Small Molecule API Market Share, Growth, Trends | Report 2022-2030
The global small molecule API market was surpassed at USD 175.52 billion in 2021 and is expected to hit around USD 282.85 billion by 2030, growing at a CAGR of 5.44% from 2022 to 2030.
Report Highlights
By manufacturer, the U.S. small molecule API market was valued at USD 58.3 billion in 2021 and expected to witness growth at a CAGR of 5.54% from 2022 to 2030.
It is driven by an increase in demand for pharmaceuticals globally and a high rate of new small molecule-based drug approval.
The increasing number of new pharmaceuticals entering the market is creating a lucrative opportunity for key players. For instance, as per NCBI in 2021, 75% of the drugs accepted by the FDA were small molecules, with the dominant therapeutic area being oncology. Over 50% of these approvals were from small and mid-sized companies which require support from CDMOs for the commercialization of products that enhance the growth rate of CDMOs.
The COVID-19 pandemic has made supply-chain shortcomings in the small-molecule API business apparent, as most of the production facilities are located in Asian nations such as India and China. This has increased the focus of players on creating an end-to-end integrated supply chain for the clients and increased the number of facilities in western countries with heightened support from the government for doing the same.
Merger and acquisition activities are frequently being undertaken by the players to meet the soaring demands globally. For instance, in April 2022, Novasep and PharmaZell announced a strategic merger for the creation of a leading technologically-driven CDMO for complex small molecules and specialty API production.
Expansion and diversification are becoming key strategies used by key players in the market to maintain their market share. For instance, in April 2021, Lonza announced its investment plan of USD 218.6 million for the construction of a manufacturing complex for small molecules in Switzerland. The facility is expected to ensure continuity and flexibility of supply for the products.
Emerging markets such as China, India, and Southeast Asia represent significant opportunities for growth. Furthermore, niche areas such as “halal API” further present growth opportunities owing to the rise in the demand for drugs in the segment, majorly in Middle Eastern and Southeast Asian nations. The synthetic small molecule API segment is largely driven by the presence of small companies and CDMOs that cater to the changing requirements of the industry.
Scope of The Report
| Report Coverage | Details |
| Market Size in 2021 | USD 175.52 billion |
| Revenue Forecast by 2030 | USD 282.85 billion |
| Growth rate from 2022 to 2030 | CAGR of 5.44% |
| Base Year | 2021 |
| Forecast Period | 2022 to 2030 |
| Segmentation | Type, application, manufacturer, region |
| Companies Covered | Merck & Co., Inc., AbbVie, Inc., Bristol-Myers Squibb Company, Boehringer Ingelheim International GmbH, Cipla, Inc., Teva Pharmaceutical Industries Ltd., Albemarle Corporation, Viatris Inc., Aurobindo Pharma, Sun Pharmaceutical Industries Ltd., Dr. Reddy’s Laboratories Ltd. |
Type Insights
The synthetic segment dominated the market in 2021, attributable to the dominance of synthetic drugs in the pharmaceutical industry that propels the demand for raw materials such as small molecule APIs for production. Furthermore, the ease of production of these molecules and high effectiveness boost the segment growth.
The presence of many players in the synthetic segment is accelerating its growth. Moreover, an increasing number of players are aiming at backward integration and building new manufacturing plants to increase efficiency. The biotech segment is projected to grow at a lucrative rate, attributable to a rising focus on targeted therapies, along with a surge in demand for biotech-based products.
Manufacturer Insights
The in-house segment accounted for the largest revenue share in 2021, owing to a high number of companies manufacturing their API themselves, making them less reliant on suppliers for raw materials. For instance, in September 2021, AstraZeneca announced an investment of USD 360 million in an API manufacturing facility in Ireland for the commercialization of new products.
Outsourcing has been growing at a steep rate, which can be attributed to the increasing number of molecules being approved that require complex manufacturing processes. Moreover, most of these molecules belong to micro and small-sized companies that highly depend on CDMOs for commercial production of API. This has increased the movement in the CDMO industry, and major players have increased their capacities to meet industry demands.
Application Insights
The cardiology segment accounted for the largest share in 2021. This is on account of the increasing prevalence of cardiovascular conditions globally, owing to changes in lifestyle and food habits. Moreover, increased adoption of treatment for cardiovascular conditions is accelerating the market growth for the segment.
The oncology segment is projected to grow at the fastest rate during the forecast period due to a surge in the prevalence of cancer. The presence of a lucrative pipeline and increase in demand for cancer drugs is creating a pull for oncology API in the market. Players such as Heraeus Pharmaceutical Ingredients have announced the expansion of their production capabilities in the cancer active ingredients segment.
Regional Insights
North America accounted for the largest market share in 2021. The presence of favorable government initiatives, coupled with the increased interest of players in the region, is anticipated to propel the North American market. For instance, in November 2020, Cambrex announced an investment of USD 50 million for the expansion of its large-scale manufacturing in the U.S. The facility is aimed at meeting the continually surging demand for small molecules.
