by The South Korea Active Pharmaceutical Ingredients (API) Market comprises active pharmaceutical drug components that make medicines for treatment of diseases. APIs are crucial raw materials for drug manufacturing, constituting the functional chemical component providing therapeutic benefits. Growing local pharmaceutical industry in South Korea and dependence on imported APIs have boosted this market.
South Korea API Market is estimated to be valued at US$ 6.1 Bn in 2024 and is expected to exhibit a CAGR of 5.1% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the South Korea API market are Teva Pharmaceutical Industries Ltd., Kyongbo Pharm, SAMOH Pharm. Co., Ltd., SHINPOONG.CO,.LTD, Kukjeon Pharmaceutical Co., Ltd., Hanmi Pharm.Co.,Ltd., abcr GmbH, Polpharma, Lupin, and JEIL PHARMACEUTICAL CO.,LTD. The South Korean pharmaceutical industry’s increased outsourcing of API manufacturing overseas and growing demand for affordable generic drugs in the region have accelerated API market growth. The generic drug market in South Korea accounts for over 60% of the total market, driving substantial API demand.
The growing demand for APIs in South Korea is attributed to the increased consumption of generic drugs in the country. As per estimates, around 60% of the pharmaceutical market in South Korea comprises generic drugs. This has prompted API manufacturers to increase production capacities and develop high-quality APIs to cater to the demand from domestic generic drug manufacturers. Moreover, rising incidences of chronic diseases and growth of the aging population augment the growth of the pharmaceutical industry in South Korea, thereby fueling API demand.
The South Korean API market players are increasingly outsourcing API manufacturing to overseas suppliers and contract manufacturers based in India and China due to their technical expertise and competitive costs. These countries have emerged as the preferred global outsourcing hubs for active pharmaceutical ingredients. Domestic API producers are also expanding manufacturing facilities abroad via joint ventures, mergers, and acquisitions to leverage low input and labor costs. This growing trend of outsourcing API production globally is expected to continue through the forecast period.
The market will be driven by increased penetration of generics. Greater adoption of generics to treat chronic diseases at lower costs will increase the demand for APIs in South Korea. Moreover, the emergence of novel drug delivery systems and biologics will also open new growth avenues by necessitating novel APIs. However, pressure on prices from generic drug makers and strict environmental regulations surrounding API manufacturing may impede market potential to a degree.
Porter’s Analysis
Threat of new entrants: High capital requirements and regulatory barrier act as entry barriers for new players in this market.
Bargaining power of buyers: Large pharmaceutical buyers have significant bargaining power due to the large volume of API purchases.
Bargaining power of suppliers: The presence of numerous suppliers in the market gives buyers options to switch with minimal impact on operations.
Threat of new substitutes: Threat is low as there are limited substitute products for API.
Competitive rivalry: The market is highly competitive with the presence of both global and domestic players competing on the basis of quality, reliability of supply and pricing.
In terms of geographical concentration of value, South Korea represents the largest market for API in Asia-Pacific. The domestic pharmaceutical industry relies majorly on import of API to meet the local demand for drugs.
The fastest growing region for the South Korea API market is expected to be Southeast Asian countries. Many South Korean API manufacturers are setting up manufacturing facilities in countries like Vietnam and Indonesia to cater to the rising pharmaceutical demand and benefit from lower costs. This is expected to drive the export of API from South Korea to these emerging markets over the forecast period.
What Are The Key Data Covered In This South Korea Active Pharmaceutical Ingredients Market Report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the South Korea Active Pharmaceutical Ingredients’s growth between 2024 and 2031.
:- Accurate calculation of the size of the South Korea Active Pharmaceutical Ingredients and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- South Korea Active Pharmaceutical Ingredients Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market’s competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of South Korea Active Pharmaceutical Ingredients vendors
FAQ’s
Q.1 What are the main factors influencing the South Korea Active Pharmaceutical Ingredients?
Q.2 Which companies are the major sources in this industry?
Q.3 What are the market’s opportunities, risks, and general structure?
Q.4 Which of the top South Korea Active Pharmaceutical Ingredients companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the South Korea Active Pharmaceutical Ingredients’s distributors, traders, and dealers?
Q.6 How are market types and applications and deals, revenue, and value explored?
Q.7 What does a business area’s assessment of agreements, income, and value implicate?
