United Kingdom Active Pharmaceutical Ingredients (API) Market Size (2024 - 2029)

UK Active Pharmaceutical Ingredients (API) Market Analysis

The United Kingdom Active Pharmaceutical Ingredients (API) market is expected to register a CAGR of 6.3% over the forecast period.

The COVID-19 pandemic negatively impacted the entire pharmaceutical supply chain, along with disrupting the supply of APIs from India and China. The lockdown measures and restrictions imposed by the government to avoid spreading coronavirus led to shortages of active pharmaceuticals and essential drugs in the country. The demand for approximately 20 drugs, including drugs used for treating COVID-19, such as analgesics and paracetamol, increased in the country. However, with released restrictions and resumed import-export activities, the demand for API in the United Kingdom is expected to increase over the forecast period.

The factors contributing to the market's growth include the increasing prevalence of infectious, genetic, cardiovascular, and other chronic disorders, the growing geriatric population, the rising prevalence of cancer, and the expanding sophistication in oncology drug research. According to the British Heart Foundation England Factsheet published in January 2022, about 6.4 million people live with cardiovascular diseases in England. Also, as per the British Heart Foundation 2020 fact sheet, around 7.4 million people suffer from heart and circulatory diseases in the United Kingdom.

Also, the report published by the United Kingdom Health Security Agency in December 2022 stated that in 2020, an estimated 97,740 people were HIV positive in England. An estimated 4,660 in 2020 were unaware of their infection. Such rising numbers indicate the demand for antiretroviral (ARV) active pharmaceutical ingredients (APIs) and formulations, anticipated to augment the market growth over the forecast period.

Similarly, as per the NICE in 2021, around 1,45,000 people have PD in the United Kingdom, which is expected to increase by nearly a fifth to 172,000 by 2030. Thus, the expected increase in the number of patients suffering from PD is anticipated to fuel the demand for effective drugs, which is anticipated to augment the market growth over the forecast period.

Diabetes is one of the most prevalent chronic diseases in the region. As per the report from Diabetes UK, published in May 2021, 4.9 million people were living with diabetes in the United Kingdom in 2021. The 2022 statistics published by IDF stated that 3.9 million people were suffering from diabetes in the United Kingdom in 2022. This number is projected to increase to 4.1 million and 4.4 million by 2030 and 2045, respectively. Thus, the high diabetic population in the country raises the company's focus on developing advanced and safe drugs requiring a large amount of API for drug formulation, propelling the market growth.

Furthermore, the rising expenditure on research and development and growing government and company initiatives and investments in developing drugs and therapies in the country is further expected to raise the requirement for APIs, boosting the market growth. For instance, in August 2022, the Parkinson Foundation entered a new international strategic partnership with Parkinson's UK to boost investment in research for new treatments for PD. The Parkinson's Foundation invested a minimum of USD 3 million into the Parkinson's Virtual Biotech for the drug development arm of Parkinson's UK over the next three years.

Moreover, the rising company activities in developing drugs and increasing approvals are also contributing to the market growth. For instance, in May 2022, The United Kingdom's Medicines and Healthcare products Regulatory Agency (MHRA) and South Korea's Ministry of Food and Drug Safety approved biosimilar versions of Genentech's ophthalmology drug, Lucentis (ranibizumab). Also, in January 2021, Sanofi and Kymab, a clinical-stage biopharmaceuticals company that developed fully human monoclonal antibodies with a focus on immune-mediated diseases and immuno-oncology therapeutics, entered into an agreement under which Sanofi acquired Kymab for an upfront payment of approximately USD 1.1 billion and up to USD 350 million upon achievement of certain milestones.

However, the stringent regulations for drug approvals, various drug price policies in the country along with high competition among the API manufacturer are expected to hinder the growth of the active pharmaceutical ingredient market in the United Kingdom over the forecast period.

UK Active Pharmaceutical Ingredients (API) Industry Segmentation

An Active Pharmaceutical Ingredient (API) is a part of any drug that produces its effects. Some drugs, such as combination therapies, have multiple active ingredients to treat different symptoms or act in different ways. They are produced using highly technological industrial processes during research and development and the commercial production phase.

The United Kingdom Active Pharmaceutical Ingredients (API) Market is Segmented by Business Mode (Captive API and Merchant API), Synthesis Type (Synthetic and Biotech), Drug Type (Generic and Branded), and Application (Cardiology, Oncology, Pulmonology, Neurology, Orthopedic, Ophthalmology, and Other Applications). The report offers the value (in USD billion) for the above segments.