Dublin, Feb. 18, 2026 (GLOBE NEWSWIRE) -- The "Active Pharmaceutical Ingredients (API) Market by Type (Innovative, Generic), Synthesis (synthetic, Biotech), Potency (HPAPI), Product (mAbs, Hormones), Drug (OTC, Rx), Application (Diabetes, Oncology), Competitive Landscape - Global Forecast to 2030" report has been added to ResearchAndMarkets.com's offering.
The global active pharmaceutical ingredients market is projected to reach USD 198.39 billion by 2030 from an estimated USD 144.20 billion in 2025, at a CAGR of 6.6% from 2025 to 2030
The report will help market leaders and new entrants by providing them with the closest approximations of the revenue numbers for the overall active pharmaceutical ingredients market and its subsegments. It will also help stakeholders better understand the competitive landscape and gain more insights to better position their businesses and make suitable go-to-market strategies. This report will enable stakeholders to understand the market's pulse and provide them with information on the key market drivers, restraints, opportunities, and challenges.
The expansion of the active pharmaceutical ingredients market has been predominantly fueled by the expanding oncology & rare disease and diabetes product pipeline. Over the past few years, type 2 diabetes and obesity care have been reshaped by a new class of peptide-based drugs, most notably Semaglutide, Tirzepatide, Liraglutide, and Dulaglutide. These therapies are transforming patient outcomes and creating significant opportunities across the API supply chain.
The pharmaceutical & biotechnology industry segment accounted for the largest share by end user in 2024.
Based on end users, the market is categorized into the pharmaceutical & biotechnology industry, contract research organizations (CROs), contract manufacturing organizations (CMOs), and other end users. The pharmaceutical & biotechnology industry accounted for the major end-user of active pharmaceutical ingredients (APIs), which are essential for drug development and manufacturing. The pharmaceutical industry has seen increasing manufacturing outsourcing to CMOs in the last 5 years, especially for developing and manufacturing drugs & biologics, such as high-potency drugs, ADCs, among others.
However, pharmaceutical and biotechnology companies still dominate the end-user segment by retaining in-house manufacturing for high-value blockbuster drugs and biologics. Additionally, the rising demand for innovative therapies has encouraged continuous investment in research and development, with companies prioritizing the creation of novel drugs and advanced formulations. Together, these trends are expected to further strengthen the growth of the pharmaceutical and biotechnology end-user segment.
The innovative APIs segment accounted for the largest market share in the active pharmaceutical ingredients market by type.
Based on type, the global active pharmaceutical ingredients (API) market is divided into innovative APIs and generic APIs. In 2024, innovative APIs dominated the market, driven by the increasing number of regulatory approvals for new and advanced drugs, which is expected to continue supporting growth over the forecast period. For instance, the US FDA approved more than 50 new molecular entities (NMEs) in 2024, reflecting the rising pace of novel drug development. Innovative APIs, being protected by patents, are typically priced higher than generic APIs, contributing to their larger market share.
The segment's growth is further reinforced by the focus of pharmaceutical and biotechnology companies on developing novel therapies for complex and unmet medical needs, including oncology, rare diseases, and biologics. Additionally, investments in research and development, advanced manufacturing capabilities, and regulatory incentives continue to promote the introduction of innovative APIs. These factors position innovative APIs as the leading segment of the global API market, reflecting higher value and strong demand.
The Asia Pacific region is expected to grow at the highest CAGR in the global active pharmaceutical ingredients market during the forecast period.
The market is segmented by region into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. The Asia Pacific region is projected to grow at the highest CAGR during the forecast period. The key factors contributing to market growth include the increasing adoption and demand for high-value therapies, driving manufacturing expansion by global & regional players. In addition, the expansion of CDMOs in the region, which is focused on synthetic and biological therapies, is also helping drive demand for APIs.
China, Japan, South Korea, India, and Australia are witnessing the growing adoption of innovative and generic medicine, which is supported by expanding manufacturing facilities in the Asia Pacific region. Furthermore, a combination of cost-efficient manufacturing, expanding generics and biosimilars production, and strong government support for local API manufacturing to reduce dependency on imports. India and China are emerging as global hubs owing to their large-scale production capacity, skilled workforce, and favorable regulatory initiatives, which support the growth of the active pharmaceutical ingredients market in the region.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 578 |
| Forecast Period | 2025 - 2030 |
| Estimated Market Value (USD) in 2025 | $144.2 Billion |
| Forecasted Market Value (USD) by 2030 | $198.39 Billion |
| Compound Annual Growth Rate | 6.6% |
| Regions Covered | Global |
Market Dynamics
Drivers
- Surge in Demand for Complex Apis
- Favorable Government Incentives and Supply Chain Reshoring
- Increasing Adoption of Continuous Manufacturing and Digital Process Controls
- Rapid Growth of Oncology and Rare Disease Pipelines
Restraints
- Tightening Regulatory Requirements for Nitrosamine and Impurity Controls
- High Production Costs in US and Europe-based Facilities
- Price Pressure from Generic Tenders and Single-Winner Procurement Policies
Opportunities
- Growing Emphasis on Supply Resilience and Security of Critical Medicine Manufacturing
- China-Plus-One Strategy
- Increasing Adoption of Integrated Cdmo Service Models
Challenges
- Capital-Intensive Investments for High Containment and Advanced Facilities
- Quality Failures and Site Shutdowns
- Supply Chain Concentration Risk
- Geopolitical Tensions and Trade Restrictions
Technology Analysis
Key Technologies
- Continuous Manufacturing
- Advanced Analytical Techniques
- Biocatalysis
Complementary Technologies
- Data Analytics and Digitalization
- Personalized Medicines and Custom Synthesis
- Supercritical Fluid Technology
Adjacent Technologies
- Supply Chain Visibility and Blockchain
- D Printing
- Nanotechnology
Companies Featured
- Pfizer Inc.
- Divi's Laboratories Limited
- Asymchem Inc.
- Cipla
- Evonik
- Teva Pharmaceutical Industries Ltd.
- Sandoz Group AG
- Sk Inc.
- Merck KGaA
- Dr. Reddy's Laboratories Ltd.
- Sun Pharmaceutical Industries Ltd.
- Aurobindo Pharma Limited
- Hikma Pharmaceuticals PLC
- Basf
- Alembic Pharmaceuticals Limited
- Siegfried Holding AG
- Euroapi
- Bachem
- Zhejiang Huahai Pharmaceutical Co. Ltd.
- Zhejiang Hisun Pharmaceutical Co. Ltd.
- Polypeptide Group
- Granules India
- Corden Pharma
- Recipharm
- Aburaihan Pharmaceutical Company
- Curia Global, Inc.
- Cambrex Corporation
- API Pharma Tech
- Sreepathi Pharmaceuticals Limited
- Shilpa Medicare Limited
- Nanjing Jianyou Biochemical Pharmaceutical Co. Ltd.
- Hovione
- Chemcon GmbH
- Pharco Pharmaceuticals
- Sambi Pharma Pvt. Ltd.
For more information about this report visit https://www.researchandmarkets.com/r/d65ucj
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