SAN FRANCISCO, April 29, 2025 /PRNewswire/ -- The global active pharmaceutical ingredients market [https://www.grandviewresearch.com/industry-analysis/active-pharmaceutical-ingredients-market]size is projected to reach USD 359.45 billion by 2030, and it is expected to exhibit a CAGR of 5.85% from 2025 to 2030, according to a new report by Grand View Research, Inc. The growth is largely attributed to advancements in active pharmaceutical Ingredients (API) manufacturing, contract manufacturing organizations (CMOs), and biosimilars.
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The prevailing trends suggest the growth of the captive API segment in the wake of investments in solving challenges and fostering new chemical ways for the production of APIs in-house. The strategic move can help reduce costs and contamination risk. Predominantly, artificial intelligence and protein synthesis are likely to expedite growth with greater control over the manufacturing process.
The demand for API has risen on the back of the prevalence of chronic diseases, such as cardiovascular diseases (CVD), diabetes and cancer. To illustrate, according to a study published in the U.S. Pharmacist in 2020 and later reported by the CDC in May 2024, around 47% of adults have at least one of the three risk factors (high blood pressure, high LDL cholesterol and smoking) for cardiovascular disease. An upsurge in CVD has aggravated public health burdens, thereby boosting R&D in APIs.
The COVID-19 pandemic underpinned the active pharmaceutical ingredients market, as leading countries and drug companies produced large quantities of components to meet the demand for the treatment of COVID-19. For instance, the U.S. requested that HCQ be imported from India. The virus also affected Canada's medicine supply system, potentially causing complications for patients.
Read full market research report on Active Pharmaceutical Ingredients (API) Market with TOC - Active Pharmaceutical Ingredients Market Size, Share & Trends Analysis Report By Type of Synthesis (Biotech, Synthetic), By Type of Manufacturer (Captive, Merchant), By Type (Generic, Innovative), By Application, By Region, And Segment Forecasts, 2025 - 2030 [https://www.grandviewresearch.com/industry-analysis/active-pharmaceutical-ingredients-market/request/rs1]
Soaring consumption of biopharmaceuticals and investments in drug research and development activities for drug manufacturing have driven the industry growth. Meanwhile, high manufacturing costs and unfavorable drug price control in several countries may challenge stakeholders in the ecosystem.
Asia Pacific is anticipated to witness the fastest CAGR during the forecast period, largely due to investments in emerging economies such as China and India. For instance, China is likely to witness traction for generic and innovative APIs. Besides, leading companies have established their operation in the region to boost their portfolios.
Established and emerging players have furthered their investments in organic and inorganic growth strategies, including mergers & acquisitions, R&D, product launches and innovations. In May 2024, Eli Lilly announced an increase in manufacturing investment to USD 9 billion to enhance API production.
Request a free sample copy or view the report summary: Active Pharmaceutical Ingredients Market Report [https://www.grandviewresearch.com/industry-analysis/active-pharmaceutical-ingredients-market/request/rs1]
Active Pharmaceutical Ingredients Market Report Highlights
-- Innovative APIs held the lion's share in 2024 on the back of favorable
government policies and robust investments in research and development
activities for drug development.
-- The captive APIs segment accounted for a notable market share in 2024,
mainly attributed to an infusion of funds into new chemical methods for
in-house API production.
-- The synthetic API segment held the largest revenue share in 2024 in the
wake of heightened demand for generic drugs.
-- North America contributed the maximum revenue share in 2024 and the
trend is likely to continue during the forecast period. The robust
forecast is primarily attributed to the increasing prevalence of CVD,
research in drug development and rising commercialization of APIs.
