The global microbial API market involves manufacturing of microbial products like proteins, lipids, enzymes and others which finds applications in pharmaceuticals, diagnostic reagents, dietary supplements and others. Advancements in fermentation technology and analytical techniques have enabled large scale manufacturing of various complex microbial products in a cost effective manner. Microbial fermentation offers certain advantages over chemical and plant-based extraction methods such as consistency in quality, ability to produce novel compounds and scalability. The growing demand for generic drugs, biosimilars and stringent regulations regarding environmental sustainability are favoring the microbial route of manufacturing APIs.
The Global Microbial API Market is estimated to be valued at US$ 61.21 BN in 2024 and is expected to exhibit a CAGR of 6.7% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the global microbial API market are SGS SA, Intertek Group Plc, Bureau Veritas SA, Eurofins Scientific SE, ALS Limited, TUV SUD AG, Mérieux NutriSciences Corporation,, Microbac Laboratories Inc., National Technical Systems Inc., EMSL Analytical Inc, Institut fur Produktqualität GmbH, Campden BRI.
The key opportunities in the market include increasing outsourcing of microbial API manufacturing by large pharmaceutical companies and growth in demand for generic drugs and biosimilars. Advancements in fermentation and analytical technologies are enabling development and manufacturing of complex novel molecules.
Market drivers
The major Microbial API Market Growth driver is the growing demand for cost-effective generic drugs and biosimilars globally. According to statistics, sales of generic drugs accounted for over 80% of the total prescriptions filled in the US in 2019. Growth in the geriatric population suffering from chronic diseases is another factor catalyzing the demand. Stringent environmental regulations regarding disposal of industrial waste are encouraging microbial route of API manufacturing over chemical methods. Investments in research & development of novel complex molecules will further support the market growth during the forecast period.
Challenges in the Global Microbial API Market
The Global Microbial API Market is facing various challenges which can hamper its growth. Production of microbial API requires controlled environment and hygienic conditions which increases the cost of production. Meeting stringent regulatory standards for microbial API manufacturing is another major challenge. Supply chain disruptions and shortage of raw materials due to pandemic further impacted the market negatively. Developing cost-effective technologies for large scale manufacturing without compromising quality is the need of the hour.
SWOT Analysis
Strength: Ability to produce life-saving drugs and antibiotics at low cost. Rising demand for generic drugs works as an advantage.
Weakness: High reliance on China and India for raw materials. Regulatory pressures and compliance issues regarding manufacturing practices.
Opportunity: Shift towards development of novel biologics offers scope. Untapped emerging markets in Asia will drive future growth.
Threats: Threat from synthetic drugs and alternatives. Rising environmental concerns regarding disposal of industrial waste.
Geographical Regions
North America accounts for the largest share in the global microbial API market in terms of value due to presence of major players and established healthcare infrastructure. The US dominates North America microbial API market.
Asia Pacific is identified as the fastest growing regional market owing to growing generic drugs industry, large patient pool and progressive regulations. Rising investments by global players to tap into India and China’s manufacturing capabilities will accelerate APAC microbial API market.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it