April 13, 2024
Global Pharmaceutical Chemicals Market

Global Pharmaceutical Chemicals Market Is Estimated To Witness Growth Owing To Rising Generic Drug Production

The global pharmaceutical chemicals market involves production of various chemical compounds and intermediates that are used in the development and manufacturing of pharmaceutical drugs and medicines. Some key chemicals produced include active pharmaceutical ingredients (APIs), bulk drugs, solvents, catalysts, alkalies, and other auxiliary substances. The market has witnessed significant growth in recent years due to increasing prevalence of chronic diseases and rise in generic drug production across both developed and emerging nations.

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. These players are focusing on new product innovations, expanding their production facilities and engaging in partnerships & collaborations to increase their market share.

The market provides numerous opportunities for key players in the form of Global Pharmaceutical Chemicals Market Size globally, increasing outsourcing of pharmaceutical manufacturing to emerging countries like India and China, and rising research & development activities for development of novel drug delivery systems. Players are setting up manufacturing units in high growth regions like Asia Pacific and Middle East & Africa to cater to increasing demand.

Globally, the pharmaceutical chemicals industry is expanding with growing pharmaceuticals demand from emerging nations. Established players from developed regions like North America and Europe are actively looking to expand their footprint in high potential developing countries through joint ventures, acquisitions and partnerships with local players.

Market Drivers

One of the key driver for growth of global pharmaceutical chemicals market is rising production of generic drugs globally. As patent expiration of many blockbuster drugs is resulting in increased production of low-cost generic versions, it is positively impacting demand for various bulk chemicals and intermediates. Other drivers include growing incidence of chronic and lifestyle diseases, rapidly growing geriatric population, rising healthcare spending, and increasing R&D investments by players for development of novel drug formulations.

PEST Analysis:

Political: The pharmaceutical chemicals market is regulated by various government agencies and regulations. Changes in regulations can impact the manufacturing and sale of pharmaceutical chemicals.

Economic: Fluctuations in the economic conditions can impact the spending on healthcare and pharmaceutical research and development. During recession, research funding may reduce which can hamper market growth.

Social: Rise in lifestyle diseases and increasing health awareness among consumers is creating demand for new drugs and pharmaceuticals. An aging population is also driving the need for medication.

Technological: Advancements in drug delivery systems, biotechnology and other research areas are helping develop novel pharmaceutical chemicals. Technologies like 3D printing can help improve production processes. Automation is being used to enhance efficiency.

Geographical Regions with High Market Concentration:
North America holds the largest share of the global pharmaceutical chemicals market owing to presence of major players and high healthcare spending in the region. Europe and Asia Pacific are other important markets with presence of manufacturing facilities and rising healthcare expenditure respectively.

Fastest Growing Regional Market:

The Asia Pacific region is expected to witness the highest growth over the forecast period supported by expanding healthcare infrastructure, growing middle class population and increasing investments by international players looking to tap the market potential in developing countries of China and India.

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