Market Trends of India Active Pharmaceutical Ingredients (API) Industry
This section covers the major market trends shaping the India Active Pharmaceutical Ingredients (API) Market according to our research experts:
Oncology Segment Expects to Register a High CAGR
The oncology segment is expected to witness significant growth in India's API industry over the forecast period. The factors attributing to the market growth are the rising burden of cancer cases, growing awareness of the diseases and treatment of the early-onset cancer epidemic, and increasing product launches.
According to the GLOBOCAN 2020 factsheet, 1,324,413 new cancer cases (in 678,383 females and 646,030 males) were reported in India in 2020. Also, the ICMR 2021 Report expected the number of cancer patients in India to rise from 26.7 million in 2021 to 29.8 million in 2025. Thus, the expected increase in the number of people suffering from cancer raises the need to develop effective drugs. This, in turn, is anticipated to fuel the demand for API, propelling market growth.
The rising government initiatives to increase cancer awareness, diagnosis, and treatment among the population, along with the rising company initiatives for funding, are also contributing to the segment growth. For instance, in October 2022, Wacoal India partnered with Cancer Patients Aid Association (CPAA) as a part of its WacoalKnowsBreast initiative to address cancer through its distinctive philosophy and framework of 'Total Management of Cancer' to donate a portion of funds generated from its October sales. Such initiatives are expected to increase the demand for various chemotherapy and other drugs and further fuel the requirement for APIs for developing drugs over the forecast period, thereby boosting market growth. Also, in February 2022, the Tamil Nadu Health Minister announced framing a policy to identify 66% of cancers in men and women in the first and second stages by 2030.
Therefore, owing to the factors such as the high prevalence of cancer and increasing government and company initiatives in the country, the studied segment is anticipated to witness growth over the forecast period.
Branded Segment Expected to Own a Significant Market Share
The branded segment is expected to grow over the forecast period owing to the factors such as the high burden of chronic diseases, growing awareness regarding branded drugs among the population, as well as increasing company activities in developing drugs in the country. As per the ICMR 2021 report, it has been observed that the number of cancer patients in India was expected to rise from 26.7 million in 2021 to 29.8 million in 2025. Thus, the expected increase in the number of people suffering from cancer is anticipated to accelerate the development of effective drugs. This is expected to fuel the demand for APIs in the country, boosting the market growth.
Furthermore, according to the 2022 statistics published by UNICEF World Obesity Atlas, in India, more than 27 million children are expected to suffer from obesity by 2030. The high burden of obesity among the population increases the risk of developing various chronic diseases, such as coronary artery disease, diabetes, hypertension, and others. This is expected to increase the demand for highly effective drugs for treating such conditions, hence propelling the segment's growth.
Moreover, the rising company activities in developing branded drugs are also expected to increase the demand for APIs, which is further anticipated to augment the market growth. For instance, in October 2022, Glenmark launched a fixed-dose combination, Teneligliptin + Dapagliflozin, to treat adult patients with type-2 diabetes. Also, in October 2021, Natco Pharma launched a fixed-dose variety of Trifluridine and Tipiracil, under the brand name Tipanat, a novel antineoplastic nucleoside for the treatment of advanced colorectal and gastric cancers in the United States market.
Therefore, significant factors, such as the rising burden of cancer and obesity among the population and the increasing drug launches in the country, are anticipated to boost segment growth over the forecast period.
