The global antibiotics active pharmaceutical ingredient (API) market is expected to attain a valuation of USD 8653.0 million in 2023 and is projected to reach USD 12002.3 million by 2033, trailing a CAGR of 3.3% during the forecast period.
The increasing prevalence of bacterial infections and other infectious diseases is a significant driver for market growth. As the number of patients affected by these diseases rises, the demand for antibiotic drugs increases, thereby boosting the growth of the market. Additionally, the rise in healthcare expenditure is playing a crucial role in supporting market growth.
The market growth is further propelled by increasing approvals for generic drugs. Additionally, the rise in research and development activities focused on advanced molecules and drug entities can significantly enhance the revenue of antibiotic active pharmaceutical ingredient manufacturers, subsequently fuelling the growth of the antibiotic active pharmaceutical ingredient market.
| Report Attribute | Details |
|---|---|
| Expected Market Value (2023) | USD 8653.0 million |
| Anticipated Forecast Value (2033) | USD 12002.3 million |
| Projected Growth Rate (2023 to 2033) | CAGR 3.3% |
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The antibiotics active pharmaceutical ingredient (API) market was worth USD 7439.1 million in 2017. It accumulated a market value of USD 8395.6 million in 2022 while growing at a CAGR of 2.4% during the historical period.
According to a report by the Infectious Disease Society of America (IDSA), approximately 2 million Americans are afflicted with hospital-acquired infections each year, resulting in nearly 99,000 deaths. There is a growing need to address this significant disease burden, leading to increased adoption of antibiotics.
This surge in demand for more effective, advanced, and approved antibiotic API molecules worldwide is driving the growth of the global antibiotics active pharmaceutical ingredient (API) market.
The market is further expected to grow with the rise of efficient API suppliers, which support the production of antibiotics. Factors such as an increase in healthcare expenditure and government initiatives to reduce the mortality rate associated with infectious diseases are contributing to the growth of the global market.
Increased research and development (R&D) activities aimed at discovering innovative drugs present several opportunities for the growth of the global antibiotics active pharmaceutical ingredient (API) market during the forecast period.
Collaboration between companies and the exchange of new and innovative models for developing new antibiotics is an emerging trend among leading manufacturers. For example, international platforms such as the Organization for Economic Co-operation and Development (OECD), Asia-Pacific Economic Cooperation (APEC), and the G20 are supporting the reform of innovative policies required to establish a sustainable market for new antibiotics.
The market is projected to be worth USD 12002.3 million by the end of forecast period while exhibiting a CAGR of 3.3%.
Role of New Drug Approvals Shaping the Market Growth
The approval of licenses for the new drugs is expected to drive growth in the market since only a few are based on novel chemical entities. The occurrence of drug resistance is more common when new agents are coupled with existing drug classes. Developing entirely new entities is a costly and time-consuming process. As a result of these high costs and expenses, the healthcare sector has increasingly turned to generic antibiotics, which account for a significant majority of prescriptions.
Generic antibiotics are significantly more affordable compared to proprietary compounds. Studies indicate that branded therapies are more than three times costlier than their generic counterparts in 36 (52.9%) treatment regimens for bacterial infections. This cost differential has led to an increase in the launch of generic versions, which is expected to have a positive impact on the global market.
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Dearth of Awareness Regarding Drug Utilization Restraining Market Expansion
The high cost of drug development and lack of awareness regarding drug utilization and associated side effects are anticipated to impede the growth of the market. These factors present challenges that may hinder the market's expansion.
North America Driving Growth with Significant CAGR
The North American antibiotics active pharmaceutical ingredient (API) market accounted for a revenue share of 16.3% in 2022. The United States alone accounted for a revenue share of 14.9% in the same year. The demand outlook for antibiotics active pharmaceutical ingredient (API) in the region is expected to grow with a CAGR of 3.1% during the forecast period.
The United States healthcare system is renowned for its high expenditure and advanced infrastructure. In response, the government and regulatory bodies are implementing cost-effective plans to alleviate the healthcare burden. Moreover, the increasing prevalence of bacterial diseases has resulted in a rising demand for antibiotic APIs in the country.
