Global Pharmaceutical Intermediates Market will grow at highest pace owing to increasing outsourcing activities

Global Pharmaceutical Intermediates Market

Pharmaceutical intermediates are chemical raw materials which are partially processed for use in the production of active pharmaceutical ingredients (APIs). They help in the systematic production of APIs through a series of chemical reactions. Pharmaceutical intermediates play a vital role in the manufacturing of bulk drug substances which are then converted into dosage forms like tablets, capsules etc. The advantages of pharmaceutical intermediates include cost effectiveness, scalability, and compliance with stringent safety and quality standards. With growing generics market and patent cliffs, there has been a rise in the outsourcing of API manufacturing activities globally. This has significantly propelled the demand for pharmaceutical intermediates from contract development and manufacturing organizations (CDMOs).

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. The growth in pharmaceutical manufacturing outsourcing to emerging Asian countries like India and China is creating significant demand for pharmaceutical intermediates. Also, advancements in process chromatography techniques for purification of intermediates is making the production more cost effective and scalable.

Market Trends

Growing Adoption of Continuous Processing: Pharmaceutical Intermediates Market Size Continuous processing enables conducting chemical reactions and purification steps in a continuous uninterrupted manner. This makes the production of pharmaceutical intermediates more efficient. Companies are increasingly adopting continuous processing to meet growing API demand.

Increasing Outsourcing to Generic Drug Makers in Asia: There has been a rise in the outsourcing of API manufacturing to generic drug makers in Asia Pacific owing to availability of generic expertise and low costs. This is propelling the demand for pharmaceutical intermediates from Asian CDMOs.

Market Opportunities

Demand for Complex Intermediates: With increasing pipeline of novel biologics and specialty drugs, the demand for structurally complex intermediates is expected to rise significantly over the coming years. This presents lucrative opportunities for intermediates manufacturers.

Capacity Expansions in Emerging Markets: To cater growing outsourcing demand from Asia, leading intermediates suppliers are investing in capacity expansions in top generic drug manufacturing countries like India and China. This is expected to open new avenues for market players.

Impact of COVID-19 on Global Pharmaceutical Intermediates Market

The COVID-19 pandemic has adversely impacted the growth of the global pharmaceutical intermediates market. Factors such as nationwide lockdowns, travel restrictions and supply chain disruptions led to decreased production volumes across manufacturing facilities worldwide in the initial phases of the pandemic. This further led to shortage of pharmaceutical intermediates required for manufacturing essential drugs and medicines. However, with gradual lifting of lockdowns and resumption of industrial activities, the market is expected to recover going forward.

The pandemic has also fast-tracked research and development of new drugs and vaccines for treating COVID-19 infections. This has significantly increased the demand for various pharmaceutical intermediates required for manufacturing APIs for antiviral drugs, immunotherapies and vaccines. For instance, intermediates like ethylenediamine, phenylacetic acid and sodium acetate are used in the manufacture of Tamiflu, Remdesivir and other drugs developed for treating COVID-19. Investments into expanding production capacities of such intermediates involved in COVID-19 drug manufacturing are expected to boost market growth post COVID-19. Overall, while the short term impact was negative, the long term outlook remains positive driven by ongoing research for COVID-19 therapeutics.

In terms of geography, North America accounted for the largest share of the global pharmaceutical intermediates market in terms of value before the pandemic. This can be attributed to factors such as presence of well-established pharmaceutical industry and developed healthcare infrastructure in the region. However, Asia Pacific is expected to witness the fastest growth post COVID-19. This is due to increasing investments by major players into setting up or expanding existing manufacturing facilities in countries like China and India to cater to growing API demand. Government initiatives supporting local drug production are further augmenting market growth in Asia Pacific.

The concentration of pharmaceutical intermediates market in terms of value has also been high in Europe. Top companies manufacturing pharmaceutical intermediates have their production bases located across Germany, France, UK and Italy. However, growing biosimilar and generic drug manufacturing in developing nations is likely to provide significant opportunities for market stakeholders in Asia Pacific and Middle Eastern regions over the upcoming years.

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