Europe Active Pharmaceutical Ingredients (API) Market To Reach $66.7 Billion By 2030

Europe Active Pharmaceutical Ingredients Market Growth & Trends

The Europe active pharmaceutical ingredients (API) market size is expected to reach USD 66.7 billion by 2030, expandingat a CAGR of 5.75% from 2023 to 2030, according to a new report by Grand View Research, Inc. The development of the biopharmaceutical industry in the region, the rising elderly population, and improvements in the ease of production of complex active pharmaceutical ingredients (API) are some of the market's key drivers. In addition, the growing prevalence of chronic diseases such as cancer and cardiovascular diseases is further driving the demand for complex drugs and their APIs.

The government is making efforts toward shifting manufacturing of API in European countries to reduce reliance on other nations. For instance, as per Germany Trade and Commerce, Jens Spahn, the Federal Minister for Health of Germany, announced in March 2020, that he intends to start discussions with EU partners on the potential of bringing the manufacturing of active pharmaceutical ingredients (API) back to Germany. As a result, concerns have been raised about the reliability and security of imported APIs and the possibility of supply chain disruptions. As a consequence, domestic production is gaining traction, and regulatory scrutiny for imported products has increased.

The COVID-19 pandemic had a positive impact on the global API market. The pharmaceutical industry was an epicenter for treating symptoms related to COVID-19, including cough, high fever, and cold. With the heightened popularity of the pharmaceutical business during the SARS-COV-2 pandemic, the active pharmaceutical ingredient market also witnessed growth during the period. Following the World Health Organization's declaration of the COVID-19 outbreak as a pandemic, a diverse group of prominent biopharmaceutical and pharmaceutical companies and new startups initiated the manufacturing of active pharmaceutical ingredients. For instance, in February 2023, Advent International introduced a new brand identity for its active pharmaceutical ingredients and CDMO (contract development and manufacturing company), allowing it to focus more on the division.

Furthermore, the market for active pharmaceutical ingredients operates with high complexity. Companies are focusing more on investment to expand their API manufacturing units in order to meet market demand. For instance, Veranova in February 2023, invested USD 8.10 million in API manufacturing expansion in the UK. Growth in the targeted therapy sector has created lucrative opportunities for flexible, small-quantity manufacturers. This is a nontraditional opportunity, as CDMOs are usually considered for outsourcing large batches of API production. With the entry of targeted and precision medicine, the number of patients is expected to decline, which, in turn, is likely to boost demand for flexible small-batch manufacturers to manufacture precision medicines.

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Europe Active Pharmaceutical Ingredients (API) Market Report Highlights

• Synthetic segment dominated the market in 2022 and is attributable to its easy availability compared to natural molecules

• The captive API segment dominated the market in 2022, owing to high investment by market players to develop high-end manufacturing facilities and the rising trend of reducing third-party dependence in the industry

• Generic API holds the largest revenue share owing to its cost effectiveness over the branded counterpart

• The oncology segment is expected to expand with the fastest CAGR due to the high prevalence of the condition around Europe

• The prescription segment dominates the market since these approaches offer more trust among healthcare providers and patients

• Germany held the largest market share in 2022, which can be attributed to the presence of multiple prominent manufacturers in the nation along with trade and regulatory support from the government

Europe Active Pharmaceutical Ingredients (API) Market Segmentation

Grand View Research has segmented the Europe API market based on type of synthesis, type of manufacturer, type, type of drug, application, and country:

Europe Active Pharmaceutical Ingredients Type of Synthesis Outlook (Revenue, USD Billion, 2018 - 2030)

• Biotech

  • Biotech API Market, By Type (Revenue, USD Billion, 2018 - 2030)

    • Generic API

    • Innovative API

  • Biotech API Market, By Product (Revenue, USD Billion, 2018 - 2030)

    • Monoclonal Antibodies

    • Hormones

    • Cytokines

    • Recombinant Proteins

    • Therapeutic Enzymes

    • Vaccines

    • Blood Factors

• Synthetic

  • Synthetic API Market, By Type (Revenue, USD Billion, 2018 - 2030)

    • Generic API

    • Innovative API

Europe Active Pharmaceutical Ingredients Type of Manufacturer Outlook (Revenue, USD Billion, 2018 - 2030)

• Captive API

• Merchant API

  • Merchant API Market, By Type (Revenue, USD Billion, 2018 - 2030)

    • Generic API

    • Innovative API

  • Merchant API Market, By Type of Synthesis (Revenue, USD Billion, 2018 - 2030)

    • Biotech

    • Synthetic

Europe Active Pharmaceutical Ingredients Type Outlook (Revenue, USD Billion, 2018 - 2030)

• Generic API

• Innovative API

Europe Active Pharmaceutical Ingredients Type of Drug (Revenue, USD Billion, 2018 - 2030)

• Prescription Drugs

• Over-the-counter (OTC) Drugs

Europe Active Pharmaceutical Ingredients Application Outlook (Revenue, USD Billion, 2018 - 2030)

• Cardiovascular Diseases

• Oncology

• CNS and Neurology

• Orthopedic

• Endocrinology

• Pulmonology

• Gastroenterology

• Nephrology

• Ophthalmology

• Others

Europe Active Pharmaceutical Ingredients Country Outlook (Revenue, USD Billion, 2018 - 2030)

• UK

• Germany

• France

• Italy

• Spain

• Russia

• Hungary

• Poland

• Denmark

• Sweden

• Switzerland

• Portugal

• Greece

List of Key Players in the Europe Active Pharmaceutical Ingredients Market

• Cipla, Inc.

• Merck & Co., Inc.

• Boehringer Ingelheim International GmbH

• Sun Pharmaceutical Industries Ltd.

• AbbVie, Inc.

• Bristol-Myers Squibb Company

• Teva Pharmaceutical Industries Ltd.

• Albemarle Corporation

• Aurobindo Pharma

• Viatris Inc.