Europe API Market

European API market is experiencing a CAGR of 6.5% during the forecast period. The growth is driven primarily by the increasing demand for generic and branded APIs, with a high trend toward biosimilars and biologics. Europe is witnessing a growing aging population and rising prevalence of chronic diseases such as cardiovascular diseases, cancer, and diabetes that are fueling demand for APIs in therapeutic segments such as oncology, neurology, and infectious diseases. Additionally, ongoing demand for cost-effective healthcare solutions, coupled with developments in biotechnology and synthetic API production processes, is further supporting market growth.

The oncology (Cancer Treatment) segment is expected to witness significant growth in the European API market over the forecast period, owing to the demand for personalized cancer therapies, aging Europe’s population, and improved diagnostics are driving market growth in oncology drugs due to increased demand for high-purity, complex APIs. According to the European Society for Medical Oncology Org., in April 2025, cancer mortality is projected to decline by 3.5% for men and 1.2% for women from 2020 to 2025. It is estimated that $6.8 million cancer deaths will be avoided in the EU, and $1.5 million in the UK, from 1989 to 2025. Breast cancer mortality has significantly decreased for women aged 50-69 by 9.8% and for those aged 70-79 by 12.4%. However, there has been a slight increase in mortality from pancreatic cancer for both sexes, as well as from lung and bladder cancer for females in the EU.

The increasing diabetes prevalence is causing a surge in insulin API demand due to advancements in rapid-acting, long-acting, and biosimilar insulin formulations. According to the International Diabetes Federation (IDF), in April 2024, by 2050, diabetes prevalence in the Europe region is expected to rise by 10%, from the current 9.8%, affecting 66 million individuals. The Region additionally reports the highest number of type 1 diabetes cases, with 2.7 million individuals, 15% of whom are under 20 years old, totaling 419,000. In 2024, diabetes-related spending in the Region is projected to reach $193 billion, accounting for 19% of global expenditures and making it the second highest in average cost per person at 2,951.

The major players in the European API market include ChemScence, AK Scientific, MedKoo Biosciences, and Spectrum Chemical Mfg. Corp., and Santa Cruz Biotechnology. These players are investing heavily in R&D and increasing their production capacities to meet the increasing demand for high-quality APIs in both the generics and biologics markets.

Recent Developments

• In June 2024, the Association of the European Self-Care Industry (AESGP) relaunched its OTC Ingredients Directory, now featuring the legal status of 269 active pharmaceutical ingredients across 30 EU markets. This database aims to promote responsible self-care and ensure legal distinction between prescription and non-prescription medicines, as access to self-care options varies across countries.
• In October 2023, Egis Pharmaceuticals expanded its activities with new elements, investing over 100 billion HUF in Hungary. The company now offers drug substance contract development and manufacturing services under the name Egis Pharma Services. Egis’ R&D and manufacturing activities are 100% based in Hungary, and the company’s new activity of providing active pharmaceutical ingredient development and manufacturing services marks the next milestone in its continuous development.
• In February 2020, Sanofi planned to establish a European company to produce and market active pharmaceutical ingredients (API) to third parties. The standalone company combined Sanofi’s commercial activities with six European API production sites. The new entity aims to support API manufacturing and supply capacities in Europe and beyond, balancing the industry’s heavy reliance on Asian API. The company is expected to have €1 billion in sales by 2022.