by The South Korea active pharmaceutical ingredients (API) market consists of products such as Vitamins, Hormones, Steroids, and Anti-infective agents used for the manufacturing of drug formulations.
The APIs market provides raw materials to pharma companies for producing medicines with improved efficacy and reduced side effects. The Active Pharmaceutical Ingredients are cost-effective and aid in catering to the growing needs of the healthcare sector.
South Korea Active Pharmaceutical Ingredients 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 active pharmaceutical ingredients 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 key players are focusing on expanding their production capacities and capabilities to meet the growing demand for APIs.
The growing burden of chronic diseases and the increasing geriatric population in South Korea are the major factors boosting the demand for medicines, thereby propelling the growth of the APIs market. As per statistics, South Korea has one of the most aged populations globally, with 14.3% of the total population being aged above 65 years in 2020.
The South Korean API market players are focusing on global expansion by acquiring local API manufacturers in various regions or establishing manufacturing facilities overseas. This helps them expand their customer base and geographical presence. For instance, Hanmi Pharm. established a subsidiary, Hanmi API, in China in 2017 with an investment of $84 million to bolster its API production.
Market Key Trends
One of the key trends gaining traction in the South Korea API market is technology innovation. Major players like Teva Pharmaceutical Industries Ltd. are investing heavily in R&D to develop novel technologies for active pharmaceutical production like continuous manufacturing and 3D printing. This helps improve efficiency, flexibility, quality, and sustainability of API manufacturing.
Porter’s Analysis
Threat Of New Entrants: New pharmaceutical firms cannot enter the market easily as it requires extensive R&D and clinical trials to develop new APIs. Significant investments are needed to enter this market.
Bargaining Power Of Buyers: Major drug manufacturers have significant bargaining power over API suppliers as there are numerous suppliers in the market. Buyers can negotiate lower prices by playing one supplier against other.
Bargaining Power Of Suppliers: South Korean API suppliers have moderate bargaining power due to presence of many global players. However, suppliers of specialty APIs controlling niche technologies have some bargaining power.
Threat Of New Substitutes: Threat of substitutes is low as APIs have limited substitutes and switching costs are high for drug manufacturers and consumers.
Competitive Rivalry: The South Korean API market is highly competitive with presence of local and multinational players. Companies compete based on quality, reliability of supply and pricing.
Geographical Regions: The South Korean market is currently valued at US$ 6.1 billion in 2024 dominated by domestic consumption. Nearly 60% of the total API market is concentrated in Western and central regions accounting for bulk of pharmaceutical production.
The fastest growing region includes Southern regions around Busan port facilty a emerging API and drug manufacturing hub. Flexibility of localized production and exports is driving double digit growth especially in niche areas like biologics and specialty APIs.
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?
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile
