Valuation of the Small Molecule API Market worth USD 279.68

New York, U.S., Aug. 02, 2022 (GLOBE NEWSWIRE) — Small Molecule API Market Overview

According to a comprehensive research report by Market Research Future (MRFR), “Small Molecule API Market Information by Type, Application, Manufacturing Method and Region – Forecast to 2027“, the Small Molecule API market size will grow at a rate of 7.0% between 2020 and 2027, while reaching $279.68 billion by 2027.

Market summary

Small molecules can be described as low molecular weight organic compounds. Small molecule APIs are active ingredients that are widely used in a variety of biological and pharmaceutical procedures. Moreover, APIs can be combined with any pharmaceutical product. It is an essential component of the pharmaceutical industry. The molecules are very effective in the diagnosis, prevention and treatment of diseases.

The need for small molecular APIs has grown rapidly in the pharmaceutical sector, given the immense scope of application of these chemically active ingredients.

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Report Scope:

Report attribute Details
Market size 2027 $279.68 billion
CAGR seven%
Year of reference 2019
Forecast period 2020-2027
Historical data 2018
Forecast units Value (USD billion)
Report cover Revenue forecasts, competitive landscape, growth factors and trends
Segments Covered By types, applications, manufacturing method
Geographical areas covered North America, Europe, Asia-Pacific and Rest of the World (RoW)
Key Market Drivers The rising rate of chronic diseases and growing health awareness
Technological advancements in the healthcare sector

Small Molecule API Market Competitive Landscape:

Successful companies in the small molecule API industry are

  • Albemarle Society
  • Allergan AG
  • Aurobindo Pharmacy
  • Cambrex Corporation
  • Dr. Reddy’s Ltd Laboratories
  • Glaxosmithkline Plc
  • lonza
  • Merck Sharp & Dohme Corp.
  • Mylan AG
  • Novartis AG
  • Pfizer Inc.
  • Siegfried AG
  • Sun Pharmaceutical Industries Ltd.
  • Teva Pharmaceutical Industries Ltd.

Most of these renowned companies focus on adopting strategies such as product and technological innovations, expansion of production capacity, agreements, and mergers and acquisitions. Increasing production capacity has become one of the main strategies of these players to meet the growing demands of the pharmaceutical sector.

To cite a reference, in March 2022, Sumitomo Chemical Co. Ltd. invested in the development of a new production unit in Japan to meet the growing need of end users for high quality small molecule APIs as well as intermediates.

Small Molecule API Market USP Covered:

Market factors:

The market for small molecule APIs is extremely lucrative, given the rise in cases of infectious and chronic disorders and the growing number of contract research manufacturers. The rise of drug discovery, advancements in the pharmaceutical industry, as well as an increased emphasis on conducting rigorous research and development activities will enhance market value.

Small molecules are increasingly used as APIs in the healthcare industry. Small molecules offer a multitude of essential advantages, far more than large API molecules. A small molecule can be easily used to provide an effective therapeutic impact even with a tiny dose, which can be less than 10mg.

Market constraints:

The low levels of awareness regarding small molecule APIs in underdeveloped countries and their poor economic standards could challenge the global market in the long term. Also, substandard healthcare infrastructure in these countries and budget constraints can have a detrimental effect on the global market.

Browse the in-depth market research report (109 pages) at Small Molecule API:

Small Molecule API Market COVID 19 Analysis

The noticeable impact of the COVID-19 outbreak has resulted in various repercussions on the health status of people across the world. The consequences are linked to the significant social and economic burden on people around the world. As key policy makers implement new frameworks and industries adopt advanced expansion models to maintain relevance, people are facing a series of mental traumas.

Around the world, the increase in cases has caused mental and economic problems, especially among the elderly. Additionally, the younger population faces challenges due to loss of livelihoods and opts for family care to cope with the repercussions. Much of the focus is on treating COVID-19 and developing a vaccine, which distracts attention from other markets. These factors will most likely be unfavorable to the small molecule API in the years to come.

Small Molecule API Market Segmentation

By type

Types of small molecule APIs include synthetic/chemical API as well as biological API. The synthetic segment is leading due to increased demand for the same in the pharmaceutical industry, which in turn increases the need for raw materials like small molecule APIs during production. Moreover, the provision of easy production of such molecules, as well as their high efficiency, further elevates the segmental position.

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By app

The main applications of small molecule APIs are cardiovascular, oncology, diabetes, immunological disorders, etc. The cardiology segment accounts for the highest share of the market, due to the increasing cases of cardiovascular diseases globally. These increasing cases are due to poor eating habits and a sedentary lifestyle.

By manufacturing methods

Manufacturing methods include In-House as well as Contract. The internal segment has the largest revenue share in the market, owing to the increasing number of manufacturers producing APIs themselves, to reduce reliance on suppliers for key raw materials.

Regional Overview of Small Molecule API Market

North America is the main winner in the small molecule API market, with significant contributions from the United States, Mexico and Canada. These countries are spending heavily on the pharmaceutical industry, while experiencing a noticeable increase in emphasis on drug development, as well as extensive research activities.

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Asia-Pacific is very promising in the global market and will achieve the fastest growth rate in the coming years. The incredible expansion of the region can be attributed to the low costs of small molecule APIs in the region and the strong pipeline of new drugs. The rapid increase in the number of API production units in China along with Indian government’s favorable policies and programs such as 100% FDI attracting global companies for business establishment will ensure unrelenting growth of the market. Moreover, the presence of well-known manufacturers in large numbers who supply products globally also enhances the market size. Increasing government support in India for spending on API activities is further accelerating the growth of the market. For example, in March 2022, Lonza completed a lab expansion at its API manufacturing facility in China, which will allow it to focus more on high potency small molecule APIs.

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