Pharmaceutical Intermediates Market Dynamics

The global pharmaceutical intermediates market growth is driven by the increasing use of pharmaceutical intermediates in the fundamental base part of active pharmaceutical ingredients (APIs), the market is also expected to witness an upsurge in demand in the forecast period.

Increasing Prevalence of Chronic Diseases is expected to drive the growth in the forecast period

The rapidly increasing prevalence of chronic diseases and the growth of the aging population across the world are among factors that are expected to increase the need for drug formulations for the management of chronic diseases. For instance, according to the World Health Organization (WHO), the prevalence of diabetes has surged from 108.0 million in 1980 to 422.0 million in 2014, and the number is rising rapidly.

Furthermore, according to the World Health Organization (WHO), the prevalence of chronic diseases is expected to increase by 57.0% by 2020, which indicates that a significant percentage of the population is suffering from chronic diseases. These factors are driving the growth of the market in the forecast period.

Increasing investments in manufacturing expected to drive the market growth

Leading pharmaceutical companies in the pharmaceutical intermediates market have announced their intentions to invest in manufacturing facilities due to various reasons such as to enhance the production capacity of pharmaceutical intermediates, reduce the corporate tax rate and increase their global footprints as well as their presence in emerging markets.

For instance, in July 2018, Pfizer invest around US$ 465.0 million to build a sterile injectable plant in Portage, Michigan. This step is a part of its announcement that it had made earlier in 2018 about its plans to invest around US$ 5.0 billion in a U.S.-based capital project due to the recent corporate tax reforms in the country. These factors are driving the growth of the market in the forecast period.

Regulatory obstruction is likely to hinder the market growth

However, the rising monetary pressure, as well as the regulatory obstruction, is expected to freeze the growth of the pharmaceutical intermediates market in the forecast period.

COVID-19 Impact Analysis

The disruptive effects of the coronavirus COVID-19 have placed enormous strain on the global supply of pharmaceutical intermediates, increasing the risk of shortages. Although production across various industries and regions in China has been gradually resuming since late February, U.S. pharmaceutical intermediates manufacturers, which heavily source directly and indirectly from China, are now exposed to high risks in supply shortages over the next one to two months. These risks are due primarily to limited operational capacity in China and how resumption of production will be prioritized. These factors are restraining the growth of the market in the forecast period.

Pharmaceutical Intermediates Market Segment Analysis

The cardiovascular drugs segment is expected to grow at the fastest CAGR during the forecast period (2021-2028)

Cardiovascular diseases are the leading cause of death worldwide. According to the American College of Cardiology, cardiovascular disease (CVD) accounted for 800,000 deaths in the United States in 2017 alone. Among Americans, an average of one person dies from cardiovascular disease, every 40 seconds. Coronary heart disease (CHD) accounts for the majority of CVD deaths, followed by stroke and heart failure. According to the European Heart Network, every year, cardiovascular disease (CVD) causes 3.9 million deaths in Europe and over 1.8 million deaths in the European Union (EU). 

This high prevalence of cardiovascular diseases is generating a huge demand for cardiovascular drugs, which, in turn, is expected to propel the growth in the need for various pharmaceutical intermediates. Hence, owing to the aforementioned factors, the concerned segment of the pharmaceutical intermediates market and expected to grow over the forecast period.

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The analgesics segment has had positive market growth in the forecast period. Analgesics, or painkillers, are used to reduce and treat aches and pains. Internal and external analgesics are used to combat pain resulting from inflammation, cancer treatments, physiological injury, neuropathic conditions, surgeries, wounds, and phantom aches. The most prominent therapeutic classes of analgesics are local anaesthesia, nonsteroidal anti-inflammatory drugs (NSAIDs), and opioids. The growing incidence of cancer worldwide and the rise in chronic diseases are mainly responsible for the consistent growth of the global analgesics market. In 2017, between 950-1000 million people were over the age of 60. However, by 2050, these numbers are expected to reach 2100 million, accounting for around 21% of the total global population. As older adults are more vulnerable to chronic and lifestyles diseases, it will significantly contribute to the sales of analgesics. Apart from this, many leading pharmaceutical companies are continually focusing on clinical advancements in both the delivery and design of analgesic drugs. They are also developing safer opioids with improved side effect profiles and effective pain relief. Moreover, the presence of a strong drug pipeline with efficacious drugs waiting for approvals by the United States Food and Drug Administration (USFDA) is further expected to enhance the use of analgesics across the globe. 

Pharmaceutical Intermediates Market Geographical Share

North America region holds the largest market share global pharmaceutical intermediates market

North America region is dominating the global pharmaceutical intermediates market accounted for the largest market share in 2020, due to the advanced research and development facilities mainly across the United States and Canada. In addition, the rising prevalence of various chronic conditions is also driving market growth across the region. The U.S. holds the largest market for H1N1 vaccination, followed by Canada. For instance, in December 2019, NACI (National Advisory Committee on Immunization) published scientific information and recommendation on MenB-fHBP (bivalent factor-H binding protein meningococcal serogroup B) vaccine (Trumenba). The presence of a strong pipeline of meningococcal vaccines is expected to maintain a significant market share in the region.

According to the 2017 report of Health Library, cardiovascular disease, listed as the underlying cause of death, accounts for nearly 801,000 deaths in the US. That is about 1 of every 3 deaths in the US. About 2,200 Americans die of cardiovascular disease each day, an average of 1 death every 40 seconds.

Competitive Landscape

The Pharmaceutical Intermediates is moderately competitive with the presence of local as well as global companies.  Some of the key players which are contributing to the growth of the market include Aceto Corporation, BASF SE, Chiracon GmbH, Yin-sheng Biotech Co., Ltd., Dishman Group, Green Vision Life Sciences, Midas Pharma GmbH, Sanofi SA, Vertellus Holdings LLC., among others. The major players are adopting several growth strategies such as product launches, acquisitions, and collaborations, which are contributing to the growth of the pharmaceutical intermediates market globally.