About the Report
Antibiotics are a group of medicines used to treat infections caused by germs or parasites by inhibiting their growth or by destroying them. Antibiotics are normally prescribed for patients suffering from serious bacterial or parasitic infections. Surging healthcare spending, in addition to rising demand for generic drugs will aid expansion of the market.
In its new study, ESOMAR-certified market research and consulting firm Future Market Insights (FMI) offers insights about key factors driving demand for antibiotics API. The report tracks the global sales of antibiotics API in 20+ high-growth markets, along with analyzing the impact COVID-19 has had on the pharmaceuticals industry in general, and antibiotic API in particular.
How the Historic and Future Outlook of Antibiotics API Market Match Up?
The increasing antibiotics consumption has been fuelling the demand for antibiotics API across the world. India exhibits the highest human antibiotic consumption in the world. It is reported that antibiotic consumption in India has increased from 3.2 billion DDDs to 6.5 billion DDDs in 2015.
South Korea holds the eighth-highest position of antibiotic consumption globally, as per the World Health Organization (WHO). The consumption estimates around 27.68 defined daily doses per 1,000 people. According to OECD data, in Europe’s community (i.e. outside of hospitals), the mean consumption of antibiotics was found to be 18.9 defined daily doses (DDDs) per 1 000 inhabitants per day, ranging from 8.9 in the Netherlands and 32.1 in Greece in the year 2017.
According to FMI’s analysis, antibiotics API sales increased from US$ 7.0 Bn in 2015 to US$ 7.9 Bn in 2019. The pandemic has impacted several industries with the complete lockdown imposed after its outbreak. The demand and supplies of antibiotics API were impacted as well, leading to a sluggish growth.
The focus on research and development (R&D) activities within the healthcare sector is shifted onto the development of the COVID-19 vaccine. The majority of the research funds and investments were channelled for the COVID-19 vaccine development only. However, the antibiotics API demand is expected leverage from the current dip in the growth trend, with the reopening of the economies and market. FMI expects global antibiotics API demand to grow at 3.1% CAGR through 2030.
How is Growing Approval for Generics Expected to Influence Antibiotics API Demand?
Although new drugs continue to be licensed, only a few are based on novel chemical entities. Drug resistance is more likely to occur when new agents are variants of existing classes. Developing new entity is an expensive and a time-consuming process. Thus, due to the high cost and expenses involved the healthcare sector is now relying on generic antibiotics which accounts for about maximum number of prescriptions.
Generic antibiotics are considerably cheap in comparison to the proprietary compounds. Studies suggest, branded therapies are more than 3 times costlier than generic therapy in 36 (52.9 %) regimens for bacterial infection treatment. This has been encouraging the launch of generic versions, which is expected to bode well for the global market.
Why Development of Advanced Molecules is key to Antibiotics API Market Growth?
Some of the leading biotechnology companies operating in the market are launching new sequencing products and expand the product portfolio, which is expected to indirectly increase the revenue of antibiotic API producers. The need for new classes of antibiotics to foster advanced medical procedures to address multidrug resistant effect and rising incidence of bacterial resistance led biotechnology companies to invest more in research and development.
Thus, the interest among biotechnology companies to develop advanced antibiotic molecule to sustain pipeline of new antibiotics is piqued. This has been creating opportunity for companies to strengthen their footprint in the market.
How is Antibiotics API Market Reforming?
Majority of the pharmaceutical companies have stopped investing in R&D for antibiotics years ago due to the market failures. Since, investment in R&D is crucial and urgently needed, addressing the current market failures through policy reform is imperative to build a viable growth opportunities. Governments have introduced various reforms for their reimbursement systems to address these market failures.
For instance, the U.K. is currently piloting a “delinkage” model wherein the National Health Service pays companies according to its value to the health system, rather than by the volume of the product used.
Collaboration and exchange of new and innovative models for reimbursing new antibiotics is an emerging trend among leading manufacturers. For instance, International platforms such as the Organization for Economic Co-operation and Development (OECD), Asia-Pacific Economic Cooperation (APEC), and the G20 are supporting to reform the innovative policy needed to build a sustainable market for new antibiotics.