Asia Pacific is estimated to be the fastest-growing segment during the forecast period due to improvements in overall healthcare infrastructure, improved access to healthcare, and the presence of local manufacturers in large numbers. These players supply globally and make Asia Pacific a key region for the production of small molecule API at a low cost. Increasing government support in nations such as India for investing in API business is further accelerating the growth of the region. In March 2022, Lonza announced the completion of the expansion of its laboratory in China’s API manufacturing facility, which allows the company to focus on small molecule high potency APIs.
Key Players
Market Segmentation
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Small Molecule API Market
5.1. COVID-19 Landscape: Small Molecule API Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Small Molecule API Market, By Type
8.1. Small Molecule API Market, by Type, 2022-2030
8.1.1 Synthetic
8.1.1.1. Market Revenue and Forecast (2017-2030)
8.1.2. Biotech
8.1.2.1. Market Revenue and Forecast (2017-2030)
Chapter 9. Global Small Molecule API Market, By Manufacturer
9.1. Small Molecule API Market, by Manufacturer, 2022-2030
9.1.1. In-house
9.1.1.1. Market Revenue and Forecast (2017-2030)
9.1.2. Outsourced
9.1.2.1. Market Revenue and Forecast (2017-2030)
Chapter 10. Global Small Molecule API Market, By Application
10.1. Small Molecule API Market, by Application, 2022-2030
10.1.1. Cardiology
10.1.1.1. Market Revenue and Forecast (2017-2030)
10.1.2. Oncology
10.1.2.1. Market Revenue and Forecast (2017-2030)
10.1.3. CNS and Neurology
10.1.3.1. Market Revenue and Forecast (2017-2030)
10.1.4. Orthopedic
10.1.4.1. Market Revenue and Forecast (2017-2030)
10.1.5. Endocrinology
10.1.5.1. Market Revenue and Forecast (2017-2030)
10.1.6. Pulmonology
10.1.6.1. Market Revenue and Forecast (2017-2030)
10.1.7. Gastroenterology
10.1.7.1. Market Revenue and Forecast (2017-2030)
10.1.8. Nephrology
10.1.8.1. Market Revenue and Forecast (2017-2030)
10.1.9. Ophthalmology
10.1.9.1. Market Revenue and Forecast (2017-2030)
10.1.10. Others
10.1.10.1. Market Revenue and Forecast (2017-2030)
Chapter 11. Global Small Molecule API Market, Regional Estimates and Trend Forecast
11.1. North America
11.1.1. Market Revenue and Forecast, by Type (2017-2030)
11.1.2. Market Revenue and Forecast, by Manufacturer (2017-2030)
11.1.3. Market Revenue and Forecast, by Application (2017-2030)
11.1.4. U.S.
11.1.4.1. Market Revenue and Forecast, by Type (2017-2030)
11.1.4.2. Market Revenue and Forecast, by Manufacturer (2017-2030)
11.1.4.3. Market Revenue and Forecast, by Application (2017-2030)
11.1.5. Rest of North America
11.1.5.1. Market Revenue and Forecast, by Type (2017-2030)
11.1.5.2. Market Revenue and Forecast, by Manufacturer (2017-2030)
11.1.5.3. Market Revenue and Forecast, by Application (2017-2030)
11.2. Europe
11.2.1. Market Revenue and Forecast, by Type (2017-2030)
11.2.2. Market Revenue and Forecast, by Manufacturer (2017-2030)
11.2.3. Market Revenue and Forecast, by Application (2017-2030)
11.2.4. UK
11.2.4.1. Market Revenue and Forecast, by Type (2017-2030)
11.2.4.2. Market Revenue and Forecast, by Manufacturer (2017-2030)
11.2.4.3. Market Revenue and Forecast, by Application (2017-2030)
11.2.5. Germany
11.2.5.1. Market Revenue and Forecast, by Type (2017-2030)
11.2.5.2. Market Revenue and Forecast, by Manufacturer (2017-2030)
11.2.5.3. Market Revenue and Forecast, by Application (2017-2030)
11.2.6. France
11.2.6.1. Market Revenue and Forecast, by Type (2017-2030)
11.2.6.2. Market Revenue and Forecast, by Manufacturer (2017-2030)
11.2.6.3. Market Revenue and Forecast, by Application (2017-2030)
11.2.7. Rest of Europe
11.2.7.1. Market Revenue and Forecast, by Type (2017-2030)
11.2.7.2. Market Revenue and Forecast, by Manufacturer (2017-2030)
11.2.7.3. Market Revenue and Forecast, by Application (2017-2030)
11.3. APAC
11.3.1. Market Revenue and Forecast, by Type (2017-2030)
11.3.2. Market Revenue and Forecast, by Manufacturer (2017-2030)
11.3.3. Market Revenue and Forecast, by Application (2017-2030)
