Why Will North America Dominate Active Pharmaceutical Ingredient Market?
The major drivers in the global active pharmaceutical ingredient (API) market are the raising prominence of generics, the surging prevalence of chronic illnesses, and the increasing geriatric population. Therefore, the sale of these ingredients is predicted to touch $357,005.7 million in value by 2030, at an approximately 7% CAGR from 2021 to 2030. While the outbreak of COVID-19 had ruptured the entire circular economy, this market was among the few exceptions. Moreover, the COVID-19 was continuously spreading in various nations, thereby, surging the count of the infected patients globally. This will exert a push on the nation’s healthcare resources and ecosystem.
Within the therapeutic application segment, the oncology category held the biggest active pharmaceutical ingredient market share in the past years, and it will continue to show this trend in the forecast period as well. This can be ascribed to snowballing demand for highly vigorous APIs to treat cancer because there is a high incidence of cancer globally. Furthermore, as per the American Cancer Society, by the end of 2021, roughly 1.9 million new cancer patients and 608,570 cancer-related deaths were reported.
Based on the distribution channel, the active pharmaceutical ingredient market can be bifurcated into online and offline, of which the latter bifurcation is projected to grow at a faster pace in this market. This is because a huge count of sales is observed through this distribution channel. Moreover, the higher sales are due to the surging number of deals with the established offline distribution channels of the providers, drug manufacturing corporations, and API providers. All of this will propel growth in the market, thereby emphasizing a strong logistical network.
Moreover, there is a surging geriatric population owing to falling death rates and rising life expectancy. This is in agreement with the WHO’s report which states that people exceeding the average life expectancy have increased. Nevertheless, the geriatric population hence demands extensive care because they have a longer recovery span and lower immunity levels, which in turn, makes them prone to chronic illnesses. This will drive the market.