April 20, 2024
Global Pharmaceutical Chemicals Market

Global Pharmaceutical Chemicals Market Is Estimated To Witness High Growth Owing To Technological

The global pharmaceutical chemicals market is primarily driven by growing healthcare spending and increasing demand for generics and biologics. Pharmaceutical chemicals are widely used in various applications such as antipyretics, analgesics, vitamins, antibiotics, steroids, anti-inflammatory and antiallergic drugs which sees immense demand from end users. The active pharmaceutical ingredients are the principal raw materials used in the manufacture of pharmaceutical drugs. The pharmaceutical chemicals market witnesses high growth prospects owing to the advancements in drug discovery and development approaches such as combinational chemistry and high-throughput screening.

The Global Pharmaceutical chemicals Market is estimated to be valued at US$ 137.76 Bn in 2024 and is expected to exhibit a CAGR of 7.2% over the forecast period 2024 to 2031.

Key Takeaways
Key players operating in the global pharmaceutical chemicals are Spectrum Chemical Mfg. Corp., BASF, AbbVie, Merck Group, Fine Chem Corporation, Allan Chemical corp, Spruhaa Healthcare, Kani Overseas Corporation, Tata chemicals, Lonza, Lanxess, Johnson Matthey, Jubilant Life Sciences, Hikal, Kenko Corporation, and CLARIANT.

Key opportunities in Global Pharmaceutical Chemicals Market Size . According to studies, generics now represent around 86% of all dispensed prescriptions in the US but only 28% of total drug spending. As many blockbuster drugs are expected to lose their patents, global spending on generics is projected to increase significantly in the coming years.

Technological advancements such as combinational chemistry and high-throughput screening have revolutionized drug discovery. Artificial intelligence and machine learning are also being leveraged for virtual screening of potential drug candidates. These technological progresses are supporting pharmaceutical companies to introduce novel drugs more efficiently and cost-effectively.

Market Drivers
The main driver for the growth of the global pharmaceutical chemicals market includes increasing global healthcare expenditure. Rising income levels and growing awareness about disease prevention have boosted healthcare spending in both developed and developing economies. Furthermore, increasing incidence of chronic and lifestyle diseases worldwide is also fueling the demand for pharmaceutical drugs and associated chemicals. Other key factors such as growing geriatric population, launch of newer drugs and increasing outsourcing of pharmaceutical manufacturing are further expected to drive market growth during the forecast period.

Challenges in Global Pharmaceutical Chemicals Market
The Global Pharmaceutical Chemicals Market faces many challenges such as rising compliance costs, environmental concerns, expanding regulations, and dependency on China and India for key starting materials. Stringent regulatory requirements have increased compliance costs while protecting public health and safety. Environmental concerns related to disposal of hazardous chemicals require investments in clean technologies. Additionally, export bans and trade barriers make the supply chain vulnerable to geo-political risks.

SWOT Analysis
Strengths: Growing generic drug market, research collaborations, and technological advances.
Weaknesses: High R&D costs, pricing pressures, complex regulations, dependency on raw materials supply.
Opportunities: Emerging markets growth, biopharmaceuticals, personalized medicine, and medical tourism.
Threats: Patent cliffs, generic competition, drug price control, currency fluctuations impacting materials costs.

Geographical Regions
North America accounts for over 35% of the global market value due to extensive pharmaceutical R&D and presence of major companies. However, Asia Pacific is growing at the fastest pace led by China, India, and Southeast Asian countries. Availability of affordable skilled workforce and raw materials are driving outsourcing of production activities to Asia Pacific region.

Fastest Growing Region
Asia Pacific region is projected to be the fastest growing market for pharmaceutical chemicals during the forecast period. China and India have emerged as global manufacturing hubs and are attracting investments from multinational pharmaceutical companies looking to reduce production costs. In addition, rising income levels and increasing healthcare spending in developing Asian countries are fueling the demand for affordable generic drugs and biosimilars.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.