API Intermediate Market Expected to Reach $285 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “API Intermediate Market," The api intermediate market was valued at $139.4 billion in 2022, and is estimated to reach $285 billion by 2032, growing at a CAGR of 7.4% from 2023 to 2032. Pharmaceutical intermediates are chemical compounds that form the building blocks of the active pharmaceutical ingredient (API). Pharmaceutical intermediates are produced as a by-product during the production of API. Every reaction in the production process of API gives rise to various pharmaceutical intermediates. Pharmaceutical intermediates are used in the production of bulk drugs and for R&D purpose by various pharma and biopharma companies.

The key factors that drive the growth of the global API intermediates market include rise in number of manufacturing units and increase in number of adoptions of key strategies such as acquisition, agreement, and business expansion by market players who manufacture API intermediates.

For instance, Sumitomo Chemical Co., Ltd., a major Japan-based chemical company, constructed a new manufacturing plant for active pharmaceutical ingredients (APIs) and intermediates for small molecule drugs at its Oita Works (Oita City, Oita Prefecture, Japan) in March 2022. This project is to enhance the company’s capacity to supply a variety of high-quality APIs and intermediates in response to increase in demand for small molecule drugs.

Moreover, Aceto, a leading global provider of specialty materials for life sciences and advanced technology end markets, announced the acquisition of Eugene, a manufacturer of active pharmaceutical ingredients (APIs), and advanced intermediates, in June 2021. With this acquisition, Aceto provides customers with enhanced support throughout the drug development process and provides access to North America to expand its business, particularly for APIs and advanced intermediates.

Moreover, rise in number of populations suffering from chronic diseases such as diabetes, neurological diseases, and orthopedic disorders drives the demand for API intermediates. API intermediates such as Glipizide, Glyburide, sulphonamide of glimipride, and Sitagliptin phosphate are used in manufacturing of drugs for the treatment of diabetes. Thus, rise in prevalence of diabetes fuels the demand for API intermediates and boosts the growth of the API Intermediates Market.

For instance, International Diabetes Federation, reported in 2021 that approximately 537 million adults were living with diabetes globally. As per the same source, the total number of people living with diabetes in the world is projected to rise to 643 million by 2030 and 783 million by 2045.

On the basis of type, the API intermediates market is fragmented into bulk drug intermediates and chemical intermediate. The bulk drug intermediates segment is expected to dominate the API intermediates market analysis owing to rise in the prevalence of chronic diseases and increase in the number of market players who manufacture bulk drug intermediates.

Moreover, rise in initiative taken by bovernment to develop healthcare infrastructure and increse in development in pharmaceutical sector is anticipated to boost the growth of API intermediates market size.

By application, the API intermediates market Share is classified into analgesics, anti-infective drugs, antidiabetic drugs, cardiovascular drugs, anticancer drugs, and others. The analgesics segment is projected to exhibit the highest growth during the forecast period due to rise in prevalence of chronic pain and increase in usage of over-the-counter pain killer drugs.

Depending on end user, the API intermediates market Share is divided into biotech & pharmaceutical companies, CMO and research laboratories. The biotech & pharmaceutical companies segment is projected to exhibit the highest growth in the near future due to rise in presence of biotech & pharmaceutical companies who import API intermediates.

Region-wise, Asia-Pacific API intermediates market size garnered the largest share in 2022 and is expected to continue this trend during the forecast period, owing to increase in prevalence of chronic diseases and rise in the number of geriatric populations. However, North America is expected to exhibit fastest growth of API intermediates market forecast, owing to rise in number of initiatives taken by government to develop healthcare infrastructure.

Key Findings of the Study

•     By type, the bulk drug intermediates segment dominated the API intermediates Market Trends in 2022.

•     By application, the analgesics segment led the API intermediates industry in 2022.

•   By end user, the biotech & pharmaceutical companies segment was the prominent segment in API intermediates industry in 2022.

•     Regio- wise, Asia-Pacific exhibited the highest growth in 2022 and is expected to grow at a CAGR during the forecast period.