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India Active Pharmaceutical Ingredients Market Is Estimated To Witness High Growth Owing To Increased Genericization And Patent Expiry Trends

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Poonam
India Active Pharmaceutical Ingredients Market Is Estimated To Witness High Growth Owing To Increased Genericization And Patent Expiry Trends


The India Active Pharmaceutical Ingredients Market is estimated to be valued at US$ 23,449.8 Mn in 2023 and is expected to exhibit a CAGR of 8.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Active pharmaceutical ingredients (API) are the components of any drug that produce its effect. APIs are used in the production of pharmaceutical drug products and are the active components of formulations that treat the various conditions. APIs provide advantages such as cost-effectiveness, higher productivity, and greater control over manufacturing procedures. Increasing prevalence of chronic diseases and rising demand for generic drugs are fueling the need for APIs in India.

Market key trends:

One of the major trends driving the India active pharmaceutical ingredients market is increased genericization and patent expiries. As patents for many blockbuster drugs expire in the coming years, it provides an opportunity for generic drug makers to manufacture low-cost versions of those drugs. This has been a major factor for the growth of the API industry in India. As India has emerged as the largest provider of generic drugs globally, accounting for 20% of world's export volume of generic medicines, the demand for APIs is projected to rise substantially over the forecast period.

Porter’s Analysis

Threat of new entrants: The significant investment required to setup manufacturing facilities and obtain regulatory approvals pose barriers for new entrants.

Bargaining power of buyers: Large pharmaceutical companies have significant bargaining power over API suppliers due to their large scale operations and ability to source from alternative suppliers globally.

Bargaining power of suppliers: The presence of well established API players limits the bargaining power of suppliers in the market. However, specialized APIs have fewer alternatives.

Threat of new substitutes: APIs have limited threat from substitutes as they provide the core ingredients for drug formulations with no close alternatives.

Competitive rivalry: High as API manufacturers compete based on innovation, quality, and pricing.

SWOT Analysis

Strengths: India has a large pool of pharmaceutical talents and regulatory policies supporting the growth of pharmaceutical industries.

Weaknesses: Heavy dependence on imports for certain raw materials and key starting materials increases production costs. High working capital requirements and pricing pressures impact margins.

Opportunities: Growing generics market, increasing exports, and focus on specialized APIs present profitable opportunities.

Threats: Stringent regulatory norms and environmental policies increases compliance burden. Entry of Chinese players impacts pricing and market share.

Key Takeaways

The global India Active Pharmaceutical Ingredients Market Share is expected to witness high growth, exhibiting CAGR of 8.3% over the forecast period, due to increasing demand for generic drugs. Growing geriatric population, rising healthcare expenditure, and patents expiries of blockbuster drugs drive generic drugs demand.

Regional analysis: Southern and Western regions dominate India's API market, accounting for over 60% share collectively. Rising pharmaceutical manufacturing in Kerala, Karnataka, Gujarat, and Maharashtra aid regional market growth. Northern states growth hampered by lack of infrastructure but witnessing initiatives like Pharma City to bolster manufacturing.

Key players operating in the India Active Pharmaceutical Ingredients market are Teva Pharmaceutical Industries Ltd., Solara, Aurobindo Pharma Limited, Dr. Reddy's Laboratories, Lupin Limited, Sun Pharmaceutical Industries Limited, Divis Laboratories Ltd., Aarti Drugs Ltd., Hikal Ltd., Neuland Labs, Century Pharmaceuticals Ltd., Proventus Life Sciences Pvt Ltd, Chiral Drugs Pvt Ltd, USV Private Limited, and ASolution Pharmaceuticals Pvt. Ltd. All major players focus on product development and expansion to strengthen market position.

For more insights, read- https://www.pressreleasebulletin.com/india-active-pharmaceutical-ingredients-market-trends-size-and-share-analysis/


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