Microbial API Market (By Type: Antibody, Peptide, Protein; By Molecule; By End-use) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The global microbial API market size was estimated at around USD 61.25 billion in 2023 and it is projected to hit around USD 116.93 billion by 2033, growing at a CAGR of 6.68% from 2024 to 2033. The market is expected to expand due to the growing need for biological medications and the ease with which they may be developed through fermentation. Fermentation is often carried out by bacteria and other microorganisms, which aid in the production of secondary metabolites by transforming carbon and nitrogen into extremely useful microbial intermediates and APIs by significantly changing the growth environment.

Key Pointers

• Asia Pacific region led the market with the largest market share of 41% in 2023.
• Europe is anticipated to grow at the fastest CAGR from 2024 to 2033.
• By Type, the antibody segment contributed more than 32% of revenue share in 2023.
• By Type, the peptide segment is expected to grow at the fastest CAGR over the forecast period.
• By End-use, the biopharmaceutical companies segment registered the maximum market share of 55% in 2023.
• By End-use, the pharmaceutical companies segment is anticipated to grow at a significant CAGR from 2024 to 2033.
• By Molecule, the innovative molecule segment captured the maximum market share of 58 in 2023.
• By Molecule Generic molecule segment is predicted to grow at the fastest CAGR between 2024 to 2033.

Microbial API Market Overview

The global pharmaceutical landscape has witnessed a paradigm shift with the increasing prominence of microbial active pharmaceutical ingredients (APIs). This overview aims to provide a comprehensive understanding of the microbial API market, encompassing its definition, key players, market dynamics, and future prospects.

Microbial API Market Growth

The growth of the microbial API market is propelled by several key factors. Firstly, the increasing demand for biopharmaceuticals, including monoclonal antibodies and therapeutic proteins, has significantly contributed to the market's expansion. The versatility of microbial-derived APIs in producing complex biomolecules aligns with the industry's evolving focus on precision medicine. Additionally, the adoption of microbial fermentation technologies has proven to be environmentally sustainable and economically viable, addressing the pharmaceutical sector's growing emphasis on eco-friendly practices and cost efficiency. The high degree of customization offered by microbial APIs allows pharmaceutical companies to tailor products to specific therapeutic requirements, further driving market growth. As advancements in synthetic biology reshape microbial strain engineering, the market is poised for continuous innovation, attracting investments and fostering a competitive landscape. These factors collectively position the microbial API market as a dynamic and promising sector within the pharmaceutical industry.

Report Scope of the Microbial API Market

Microbial API Market Dynamics

Drivers

• Rising Demand for Biopharmaceuticals: The increasing demand for biopharmaceutical products, such as monoclonal antibodies and therapeutic proteins, is a significant driver for the microbial API market. Microbial-derived APIs play a crucial role in the efficient and cost-effective production of these complex biomolecules.
• Sustainability and Cost-Efficiency: Microbial fermentation, a core technology in API manufacturing, is recognized for its environmentally friendly and economically viable attributes. The industry's focus on sustainable practices and cost efficiency has led to the growing adoption of microbial APIs.

Restraints

• Complex Downstream Processing: Despite advancements, downstream processing for microbial-derived APIs can be complex. Purification and isolation of these bioactive compounds may require sophisticated techniques, impacting production costs and efficiency.
• Limited Scale-Up Challenges: Scaling up microbial fermentation processes to meet commercial production demands can present challenges. Achieving consistent and high yields at larger scales may require substantial investments in infrastructure and technology.

Opportunities

• Expanding Therapeutic Applications: The versatile nature of microbial-derived APIs opens opportunities for expanding therapeutic applications. Exploring new disease targets and therapeutic areas can diversify product portfolios and address unmet medical needs.
• Biopharmaceutical Innovations: The increasing demand for biopharmaceuticals presents a substantial opportunity for microbial API market growth. Innovations in microbial fermentation technologies can support the development of novel biologics and therapeutic proteins.

Type Insights

Antibody segment held a largest revenue share of 32% in 2023. Antibodies are protein molecules manufactured in the laboratory with the help of recombinant DNA techniques. They are derived from the immune system and recognize specific targets, such as cancer cells, viruses, bacteria, etc. Antibodies stimulate the immune system and, hence, are preferred over APIs in medical products. Application of these APIs is rising in the field of oncology, which has led to an increase in investments in these products. Companies such as Lonza are focusing on developing novel APIs to gain market share. A major trend in the segment is contract and custom manufacturing of API, which can be attributed to the need for complex manufacturing and sterile facilities.

