Small Molecule API Market Size, Share, Growth and Global Industry Analysis By Type & Application, Regional Insights and Forecast to 2024-2032

Small Molecule API Market Size, Share, Growth and Global Industry Analysis By Type & Application, Regional Insights and Forecast to 2024-2032

Growth Factors of Small Molecule API Market

The small molecule API market size was valued at USD 2.53 billion in 2023, and the market is now projected to grow from USD 2.76 billion in 2024 to USD 5.44 billion by 2032, exhibiting a CAGR of 8.9% during the forecast period of 2024-2032.

The COVID-19 pandemic affects the small molecule API market growth negatively. Returning to the effects on the market, it is possible to point out the disruption of the supply chain and logistics, which affected plant activities. This led to an increase in some firms exposing themselves to pricing pressure, which is the fact that prices for these products skyrocketed during the pandemic.

The factors leading to this development are bearing high hopes in addition to contributing to the growing number of patients diagnosed with chronic disorders around the world. This has emphasized the discovery of new therapeutic products in the market hence leading to a rush for the new product. Therefore, in an endeavor to meet the demand surge, many pharma enterprises have upped the proportion of investment in R&D and are concentrating on producing Multifunctional Therapeutic Drugs that can act as a treatment for chronic diseases. Small molecule Active Pharmaceutical Ingredients (APIs) have always represented the core of the pharma industries and this fact is because of the exponential growth of the number of small molecules going through the process of becoming a drug candidate. Robust marketing of small molecules combined with a larger pipeline has paved the way for the growth of the small molecule API market share globally.

HPAPI molecules are majorly developed for cancer treatment through targeted therapy which it majorly focuses on. This is so since the rates of cancer have been rising hence causing the need for oncology drugs in the market to be ramped up. Thus, the unaudited care by all the leading pharmaceutical organizations for fulfilling the increasing need has boosted the growth of HPAPI, which fuels the market.

Comprehensive Analysis of Small Molecule API Market

While providing an outline of the small molecule API market and based on the structure of its divisions, it can be noted that the current divisions are branded and generic types of APIs, which satisfy different market requirements and rules. As indicated, the market concerns various areas of treatments including oncology, diabetes, and cardiovascular disease, among others to show instances of small molecule APIs in the treatment of various ailments. Also, the market is segmented by the manufacturing type, that is captive manufacturing in which the pharma companies manufacture their API, and merchant manufacturing in which third-party manufacturing companies vend APIs across various other companies and thus, gives an insight into the multiple strategies implemented in the manufacturing of the API.

North America had the largest share in the small molecule API market and its revenue touched USD 58. 67 billion in 2023. This region is expected to lead the growth pattern throughout the forecast period in the market.The growth is set down to the increasing incidence rates of chronic diseases and the emerging concerns from the healthcare authorities for putting effort into the development of new therapeutic drugs.

Teva Pharmaceutical Industries Ltd (Israel), Cipla Inc. (India), Dr. Reddy's Laboratories Ltd. (India), Sun Pharmaceutical Industries Ltd (India), Aurobindo Pharma (India), Merck KGaA (U.S.), AbbVie Inc. (U.S.), Lonza(Switzerland), Sanofi (France), and Pfizer Inc. (U.S.) are some major players in this industry. These groups of companies who are leaders within the discipline offer a stage playing field for all their competitors as they guarantee increase and set requirements for the arena.

The company, Teva Pharmaceutical Industries Ltd. in January 2024 that it intends to divest its API business to establish TAPI as the world’s largest supplier of small molecule API.

Segmentation Table

Global Small Molecule API Market Market Scope

Study Period 2019-2032

Base Year 2023

Estimated Year 2024

Forecast Period 2024-2032

Historical Period 2019-2022

Growth Rate CAGR of 7.2% from 2024 to 2032

Unit Value (USD Billion)

By Type

Branded

Generic

By Indication

Oncology

Diabetes

Cardiovascular Diseases

Others

By Manufacturing Type Captive

Merchant

By Region North America

- U.S. (By Type)

- Canada (By Type)

Europe

- Germany (By Type)

- U.K. (By Type)

- France (By Type)

- Italy (By Type)

- Spain (By Type)

- Scandinavia (By Type)

- Rest of Europe (By Type)

Asia Pacific

- China (By Type)

- Japan (By Type)

- India (By Type)

- Australia (By Type)

- Southeast Asia (By Type)

- Rest of Asia Pacific (By Type)

Latin America

- Brazil (By Type)

- Mexico (By Type)

- Rest of Latin America (By Type)

Middle East & Africa

- GCC (By Type)

- South Africa (By Type)

- Rest of Middle East & Africa (By Type)


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