The South Korea active pharmaceutical ingredients (API) market features a high variety of compounds used to manufacture medications. APIs are the biologically active components of pharmaceutical drugs intended to have a therapeutic, prophylactic, or diagnostic effect. APIs are used in the production of finished dosage forms of drugs such as tablets, capsules, injectables, ointments, and liquids. They are supplied to pharmaceutical companies as bulk powder, granulation, or liquid for use in production. The rising burden of chronic diseases, an aging population, increasing patient awareness, and growing focus of the government on developing the pharmaceutical sector are fueling demand for APIs in South Korea.
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 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.
Key players operating in the South Korea API market are focusing on capacity expansions to cater to the growing demand. For instance, in 2021, Teva Pharmaceutical Industries Ltd. announced plans to invest $350 million to expand its API manufacturing plant in Buk, Hungary.
The aging population and rising incidence of chronic diseases are driving the demand for medicines in South Korea. According to the National Health Insurance Service, the country's medical expenses are expected to reach KRW 900 trillion by 2030 from KRW 600 trillion in 2020. This rising healthcare expenditure will positively impact the demand for APIs.
Technological advancements are helping API manufacturers reduce production costs and improve yields. Emerging technologies such as artificial intelligence, 3D printing, and continuous manufacturing are gaining traction in the API production process. For example, CordenPharma uses machine learning algorithms to enhance production yields.
Market Trends
Outsourcing of API Manufacturing: Heightened focus on core competencies and advanced technology requirement are prompting pharmaceutical companies to outsource API production to specialized manufacturers. This is expected to drive outsourced API manufacturing.
Green Chemistry and Sustainable Processes: Growing environmental concerns are steering API makers toward adopting green chemistry principles and sustainable production techniques to reduce the environmental footprint. Biocatalysis and flow chemistry offer green alternatives to traditional batch manufacturing.
Market Opportunities
Injectable APIs: Injectable drug delivery such as pre-filled syringes and injectable suspensions ensures precise dosing and offer convenience over oral medications. This is expected to drive investments toward developing efficient production processes for lyophilized injectable APIs.
Complex API Manufacturing: Manufacturing APIs involving complex chemical processes meeting stringent quality standards remains a challenge. This provides opportunities for advanced technology providers to partner with API makers and improve their production capabilities.
Impact Of COVID-19 On South Korea Active Pharmaceutical Ingredients Market:
The COVID-19 pandemic has had a significant impact on the growth of South Korea active pharmaceutical ingredients market. During the initial phase of the pandemic, South Korea witnessed a spike in the demand for APIs due to the increased requirement of drugs to treat COVID-19 patients and for developing vaccines. However, the nationwide lockdowns imposed during the early months disrupted the supply chains and export-import of APIs. This led to shortages in the supply of certain APIs. Several manufacturing plants also had to halt operations temporarily due to labor shortages and stringent safety guidelines.
The government responded proactively by providing incentives to local API manufacturers to boost domestic production. Import barriers were also relaxed to ensure steady imports. As the pandemic progressed, companies ramped up production through capacity expansions and workforce optimization. Telemedicine saw massive growth helping doctors continue care delivery. The demand for existing drugs saw a surge as people stocked up medications fearing future supply issues. Post pandemic, South Korea aims to diversify API sourcing, build strategic reserves and enhance supply chain resilience. Local production of critical APIs is being prioritized. Further technological advancements and new product development will drive future growth.
Regional Concentration Of South Korea Active Pharmaceutical Ingredients Market:
The Seoul Capital Region commands the largest share of the South Korea active pharmaceutical ingredients market in terms of value. It is home to a large number of domestic pharmaceutical companies, API manufacturers and contract manufacturing organizations. Factors such as strong local customer base, availability of skilled labor, proximity to research institutes and airports have enabled Seoul to emerge as the major manufacturing and export hub. The provinces of Gyeonggi and Chungcheong also hold a significant market value due to presence of multiple pharmaceutical production clusters. Public-private initiatives are underway in Daegu and Gyeongsang Province to attract API investments through incentives and infrastructure expansions.
Fastest Growing Region In South Korea Active Pharmaceutical Ingredients Market:
Gyeongsangbuk-do province is anticipated to witness the fastest growth in the South Korea active pharmaceutical ingredients market over the forecast period. Strategic efforts by the provincial government to strengthen the healthcare sector through targeted investments, land allocations and talent programs have spurred expansions by global API majors. Opening of specialized chemical and biopharmaceutical industrial complexes in Andong and Pohang has created conducive business environment. Upcoming greenfield projects by prominent players are expected to significantly increase local production capacities. Proximity to ports and expressways provides logistical advantages. Growth prospects are further bolstered by incentives for R&D centers, technology transfers and API product development parks in the province.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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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
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