High Potency Active Pharmaceutical Ingredient Market Share and Growth Factors Impact Analysis 2015 – 2023

The vendor landscape of the global high potency active pharmaceutical ingredient (HPAPI) market is highly fragmented due to presence of a large number of players. Some of the prominent players in this market are WuXi AppTec, Pfizer, Inc., Novartis AG, Lonza Group, Novasep, Dr. Reddy’s Laboratories Ltd., Cambrex Corporation, and Sigma-Aldrich Corporation. Transparency Market Research has estimated that the individual revenue share of these players range between 3% and 4% of the overall market. These players are focusing on cost containment to sustain their profit margins. Furthermore, various companies in this market are involving in strategic partnerships to remain significant occupant and gain the first-mover advantage in the market.

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Transparency Market Research has estimated that the HPAPI market valued at US$2.64 bn in 2014 and expected to reach US$25.11 bn by 2023, while exhibiting a steady CAGR 8.3% during the forecast period 2015-2023.

Regionally, Asia Pacific is expected to show significant opportunities to the market due to soaring contract manufacturing activities in the region. Within this region, Japan contributes the leading share. However, due to supportive foreign exchange policies, well-equipped manufacturing plants, and low labor costs, China is expected to surpass Japan’s total revenue in the forthcoming years.

Extensive Research and Development Aimed at Cost-efficiency to accelerate the Market Growth


The high potency active pharmaceutical ingredient market is expected to grow exponentially over the next few years due to rising cases of diabetes, cancer, and various cardiovascular diseases and the booming ongoing oncology research. The cost of drugs have been reduced due the cost containment strategies followed by the players in this market. This has in turn made these drugs more affordable to a larger audience. This trend has boosted the market and is expected to help the market grow in the coming years. Furthermore, promising pipeline of targeted therapeutic drugs is most likely to add advantage to the market growth. Without any lingering after effects, these drugs help patients to impact targeted areas and recover faster. Continuous development and research going on in mimic branded drugs are envisioned to create cost-effective treatments, further accelerating the growth of the market.

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Post treatment effects of chemotherapy such as infection to non-cancerous cells are motivating numerous health facilities to adopt targeted therapy as they do not harm non-cancerous cells. This trend is expected to fuel the market growth during the forecast period. HPAPI are extensively used in hormonal drugs that are used for treatment of breast cancer. The other prominent applications of HPAPI is for the treatment of glaucoma. The increasing incidences of glaucoma is most likely to poise to the growth of the market. Applications of HPAPIs in musculoskeletal drugs, central nervous system drugs, and cardiovascular drugs are increasing adding benefits to growth of the market.

High Labor Cost for Drug Manufacturing Could Impede Market Growth


The capital intensive nature of manufacturing activities of high potency active pharmaceutical ingredient have been a major subject of concern for the players in this market. Furthermore, the manufacturing of these drugs need highly skilled labors, which could increase the labor cost hence the cost of the pharmaceutical ingredient. This can act as a restraining factor for growth of the market. In addition, the absence of norms pertaining to environmental, health, and occupational safety while manufacturing and researching potency APIs is threatening the market growth.

Nevertheless, the increasing incidence of cancer are expected to help the market sustain its growth. The escalating occurrence of cancer have augmented the research and development activities in healthcare sectors of various regions such Asia Pacific and North America. This has resulted in the increased demand for effective anticancer drugs, assisting growth of the high potency active pharmaceutical ingredient market.

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