New Research Report Explore Small Molecule API Market Expected to Growth at a CAGR of 4.9% during 2017-2025

This research report offers a comprehensive analysis of the “Small Molecule API Market: Global Industry Analysis 2012-2016 & Opportunity Assessment 2017-2027” The main objective of this report is to deliver insightful information and clear-cut facts pertaining to the growth trajectories of the market.

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Global scenario of the small molecule API market – moderate growth rate observed

The global small molecule API market is anticipated to grow at a moderate rate to register a CAGR of 4.9% during the period of forecast, 2017-2027. There are several aspects that govern the growth rate of the global small molecule API market. The key drivers fuelling the growth of the market are factors such as rise in small molecule API growth, the HPAPI witnessing higher boost in growth rate, and the pharmerging countries being explored as alternative sourcing destinations. Trends such as the sourcing of the APIs done from Indian pharmaceutical manufacturers based in the U.S and higher investment in infrastructural facilities in order to raise the in-house production also contribute to the growth of the global small molecule API market. Moreover, owing to these drivers and trends, there are certain opportunities that lurk within the global small molecule API market. To name a few – the growth in healthcare spending in developing nations such as Asia Pacific and other regions and expansion with respect to product offerings as well as reduction in the costs involved.

Asia Pacific excluding Japan to grow at full speed and gain high market share

Asia Pacific excluding Japan (APEJ) reflects higher speed by registering a growth rate of 5.8% during the forecast period 2017 to 2025. The Asian countries hold significant revenue share in the entire market. Most of the anti-inflammatory drugs as well as antibiotic drugs are produced in the Asian counties, with China and India topping the list. Almost 80% of the total antibiotic APIs are produced in China and India and most of these APIs are outsourced to developed regions such as Europe and North America. The main reasons for this to be possible is the abundant availability of raw material needed to produce APIs, and the availability of low cost labour in India and China. Additionally, these regions enjoy a favourable regulatory assistance along with low taxation policies in order to establish API manufacturing businesses. Also, a large patient population consumes non-controlled drugs, which makes Asia Pacific excluding Japan experience a higher in-house API consumption. The APEJ region also reflects a high market attractiveness and higher market share of almost 34% estimated to be held in 2017. This percentage is expected to rise even higher by the end of 2027, following the major trends that push the growth of the global small molecule API market in the APEJ region.

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The pharma companies in India had filed DMFs making India the leading country in DMF filing. This infers that in the near future, majority of the API manufacturing contracts from U.S. based companies would be awarded to India based companies. Moreover, the rapid rise in the Indian generics market will also fuel the API market growth in this region.

Trend analysis in the APEJ market – raising the bar of growth in the region

The Asia Pacific excluding Japan region is all set to experience a tremendous growth rate during the forecast period. The APEJ small molecule API market is expected to show a high figure of more than US$ 52 Bn by the end of 2027 and dominate the global market. The main reason for this growth is the high outsourcing in this region. Developing nations of China and India lead by SMEs. The production in these countries is rising owing to limited regulatory coverage. Also, the in-house consumption in India is higher, which has resulted in increased focus on the manufacturing of APIs in India.

The distribution network is also extensive in the overseas markets especially in regions such as Europe, United States and South Africa. Another factor supporting the statement that APEJ is experiencing higher growth is – Indian companies manufacturing APIs are taking advantage of the export opportunities especially in the Latin America region. All these trends are aiding the facts that are favourable for the growth of the small molecule API market in the APEJ region. The region that is the most growing and anticipated to grow even further is China, which shows a higher growth rate to register a CAGR of 6.9% followed by India.

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