June 13, 2024
Pharmaceutical Intermediates

Global Pharmaceutical Intermediates Market to Witness High Growth Due to Technological Advancements in Drug Synthesis

The global pharmaceutical intermediates market is witnessing high growth due to technological advancements in drug synthesis techniques. Pharmaceutical intermediates are chemical compounds that are used to synthesize active pharmaceutical ingredients (APIs). They help in manufacturing drugs in a cost-effective manner with high purity and yield. Some key advantages of using pharmaceutical intermediates include simplified drug synthesis process, consistent quality, and enhanced safety. With rising disease burden worldwide, there is increasing demand for generic and patented drugs. This has propelled the production of pharmaceutical intermediates significantly.

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., and Lifechem Pharma.

The key opportunities in the market include establishing manufacturing facilities in high growth regions and focus on developing intermediates for niche therapy areas. Pharmaceutical Intermediates Market Size Several pharmaceutical companies are outsourcing intermediate production to specialized contract manufacturers to reduce costs.

Advancements in synthetic route technologies like continuous flow systems and microwave-assisted reactions have enabled cost-effective and eco-friendly production of intermediates. Emerging areas like polysaccharide chemistry, asymmetric catalysis, and process analytical technology (PAT) also offer opportunities for incremental innovation in intermediate synthesis.

Market drivers

The key driver boosting the pharmaceutical intermediates market is the patent expiry of blockbuster drugs. As patents of many lucrative drugs expire, there is higher demand for generic versions, propelling API and intermediate production. Another major factor is the growing geriatric population worldwide who require lifelong medication. This steady demand from the aging demographics ensures continued market opportunity for intermediates over the forecast period.

Current challenges in Global Pharmaceutical Intermediates Market
The global pharmaceutical intermediates market faces various challenges such as stringent regulations, supply chain disruption, rising costs of raw materials, and complex manufacturing process. Regulatory authorities across countries have implemented strict norms and standards for approving pharmaceutical intermediates which increases compliance burden on manufacturers. Frequent disruption in supply chain due to pandemic further created shortage of raw materials and price volatility affecting production planning of companies. The raw material costs especially APIs and excipients have witnessed significant inflation putting pressure on overall costs. Manufacturing highly potent pharmaceutical intermediates requires advanced technologies and capabilities making the production process complex and costly.

SWOT Analysis
Strength: Wide applications in producing active pharmaceutical ingredients (APIs) improves growth potential.

Weakness: Heavily reliant on China & India for key starting materials increases supply chain risks.

Opportunity: Emerging economies expanding healthcare infrastructure presents new market avenues.

Threats: Stringent quality and environmental regulations increases compliance costs.

Geographical Regions
North America holds the major share in global pharmaceutical intermediates market in terms of value owing to well-established pharmaceutical industry, rising healthcare R&D spending and presence of leading manufacturers. The United States accounts for the largest pharmaceutical market globally driving significant intermediates demand in the region.

The Asia Pacific region is expected to witness fastest growth during the forecast period supported by expanding biopharmaceutical industry, low production costs and robust economic growth especially in China and India. These countries are producing over 80% of the global pharmaceutical supply necessitating ample pharmaceutical intermediate production and export.

1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it