by Pharmaceutical intermediates are chemical substances or molecules that contribute to the process of making active pharmaceutical ingredients (APIs). They improve the properties and play an important role in drug delivery. Intermediates are crucial during the manufacturing of generic medications and are used extensively in the research and development of new drugs as well.
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 key opportunities in the market include increasing generic drug production in emerging economies of Asia Pacific and Latin America. Global Pharmaceutical Intermediates Market Demand Several companies are investing heavily in setting up manufacturing units in these regions owing to low costs. Furthermore, the patent expiries of major blockbuster drugs are providing opportunities for generic versions, thereby propelling the demand for intermediates.
Technological advancements such as continuous manufacturing processes and multi-step synthesis are helping in improving yields and reducing production costs. This is encouraging pharmaceutical companies to outsource intermediate manufacturing to specialized providers.
Market drivers
The rising geriatric population globally is driving the demand for various medicines. As per estimates, the number of people aged 65 years and above is projected to reach 1.5 billion by 2050. This substantial increase in the elderly population prone to chronic diseases is expected to boost the pharmaceutical intermediates market during the forecast period. Furthermore, growing adoption of generic drugs owing to their affordability compared to branded drugs is another key factor augmenting the market expansion.
Current challenges in the Global Pharmaceutical Intermediates Market
The global pharmaceutical intermediates market is facing various challenges currently. Stringent regulatory policies by various regulatory bodies have increased the compliance burden for manufacturers. Meeting various stringent quality standards adds to production costs. Lack of skilled labor and high worker turnover also impacts productivity and production efficiency. Manufacturers also face issues in procuring reliable raw material supplies. Fluctuating raw material prices increase the input costs and impact profit margins for players. Ensuring continuous production while following strict environmental norms for waste treatment is another major challenge.
SWOT Analysis
Strength: Wide applications in producing bulk drugs and large scale production advantages. Strong R&D capabilities help develop complex intermediates.
Weakness: Regulatory compliance adds costs and complexity. High capital requirements for setting up facilities.
Opportunity: Growing generics market and demand for cost-effective drugs driving volumes. Outsourcing of intermediate production provides new opportunities.
Threats: Stringent environmental regulations raise compliance costs. Supply chain disruptions and trade barriers affect raw material availability.
Geographical regions of market concentration
In terms of value, Europe accounted for a significant share in the global pharmaceutical intermediates market in 2024. Presence of leading pharmaceutical companies and strong manufacturing capacities in countries like Germany, France, Italy, and UK drive the regional market. Stringent environmental norms and availability of skilled workforce support domestic production.
Fastest growing region
Asia Pacific region is projected to be the fastest growing market for pharmaceutical intermediates during the forecast period from 2024 to 2031. Expanding pharmaceutical industries, low production costs, and improving infrastructure in major countries such as India, China, and South Korea are driving higher market growth. Growing generics industry and strong export volumes from Asian countries are propelling the regional market growth.
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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
