Rise of Generic Drugs Market
The generic drugs market has seen tremendous growth over the past decade. As many blockbuster drugs have lost patent protection, generic versions of these drugs have emerged as cheaper alternatives. This has enabled more people worldwide to access life-saving medications. Rising healthcare costs and the need for more affordable treatments continue to drive the demand for generic drugs globally. Pharmaceutical chemicals manufacturers have increased their focus on APIs and intermediates used in generic drugs formulation.
Increased Outsourcing of Drug Manufacturing
Global Pharmaceutical Chemicals Pharma companies are outsourcing more drug manufacturing tasks such as APIs synthesis to contract manufacturing organizations (CMOs) and contract development and manufacturing organizations (CDMOs). This has significantly boosted demand for high-quality from such outsourcing partners. Additionally, stricter regulations and complex manufacturing processes require specialized expertise that is not always available in-house. By outsourcing non-core activities, drug makers can focus on drug development while ensuring consistent supply of medicines. Chemicals suppliers have ramped up production capacities to address the growing requirement from CMOs/CDMOs.
Rise of Biologics and Biosimilars
As many blockbuster biologics go off-patent, biosimilars are emerging as a major new growth area. Being large molecules, biologics require specialized cell-culture and fermentation techniques for production. This relies heavily on cell-culture media, buffers, feedstocks and other bioprocessing chemicals. With more biosimilars in development and approvals, demand for associated bio manufacturing chemicals and consumables is projected to increase substantially. Countries like China and India are aggressively expanding biosimilars manufacturing capacities which will further fuel the global bioprocessing chemicals opportunity.
Strict Regulations and Quality Standards
Its production is highly regulated due to safety and quality requirements. Regulatory inspections and audits continue to be a challenge for manufacturers worldwide. Successfully clearing regulatory audits and meeting the quality expectations of global customers requires significant investment in quality systems, certifications, process validation and staff training. Leading suppliers are automating processes and implementing advanced manufacturing technologies to strengthen compliance. Continuous regulatory changes also pressure companies to frequently upgrade manufacturing and testing capabilities. This drives higher capital spending in the industry.
Rising Regional Pharma Manufacturing Hubs
Emerging economies like India and China have established themselves as leading global suppliers of pharmaceutical chemicals, APIs, generics and biologics due to their large talent pool and lower costs of production. Supportive government policies aimed at promoting domestic manufacturing have accelerated hub development in these regions. India in particular has emerged as the largest provider of generic drugs globally. Rapid infrastructure growth and specialized industrial zones in India and China housing pharmaceutical parks continue to attract heavy investments from international pharma/chemical companies seeking to establish regional manufacturing and R&D centers locally. This trend will see these regions dominating the global pharmaceutical chemicals supply landscape in the coming years.
Expanding Customer Base in Developing Markets
As emerging economies continue their economic development and healthcare infrastructure grows, domestic pharmaceutical needs are increasing sharply. This massive untapped customer base in developing Asian, African and Latin American countries presents a strong growth engine for pharmaceutical chemicals companies. Local and regional drug makers are expanding capacities to meet rising domestic generic drugs demand which in turn drives the requirement for starting materials, reagents and other raw materials from pharmaceutical chemicals suppliers. International companies are also increasingly targeting these markets through partnerships with local pharma firms to gain access to their distribution networks. Development projects focused on improving healthcare access will further fuel pharmaceuticals consumption in developing countries.
Industry Consolidation Through M&A Activity
This industry witnessed a wave of mergers and acquisitions activity over the past few years as top players sought to strengthen positions in high-growth areas and enhance capabilities. This allows companies to gain complimentary technologies, enrich product portfolios, expand customer base as well as optimize manufacturing and distribution networks on a global scale through synergies. The industry is expected to see greater consolidation going forward as medium sized companies become attractive targets for larger global firms. Private equity interest has also grown, supporting smaller companies to meet rigorous compliance requirements which encourage more buyouts and private investments in this sector. Strategic acquisitions are likely to shape the industry competitive landscape in the coming years.
The global pharmaceutical chemicals industry is poised for strong growth riding on the expanding generics drugs market, rising biopharmaceuticals demand, increasing outsourcing trends and rapidly developing pharmaceutical manufacturing hubs across Asia and other emerging regions. While stringent regulations and quality compliance remain a challenge, advanced automation and technology adoption are helping manufacturers strengthen operations. Industry consolidation through M&A is likely to consolidate leadership positions among top players. Overall, pharmaceutical chemical suppliers are well-positioned to benefit from positive industry fundamentals and capture opportunities across multiple therapy areas in the coming decade.
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The global Allantoin Market is anticipated to grow at a CAGR of over 6 % from 2016 to 2024 on account of the growing demands from various industries such as cosmetics, oral hygiene etc.
Moreover, rising scope of applications of allantoin in the pharmaceutical products, such as eye drops and skin care creams, is also expected to drive the market growth during the forecast period.
The global market is categorized as applications and regions.The applications sector of the allantoin market includes cosmetics, pharmaceutical, and oral hygiene.
The global market for allantoin was dominated by cosmetics sector in 2015.
Plus, rapid urbanization along with the growing disposable income levels is also said to spur the sector growth during the estimated years.
The pharma sector is also expected to have huge gains at over 6 % from 2016 to 2024.
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