Country-wise Insights
How big is the Opportunity in US?
In the U.S., the healthcare system is well known for its expenditure and advanced infrastructure. Government and regulatory bodies of U.S. are adopting various cost-effective plans to reduce their healthcare burden. Furthermore, due to the higher prevalence of bacterial diseases, the demand for antibiotics API is increasing.
According to a report by Centers of Disease Control and Prevention (CDC), more than 2.8 million antibiotic-resistant infections occur in the U.S. each year. The government is adopting various prevention and infection control efforts in the U.S. to reduce the number of infections and deaths caused by antibiotic-resistant germs. This is creating a growth opportunity for the U.S. antibiotics API market.
What Drives Antibiotics API Market Germany?
The German healthcare industry is characterized by the presence of several key players. It is often influenced by the rising geriatric population and increasing focus on R&D. The Germany antibiotics API market is expected to reach 303.0 Mn by the end of 2030.
According to the Federal Statistical Office (Destatis), healthcare spending in Germany reached 390.6 billion euros or 4,712 euros per inhabitant, in 2018. With this, the country reported a 4% increase in healthcare spending than 2017. With these numbers set to rise further, Germany will continue offering lucrative opportunities for growth within Europe.
What is the Impact of Growing Contract Research Industry on India Antibiotics API Market?
In the recent years, small and large biopharmaceutical companies have become increasingly dependent on the contract research organization (CRO) sector to provide research services to their R&D operations. However, antibiotics API demand is expected to increase, as most products in the pipeline are likely to reach in the end stage and be commercialized by the end of the decade.
In developing countries it is easier to recruit patients for clinical trials. Clinical trial and research are now a major business in India owing to the presence of numerous government-funded medical and pharmaceutical institutions with state-of the-art facilities. This are ideal centers for multi-centered clinical trials.
R&D costs in India are substantially lesser than in developed countries, and it is possible to conduct both new drug discovery research and novel drug delivery system programs at competitive rates. In terms of cost efficiency, India is better as the cost to conduct a trial in the country is lesser by 50% to 75% as compared to that in the U.S. or the European Union.
What are the Restrains Faced by Turkey Market for Antibiotics API?
Developing new entity is more expensive and time consuming which can take about 10 years for development and upto US$ 1 Bn cost. Thus high cost of drug development and stringent process for regulatory approval are expected to hinder the Turkey antibiotics API market.
Lack of awareness about antibiotic utilization and indiscriminate use of antibiotics for non-serious infection can cause adverse side effects. Thus the rising side effects through lack of awareness and occurring resistance and other adverse side effects expects to hamper the growth of Turkey antibiotics API demand.
Category-wise Insights
Why Penicillin Antibiotics Dominate the Antibiotics API Market?
In terms of revenue, penicillin antibiotics is the dominant product segment in the global antibiotics API market in 2019. The penicillin antibiotics segment is expected to dominate the global antibiotics API market throughout the forecast period.
The increasing demand for and its adoption as a first-line antibiotic therapy to treat several bacterial infections are projected to fuel consumption of penicillin antibiotics worldwide. The penicillin antibiotics is likely to grow with a CAGR of 2.9%.
What’s the Revenue Share of Pharmaceutical Companies?
Pharmaceutical companies will continue exhibiting high demand and dominate the antibiotics API market during the forecast period. According to FMI, the segment is expected to hold around 74.9% of the market share, in terms of end user, by the end of 2030. Pharmaceutical companies hold dominance in terms of revenue owing to the growing R&D investment.
Competitive Landscape
Companies operating in the antibiotics API are focusing on launch of generic drugs. For instance, Australia-based Mayne Pharma announced on 15 March 2018 that it had launched a generic version of doxycycline monohydrate immediate release (IR) capsules (50, 75 and 100 mg) in the US.