Peptide segment is expected to grow at the fastest CAGR over the forecast period. Peptides developed from recombinant DNAs are known as recombinant proteins. They are significantly being adopted in gene sequencing, especially to make antibody probes within cells. Thus, they find wide applications in targeted therapies. These proteins play an important role in the development of novel therapeutics, such as cell therapy. However, there is a limited number of players in the field, leading to inadequate supply for current and future demands.

End-use Insights

The biopharmaceutical companies segment held a significant share of 55% in 2023. One of the main catalysts behind the renewed focus on fermentation is the progress made in the fields of molecular biology and synthetic biology. Synthetic biology, including the directed evolution of biosynthetic pathways, provides fresh and highly targeted methods for altering pharmaceutical manufacturing processes. The rapid advancements in molecular biology and engineering tools are poised to significantly influence fermentation within the pharmaceutical sector in the coming years. A high level of expertise is, however, necessary for the development of API through complete fermentation.

Pharmaceutical companies segment is anticipated to grow at a significant CAGR over the forecast period. The fermentation process is a major part of a pharmaceutical company’s portfolio, as the API obtained by fermentation is used in several therapeutic areas, including the development of antibiotics, anticancer, antifungal, immunosuppressant, cholesterol-lowering drugs, and drugs for other conditions. Key market players are dedicating their efforts to innovative plant-inspired medicines in next generation, harnessing the power of fermentation to manufacture complex APIs that were traditionally sourced from botanical origins.

This pioneering approach aims to establish a pathway for the production of APIs through fermentation, with the overarching goal of fostering more robust and sustainable supply chains for essential drugs and medicines. As these drugs progress through the various stages of development, optimizing the strains used in fermentation can yield substantial benefits, both at the product's launch and over time, by enhancing process efficiency and securing reduced production costs.

Molecule Insights

Innovative molecule segment generated over 58% of revenue share in 2023. An increase in funding and favorable regulations for R&D facilities are key factors driving the innovative API market. With the rising research initiatives in this field, many novel advanced products are now in their developmental phase and are expected to be launched over the forecast period. Moreover, the entrance of new players in this segment is expected to drive growth. Furthermore, increasing support from regulatory agencies for the approval of new drugs is projected to facilitate market growth, which can be attributed to an increase in the focus of government on healthcare and pharmaceuticals due to COVID-19.

Generic molecule segment is anticipated to grow at the fastest CAGR over the forecast period. The generic drug market is anticipated to exhibit lucrative growth in developing countries, such as India and Brazil, owing to the acceptance of OTC drugs and high unmet clinical needs. Generic HPAPI is also gaining share owing to cost-effectiveness, which allows them to cater to the needs of the rising number of patients in developing regions with low-income populations. According to the European Fine Chemicals Group, the major generic API manufacturing countries in Europe are Italy and Spain, with over 350 large and small companies in the region.

Regional Insights

Asia Pacific accounted for the largest share of 41% in 2023. The factors contributing to the market growth are the increasing geriatric population, improving healthcare infrastructure, and entry of new players. There is a high reliance of major players across the globe on Asian countries for the supply of API, which further boosts the overall market growth. However, setting up a fermentation API plant requires a high capital investment, and with only a few manufacturing plants being set up in the region, there are low production capabilities that hamper the regional market growth.

Europe is anticipated to grow at the fastest CAGR during the forecast period. The increasing prevalence of life-threatening diseases, local or regional presence of strong pharmaceutical companies, and highly developed healthcare infrastructure are some of the key factors driving the growth. In Europe, key therapeutic areas such as oncology, central nervous system, cardiovascular, anti-infective, & respiratory diseases held top market shares, and most pharmaceutical companies provide products in these therapeutic areas. Furthermore, the constantly rising demand for high-quality drugs due to strengthened economies, and improved healthcare infrastructure, aided by growing innovative fermentation technologies, is estimated to boost the growth.

Microbial API Market Key Companies

• Merck & Co., Inc.
• Topfond Pharmaceutical Co., Ltd.
• DSM
• CSPC Pharmaceutical Group Limited
• KOLON LIFE SCIENCE
• Shandong Lukang Pharmaceutical Co., Ltd.
• Teva Pharmaceutical Industries Ltd.
• Lonza

Global Microbial API Market Report Segmentations:

By Type

• Antibody
• Peptide
• Protein
• Small Molecule
• Vaccine

By End-use

• Pharmaceutical Companies
• Biopharmaceutical Companies
• Others

By Molecule

• Innovative
• Generic

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa