One of the defining characteristics of the API market is its global nature. With different countries specializing in the production of various APIs, pharmaceutical companies often depend on suppliers from around the world. For instance, India and China are leading suppliers of generic APIs, benefiting from lower production costs and a well-established manufacturing base. However, relying on overseas suppliers also exposes companies to potential risks, including supply chain disruptions, quality variations, and geopolitical challenges. As a result, pharmaceutical companies are increasingly looking to diversify their supplier bases and develop local sourcing strategies to mitigate these risks.
active pharmaceutical ingredient suppliers
On the other hand, biotechnological methods utilize living organisms or their components to produce APIs. This includes processes such as fermentation and cell culture, which are foundational for the production of biologics and advanced therapies. As the demand for biologics increases—growing at a rate significantly higher than that of traditional small molecules—biotechnology plays an increasingly pivotal role in API production.