Global Active Pharmaceutical Ingredients Market to Register High Growth by 2021

  • Analysis
  • 27-November-2017

The drugs that are used for treatment such as tablets, capsules, syrups, injectables are made up of a combination of Active Pharmaceutical Ingredients (API’s) and excipients. The API is a chemical or a drug accountable for the pharmacological and therapeutic activities in the body. It is the main ingredient which treats any disease. API cannot be used in its raw or crude form as it does not show proper suitability towards pharmacodynamic (what drug does to the body) and pharmacokinetics (what body does to the drug) parameters. Therefore it is combined with the suitable excipients that do not have any pharmacological or therapeutic activities but to boost the stability and activities of the API.

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Presently the upsurging demand for pharmaceutical products across the globe is a key factor driving the global active pharmaceutical ingredients market. The rapidly growing healthcare industry in developing countries is another factor which is responsible for the demand for several types of drugs. In addition, with the practice of electronic health record (EHR) in healthcare industry allow for more diagnostics which in turn creates a platform for the demand for various drugs, augmenting the pharmaceutical industry market worldwide. In addition, the rising approval of new patent API’s by FDA is continuing to grow in the developing regions.
According to the report “Global Active Pharmaceutical Ingredients (API) Market Research Report - Industry Analysis, Size, Share, Growth, Trends And Forecast 2016 - 2023“ added by the development of geriatrics, a branch of medicine dealing with health and care of the aged inhabitants, has contributed significantly to the thriving API market across the world. Owing to cost-effective manufacturing, increasing large unmet demand for drugs across the globe and increasing necessity of generic medicine will favor the overall growth of this market in next six year. Moreover, the increasing manufacturing plant in Asia Pacific region coupled with companies North America and China investing is responsible to augment the growth of pharmaceutical industry. Although European formulation companies will continue to rely on companies in China and India for their API requirement, the level of imports is expected to decline during the next few years as companies in the region build their in-house. In addition, with the evolving advanced technology, growing awareness about the medication and the expansion of the biotechnology sector has led to the greater demand for the drugs across the world.
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However, the healthcare budget in the developing countries has been increased, focusing towards the expansion of API market. Currently, India and China are leading the pharmaceutical market. In the coming years, the introduction of new drugs in the market is likely to expand the market growth overall.
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