The South Korea active pharmaceutical ingredients (API) market comprises drug substances with therapeutic properties along with their salts, esters, and derivatives. APIs are used widely in the manufacture of generic drugs, which account for over 70% of the pharmaceutical market in the country. The growing demand and government emphasis on availability of affordable healthcare have led to a rise in production of cost-effective generic drugs. This has accelerated the growth of the API industry in South Korea over the past decade.
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.
Active Pharmaceutical Ingredients or bulk drugs are core components of any drug and function as the basic chemical compound providing pharmaceutical or biological effects in the body. Rapid expansion of the generic drug sector and ongoing product pipeline of brand name drugs have augmented the demand for APIs in South Korea. APIs help pharmaceutical companies manufacture drugs at lower costs than developing new drug molecules from scratch. This provides affordable treatment options to common ailments.
Key Takeaways
Key players operating in the South Korea active pharmaceutical ingredients 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. Growing aged population, rising healthcare spending, and increasing cases of chronic diseases are fueling the demand for low-cost medicines in South Korea. Technological advancements in API manufacturing such as continuous processing and use of artificial intelligence have improved productivity and quality of APIs in the country.
Market Trends
Outsourcing Of API Production: Major pharmaceutical companies are outsourcing API production to contract manufacturing organizations in South Korea to benefit from low-cost manufacturing and expertise of local players. This is reducing manufacturing costs and improving efficiency.
Green API Manufacturing: Growing emphasis on environmental protection has led API manufacturers to adopt green chemistry principles. Use of renewable resources, solvent-free processes, and flow chemistry techniques are reducing waste and making production more sustainable.
Market Opportunities
Development Of Specialized Generics: Opportunities lie in developing specialized or complex generics requiring specialized formulation, manufacturing capabilities and regulatory expertise. This helps extract more value than commodity APIs.
Apis For Biologics: As patents of large biologic molecules expire, opportunities will emerge in production of biosimilar APIs and biologic generics. South Korean manufacturers can offer competitive costs and technological expertise.
Impact of COVID-19 on South Korea Active Pharmaceutical Ingredients Market
The COVID-19 pandemic has severely impacted the growth of the South Korea active pharmaceutical ingredients (API) market. Lockdowns announced by governments globally disrupted manufacturing operations and supply chains. Restrictions on international trade led to shortages of raw materials as well as finished APIs. This negatively impacted the availability and affordability of many drugs. production capacities of API manufacturers were significantly reduced due to social distancing measures and workforce shortages. Demand for APIs also declined sharply as discretionary medical procedures and hospital visits reduced during lockdowns.
However, post pandemic, demand for APIs is witnessing a strong surge again as production activities resume fully. There is increasing focus on ramping up local API manufacturing to reduce dependence on imports. The pandemic highlighted the risks of relying heavily on other nations for essential medical commodities. South Korea government is providing incentives for setting up local API facilities. Moreover, heightened awareness about health and immunity boosting is driving demand for pharmaceutical products. Companies are expanding API production capacities and ramping up inventory levels to ensure continuity of supply. Investments into innovative technologies like continuous manufacturing are helping boost efficiencies as well. While short term disruptions occurred, over the long run, the pandemic is compelling strategic changes that will support sustainable growth of the South Korea API market.
Geographical concentration of South Korea Active Pharmaceutical Ingredients Market in terms of value
The South Korea API market in terms of value is highly concentrated in Seoul Metropolitan City region. It accounts for over 40% share of the total market value currently. This is owing to presence of large domestic drug makers and API manufacturers in and around Seoul. Key players like Hanmi Pharm, Kyongbo Pharm and Polpharma have their headquarters as well as major manufacturing facilities located in Seoul and neighbouring Gyeonggi province. The high urban population, advanced healthcare infrastructure and skilled workforce availability make Seoul region very conducive for pharmaceutical industry. A large chunk of domestic API consumption also originates from this region of South Korea owing to concentration of pharmaceutical formulation manufacturing. Other major cities like Busan, Daegu and Incheon also contribute significantly but the market remains dominated by Seoul Metropolitan City region in value terms.
Fastest Growing Region For The South Korea Active Pharmaceutical Ingredients Market
Daejeon Metropolitan City region is emerging as the fastest growing region for the South Korea API market currently. It is witnessing annual growth rates exceeding 8% in recent years. This rapid growth can be attributed to expanding local API production capacities in Daejeon led by companies like abcr GmbH which has set up a state-of-the-art manufacturing facility here to cater to both domestic and international markets. Daejeon is being developed as a hub for pharmaceutical and biotechnology industries by the government through incentives and provision of industrial infrastructure. Presence of leading research institutes like DGIST & KAERI are supporting API development as well. Moreover, companies are stepping up investments in Daejeon to benefit from lower operating costs compared to Seoul region. If the growth momentum sustains, Daejeon region has potential to challenge the dominance of Seoul Metropolitan City in coming years.
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?
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Author Bio:
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, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
