Growing Expenditure on Biopharmaceutical Production Driving Sterile Active Pharmaceutical Ingredients Market Growth
Introduction of new drugs for rare indications, rising prevalence of chronic diseases, and growing ageing population have increased the consumption of pharmaceuticals, which has boosted the pharmaceutical expenditure, globally.
According to OECD, Global spending on pharmaceuticals was US$ 1,120.6 Bn in 2015 and is expected to increase at a CAGR of 7.1% during 2016 - 2030. Various pharmaceutical and biotechnology companies are focusing on expanding their geographical footprint to increase pharmaceutical production capacity.
For instance, in January 2019, Fujifilm announced plans to invest approximately US$ 90Mn to boost its overall production capacity by expanding its production facility at North Carolina.
Growing pharmaceutical production and increasing pharmaceutical spending are expected to propel the growth of the global sterile active pharmaceutical ingredients market. By value, China held the largest share in 2018 accounting for ~79% of the market. By form, aqueous segment captured the largest share in terms of in 2029 and is projected to show an upward trend through 2029.
Rapid Shift from in-house Sterile Active Pharmaceutical Ingredients Production to Outsourced Production
Pharmaceutical companies are rapidly shifting from in-house manufacturing to outsourcing of manufacturing operations. North America shows balance in in-house to outsourcing production of sterile active pharmaceutical ingredients.
Approximately, 50% of the big pharmaceutical companies prefer in-house production of patented API and outsourcing of dosage form manufacturing. However, companies do not rely on sole producers but partner with various CMOs for manufacturing of finished dosage forms.
With a prolific rise in outsourcing of sterile active pharmaceutical ingredients, CMOs are expanding fill and finish capacity for sterile products. As can be evidenced in diagram below, North America on back of the aforementioned factors held a major chunk of market share in 2019, closely followed by South Asia which is also poised to exhibit a staggering growth of ~8% through 2029.
South Asia’s prolific growth can be attributed to presence of key API manufacturers in countries such as India. Additionally, the region will exhibit high growth on back of increased manufacturing of generic drugs.
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Acquisition and Partnership Key Strategies in Sterile Active Pharmaceutical Ingredients Market
Manufacturers are focusing on expansion of product lines in the sterile active pharmaceutical ingredients segment owing to growing demand for parenteral drugs, biologics, and ophthalmic solutions. Key market stakeholders are adopting acquisition and merger strategies for expansion of production capabilities. For instance, in September 2018, Aurobindo Pharma USA Inc.
acquired commercial operations and three manufacturing facilities in the U.S from Sandoz Inc., USA. Also, manufactures are centering towards a strategic partnership with contract manufacturing organization and pharmaceutical companies to access advance manufacturing technologies for sterile products. In February 2017, Sanofi and Lonza entered a strategic partnership to operate large-scale mammalian cell culture facility for monoclonal antibody production in Visp, Switzerland.
Increasing Research & Development Investments in Pharmaceutical Industry
The healthcare industry is heavily dependent on developing new treatment options for the treatment of various chronic diseases such as cancer, HIV, arthritis, cardiovascular diseases, etc. Increasing healthcare R&D expenditure, further improves the chances of possibility of breakthrough treatments.
As per the data from European Federation of Pharmaceutical Industries and Associations (EFPIA) and (Pharmaceutical Research and Manufacturers of America) PhRMA, annual pharmaceutical R&D expenditures expanded at 2.5% p.a. in Europe as compared to 3.3% p.a. in the U.S. during 2011-2016. Rapidly growing pharmaceutical expenditure is anticipated to result in new molecule discovery that favors the demand for sterile active pharmaceutical ingredients.
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Key Segments of the Sterile Active Pharmaceutical Ingredients Market
Fact.MR’s study on the sterile active pharmaceutical ingredients market offers information divided into four important segments-product type, form and region. This report offers comprehensive data and information about the important market dynamics and growth parameters associated with these categories.
- Monoclonal Antibodies
- Peptide Hormones
- Blood Factors
- Peptide Antibiotics
- Small Molecule Antibiotics
- Highly Potent Active Pharmaceutical Ingredients (HPAPI)
- Non-Aqueous Liquid
- Dry Powder
- North America
- Latin America
- South Asia
- East Asia
- Middle East & Africa
Sterile Active Pharmaceutical Ingredients Market - Scope Of The Report
Fact.MR recently published a market study on the global market for sterile active pharmaceutical ingredients. The study provides a detailed assessment on the key market dynamics, including drivers, trends, opportunities restraints, and detailed information about the sterile active pharmaceutical ingredients market structure. The market study presents exclusive information about how the sterile active pharmaceutical ingredients market will grow during the forecast period (2019-2029).
Key indicators of market growth, which include Year-on-Year (Y-o-Y) growth of the market, and compounded annual growth rate (CAGR) are explained in Fact.MR’s study in a comprehensive manner. This information can help readers understand the quantitative growth prospects of the sterile active pharmaceutical ingredients market during the forecast period.
The study is relevant for stakeholders in the sterile active pharmaceutical ingredients market, including sterile active pharmaceutical ingredients manufacturers, suppliers, distributors, and investors, and can help them in developing appropriate strategies to grow in the market.
Stakeholders in the sterile active pharmaceutical ingredients market, investors, industry experts, researchers, and journalists, as well as business researchers can leverage the information and data presented in Fact.MR’s study.
The study also includes statistics as well as facts related to macro as well as microeconomic factors that are impacting developments in the market. It also offers actionable insights based on the future trends in the sterile active pharmaceutical ingredients market.
Furthermore, small businesses and new entrants in the sterile active pharmaceutical ingredients market too can make use of the information presented in this study, based on which, they can make appropriate business decisions to gain momentum in the market.
Key Questions Answered in Fact.MR’s Sterile Active Pharmaceutical Ingredients Market Report
- Which regions will continue to remain the most profitable regional markets for sterile active pharmaceutical ingredients market players?
- Which factors will induce a change in the demand for sterile active pharmaceutical ingredients manufacturers during the assessment period?
- How will changing trends impact the sterile active pharmaceutical ingredients market?
- How can market players capture the low-hanging opportunities in the sterile active pharmaceutical ingredients market in developed regions?
- Which companies are leading the sterile active pharmaceutical ingredients market?
- What are the winning strategies of stakeholders in the sterile active pharmaceutical ingredients market to upscale their position in this landscape?
Sterile Active Pharmaceutical Ingredients Market: Research Methodology
In Fact.MR’s study, a unique research methodology is utilized to conduct extensive research on the growth of the sterile active pharmaceutical ingredients market, and reach conclusions on the future growth parameters of the market. This research methodology is a combination of primary and secondary research, which helps analysts ensure the accuracy and reliability of conclusions.
Secondary resources referred to analysts during the production of the sterile active pharmaceutical ingredients market study include statistics from government organizations, trade journals, white papers, and internal and external proprietary databases.
Analysts have interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, who contributed to the development of this report as a primary resource.
Comprehensive information acquired from primary resources and secondary resources acts as validation from companies in the sterile active pharmaceutical ingredients market and makes Fact.MR’s projection on the growth prospects of the sterile active pharmaceutical ingredients market more accurate and reliable.
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Is the market research conducted by Fact.MR?
Yes, the report has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.
What research methodology is followed by Fact.MR?
Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.
What are the sources of secondary research?
Fact.MR conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.
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