Global API Market

Global API market is experiencing a CAGR of 5.9% during the forecast period. The market is fueled by the increasing occurrence of chronic illnesses such as cancer, diabetes, and heart disease, coupled with an aging population and a heightened need for effective medications. Additionally, the expiration of patents on major drugs and the growing use of biosimilars and generics are aiding in broadening the market.

Companies are prioritizing process optimization, green chemistry, and analytical advancements to boost market growth by reducing costs and increasing yields in API synthesis. For instance, in February 2025, Sigachi Industries invested $1 million in a Hyderabad R&D center to enhance its API development and analytical efforts, aiming to optimize production processes and drive innovation. Sigachi is investing in a new facility to strengthen API synthesis, streamline the pharma product portfolio, and comply with global regulatory standards. The facility will house a team of 15-20 experienced scientists, accelerating product development for regulated markets and positioning Sigachi for sustained growth and market leadership.

The oncology (Cancer Treatment) segment is expected to witness significant growth in the Active Pharmaceutical Ingredients (API) market over the forecast period, owing to the rising cancer burden is anticipated to drive market growth in the development of generic and innovative APIs for oncology drugs. According to the World Health Organization, in February 2024, by 2050, the predicted number of new cancer cases is expected to rise to over 35 million, representing a 77% increase from the estimated 20 million cases in 2022. This surge is attributed to factors such as population aging, growth, and changes in exposure to various risk factors linked to socioeconomic development, including tobacco, alcohol, obesity, and air pollution. High HDI countries are anticipated to see the largest absolute increase, with an additional 4.8 million cases by 2050 compared to 2022, while low HDI countries are projected to experience a 142% increase in incidence, and medium HDI countries a 99% increase.

Asia-Pacific is anticipated to be the fastest-growing regional market, driven by the growth of biologics and biosimilars is primarily attributed to the substantial R&D investments in biotech-based drugs. According to the Indian Government, in May 2025, India’s pharma exports are expected to reach $350 billion by 2047, aiming to become a global healthcare leader. The country’s API export market is expected to grow from $5 billion to $80-90 billion. India’s competitive advantages, low labor costs, high service levels, and skilled workforce make it a potential market player.

The rise in chronic diseases such as diabetes, cancer, cardiovascular disease, and neurodegenerative disorders has significantly increased the demand for both generic and branded drugs globally. According to the National Institute for Health Care Management Educational and Research Foundation (NIHCM Foundation), in April 2025, Chronic diseases significantly impacted the health and economy of the US, affecting over half the population and contributing to major health expenses. 6 out of 10 Americans suffer from at least one chronic condition, these diseases are responsible for the leading causes of death, such as heart disease, cancer, and diabetes. In 2022, about 90% of the $4.5 trillion US healthcare expenditure was allocated to managing chronic conditions, with cancer costs reaching approximately $634 billion, Alzheimer’s projected to cost $360 billion by 2024, and cardiovascular diseases expected to rise to $246 billion by 2030.

Major players in the global API market are Dr. Reddy’s Laboratories Ltd., Sun Pharmaceutical Industries Ltd., Teva Pharmaceutical Industries Ltd., Cipla Inc., Aurobindo Pharma, and AbbVie Inc. These players are concentrating on increasing production capacities, investing in research and development, and strategic collaborations with contract manufacturing organizations (CMOs) to enhance their global presence.

Recent Developments

• In February 2025, Eli Lilly planned to build four new global pharmaceutical manufacturing sites to increase domestic medicine production across therapeutic areas, bringing its total GLOBAL capital expansion commitments to over $50 billion since 2020. The sites will focus on active pharmaceutical ingredients and injectable therapies.
• In February 2025, Lilly plans to invest $27 billion in global drug manufacturing, building four new sites to strengthen domestic medicine production, reshoring small molecule chemical synthesis capabilities, and expanding its global parenteral manufacturing network for injectable therapies.
• In March 2024, C2 PHARMA launched its new oxybuprocaine HCL API, manufactured by LaurGlobal Labs. This addition will expand the company’s ophthalmic API range and meet market needs. The API, also known as Benoxinate, is used in ophthalmology and otolaryngology.
• In May 2024, Eli Lilly doubled its investment in its Lebanon, Indiana, manufacturing site, increasing its total investment from $3.7 billion to $9 billion. The expansion improves Lilly’s capacity to manufacture active pharmaceutical ingredients for Zepbound and Mounjaro injections, enabling more adults with chronic diseases like obesity and type 2 diabetes to benefit from these treatments.
• In September 2024, Wanbury launched its new active pharmaceutical ingredients (API) product portfolio for FY24- 25, covering therapeutic areas like anti-diabetics, antidepressants, anti-histamines, analgesics, anti-inflammatory drugs, and anesthetics. The products include APIs like Sertraline HCl, Diphenhydramine HCl, Diphenhydramine Citrate, and Metformin HCl. The company plans to file for regulatory approvals, including GLOBALDMF and CEP, in line with regulatory standards.
• In May 2023, the Activate program, launched at the 2022 COP27, aims to collaborate with Active Pharmaceutical Ingredients (API) suppliers to drive positive change in the pharmaceutical industry’s Global value chain. The program supports decarbonization through measurement, practical tools, expert advice, and access to green financing. It involves onboarding API suppliers, capturing footprint data, and addressing environmental impact. Key resources include green chemistry solutions, green finance opportunities, training, API best practices, and renewable technologies. Activate funds for these initiatives through contributions from founding member companies, with the first 200 API supplier sites fully sponsored.
• In October 2023, Clariant introduced three new VitiPure excipients at CPHI Barcelona, enhancing the stability and solubility of Active Pharmaceutical Ingredient (API) formulations and administration routes. These high-purity grades are suitable for sensitive applications like mRNA vaccines and biologic medications.
• In January 2020, Dahej API Plant launched globally, meeting pharmaceutical industry demand for high-quality APIs. The facility enhances production capabilities and global supply chain, ensuring essential medications for diverse healthcare needs.