PUBLISHER: Coherent Market Insights | PRODUCT CODE: 1449573
PUBLISHER: Coherent Market Insights | PRODUCT CODE: 1449573
The pharmaceutical fine chemicals market is projected to exhibit substantial growth, increasing from US$ 136.2 Bn in 2024 to an estimated US$ 233.5 Bn by 2031 this growth is anticipated to be driven by a notable CAGR of 8% during the period of 2024-2031.
Report Coverage | Report Details | ||
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Base Year: | 2023 | Market Size in 2023/2024: | US$ 136.2 Bn |
Historical Data for: | 2019 to 2023 | Forecast Period: | 2024 - 2031 |
Forecast Period 2023/2024 to 2030/2031 CAGR: | 8.00% | 2030/2031 Value Projection: | US$ 233.5 Bn |
The pharmaceutical fine chemicals market has been witnessing significant growth over the past few years. Pharmaceutical fine chemicals refer to active pharmaceutical ingredients or bulk drug substances which are used in pharmaceutical formulations. Factors, such as rising prevalence of chronic diseases, increasing elderly population, and growing research and development investments in drug development by biopharmaceutical companies, are fueling the demand for pharmaceutical fine chemicals. Furthermore, custom synthesis and manufacturing services are gaining traction as they help drug manufacturers optimize costs and focus on other core activities. Various agreements between Active Pharmaceutical Ingredients makers and drug formulation businesses for long term supply are also propelling the pharmaceutical fine chemicals market. However, stringent regulatory framework and high costs associated with drug development processes pose challenges to boost the market growth. Overall, the global pharmaceutical fine chemicals market is anticipated to showcase lucrative opportunities in the coming years.
The pharmaceutical fine chemicals market is driven by factors such as growing geriatric population globally prone to chronic diseases, rising healthcare expenditure, and increasing incidence of lifestyle diseases. As per the United Nations, by 2050, one in six people in the world will be over age 65. Furthermore, increasing R&D spending on drug development by pharmaceutical companies and the adoption of contract manufacturing are fueling the market growth. However, the market faces challenges from stringent regulatory environment for drug approval and high costs associated with drug manufacturing. On the other hand, the growing adoption of custom synthesis and manufacturing in the API production process presents significant opportunities for stakeholders. Additionally, outsourcing of API manufacturing to emerging markets with low-cost skilled labor is opening new avenues for market players.