A report by the Center for Disease Control and Prevention (CDC) reveals that the United States experiences over 2.8 million antibiotic-resistant infections annually. In response, the government has been implementing several prevention and infection control measures to decrease the incidence of infections and fatalities caused by antibiotic-resistant germs. This presents a significant growth opportunity for the antibiotics API market in the United States.
India Driving Growth with a Significant Market Share
The Indian antibiotics active pharmaceutical ingredient market is expected to grow with a CAGR of 6.2% during the forecast period.
In recent years, both small and large biopharmaceutical companies have shown a growing reliance on contract research organizations (CROs) to fulfill their research and development needs. There is an expected increase in demand for antibiotic active pharmaceutical ingredients as numerous products in the pipeline are approaching the final stages of development and are expected to be commercialized by the end of the decade. This growth in demand indicates a promising outlook for the antibiotics API market.
Developing countries have proven to be advantageous for patient recruitment in clinical trials. India, in particular, has witnessed significant growth in clinical trial and research activities due to the presence of numerous government-funded medical and pharmaceutical institutions equipped with state-of-the-art facilities. These institutions serve as ideal centers for conducting multi-centered clinical trials, contributing to the expansion of the clinical trial business in the country.
Research and development costs in India are significantly lower compared to developed countries, making it an attractive destination for conducting new drug discovery research and novel drug delivery system programs at competitive rates. In terms of cost efficiency, India outperforms countries like the United States and the European Union, with the cost of conducting a trial in India being 50% to 75% lower.
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Penicillin Antibiotic to Lead the Market With Sizeable Share
Penicillin antibiotic segment dominated the market in 2022, by accumulating 50.97%. The segment is expected to accumulate over 62% market share by end of the forecast period.
The penicillin antibiotics segment emerged as the leading product segment in terms of revenue within the global antibiotics API market in 2022. This dominance is projected to persist throughout the forecast period, making the penicillin antibiotics segment a key driver of the global antibiotics API market.
The growing demand and widespread adoption of penicillin antibiotics as the primary choice for treating various bacterial infections are anticipated to drive the global consumption of these antibiotics. With a projected Compound Annual Growth Rate (CAGR) of 5.1%, the penicillin antibiotics market is expected to witness significant growth in the coming years.
Pharmaceutical Companies Driving Growth with Significant CAGR
Pharmaceutical companies accounted for 76.85% of revenue share in 2022 in active pharmaceutical ingredients market. The segment is expected to grow with a CAGR of 6% during the forecast period. Pharmaceutical companies are expected to continue exhibiting high demand and dominate the antibiotics API market during the forecast period.
The segment is expected to hold around 81% of the market share, in terms of end-user, by the end of the assessment period. The growth is attributed in terms of revenue owing to the growing investments in research and development activities.
The market for generic antibiotic APIs is propelled by the demand for affordable antibiotics. Pharmaceutical companies focusing on the production of generic antibiotics reap the benefits of this demand, especially in regions characterized by high healthcare costs or limited access to branded antibiotics. This market trend highlights the importance of affordability and accessibility in driving the market growth of generic antibiotic active pharmaceutical ingredients.
Start-ups drive growth by identifying market potential, generating high returns, and enhancing industry expansion. They excel at converting inputs into outputs, adapting to market volatility, and fostering flexibility. The start-ups that are expected to fuel growth in the antibiotics active pharmaceutical ingredients market are:
The antibiotics active pharmaceutical ingredient (API) market is extremely competitive and consists of various key industry players. These players are heavily investing in manufacturing antibiotics active pharmaceutical ingredients (API).
The key industry players are Centrient Pharmaceuticals, ACS DOBFAR SPA, Nanjing Dorra Pharmaceutical Technology Co. Ltd., Parabolic Drugs Ltd., Sandoz International GmbH, DAEWOONG PHARMACEUTICAL CO. LTD., Penam Laboratories Ltd., ASIATIC DRUGS & PHARMACEUTICALS PVT. LTD., Fresenius Kabi, The United Laboratories International Holdings Limited, CordenPharma International, Aurobindo Pharma Limited, Unimark Remedies Ltd., Savior Lifetec, Shenzhen Haibin Pharmaceutical Co., Ltd., Sterile India Pvt. Ltd., Zhejiang Jiuzhou Pharmaceutical Co. Ltd., Kyongbo Pharm.