Besides this there also is focus on product launches. For instance, in October 2017, CordenPharma acquired API site from Pfizer, Inc., which formerly belonged to the Hospira Boulder (Colorado) high containment API to shape their position in the leading competitive market.
Some of the leading companies operating in the antibiotics API market are:
- Sandoz International GmbH
- Centrient Pharmaceuticals
- CordenPharma International
- ACS DOBFAR SPA
- Nanjing Dorra Pharmaceutical Technology Co. Ltd.
- DAEWOONG PHARMACEUTICAL CO. LTD.
- Parabolic Drugs Ltd.
- Penam Laboratories Ltd.
- ASIATIC DRUGS & PHARMACEUTICALS PVT. LTD.
- Fresenius Kabi
- The United Laboratories International Holdings Limited
- Aurobindo Pharma Limited
- Unimark Remedies Ltd.
- Savior Lifetec
- Shenzhen Haibin Pharmaceutical Co., Ltd.
- Sterile India Pvt. Ltd.
- Zhejiang Jiuzhou Pharmaceutical Co. Ltd.
- Kyongbo Pharm
*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.
Scope of the Report
| Attribute | Details |
| Forecast Period | 2020-2030 |
| Historical Data Available for | 2015-2019 |
| Market Analysis | USD Million for Value |
| Key Regions Covered | North America, Latin America, Europe, East Asia, South Asia, Oceania Middle East & Africa |
| Key Countries Covered | US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, South Africa |
| Key Segments Covered | API, End User, and Region |
| Key Companies Profiled |
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| Report Coverage | Market Forecast, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, Strategic Growth Initiatives |
| Customization & Pricing |
Key Questions Answered in the Report
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Which is the most lucrative market for antibiotics API?
China currently leads the global market for antibiotics API. Sales in China will be around 22% of total global demand throughout the forecast period.
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Which is the top-selling antibiotics API?
Penicillin antibiotics are dominating the product type segment.
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Which are some of the leading companies offering antibiotics API?
Some of the leading companies offering antibiotics API are Sandoz International GmbH, Centrient Pharmaceuticals, CordenPharma International, ACS DOBFAR SPA, Nanjing Dorra Pharmaceutical Technology Co. Ltd., DAEWOONG PHARMACEUTICAL CO. LTD., Parabolic Drugs Ltd., Penam Laboratories Ltd., ASIATIC DRUGS & PHARMACEUTICALS PVT. LTD., Fresenius Kabi, The United Laboratories International Holdings Limited, Aurobindo Pharma Limited, Unimark Remedies Ltd., Savior Lifetec, Shenzhen Haibin Pharmaceutical Co., Ltd., Sterile India Pvt. Ltd., Zhejiang Jiuzhou Pharmaceutical Co. Ltd., Kyongbo Pharm, and others.
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Who is the leading end user of antibiotics API?
Pharmaceutical companies have emerged as leading end users of antibiotics API.
Enquiry before Buying
Is this research conducted by Future Market Insights?
Yes, the research has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst
What research methodology is followed by FMI?
FMI follows a methodology that encompasses demand side assessment of the market, and triangulates the same through supply side analysis. This methodology is based on use of standard market structure, methods and definitions. Request detailed methodology
Who are the respondents for primary research?
FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.
What are the sources of secondary research?
FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.
Is a sample of this report available for evaluation?
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Antibiotics API Market by API Type
API Type
- Penicillin Antibiotics
- Ampicillin
- Amoxicillin
- Dicloxacillin
- Penicillin G Sodium
- Benzathine
- Procaine
- Cephalosporins
- Cefotaxime
- Ceftriaxone
- Cefuroxime
- Cefalotin
- Carbapenem Antibiotics
- Meropenem
- Imipenem
- Ertapenem
End User
- Pharmaceutical Companies
- Contract Manufacturing Organizations (CMOs)
- Contract Development & Manufacturing Organizations (CDMOs)
Region
- North America
- Latin America
- Europe
- East Asia
- South Asia
- Middle East and Africa (MEA)
- Oceania
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