Press release
Strong Growth Ahead: Small Molecule API Market Size To Grow At Arecord 7.9% Cagr By 2029
Small Molecule API
How Big Is the Small Molecule API Market Size Expected to Be by 2034?
The market size for small molecule api has seen considerable growth in the past years. Its progression from $204.47 billion in 2024 to an anticipated $218.35 billion in 2025 is predicted to follow a compound annual growth rate (CAGR) of 6.8%. The preceding growth can be credited to the surge in the manufacturing of generic drugs, a boost in R&D investment, rising demands from an aging population, the expansion of oncology treatments, and the introduction of targeted therapies.
The market size for small molecule api is predicted to witness robust expansion in the coming years, ballooning to a potential $296.47 billion by 2029. This suggests a compound annual growth rate (CAGR) of 7.9%. Factors contributing to the predicted growth during the forecast period include resilience in supply chain, integration of digital technology in pharmaceutical manufacturing, higher investments in oncology, the adoption of green chemistry, and increased healthcare needs due to recent pandemics. Some key trends to watch over the forecast period are synergy within biopharmaceuticals, individualized medical treatments, sophisticated manufacturing methods, outsourcing of API, and contract manufacturing.
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What Are the Emerging Segments Within the Small Molecule API Market?
The small molecule api market covered in this report is segmented -
1) By Type: Synthetic, Biotech
2) By Manufacturer: In-House, Outsourced
3) By Application: Cardiology, Oncology, CNS And Neurology, Orthopedic, Endocrinology, Other Applications
Subsegments:
1) By Synthetic: Chemical Synthesis, Process Development, Custom Synthesis
2) By Biotech: Recombinant Proteins, Monoclonal Antibodies, Peptides
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What Long-Term Drivers Are Shaping Small Molecule API Market Trends?
The surge in the need for small-molecule medications is projected to stimulate the expansion of the small-molecule API market. Small-molecule medications are typically low-molecular-weight compounds that can influence biochemical reactions for disease diagnosis, treatment, or prevention. Drugs such as Aspirin and diphenhydramine, commonly found in medicine chests, are examples of this kind of medication. These pharmaceutical products fall under the small-molecule API category and play a significant role in disease prevention. The Office of the Assistant Secretary for Planning and Evaluation, a US governmental body, reported in December 2023 that in 2022, a single manufacturer produced 43% of the total small-molecule drug market. However, it accounted for 65% of all expenses within the market. Hence, the rising need for small-molecule drugs is fueling the expansion of the small-molecule API market.
Who Are the Top Competitors in Key Small Molecule API Market Segments?
Major companies operating in the small molecule api market are Merck & Co. Inc., AbbVie Inc., Bristol-Myers Squibb Company, Boehringer Ingelheim International GmbH, Dr. Reddy's Laboratories Ltd., Aurobindo Pharma, Sun Pharmaceutical Industries Ltd., Teva Pharmaceutical Industries Ltd., Viatris Inc., Cambrex Corporation, Lonza Group AG, Siegfried Holding AG, AstraZeneca, F. Hoffmann-La Roche AG, Nanjing King-friend Biochemical Pharmaceutical Co. Ltd, Albany Molecular Research Inc., BASF SE, Gilead Sciences Inc., GlaxoSmithKline PLC, Johnson Matthey PLC, Novartis AG
What Small Molecule API Market Trends Are Gaining Traction Across Different Segments?
The small-molecule API market is experiencing a leading trend of strategic alliances. A multitude of companies that operate in this market are aligning themselves with partners to secure a stronger foothold in the small-molecule API market and accelerate the progress of drug and therapy development. Take for example the collaboration in March 2023 between CatSci Ltd., a pharmaceutical entity from the UK, and AGC Pharma Chemicals, a counterpart from Spain focussed on enhancing drug evolution. CatSci now benefits from the manufacturing expertise of AGC, backing projects in clinical phase. Customers of AGC now have the advantage of CatSci's state-of-the-art therapeutic development skills, centered on scalable small molecule API production and a wide selection of technologies. Their shared efforts are geared toward creating a smooth tech transfer process, aiming to offer strategic value, speed up drug development schedules, and globally distribute impactful medicines based on small molecule APIs.
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Which Regions Are Becoming Hubs for Small Molecule API Market Innovation?
North America was the largest region in the small molecule API market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the small molecule API market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Small Molecule API Market?
2. What is the CAGR expected in the Small Molecule API Market?
3. What Are the Key Innovations Transforming the Small Molecule API Industry?
4. Which Region Is Leading the Small Molecule API Market?
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