Some recent developments in the market are:
Key industry players leverage organic growth strategies like acquisition, mergers, partnerships, and collaboration to enhance their product portfolio. This is expected to fuel the global antibiotics active pharmaceutical ingredient (API) market.
| Report Attribute | Details |
|---|---|
| Market Value in 2023 | USD 8653.0 million |
| Market Value in 2033 | USD 12002.3 million |
| Growth Rate | CAGR of 3.3% from 2023 to 2033 |
| Base Year for Estimation | 2022 |
| Historical Data | 2017 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD million and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | By API type, By end-user, By Region |
| Regions Covered | North America; Latin America; Europe; Asia Pacific; Middle East and Africa (MEA) |
| Key Countries Profiled | United States of America, Canada, Brazil, Mexico, Germany, UK, France, Spain, Italy, India, China, Japan, Malaysia, Singapore, Thailand, South Korea, Australia, New Zealand, UAE, South Africa, Israel, GCC countries |
| Key Companies Profiled | Sandoz International GmbH; Centrient Pharmaceuticals; CordenPharma International; ACS DOBFAR SPA; Nanjing Dorra Pharmaceutical Technology Co. Ltd.; DAEWOONG PHARMACEUTICAL CO. LTD.; Parabolic Drugs Ltd.; Penam Laboratories Ltd.; ASIATIC DRUGS & PHARMACEUTICALS PVT. LTD.; Fresenius Kabi; The United Laboratories International Holdings Limited; Aurobindo Pharma Limited; Unimark Remedies Ltd.; Savior Lifetec; Shenzhen Haibin Pharmaceutical Co., Ltd.; Sterile India Pvt. Ltd.; Zhejiang Jiuzhou Pharmaceutical Co. Ltd.; Kyongbo Pharm |
| Customization | Available Upon Request |
The primary consumer of antibiotics active pharmaceutical ingredients (APIs) is the pharmaceutical industry.
The pharmaceutical industry is poised to stay attractive, projecting USD 10 billion by 2033.
The market is estimated to secure a valuation of USD 8653.0 million in 2023.
The market is estimated to reach USD 12002 million by 2033.
The pharmaceutical sector holds high revenue potential in the antibiotics API market.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2017 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Type 5.1. Penicillin Antibiotics 5.1.1. Ampicillin 5.1.2. Amoxicillin 5.1.3. Dicloxacillin 5.1.4. Penicillin G Sodium 5.1.5. Benzathine 5.1.6. Procaine 5.2. Cephalosporins 5.2.1. Cefotaxime 5.2.2. Ceftriaxone 5.2.3. Cefuroxime 5.2.4. Cefalotin 5.3. Carbapenem Antibiotics 5.3.1. Meropenem 5.3.2. Imipenem 5.3.3. Ertapenem 6. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By End User 6.1. Pharmaceutical Companies 6.2. Contract Manufacturing Organizations (CMOs) 6.3. Contract Development & Manufacturing Organizations (CDMOs) 7. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Europe 7.4. Asia Pacific 7.5. MEA 8. North America Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 10. Europe Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 11. Asia Pacific Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 12. MEA Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 13. Key Countries Market Analysis 14. Market Structure Analysis 15. Competition Analysis 15.1. Sandoz International GmbH 15.2. Centrient Pharmaceuticals 15.3. CordenPharma International 15.4. ACS DOBFAR SPA 15.5. Nanjing Dorra Pharmaceutical Technology Co. Ltd. 15.6. DAEWOONG PHARMACEUTICAL CO. LTD. 15.7. Parabolic Drugs Ltd. 15.8. Penam Laboratories Ltd. 15.9. ASIATIC DRUGS & PHARMACEUTICALS PVT. LTD. 15.10. Fresenius Kabi 15.11. The Value (USD Million) & Volume (MT)ed Laboratories International Holdings Limited 15.12. Aurobindo Pharma Limited 15.13. Unimark Remedies Ltd. 15.14. Savior Lifetec 15.15. Shenzhen Haibin Pharmaceutical Co., Ltd. 15.16. Sterile India Pvt. Ltd. 15.17. Zhejiang Jiuzhou Pharmaceutical Co. Ltd. 15.18. Kyongbo Pharm 16. Assumptions & Acronyms Used 17. Research Methodology
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Antibiotics Active Pharmaceutical Ingredient (API) Market
