Active Pharmaceutical Ingredient Market Trends

Growth Drivers

• Escalating Geriatric Population Rising Need for More Formulations - Data provided by the World Bank showed that there were 747,238,580 people aged 65 and above in 2021 around the world. People of elderly age are more likely to get sick or acquire chronic diseases since the body becomes weak with the passing of time. Geriatrics are more dependent on medicines than adults. Hence, this factor is projected to hike the growth of the pharmaceutical ingredient market
•  over the forecast period.
• Spiking Cases of Medication Errors that Lead to Increase in Patient Mortality – The U.S. FDA stated in 2019, that it receives over 100,000 reports of medication errors annually. Additionally, over 6 million patients in the United States get affected by some sort of medication error every year.
• Higher Utilization of APIs to Treat Diabetes Across the World – With the rising indulgence of the population in an unhealthy lifestyle, the prevalence of diabetes among people has grown considerably. Thus, the demand for active pharmaceutical ingredients is expected to increase for the timely treatment of the patient. A report published by the International Diabetes Federation (IDF) estimated the number of people living with diabetes to reach 643 million by 2030 across the world.
• Spiking Prevalence of Cardiovascular Diseases Owing to Unhealthy Eating Habits and Sedentary Lifestyle – Recently, the cases of cardiovascular diseases have increased drastically owing to an unhealthy diet and reduced physical activity. To treat patients with cardiovascular disease, the need for active pharmaceutical ingredients is expected to grow to create a positive outlook for market growth during the forecast period. Cardiovascular diseases are very prevalent worldwide, for instance, approximately 18 million people die annually due to some sort of cardiovascular disease in the world.
• Increasing Healthcare Expenditure Per Capita Demanding for API Synthesis – As a result of developing economies, the per capita income of people has also escalated which has ultimately increased the spending capacity in the healthcare sector, and for treatment processes. Hence, the preference for the active pharmaceutical ingredient is anticipated to rise for an effective treatment process. The global healthcare expenditure was projected to rise Y-O-Y reaching about USD 1100 per capita in 2019.

Challenges

• Price Policies Changing Periodically - The change in the price policy of drugs impacts the pricing and manufacturing cost of the companies. The unintended price drop can lead to a huge loss for the manufacturers and have a negative impact hindering the growth of the active pharmaceutical ingredient market in the forecast period.
• Lack of Awareness among the Global Population
• Higher Price Associated with the Manufacturing Process