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Small molecules, characterized by their low molecular weight, typically below 900 Daltons, constitute a diverse group of organic compounds. This category encompasses lipids, monosaccharides, secondary messengers, natural products, metabolites, drugs, and various xenobiotic compounds. Notably, small molecules are distinct from larger macromolecules like proteins. Within the field of chemical biology, small molecules extend to include metal ions, assuming the role of chemical tools in various applications.
The biological functions of small molecules are multifaceted, serving as cell signaling molecules, medicinal drugs, pesticides in agriculture, and playing roles in numerous other applications. These compounds can be either naturally occurring or artificially synthesized, exhibiting effects that can be either beneficial or harmful. A significant majority of pharmaceutical drugs fall within the category of small molecules.
To comprehend any drug, it is essential to consider two fundamental components. The first component is the Active Pharmaceutical Ingredients (API), representing the central and chemically active elements responsible for producing the desired effects in the body. The reactions and outcomes vary based on the drug's dosage administration, with some drugs comprising multiple types of APIs, contributing to their complexity. The second component is known as an excipient, referring to the inactive or inert substances within a drug. Excipients play a supportive role, particularly when the APIs are unknown or when additional substances are required to complement the API and produce the desired medicinal effect.
In the context of herbal medicines, the API typically involves a combination of various mixtures and substances. These components work synergistically, becoming active and exerting their effects on the body when used together. Understanding the interplay between APIs and excipients is crucial for comprehending the mechanisms and impacts of drugs, whether synthetic pharmaceuticals or herbal remedies.
In conclusion, small molecules, with their diverse composition and functions, play integral roles in various fields such as medicine, agriculture, and chemical biology. The intricate balance between Active Pharmaceutical Ingredients and excipients defines the effectiveness and safety of drugs, highlighting the importance of understanding these components in pharmaceutical and therapeutic contexts.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Size Value In 2022 | USD 173.5 Billion |
| Market Size Value In 2023 | USD 185.6 Billion |
| Growth Rate | 7.00% (2023-2032) |
Small Molecule API Market Highlights:
Global Small Molecule API Market Overview
The small molecule API market size was valued at USD 185.6 billion in 2023 and is projected to grow from USD 198.592 billion in 2024 to USD 318.97 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.10% during the forecast period (2023 - 2032). The rising demand for small molecule medicines in the market, the rising prevalence of diseases, including cancer and cardiovascular disease, and the increased outsourcing trend are the key market drivers expanding the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Small Molecule API Market Trends
- Increasing prevalence of diseases to propel market growth
The major driver of the market is the growing prevalence of diseases, including cardiovascular disease, cancer, and infections, the creation of businesses creating small molecule APIs, and the patent expirations of the best-selling medications. Increased corporate partnerships, simple access to medicine in emerging economies, and growing consumer awareness of the benefits of small molecule API accelerate the expansion of the small molecule API. An increasing number of research and developments with innovative technologies developed with small molecule API and enhance utilization in pharmaceutical industries with new drug developments in particular disorders in the generic form with reduced cost is the major factor that increases the opportunity for driving the market growth. An enhanced number of technologies developed with advancements in pharmaceutical sectors with increased manufacturing and production in small-scale industries propels the small molecule API market CAGR.
Moreover, an increasing number of chronic diseases such as oncology, diabetes, cardiovascular diseases, respiratory diseases, neurology disorders, ortho arthritis and many more with the rising number of disorders among the people increasing population and many more disorders with an increasing number of treatments based on the small molecule API with increased efficiency of the molecule and developed infrastructures in health care sectors boost the market to grow with rising market demand for the innovations in medications with faster recovery propels the market of small molecule API to a larger extend. Increased research and developments for developing a vaccine for treating Covid-19 and constant research for developing new drug developments with small molecule API, which is the major drug for treating the disorder with increased demands from the medical sector and an increased number of patients with chronic disorder expands the market growth of market for small molecule API to drive high.
Figure 1: Number of people suffering from different complications due to diabetes
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
However, the market for small molecule APIs is impacted by the growing rate of generic pharmaceuticals and enhanced production of small molecule APIs due to technical enhancement in the manufacturing sector. Moreover, the market for small molecule API is favorably impacted by the increasing geriatric population, increase in disease and treatment awareness among people, research and development activities, improved healthcare infrastructure, and rise in healthcare spending drives the small molecule API market revenue.
Small Molecule API Market Segment Insights
Small Molecule API Type Insights
The market segments of small molecule API, based on type, includes synthetic/chemical API and biological API. The synthetic/chemical API segment held the majority share in 2022 in the small molecule API market data. This is due to the dominance of synthetic drugs in the pharmaceutical industry that propels the demand for raw materials such as small molecule APIs for production. However, biological API is the fastest-growing category over the forecast period due to a rising focus on targeted therapies and a surge in demand for biotech-based products.
