by Pharmaceutical intermediates are chemical compounds that are used to synthesize active pharmaceutical ingredients (API). They are crucial components of drug manufacturing processes. Some key types of pharmaceutical intermediates include amino acid derivatives, acids and acid derivatives, and other organic compounds. The growing generic and biosimilar drugs market has contributed to the increasing demand for pharmaceutical intermediates worldwide. Additionally, technological advances in production processes including continuous manufacturing are estimated to improve yields and reduce production costs, thereby boosting market growth.
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 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. Key players like Evonik and BASF SE have strong manufacturing capabilities and global presence.
The growing generics market and patent expiries of blockbuster drugs present significant revenue opportunities for pharmaceutical intermediates manufacturers. Global Pharmaceutical Intermediates Market Size Technological advancements in continuous manufacturing are enabling improved yields, reduced costs and better process efficiency.
Advances in process analytical technologies, artificial intelligence and process intensification techniques are helping optimize pharmaceutical intermediates production. Continuous processes are replacing traditional batch manufacturing which is improving process efficiency.
Market drivers
The global pharmaceutical market has been growing steadily over the past few years. Increasing global healthcare spending, rising middle-class population in emerging nations, and demand for affordable treatment options are major drivers for the pharmaceutical market growth. As pharmaceutical intermediates are crucial inputs for active pharmaceutical ingredient (API) manufacturing, their demand rises proportionally with the pharmaceutical industry growth. Additionally, patent expiries of blockbuster drugs and increasing generics penetration globally are augmenting the demand for cost-effective pharma intermediates. Regulatory mandates towards process optimization and continuous manufacturing are also contributing momentum to technological advancements in this space.
Current challenges in the Global Pharmaceutical Intermediates Market
The global pharmaceutical intermediates market is facing various challenges such as stringent government regulations, high costs of manufacturing, complex production procedures etc. Manufacturers have to adhere to strict quality standards and ensure safety at each stage of production. Additionally, obtaining regulatory approvals for new molecules is a lengthy and expensive process. This puts pressure on companies’ profit margins. Further, volatility in prices of key raw materials can impact the overall costs. The COVID-19 pandemic also disrupted global supply chains initially, creating short term logistical hurdles for players. Overall, maintaining cost efficiencies while meeting all compliance norms remains a key priority area.
SWOT Analysis
Strength: Presence of well-established players with wide product portfolios and manufacturing capabilities. Weakness: High dependence on China and India for key starting materials and intermediates. Opportunity: Strong pipeline of new drug launches driving demand for advanced intermediates. Threats: Increasing generics competition once patents of blockbuster drugs expire.
In terms of value, North America accounted for the largest share of around 35% of the global pharmaceutical intermediates market in 2024 due to high R&D investments and healthcare spending in the region. Asia Pacific is anticipated to be the fastest growing regional market till 2031 on account of rising contract manufacturing and overall pharmaceutical output from India and China. Both these countries have emerged as global manufacturing hubs and contribute significantly to global supplies of generic drugs and intermediates.
The European pharmaceutical intermediates market valued over US$ 12 Bn in 2024 and a major portion of manufacturing activity was concentrated in countries like Germany, Italy, France and UK. Germany alone accounted for 25-30% of total European intermediates production supported by presence of leading pharmaceutical companies. Meanwhile, Latin America and Middle East & Africa are projected to showcase high growth during the forecast period on back of expanding healthcare infrastructure and drug development initiatives in several countries.
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1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
