The Global Pharmaceutical Intermediates Market is driven by Growing Demand for Generic Drugs
The pharmaceutical intermediates market involves the production of intermediates which are primarily used in the manufacturing of active pharmaceutical ingredients (APIs) and generic drugs. Pharmaceutical intermediates help in simplifying multistep organic synthesis procedures by breaking it down into fewer steps. They provide improved yields and cost benefits to pharmaceutical companies. The growing generic drugs market has boosted the demand for cost-effective pharmaceutical intermediates.
The Global Pharmaceutical Intermediates Market is estimated to be valued at US$ 43.67 Bn in 2024 and is expected to exhibit a CAGR of 8.1% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the Global Pharmaceutical Intermediates market are Evonik, Borregaard AS, Sudarshan Pharma, A.R. Life Science, Actylis, Saurav Chemicals Ltd., Lianhetech, Midas Pharma GmbH, Sanofi , BASF SE, Chiracon GmbH, Lonza, Chemcon Speciality Chemicals Limited., Modepro India Pvt. Ltd., Lifechem Pharma, Sarex, LANXESS.
The growing demand for generic drugs due to cost benefits is a major factor driving the growth of the pharmaceutical intermediates market. According to estimates, the global generic drugs market was valued at over US$ 300 billion in 2020 and is expected to reach over US$ 500 billion by 2026.
Geographically, Asia Pacific represents the fastest growing regional market for pharmaceutical intermediates due to expanding pharmaceutical industries, significant generic drugs market, and presence of key manufacturers in countries such as India and China.
Market drivers
The demand for cost-effective drugs is a major factor fueling the growth of the pharmaceutical intermediates market. Global Pharmaceutical Intermediates Market Size provide benefits such as simplified processes, improved yields, and reduced costs for API manufacturers. This allows them to supply generic drugs at competitive prices. As the demand for low-cost generic drugs continues to rise globally, primarily in developing countries, the market for associated pharmaceutical intermediates is also expected to grow significantly over the forecast period.
Impact of geopolitical situation on the growth of Global Pharmaceutical Intermediates Market
The growth of the global pharmaceutical intermediates market is facing challenges due to geopolitical tensions and conflicts across various regions. Stringent import and export restrictions imposed by some countries are limiting trade activities and disrupting supply chains. Furthermore, economic sanctions against certain nations are hampering business operations and collaborations between pharmaceutical manufacturers situated in different geographical locations. The ongoing Russia-Ukraine war has exacerbated such challenges due to sanctions on Russian entities and restrictions imposed on trade with the country. The conflict is also leading to inflationary pressures worldwide due to rising energy and commodity prices, thereby increasing production costs for pharmaceutical intermediates manufacturers and restricting their ability to scale up operations. Geopolitical instability in other parts of the world like the Middle East & Africa region is also posing threats to the market growth. To ensure steady growth, companies must actively seek alternate sourcing routes, diversify supply networks, establish manufacturing facilities in strategically important regions, and focus on producing crucial intermediates internally to minimize dependencies. Collaborations between regional players can help create resilient local supply chains.
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