In the global pharmaceutical supply chain, APIs act as the building blocks for drug development and manufacturing. The rising demand for specialty drugs and the widespread use of generic medicines is driving this growth. Technological advances in API production, scaling production capacities, the rising incidence of chronic diseases, expanding global healthcare infrastructures and increased investments in drug development are also driving this growth.
Chemical synthesis of APIs is the main method for the production of APIs and acts as a replacement for natural extraction procedures to improve economies of scale. The global market for synthetically manufactured APIs was valued at $181.3 billion in 2023, and this market is expected to achieve a CAGR of 5.
4% and reach a value of $246.1 billion by the end of 2029. The importance of biotech production methods is growing due to the rise of biologic drug products made almost exclusively this way.
Advances in synthetic biology technologies, such as genetic engineering, metabolic pathway optimization and analytical instrumentation, have further enhanced the efficiency and yield of biotechnology processes, making them more commercially viable. The global market for APIs manufactured through biotech methods was valued at $66.5 billion in 2023, and this market is expected to have a CAGR of 7.
4% and reach a value of $101.7 billion by the end of 2029. The COVID-19 pandemic exposed the risks of over-reliance on specific regions for API prod.
