Energy & Chemicals Industry Analysis

Growing Demand for Chemicals Across the Globe is Expected to Boost the Demand for Active Ingredients Market During the Forecast Period 2028

admin, , , , ,

Market Forecast

The global active ingredients market is expected to exhibit a CAGR of over 6.5% to reach a value of around USD 320.56 billion by the end of the forecast period of 2021-2028.

Active ingredients are the substances in products that are responsible for the beneficial effects experienced by consumers. Active ingredients are widely used in drug manufacturing, cosmetics, and agrochemicals, among others.

The active ingredients used in drug manufacturing, called active pharmaceutical ingredients, can be defined as any substance or combination of substances which are used in a finished pharmaceutical products. These products are intended to furnish pharmacological activity or otherwise have direct effect in the diagnosis, cure, mitigation, treatment, or prevention of disease.

Global Active Pharmaceutical Ingredients Market Research Report – Forecast to 2023

Regulatory Framework

Poorly manufactured and contaminated active ingredients have been associated with negative health outcomes, resulting in countries across the globe regulating the production and processing of active ingredients. For instance, the US Environmental Protection Agency regulates pesticides under the Federal Insecticide, Fungicide, and Rodenticide Act.

Moreover, the ICH Q7 Guideline is a quality standard that governs the manufacturing of active ingredients. The ICH Q7 Guideline was established by an international organization known as the International Conference on Harmonization, which includes several countries, including the US, Japan, and the countries of the European Union.

Impact of Coronavirus Outbreak

A3.5% contraction was caused by the COVID-19 pandemic in 2020. However, global economic activity has gained significant momentum after the second wave. The recovery in the global market is expected to hit 4.3% in 2022.

The outbreak of COVID-19 has had a positive influence on the global active ingredients market owing to its extensive use in drug manufacturing. The pandemic resulted in a large number of patients with no correct treatment. Hence the healthcare workers relied on various drugs for treatment. Moreover, the investment in research &development for vaccines across the globe resulted in high demand for active ingredients. The demand for active agrochemicals remained positive due to the stockpiling and panic buying of non-perishable food items.

North America and Europe Microencapsulated Ingredients Market Outlook 2030: Industry Insights & Opportunity Evaluation, 2019-2030

Segmentation

By End Use

    • On the basis of end use, the global active ingredients market has been segmented into personal care & cosmetics, pharmaceuticals, and agrochemicals.
    • The market for personal care & cosmetics is growing on account of the increased sales and production of personal care and cosmetics products such as hair care, skincare, and oral care. The demand for skin care products accounted for a significant market share. Factors such as pollution, sun, workplace stress, and poor eating habits promote the sale of skincare and haircare products.
    • The demand for active pharmaceutical ingredients is increasing owing to the rising geriatric population, investment in the R&D of drug manufacturing, and increasing consumer spending. Ongoing studies for advanced drugs for chronic illnesses such as cancer, diabetes, coronary artery disease, chronic obstructive pulmonary disease, etc., drive the demand for active ingredients in the pharmaceuticals industry.

By Region

    • North America: Regional growth for active ingredients in North America is driven by the extensive investment in research associated with drugs. The increasing prevalence of heart-related diseases in the US is the prime reason for the extensive R&D.

 

    • Asia-Pacific: Asia-Pacific is the fastest-growing regional market. Factors such as improving economic conditions along with fast-paced urbanization and industrialization are driving the global market growth. The presence of countries such as India and South Korea that have agriculture as their primary occupation promotes agrochemicals’ active ingredients in the region.

 

    • Europe: Europe is a well-established market and is primarily driven by the growth of the personal care & cosmetics industry in the region.

 

Competitor Analysis

    • Some of the key players operating in the global active ingredients market include AkzoNobel N.V. (The Netherlands), Ashland (US), BASF SE (Germany), Clariant (Switzerland), Evonik Industries AG (Germany), Lonza (Switzerland), Gattefossé(France), Sumitomo Corporation (Japan), DuPont (US), Croda International Plc (UK), Eastman Chemical Company (US), FMC Corporation (US), Sipcam (US), United Phosphorus Limited (India), Nufarm Limited (Australia), ADAMA Agricultural Solutions Limited (Israel), PotashCorp (Canada), Israel Chemicals Ltd (Israel), K+S AG (Germany), IFFCO (India), Pfizer Inc. (US), Novartis International AG (Switzerland), Merck & Co. (Germany), Teva Pharmaceutical Industries Ltd (Israel), Mylan N.V. (US), Boehringer Ingelheim (Germany), F. Hoffmann-La Roche AG (Switzerland), Sanofi (France), AbbVie (US), and AstraZeneca (UK).

 

    • The key players are engaged in strategic initiatives such as product launches, mergers,and acquisitions. For instance, in April 2021, Clariant has developed a new active ingredient, i.e., milk thistle flower extract Celyscence, which targets the skin aging process to recover healthy skin and improve hydration and brightness.

 

    Request a sample