Active Pharmaceutical Ingredients Market Segmentation
Grand View Research has segmented the global active pharmaceutical ingredients market based on type of synthesis, type of manufacturer, type, application, type of drug, and region:
Active Pharmaceutical Ingredients Market - Type of Synthesis Outlook (Revenue, USD Billion, 2018 - 2030)
-- Biotech
-- Biotech APIs Market, By Type (Revenue, USD Billion, 2018 - 2030)
-- Generic APIs
-- Innovative APIs
-- Biotech APIs Market, By Product (Revenue, USD Billion, 2018 - 2030)
-- Monoclonal Antibodies
-- Hormones
-- Cytokines
-- Recombinant Proteins
-- Therapeutic Enzymes
-- Vaccines
-- Blood Factors
-- Synthetic
-- Synthetic APIs Market, By Type (Revenue, USD Billion, 2018 - 2030)
-- Generic APIs
-- Innovative APIs
Active Pharmaceutical Ingredients Market - Type of Manufacturer Outlook (Revenue, USD Billion, 2018 - 2030)
-- Captive APIs
-- Merchant APIs
Active Pharmaceutical Ingredients Market - Type Outlook (Revenue, USD Billion, 2018 - 2030)
-- Generic APIs
-- Innovative APIs
Active Pharmaceutical Ingredients Market - Application Outlook (Revenue, USD Billion, 2018 - 2030)
-- Cardiovascular Diseases
-- Oncology
-- CNS and Neurology
-- Orthopedic
-- Endocrinology
-- Pulmonology
-- Gastroenterology
-- Nephrology
-- Ophthalmology
-- Others
Active Pharmaceutical Ingredients Market - Type of Drug Outlook (Revenue, USD Billion, 2018 - 2030)
-- Prescription
-- OTC
Active Pharmaceutical Ingredients Market - Regional Outlook (Revenue, USD Billion, 2018- 2030)
-- North America
-- U.S.
-- Canada
-- Mexico
-- Europe
-- Germany
-- U.K.
-- France
-- Italy
-- Spain
-- Denmark
-- Sweden
-- Norway
-- Asia Pacific
-- Japan
-- China
-- India
-- Australia
-- South Korea
-- Thailand
-- Latin America
-- Brazil
-- Argentina
-- Middle East and Africa (MEA)
-- South Africa
-- Saudi Arabia
-- UAE
-- Kuwait
List of Key Players in the Active Pharmaceutical Ingredients Market
-- Dr. Reddy's Laboratories Ltd.
-- Sun Pharmaceutical Industries Ltd.
-- Teva Pharmaceutical Industries Ltd.
-- Cipla Inc.
-- AbbVie Inc.
-- Aurobindo Pharma
-- Sandoz International GmbH (Novartis AG)
-- Viatris Inc.
-- Fresenius Kabi AG
-- STADA Arzneimittel AG
Check out more related studies published by Grand View Research:
-- High Potency Active Pharmaceutical Ingredients Market
[https://www.grandviewresearch.com/industry-analysis/high-potency-active
-pharmaceutical-ingredients-hpapi-market] - The global high potency
active pharmaceutical ingredients market size is expected to reach USD
40.66 billion by 2030 and is expected to expand at a compound annual
growth rate (CAGR) of 6.2% from 2023 to 2030, according to a new report
by Grand View Research, Inc. The growth of the HPAPI market is
attributed to rising incidence of cancer, growing targeted therapies,
and increasing application of high potency active pharmaceutical
ingredients (HPAPI) in treating target diseases. Rising prevalence of
cancer is expected to be a major factor.
-- Europe Active Pharmaceutical Ingredients (API) Market
[https://www.grandviewresearch.com/industry-analysis/europe-active-pharm
aceutical-ingredients-api-market-report] - The Europe active
pharmaceutical ingredients (API) market size is expected to reach USD
66.7 billion by 2030, expanding at a CAGR of 5.75% from 2023 to 2030,
according to a new report by Grand View Research, Inc. The development
of the biopharmaceutical industry in the region, the rising elderly
population, and improvements in the ease of production of complex active
pharmaceutical ingredients (API) are some of the market's key drivers.
-- U.S. Active Pharmaceutical Ingredients Market
[https://www.grandviewresearch.com/industry-analysis/us-active-pharmaceu
tical-ingredients-market-report] - The U.S. active pharmaceutical
ingredients market size is expected to reach USD 114.9 billion by 2030
and is projected to grow at a CAGR of 4.7% from 2024 to 2030. This
growth is attributed to the increasing demand for innovative medicines,
advancements in biotechnology, and the shift towards microbial-based
fermentation approaches. In addition, the rising need for
environmentally friendly production methods and the rising consciousness
of the ecological risks associated with traditional chemical routes have
led to a significant rise in the demand for APIs.
Browse Horizon Databook on Active Pharmaceutical Ingredients Market - Global Active Pharmaceutical Ingredients Market Size & Outlook [https://www.grandviewresearch.com/horizon/outlook/active-pharmaceutical-ingredients-market-size/global]
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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