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Global Active Pharmaceutical Ingredients Market 2011-2015

Global active pharmaceutical ingredients market to hit CAGR of 7.9% between 2011 and 2015

The Global Active Pharmaceutical Ingredient market is to grow at a CAGR of 7.9 percent over the period 2011-2015. One of the key factors contributing to this market growth is the entry of novel formulation technologies. The Global Active Pharmaceutical Ingredient market has also been witnessing the trend of increasing outsourcing of API manufacturing to China and India. However, the stringent regulatory environment could pose a challenge to the growth of this market.

Companies outsource Active Pharmaceutical Ingredients (API) manufacturing to save manufacturing costs, get quality service, reduce lead time and save distribution costs. API manufacturing is mostly outsourced to India and China as both countries offer cheaper labor, better profit margins, high productivity and low investment to set up plants compared with countries in the West. Moreover, the regulations in these countries support the local manufacturing and encourage exports between nations. This is helping the companies manage product demand and concentrate on their competencies such as innovation and brand building.

With the increasing competition among vendors in the API Manufacturing industry, there is an increase in RandD activities to develop novel formulation technologies that enhance manufacturing efficiency. Several leading API vendors are taking measures to improve product yield and equipment utilization and reduce process time. Vendors in the APAC region are adopting new processing approaches such as the use of enzymatic catalyst platforms, continuous processing, and micro-reactor technology as an alternative to the complex synthesis procedure. Thus, the adoption of novel formulation technologies is expected to have a high positive impact on the growth of the market during the forecast period.

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