11.3.4. India
11.3.4.1. Market Revenue and Forecast, by Type (2017-2030)
11.3.4.2. Market Revenue and Forecast, by Manufacturer (2017-2030)
11.3.4.3. Market Revenue and Forecast, by Application (2017-2030)
11.3.5. China
11.3.5.1. Market Revenue and Forecast, by Type (2017-2030)
11.3.5.2. Market Revenue and Forecast, by Manufacturer (2017-2030)
11.3.5.3. Market Revenue and Forecast, by Application (2017-2030)
11.3.6. Japan
11.3.6.1. Market Revenue and Forecast, by Type (2017-2030)
11.3.6.2. Market Revenue and Forecast, by Manufacturer (2017-2030)
11.3.6.3. Market Revenue and Forecast, by Application (2017-2030)
11.3.7. Rest of APAC
11.3.7.1. Market Revenue and Forecast, by Type (2017-2030)
11.3.7.2. Market Revenue and Forecast, by Manufacturer (2017-2030)
11.3.7.3. Market Revenue and Forecast, by Application (2017-2030)
11.4. MEA
11.4.1. Market Revenue and Forecast, by Type (2017-2030)
11.4.2. Market Revenue and Forecast, by Manufacturer (2017-2030)
11.4.3. Market Revenue and Forecast, by Application (2017-2030)
11.4.4. GCC
11.4.4.1. Market Revenue and Forecast, by Type (2017-2030)
11.4.4.2. Market Revenue and Forecast, by Manufacturer (2017-2030)
11.4.4.3. Market Revenue and Forecast, by Application (2017-2030)
11.4.5. North Africa
11.4.5.1. Market Revenue and Forecast, by Type (2017-2030)
11.4.5.2. Market Revenue and Forecast, by Manufacturer (2017-2030)
11.4.5.3. Market Revenue and Forecast, by Application (2017-2030)
11.4.6. South Africa
11.4.6.1. Market Revenue and Forecast, by Type (2017-2030)
11.4.6.2. Market Revenue and Forecast, by Manufacturer (2017-2030)
11.4.6.3. Market Revenue and Forecast, by Application (2017-2030)
11.4.7. Rest of MEA
11.4.7.1. Market Revenue and Forecast, by Type (2017-2030)
11.4.7.2. Market Revenue and Forecast, by Manufacturer (2017-2030)
11.4.7.3. Market Revenue and Forecast, by Application (2017-2030)
11.5. Latin America
11.5.1. Market Revenue and Forecast, by Type (2017-2030)
11.5.2. Market Revenue and Forecast, by Manufacturer (2017-2030)
11.5.3. Market Revenue and Forecast, by Application (2017-2030)
11.5.4. Brazil
11.5.4.1. Market Revenue and Forecast, by Type (2017-2030)
11.5.4.2. Market Revenue and Forecast, by Manufacturer (2017-2030)
11.5.4.3. Market Revenue and Forecast, by Application (2017-2030)
11.5.5. Rest of LATAM
11.5.5.1. Market Revenue and Forecast, by Type (2017-2030)
11.5.5.2. Market Revenue and Forecast, by Manufacturer (2017-2030)
11.5.5.3. Market Revenue and Forecast, by Application (2017-2030)
Chapter 12. Company Profiles
12.1. Merck & Co., Inc.
12.1.1. Company Overview
12.1.2. Product Offerings
12.1.3. Financial Performance
12.1.4. Recent Initiatives
12.2. AbbVie, Inc.
12.2.1. Company Overview
12.2.2. Product Offerings
12.2.3. Financial Performance
12.2.4. Recent Initiatives
12.3. Bristol-Myers Squibb Company
12.3.1. Company Overview
12.3.2. Product Offerings
12.3.3. Financial Performance
12.3.4. Recent Initiatives
12.4. Albemarle Corporation
12.4.1. Company Overview
12.4.2. Product Offerings
12.4.3. Financial Performance
12.4.4. Recent Initiatives
12.5. Boehringer Ingelheim International GmbH
12.5.1. Company Overview
12.5.2. Product Offerings
12.5.3. Financial Performance
12.5.4. Recent Initiatives
12.6. Cipla, Inc.
12.6.1. Company Overview
12.6.2. Product Offerings
12.6.3. Financial Performance
12.6.4. Recent Initiatives
12.7. Teva Pharmaceutical Industries Ltd.
12.7.1. Company Overview
12.7.2. Product Offerings
12.7.3. Financial Performance
12.7.4. Recent Initiatives
12.8. Viatris Inc.
12.8.1. Company Overview
12.8.2. Product Offerings
12.8.3. Financial Performance
12.8.4. Recent Initiatives
12.9. Dr. Reddy’s Laboratories Ltd.
12.9.1. Company Overview
12.9.2. Product Offerings
12.9.3. Financial Performance
12.9.4. Recent Initiatives
12.10. Aurobindo Pharma
12.10.1. Company Overview
12.10.2. Product Offerings
12.10.3. Financial Performance
12.10.4. Recent Initiatives
Chapter 13. Research Methodology
13.1. Primary Research
13.2. Secondary Research
13.3. Assumptions
Chapter 14. Appendix
14.1. About Us
14.2. Glossary of Terms
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers