The Global Pharmaceutical Chemicals Market is driven by growing...

The Global Pharmaceutical Chemicals Market is driven by growing generics market

Posted 2024-04-01 13:28:05

The global pharmaceutical chemicals market comprises a wide range of products such as active pharmaceutical ingredients, solvents, catalysts, reagents, and other chemicals that are used in the manufacturing of pharmaceutical formulations and drugs. Pharmaceutical chemicals serve as the building blocks and raw materials for pharmaceutical formulations. They impart medicinal properties, aid drug delivery to targeted sites, enhance stability, and improve bioavailability. Some examples of pharmaceutical chemicals include alkaloids, steroids, peptides, vitamins, antibiotics, NSAIDs, and corticosteroids. Pharmaceutical chemicals play a vital role in drug development as they impact the drug's efficacy, safety, and performance. The growing generics market worldwide has increased the demand for cost-effective pharmaceutical chemicals.

The Global Pharmaceutical Chemicals Market is estimated to be valued at US$ 137.76 Bn in 2024 and is expected to exhibit a CAGR of 7.2% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the global pharmaceutical chemicals market are Spectrum Chemical Mfg. Corp., BASF, AbbVie, Merck Group, Fine Chem Corporation, Allan Chemical corp, Spruhaa Healthcare, Kani Overseas Corporation, Tata chemicals, Lonza, Lanxess, Johnson Matthey, Jubilant Life Sciences, Hikal, Kenko Corporation, and CLARIANT. Spectrum Chemical and BASF are the global leaders in pharmaceutical chemicals and API manufacturing.

The demand for pharmaceutical chemicals is growing significantly owing to the increasing generics market worldwide, rising geriatric population, and growing prevalence of chronic diseases. Pharmaceutical companies are outsourcing more pharmaceutical chemical manufacturing to India and China to reduce costs.

The Global Pharmaceutical Chemicals Market Size is expanding rapidly with companies setting up manufacturing sites in emerging economies of Asia Pacific, Latin America, and Eastern Europe. Countries like China and India offer a skilled workforce and are among the top exporters of pharmaceutical chemicals and APIs globally.

Market drivers

The growing generics market is a key driver propelling the growth of the global pharmaceutical chemicals market. The patent expiration of many blockbuster drugs has increased the demand for low-cost generics significantly. As generics have similar formulations as branded drugs but are significantly cheaper, they utilize same pharmaceutical chemicals and APIs at larger volumes. This is positively impacting the pharmaceutical chemicals market growth. The rising research and development activities for drug development across the globe will also augment the demand for various pharmaceutical chemicals over the coming years.