by Intermediates facilitate the cost-effective synthesis of APIs through improved process yields and production times. Key advantages include enhanced drug efficacy, lesser side effects, improved stability and safety profiles. The rising incidence of chronic diseases worldwide coupled with patent expiries of blockbuster drugs is driving pharmaceutical companies to focus on specialized intermediates for novel APIs.
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 include 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, and LANXESS.
The rising incidence of chronic diseases is propelling pharmaceutical R&D expenditures and clinical trials. This is fueling the demand for specialized intermediates in developing novel APIs and biosimilars. Additionally, patent expiries of blockbuster drugs are prompting pharmaceutical companies to innovate differentiated products using customized intermediates.
The Global Pharmaceutical Intermediates Market Size is witnessing increased consolidation as players expand globally near API manufacturing hubs to ensure security of supply and better serve regulated market demand. Key players are also focusing on sustainable production through enhanced yields, reduced emissions and efficiencies.
Market Key Trends
The Global Pharmaceutical Intermediates Market is trending towards sustainability with the increasing focus of key players on green chemistry and engineering principles. Players are developing eco-friendly processes to manufacture intermediates through advanced catalytic technologies, flow chemistry, selective biomimetic transformations and intensified methods. This is helping reduce carbon footprint, waste generation and solvent consumption. Sustainable production is expected to minimize costs and risks for pharmaceutical companies while improving environmental performance.
Porter’s Analysis
Threat of new entrants: High capital requirements and costs involved in establishing R&D centers pose significant entry barriers.
Bargaining power of buyers: Large pharmaceutical companies have significant bargaining power over intermediates manufacturers due to their purchasing power and substitutes availability.
Bargaining power of suppliers: Suppliers of raw materials have moderate bargaining power due to availability of substitute materials and suppliers.
Threat of new substitutes: Threat from new substitutes is low as pharmaceutical intermediates require specialized manufacturing processes and technologies.
Competitive rivalry: The global market is dominated by a handful of large players and competition is intense based on product quality, reliability of supply and pricing.
Geographical regions with highest market share in terms of value are North America and Europe due to presence of major pharmaceutical companies and stringent regulatory environment. The Asia Pacific region is the fastest growing market for pharmaceutical intermediates due to expansion of domestic pharmaceutical industries, growing generics market and availability of cost-effective manufacturing facilities. China and India are largest producers and consumers of intermediates in Asia Pacific region. Other emerging markets like Brazil, Mexico, Turkey, Iran and South Africa are also witnessing significant growth.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
