The mushrooming population of geriatric people is one of the major factors driving the demand for pharmaceutical fine chemicals across the world. According to the 2020 World Population Aging report published by the United Nations Department of Economic and Social Affairs (UNDESA), the population of people aged 65 years or above will rise from 727 million in 2020 to more than 1.5 billion by 2050. Because of their weak immune systems and physical weakness, geriatric people fall sick easily, which, in turn, creates a huge requirement for medical drugs.
Besides, the growing public awareness about various pharmaceutical products and human health in Africa is also creating lucrative growth opportunities for the players operating in the pharmaceutical fine chemicals market. The governments of several African nations such as Nigeria and Kenya are increasingly focusing on promoting the local production of various medical drugs in order to improve the accessibility of these products. Additionally, many African countries are focusing on improving public health so that they can have a large and healthy workforce that can benefit the economy.
Due to the aforementioned factors, many private and public organizations are supporting local drug production in the region, which is consequently creating a huge demand for pharmaceutical fine chemicals. Owing to these factors, the pharmaceutical fine chemicals market is expanding rapidly, as a result of which, the market revenue jumped to $100.3 billion in 2019 and the market is predicted to progress at a CAGR of 6.2% from 2020 to 2030 (forecast period).
Depending on drug type, the market is divided into proprietary and non-proprietary categories. Between these, the proprietary category is predicted to register faster growth in the market throughout the forecast period. This is ascribed to the surging demand for high capital investments, increasing research and development (R&D) activities, requirement for adherence to strict regulations and appropriate quality control, and soaring marketing activities being conducted for the production and commercialization of these drugs.
In addition, many drug producers are required to maintain the integrity of the ingredients in order to ensure that the end products meet the efficacy and safety parameters. Geographically, North America will contribute the highest revenue to the market during the forecast period, as per the estimates of the market research firm, P&S Intelligence. This will be because of the fact that the region is home to the world’s largest pharmaceutical sector.
Whereas, the Asia-Pacific (APAC) region is expected to be the fastest growing region in the pharmaceutical fine chemicals market till 2030. This is ascribed to the surging investments being made in R&D projects and the increasing implementation of policies that support the development of drugs for diseases which currently don’t have a cure, in the region. For example, the Indian government has asked many leading drug producing companies for feedback on various tax-related incentives and boosters for investments in R&D projects in the country. Furthermore, the surging population of geriatric people, especially in China and India, is also propelling the production of drugs in the region.
Thus, the sales of pharmaceutical fine chemicals will soar in the forthcoming years, primarily because of the mushrooming population of aging people and growing incidence of various chronic diseases across the world.