Active Ingredients Market size was valued at USD 3.9 Billion in 2023 and is expected to reach USD 6.2 Billion by 2032 and grow at a CAGR of 5.4% over the forecast period of 2024-2032.
Rising demand for pharmaceuticals and healthcare products.
The active ingredients market is mainly rising due to the high demand for pharmaceuticals and healthcare. The U.S. Food and Drug Administration reported that in 2023, the U.S. pharmaceutical market was valued at approximately USD 490 billion and is expected to grow at a pace of 4.6% annually through 2026. This tends to occur owing to the ever-increasing prevalence of chronic diseases, the growing population of aged individuals, and the continuous advancement in the field of medicine. As a result, the need for active ingredients used in the formulation of drugs is soaring at a quick pace. According to the FDA, there have been a record 50 new drug approvals, suggesting that new active ingredients for novel therapies are highly needed. This trend also follows globally, with the EMA showing corresponding approval growth statistics.
Get a Report Sample of Active Ingredients Market @ https://www.snsinsider.com/sample-request/2513
Shift towards natural and organic ingredients drives market growth.
One of the major drivers of the active ingredients market is the shift towards natural and organic ingredients. The national health and environmental concerns induced by the use of synthetic ingredients also fuel the trend, contemplating the industry’s development derived from nature. Also, with the emergence of various regulatory frameworks such as the EU Cosmetics Regulation, which aims at promoting transparency and safety in the usage of natural ingredients, manufacturers have been propelled to be transparent and include detailed labeling of products. The force facilitates consumer knowledge and trust in branded companies, which also drives market growth. Hence, manufacturers are focusing on developing natural active ingredients for the market, which meet consumer needs and comply with the regulations.
Recent Developments
· In 2024, Pfizer announced the launch of its new line of active pharmaceutical ingredients (APIs) aimed at advancing treatments for rare diseases. This strategic move is expected to bolster its market presence and address unmet medical needs globally.
· In 2024, BASF unveiled its new line of natural active ingredients for the cosmetic industry, focusing on enhancing skin health and sustainability. This development reflects the growing trend towards natural ingredients and positions BASF as a leader in the market.
Segment Analysis
By Functionality
Conditioning agents are the leaders of the functionality sector being responsible for more than 35% of the revenue in 2023. The popularity and use of this type of active ingredient are determined by the fact that they play an important role in many industries. Agents are responsible for the improvement of product performance in the cases when they enhance their texture, appearance, and quality. The agents are used for the preparation of many personal care items and household cleaners, and their high efficiency and value make them necessary components that ensure the agent’s leading position.
By Application
In 2023, the largest revenue share is held by Skin Care, by Application. This is due to an increasing consumer awareness regarding the benefits of following a skin care routine and the growing demand for effective skin care products. The rising concerns regarding aging, pollution and UV radiation are also driving the need for advanced cosmetic formulations. Additionally, frequent innovations in active ingredients dedicated to treating specific skin related problems are positively impacting the dominance of this segment in the market.
Make Enquiry About Active Ingredients Market Report@ https://www.snsinsider.com/enquiry/2513
Regional Insights
The North America active ingredients market accounted for more than 40% revenue share in 2023 and the segment is poised to continue its dominance in the forthcoming years. The growth of the segment is due to the well-established pharmaceutical and personal care industries in the region. Furthermore, the presence of key market players, advanced research and development facilities, and the high purchasing power of consumers also drive the growth of the region. The increased occurrence of preventable chronic diseases, governmental focus on the utilization of generic drugs, rising need for biosimilar and specialty drugs, and increasing technology advancements in API production are factors that drive the market.
Top of FormKey Takeaways
· The active ingredients market is driven by rising demand for pharmaceuticals and a shift towards natural and organic ingredients.
· The pharmaceutical segment is the largest, supported by significant R&D investments and high healthcare expenditures.
· North America dominates the market due to its advanced healthcare infrastructure and substantial investments in active ingredients.
About Us:
SNS Insider is one of the leading market research and consulting agencies that dominates the market research industry globally. Our company's aim is to give clients the knowledge they require in order to function in changing circumstances. In order to give you current, accurate market data, consumer insights, and opinions so that you can make decisions with confidence, we employ a variety of techniques, including surveys, video talks, and focus groups around the world.
Contact Us:
Akash Anand – Head of Business Development & Strategy
Phone: +1-415-230-0044 (US) | +91-7798602273 (IND)
Comments