ashwini bakhade
by on June 17, 2024

The global pharmaceutical intermediates market comprises chemicals that are used in the manufacturing of active pharmaceutical ingredients (APIs). Pharmaceutical intermediates aid in synthesizing bulk drugs and making complex molecules. Some common intermediates include glycine, phenylalanine, tryptophan, tyrosine, citric acid, and lactic acid. They provide building blocks required for synthesizing a variety of drugs to treat chronic and acute medical conditions. There is a rising demand for generic drugs due to their cost-effectiveness compared to branded drugs. The growing generic drugs market is fuelling the need for 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 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. There is increasing demand for generic drugs owing to their cost-effectiveness. This is propelling the growth of the pharmaceutical intermediates market. Technological advancements such as continuous manufacturing are helping improve the efficiency and sustainability of pharmaceutical intermediate production.

Market Trends
Increasing outsourcing of Global Pharmaceutical Intermediates Market Demand  manufacturing: Due to the complex production processes involved, most pharmaceutical companies are outsourcing intermediate manufacturing to specialized contract manufacturing organizations. This is helping companies focus on drug development while ensuring timely availability of intermediates.
Sustainable "green" manufacturing practices: With stringent environmental norms, manufacturers are shifting to environment-friendly production techniques like flow chemistry, selective waste treatment, and integrated workflow. This is making processes more atom-economical and reducing the carbon footprint.

Market Opportunities
Developing markets in Asia Pacific and Latin America: Emerging countries are investing heavily in healthcare infrastructure and generic drugs market is growing rapidly. This provides opportunities to suppliers of pharmaceutical intermediates to tap the production and export capabilities.
Expanding application base: Intermediates are increasingly finding applications as building blocks in agrochemicals and fine chemicals in addition to the pharmaceutical industry. Diversification into allied industries can boost revenues.

Impact of COVID-19 on Global Pharmaceutical Intermediates Market

The COVID-19 pandemic has impacted the growth of the global pharmaceutical intermediates market. During the initial months of the pandemic, the manufacturing and supply chain operations were disrupted due to lockdowns imposed across various regions. This led to shortages of active pharmaceutical ingredients (APIs) and intermediates. However, with vaccination drives and relaxation of restrictions, the market is recovering slowly. The demand for pharmaceutical intermediates is rising again as drug manufacturers ramp up production to meet the increasing demand for medicines to treat COVID-19 patients as well as other therapeutic areas.

Pre-COVID, the market was growing at a steady pace owing to rising generic and biosimilar drug production. However, during the pandemic, growth declined temporarily due to supply chain interruptions. Post-COVID, the market is expected to witness higher growth. Various factors such as increasing prevalence of chronic diseases, rising pharmaceutical R&D spending, investments in developing innovative APIs and intermediates, and focus on generics will support the market expansion over the forecast period. However, stringent regulations associated with drug manufacturing and uncertainties around COVID-19 may continue to impact the business operations of market players.

In terms of value, Asia Pacific is the largest region for the global pharmaceutical intermediates market. China dominates the market in this region owing to presence of numerous pharmaceutical manufacturing facilities. India is also a major market backed by large pool of qualified workforce as well as low production costs. North America is another lucrative region driven by growing generic drugs market in the US. Countries like India and China are expected to be the fastest growing regional markets over the next few years on account of increasing domestic demand and expanding pharmaceutical production base.

Europe accounts for a significant share in the global pharmaceutical intermediates market. Major European countries concentrated in terms of market value are Germany, UK, France and Italy. This can be attributed to presence of leading drug makers as well as stringent manufacturing standards followed in the region. However, regulations have recently been tightened further which may impact market growth. Overall, the demand for pharmaceutical intermediates is concentrated highly in Asia Pacific and Europe currently, while North America also captures sizable market share globally.

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