Pharmaceutical raw material means active pharmaceutical ingredients (API) and its inactive partner in a drug called Excipients. APIs are bulk drugs and its API which generate a pharmacological effect, which means that it produces desired result against a particular disease in the body, hence termed as pharmaceutically active drug whereas, Excipients are pharmacologically inactive substances and their role is to carry active drug i.e. API, in the drug.
Different Excipients plays a different role in formulations. It added bulk to a drug, facilitate absorption of the drug, keeps drug stable and also arrests degradation of drugs. Pharmaceutical excipients are not costly hence they are considered to be cost-effective, stable, easy to handle and by nature they are inert. Excipients are used in almost all medications such as tablets, capsules, liquids, inhalers, Ointments, implants, sachets and injections.
A report published by ASD states that global pharmaceutical excipients market is increasing due to hike in demand for oral drugs, which means more oral drugs manufactured results in generating demand for Excipients. Various factors such as an increase in patient compliance, ease of consumption of oral dose are forcing drug manufacturers to develop oral solid dosage products more than other dosage forms of drugs with very specific properties. The introduction of functional excipients has tremendously increased drug formulator’s capabilities to develop drugs from APIs which are poorly soluble. In order to develop a sustained release, controlled release or prolonged release dosage formulation of an existing drug, Excipients have played a major role. They have not only made a sustained release, controlled release or prolonged release dosage feasible but also increased revenue generated from a particular drug.
Industry analysts have forecasted that the global pharmaceutical excipients market will grow by CAGR of 6.53% through 2021 to reach $7.7B by the year 2022.
Due to an increase in demand for pharmaceutical and biopharmaceutical drugs and also the presence of different type of excipient manufacturers in this region, North America holds the biggest share in the pharmaceutical excipient market. Europe holds the second position whereas major share followed by Asia and Rest of the World. Asia-Pacific is the fastest growing region where emerging countries like China and India are big players due to cheap labour, increased outsourcing of inorganic and organic chemicals manufacturing and increasing governmental spending on the health care sector.
Active Pharmaceutical Ingredients
We can expect Global Active Pharmaceutical Ingredients market to reach at $198.8 billion by 2022 with a CAGR of 6.4%. Patents of prominent drugs are expiring, the government are taking initiatives and increasing investment in the pharma industry, regional penetration at a global level and increasing aged population are some of the prominent factors that are driving the market growth of pharmaceutical API industry. Strict validation of drugs and stringent safety guidelines worked out by WHO and fragmented market segment are major factors that are hampering the API market growth.
The generic drugs or non- branded drug segment of the industry witnessed substantial growth and occupy the largest market share during the forecast period. The main reasons are rising healthcare expense, government support & prominence on generics in order to reduce healthcare costs and decreasing pipelines of global pharmaceutical drugs. The Asia Pacific is expected to hold the highest market share during the forecast period, the reason being low operation costs and high investments in research and development segment. The increasing cost of skilled labour and energy are the most significant factors that are forcing the market in European countries to move its base to developing countries, such as India.