Small Molecule API Application Insights
The market segments of small molecule API, based on application, include cardiovascular, oncology, diabetes, and immunological disorders. The cardiovascular segment dominated the market growth in 2022 and is projected to be the faster-growing segment during the forecast period, 2024-2032. This is due to the growing prevalence of cardiovascular conditions globally, owing to changes in lifestyle and food habits. However, oncology is the fastest-growing category over the forecast period due to a surge in the prevalence of cancer. The presence of a lucrative pipeline and an increase in demand for cancer drugs is creating a pull for oncology API in the market.
Figure 2: Small Molecule API Market, by Application, 2023 & 2032 (USD Billion) 
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Small Molecule API Manufacturing Method Insights
The market data of small molecule API, based on the manufacturing method, includes in-house, and contract. The in-house segment dominated the market revenue of small molecule API in 2022 and is projected to be the fastest-growing category during the forecast period, 2024-2032. This is owing to many companies manufacturing their API themselves, making them less reliant on suppliers for raw materials. However, the contract is the fastest-growing category over the forecast period due to the increasing number of approved molecules requiring complex manufacturing processes.
Small Molecule API Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North America small molecule API market accounted for USD 79.46 billion in 2023 with a share of around 45.80% and is anticipated to exhibit a significant CAGR growth during the study period. The existence of favorable government initiatives, coupled with the regional players' increased interest, is anticipated to propel the North American market. For instance, in November 2020, Cambrex announced an investment of USD 50 million for the expansion of its large-scale manufacturing in the US. The facility is aimed at meeting the continually surging demand for small molecules.
Further, the major countries studied in the market report are: The U.S, Germany, Canada, France, UK, Italy, Spain, China, Japan, Australia, India, South Korea, and Brazil.
Figure 3: SMALL MOLECULE API MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe small molecule API market accounts for the second-largest market share. This is due to improvements in overall healthcare infrastructure, improved access to healthcare, and the presence of local manufacturers in large numbers. Moreover, UK market of small molecule API held the largest market share, and the Germany market of small molecule API was the fastest-growing market in the region.
Asia Pacific small molecule API market is projected to expand at the fastest CAGR from 2024 to 2032. This is due to increasing government support in nations such as India for investing in API business, further accelerating the region's growth. In March 2022, Lonza announced the completion of the expansion of its laboratory in China's API manufacturing facility, which allows the company to focus on small molecule high potency APIs. Further, the China market of small molecule API held the largest market share, and the India market of small molecule API was the fastest-growing market in the region.
Small Molecule API Key Market Players & Competitive Insights
Major key players are investing a lot of money in R&D to enhance their product lines, which will help the market of small molecule API to grow even more. Market participants are also taking several strategic initiatives to enhance their worldwide footprint, with key market developments including mergers and acquisitions, new product launches, contractual agreements, increased investments, and collaboration with other organizations. Competitors in the small molecule API industry must provide cost-effective items to expand and survive in an increasingly competitive and growing market environment.
One of the major business strategies manufacturers adopts in the small molecule API industry to advance clients and expand the market sector is manufacturing locally to reduce operating costs. In recent years, the small molecule API industry has delivered medicine with some of the most significant benefits. The small molecule API market major player such as Teva Pharmaceuticals, ALLERGAN, BASF SE, Siegfried Holding AGand others is working on enhancing the market demand by investing in R&D activities.
Sumitomo Chemical Company, Limited manufactures chemical products. The Company specializes in basic chemicals, petrochemicals, and fine chemicals such as photo-resists, pharmaceutical intermediates, and agrochemicals. Sumitomo Chemical operates manufacturing plants and sales offices worldwide. In March 2022, Sumitomo Chemical Co., Ltd. announced its investment to build a new manufacturing facility in Japan to meet the surge in demand for high-quality small molecule APIs and intermediates.
Sandoz is a section of the Novartis Group and a authority in generic pharmaceuticals and biosimilars. The company was established in 2003 when Novartis united its generics businesses under Sandoz. In January 2020, Sandozis company introduced generic drug developments in the market and off-patented medicines, and increased acquisition drive the market of small molecule API.
Key Companies in the Small Molecule API market include
- Teva Pharmaceuticals
- ALLERGAN
- BASF SE
- Siegfried Holding AG
- Sun Pharmaceuticals
- Sanofi S.A
- Albany Molecular Research Inc
- Novartis AG
- Albemarle Corporation
- Dr. Reddy's Laboratories Ltd
- Merck Sharp & Dohme Corp
- GlaxoSmithKline plc
- Pfizer Inc.
Small Molecule API Industry Developments
June 2022: Schrödinger, Inc., whose physics-based software platform is transforming the way therapeutics and materials are discovered, announced that the US Food and Drug Administration(FDA) removed its investigational new drug application for its MALT1 inhibitor, SGR-1505. Schrödinger expects to initiate a Phase 1 clinical trial of SGR-1505 in patients with relapsed or refractory B-cell lymphoma in the second half of 2022.
Small Molecule API Market Segmentation
Small Molecule API Type Outlook (USD Billion, 2019-2030)
- Synthetic/Chemical API
- Biological API
Small Molecule API Application Outlook (USD Billion, 2019-2030)
Small Molecule API Manufacturing Method Outlook (USD Billion, 2019-2030)
- In-House
- Contract
Small Molecule API Regional Outlook (USD Billion, 2019-2030)
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
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