Global Active Pharmaceutical Ingredients (API) Market to Reach USD 328.94 Billion by 2030, Forecasts Mordor Intelligence

Rising chronic diseases, biologics use, cancer cases, and advanced drug R&D are driving global API market growth and drug demand across regions.

HYDERABAD, TELANGANA, INDIA, May 26, 2025 /EINPresswire.com/ -- The report covers global active pharmaceutical ingredients market insights & segmented by business mode, synthesis type, type of drug, application & geography. According to a 2025 report on the Active Pharmaceutical Ingredients (API) Market, by Mordor Intelligence, the market is projected to grow from USD 232.13 billion in 2025 to USD 328.94 billion by 2030, at a CAGR of 7.22%.

The growing prevalence of chronic illnesses including diabetes, cardiovascular conditions, and cancer is placing higher demand on pharmaceutical companies for effective treatments. APIs form the base for these therapies, contributing to consistent demand across therapeutic categories. With populations aging and lifestyle diseases rising, long-term medication use is pushing manufacturers to scale production capacity. According to Mordor Intelligence, this trend is a primary driver for the global market’s expansion.

Biologics and Specialty Drugs Reshape Production Requirements

The rise in complex biologics and targeted therapies has brought structural shifts in how APIs are produced. These new treatments often require high-potency or selective ingredients, which call for specialized manufacturing infrastructure. This transition is influencing investments in high-barrier API manufacturing plants, particularly in developed regions and among CDMOs (Contract Development and Manufacturing Organizations). According to Mordor Intelligence, this complexity is redefining the competitive dynamics of the API landscape.

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China’s API Market Strengthens Through Policy and Exports

China remains one of the leading global suppliers of APIs, and the market is projected to grow from USD 15.97 billion in 2025 to USD 23.32 billion by 2030, at a CAGR of 7.86%. Improvements in GMP compliance, stricter environmental controls, and increasing investment in green chemistry are strengthening the country’s export capacity. The Chinese government has implemented regulatory reforms to align more closely with international standards, enhancing the quality and competitiveness of its API sector.

Read more about the China API Market - https://www.mordorintelligence.com/industry-reports/china-active-pharmaceutical-ingredients-market?utm_source=einpr

India Boosts Domestic Production with Government Support

India API Market is projected to grow from USD 14.77 billion in 2025 to USD 22.02 billion by 2030, at a CAGR of 8.31%. The government's Production Linked Incentive (PLI) schemes and infrastructure development initiatives are targeted at reducing reliance on Chinese imports. This has encouraged local manufacturing of critical APIs and Key Starting Materials (KSMs). According to Mordor Intelligence, India’s push for self-sufficiency is reshaping its domestic industry, especially in antibiotics and cardiovascular drug segments.

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United States Aims to Secure Supply Chain and Reshore Manufacturing
The United States API market is forecasted to grow at a CAGR of 9.5% over the forecast period. The COVID-19 pandemic underscored vulnerabilities in the U.S. pharmaceutical supply chain, sparking new policy focus on reshoring production and increasing domestic output of essential APIs. Investments are also flowing into innovative API synthesis processes and continuous manufacturing technologies. According to Mordor Intelligence, this trend supports long-term stability and resilience in the U.S. pharmaceutical industry.

Get insights into the United States API Market - https://www.mordorintelligence.com/industry-reports/united-states-active-pharmaceutical-ingredients-market?utm_source=einpr

Conclusion: Industry Evolution Hinges on Innovation, Policy, and Localized Production

The global API market is evolving in response to clinical demands, global trade shifts, and government-driven localization efforts. While developed markets focus on high-tech, high-value APIs, emerging markets such as India and China continue to dominate volume-based production through cost-efficient processes. Regulatory alignment and environmental sustainability remain key challenges and opportunities. According to Mordor Intelligence, the future of the API market will hinge on a blend of regional production capabilities, strategic investments, and the ability to meet quality standards across global markets. The steady rise in chronic disease prevalence, coupled with the increasing complexity of pharmaceutical therapies, positions APIs as central to the healthcare industry's capacity to respond effectively to future medical needs.

Read more about the Global API Market at -

https://www.mordorintelligence.com/industry-reports/global-active-pharmaceutical-ingredients-api-market?utm_source=einpr

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