Pharmaceutical Fine Chemicals Market is Anticipated to Witness High Growth Owing to Increasing Demand for Active Pharmaceutical Ingredients
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Pharmaceutical Fine Chemicals Market |
The pharmaceutical
fine chemicals market involves fine chemicals which are developed through
process chemistry to meet the stringent quality standard of pharmaceutical
industry. These fine chemicals are utilised during the manufacturing of active
pharmaceutical ingredients (APIs) that are further used in different
pharmaceutical formulations. The APIs developed from fine chemicals are purer,
more stable and potent which helps in attaining desired therapeutic outcomes.
Rising prevalence of chronic diseases worldwide has boosted the demand for
effective pharmaceutical drugs which in turn is propelling the need for pure
and potent APIs manufactured using pharmaceutical fine chemicals.
The Global pharmaceutical fine chemicals market is estimated to be valued at US$ 136.2 BN in 2024 and is expected to
exhibit a CAGR of 7.9% over the
forecast period 2024 To 2031.
Key Takeaways
Key players operating in the Pharmaceutical
Fine Chemicals Market Demand are Denisco, Albemarle Corporation, Kenko
Corporation, GRACE, CHEMADA, JMP Statistical Discovery LLC., Pfizer Inc. and
GSK plc.
Key opportunities in the market include increasing outsourcing of API
manufacturing by major pharmaceutical companies to specialised fine chemical
manufacturers and growth in contract manufacturing and research activities.
Rising healthcare expenditure in emerging economies also provide growth opportunities
to fine chemical manufacturers.
In terms of global expansion, companies are investing in setting up
manufacturing facilities in emerging Asian markets like China and India which
have sizeable pharmaceutical industries and a large pool of educated workforce.
Manufacturers are also focusing on expansion in Latin American countries owing
to increasing healthcare infrastructural development initiatives by governments
in the region.
Market Drivers
Increasing incidence of chronic lifestyle diseases like cancer, diabetes
etc. is driving the demand for effective pharmaceutical formulations. This is
boosting the market for pure and high quality APIs manufactured using
pharmaceutical fine chemicals. According to WHO, cancer burden is expected to
grow by ~70% over the next 2 decades.
Market Restrain
Stringent regulatory norms associated with manufacturing of pharmaceutical
fine chemicals can hamper market growth. Facilities require approvals from
regulatory authorities like US FDA and EMA. Non-compliance may lead to
penalties, shutdowns and loss of reputation.
Segment Analysis
The pharmaceutical fine chemicals market is segmented based on type,
application, and region. Based on type, the APIs segment dominates the market
with over 50% share as majority of pharmaceutical products are manufactured
using APIs as the core component. APIs play a crucial role in determining the
efficacy of drugs and demand for efficacious and cost-effective APIs is driving
this segment.
By application, pharmaceutical companies hold the largest share as they rely on
fine chemical manufacturers for production of APIs and NCEs. Outsourcing
non-core activities like API manufacturing allows pharmaceutical companies to
focus on drug discovery and clinical trials. The contract manufacturing
organizations segment is growing at the fastest rate due to increasing
outsourcing of manufacturing activities by big pharmaceutical players.
Global Analysis
North America holds the largest share of over 35% in the global pharmaceutical
fine chemicals market and is expected to continue dominating through 2031. High
healthcare expenditure, presence of leading pharmaceutical players, and growing
R&D investments support market growth in the region. Asia Pacific is
identified as the fastest growing regional market with a projected CAGR of
around 9% during the forecast period. Factors such as rising generic drug
production, increasing contract manufacturing, and bulk drug production in
China and India are fueling market expansion in Asia Pacific. European market
demonstrates high growth potential owing to strategic initiatives taken by
governments to strengthen the local pharmaceutical industry in the region
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