Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Country (2022-2030) ($MN)
12 North America Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Production (2022-2030) ($MN)
13 North America Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Outsourced (2022-2030) ($MN)
14 North America Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Captive/In-House (2022-2030) ($MN)
15 North America Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Therapeutic Area (2022-2030) ($MN)
16 North America Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Respiratory Disorders (2022-2030) ($MN)
17 North America Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Metabolic Disorders (2022-2030) ($MN)
18 North America Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Infectious Diseases (2022-2030) ($MN)
19 North America Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Cardiovascular Diseases (2022-2030) ($MN)
20 North America Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Other Therapeutic Areas (2022-2030) ($MN)
21 Europe Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Country (2022-2030) ($MN)
22 Europe Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Production (2022-2030) ($MN)
23 Europe Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Outsourced (2022-2030) ($MN)
24 Europe Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Captive/In-House (2022-2030) ($MN)
25 Europe Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Therapeutic Area (2022-2030) ($MN)
26 Europe Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Respiratory Disorders (2022-2030) ($MN)
27 Europe Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Metabolic Disorders (2022-2030) ($MN)
28 Europe Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Infectious Diseases (2022-2030) ($MN)
29 Europe Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Cardiovascular Diseases (2022-2030) ($MN)
30 Europe Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Other Therapeutic Areas (2022-2030) ($MN)
31 Asia Pacific Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Country (2022-2030) ($MN)
32 Asia Pacific Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Production (2022-2030) ($MN)
33 Asia Pacific Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Outsourced (2022-2030) ($MN)
34 Asia Pacific Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Captive/In-House (2022-2030) ($MN)
35 Asia Pacific Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Therapeutic Area (2022-2030) ($MN)
36 Asia Pacific Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Respiratory Disorders (2022-2030) ($MN)
37 Asia Pacific Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Metabolic Disorders (2022-2030) ($MN)
38 Asia Pacific Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Infectious Diseases (2022-2030) ($MN)
39 Asia Pacific Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Cardiovascular Diseases (2022-2030) ($MN)
40 Asia Pacific Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Other Therapeutic Areas (2022-2030) ($MN)
41 South America Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Country (2022-2030) ($MN)
42 South America Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Production (2022-2030) ($MN)
43 South America Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Outsourced (2022-2030) ($MN)
44 South America Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Captive/In-House (2022-2030) ($MN)
45 South America Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Therapeutic Area (2022-2030) ($MN)
46 South America Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Respiratory Disorders (2022-2030) ($MN)
47 South America Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Metabolic Disorders (2022-2030) ($MN)
48 South America Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Infectious Diseases (2022-2030) ($MN)
49 South America Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Cardiovascular Diseases (2022-2030) ($MN)
50 South America Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Other Therapeutic Areas (2022-2030) ($MN)
51 Middle East & Africa Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Country (2022-2030) ($MN)
52 Middle East & Africa Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Production (2022-2030) ($MN)
53 Middle East & Africa Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Outsourced (2022-2030) ($MN)
54 Middle East & Africa Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Captive/In-House (2022-2030) ($MN)
55 Middle East & Africa Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Therapeutic Area (2022-2030) ($MN)
56 Middle East & Africa Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Respiratory Disorders (2022-2030) ($MN)
57 Middle East & Africa Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Metabolic Disorders (2022-2030) ($MN)
58 Middle East & Africa Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Infectious Diseases (2022-2030) ($MN)
59 Middle East & Africa Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Cardiovascular Diseases (2022-2030) ($MN)
60 Middle East & Africa Small Molecule Active Pharmaceutical Ingredient (API) Market Outlook, By Other Therapeutic Areas (2022-2030) ($MN)
List of Figures
RESEARCH METHODOLOGY
We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
For more details about research methodology, kindly write to us at info@strategymrc.com
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