Huge opportunities in generics, biologics and exports

THe therapeutic effects of medicines come from active pharmaceutical ingredients (APIs) that make them up.

- DR SOUMYA S. MORABAD

The API industry has changed from being a small part of the pharmaceutical industry to a major force behind innovation, self-sufficiency, and making healthcare available to everyone around the world. In 2025, the industry is going through a big change because there is more demand for generic drugs, biologics, and personalised treatments. At the same time, leaders in business and government are putting sustainability, digitalisation, and safe supply chains at the top of their lists.

Global API Market Outlook 2025

The global API market is expected to grow at a Compound Annual Growth Rate (CAGR) of 6-7% and reach more than US$250 billion by 2025. India and China together make more than 60% of the world's bulk drugs, making the Asia-Pacific region the most important for production. The US and Europe are the most innovative and have the most valuable APIs, but they still rely heavily on imports. Countries want to rely less on suppliers from a single source, so the market is moving towards more regional diversity. This growing demand means that both established and new API manufacturers will always have more opportunities.

Key Growth Drivers

Chronic Diseases: The rising burden of diabetes, cardiovascular disorders, cancer, and infectious diseases is pushing the demand for long-term treatments, boosting API requirements.

Generics and Biosimilar: With numerous blockbuster drugs losing patents, the generics market is thriving, and APIs are the backbone of this growth.

Expanding Healthcare Access: Initiatives by governments and NGOs to improve healthcare access in developing regions are widening the patient base.

Post-pandemic Preparedness: Covid-19 highlighted the need for secure pharmaceutical supplies, leading to greater investment in API capacity worldwide.

Opportunities in New Markets