Market Trends of France Active Pharmaceutical Ingredients (API) Industry
This section covers the major market trends shaping the France Active Pharmaceutical Ingredients (API) Market according to our research experts:
Oncology Segment Expects to Register a Healthy CAGR
The oncology segment is expected to witness significant growth in France's API market over the forecast period. The factors attributing to the market growth are the rising burden of cancer cases and growing product launches and approvals in the country.
Certain factors increase the risk of developing cancer, including increasing age, obesity, harmful use of alcohol, family history of cancer, history of radiation or chemical exposure, reproductive history (such as age that menstrual periods began and age at first pregnancy), viral infections (human papillomavirus (HPV)), tobacco use, postmenopausal hormone therapy, and others. This is expected to increase the demand as well as the need to develop effective and safe cancer drugs, which further increases the demand for active pharmaceutical ingredients, such as abiraterone acetate, azacitidine, cabazitaxel, cytarabine that are used to manufacture oncology drugs. This is anticipated to augment the growth of the API market over the forecast period.
The increasing incidence and prevalence of various types of cancer in the country are expected to increase the market growth. For instance, according to GLOBOCAN 2020 fact sheet, 467,965 new cancer cases were reported in France in 2020. The same report projected that 579,388 new cancer cases are expected to be diagnosed in France by 2040. The major forms of cancer detected in France in 2020 were prostate (25.2%), lung (12.3%), colorectum (9.9%), bladder (5.1%), and kidney (3.7%) cancer.
Also, as per a news published in October 2021, in France, 10%-15% of breast cancer cases diagnosed yearly are at a metastatic stage. Thus, the growing number of chronic diseases among the population is expected to increase the demand for better treatment and drug discovery. This, in turn, is anticipated to fuel the demand for APIs for developing cancer drugs, propelling France's market growth.
Furthermore, the rising company initiatives and investments to boost API production, as well as increasing product approvals in the country, are also contributing to market growth. For instance, in December 2021, Novasep, a supplier of services and technologies for the life sciences industry, invested EUR 6 million (USD 6.8 million) to increase and modernize its manufacturing capabilities to support the production of APIs, in areas such as oncology, central nervous system (CNS) and infectious diseases. Also, in October 2021, Trodelvy plus chemotherapy, a new antibody treatment for an aggressive form of breast cancer, was approved by the Minister of Health Olivier Véran in France.
Therefore, owing to the factors such as the rising burden of cancer, increasing demand for branded cancer drugs, and rising company activities in the country, the studied segment is anticipated to grow over the forecast period.
Branded Segment Expected to Have the Significant Market Share
The branded segment is expected to grow over the forecast period owing to the factors such as the high burden of chronic diseases, growing awareness regarding branded drugs among the population, as well as increasing company activities in developing drugs in the country. For instance, as per 2021 statistics published by Alzheimer Europe, 3.31% of the population in France is expected to suffer from dementia by 2050. Thus, the expected increase in the number of people suffering from dementia is anticipated to raise demand for drugs such as Aricept, Exelon, and others to treat the symptoms of mild to moderate symptoms in the patients, hence propelling segment growth.
In addition, the rising geriatric population, more prone to developing infectious and chronic diseases, raises the demand for effective medications. This, in turn, is anticipated to fuel the demand for APIs for drug formulation, hence boosting segment growth. For instance, as per an article published by the Journal of Clinical Medicine in March 2022, it has been observed that the prevalence of ischemic stroke is higher among people aged 45-64 years and men aged 18-34 and 35-44 years. As per the same source, the use of cannabis, cocaine, and other drugs has sharply increased among adults aged 18-64 years which is the main factor increasing the risk of developing cardiovascular diseases. Thus, the high burden of hypertension, stroke, and other cardiovascular disorders coupled with the rising geriatric population is anticipated to increase the demand for pharmaceutical drugs, thereby bolstering segment growth.
Furthermore, initiatives such as facility expansion and investments by key market players are expected to increase the company's focus on developing high-quality APIs, which is anticipated to fuel the market growth over the forecast period. For instance, in January 2022, Pfizer invested EUR 520 million (USD 594 million) to boost the production of COVID-19 pills in France. With this investment, the company is developing a production facility for its antiviral COVID-19 pill in the country. In addition, the investment initially involves the development of Paxlovid's API at Novasep's facility in France. Such investments are expected to boost the demand for APIs to develop branded drugs for treating various chronic diseases. This is anticipated to augment the segment growth over the forecast period.
Therefore, with the high burden of ischemic stroke and Alzheimer's disease, the changing lifestyle, and the growing company investments in developing APIs, the studied segment is expected to grow over the forecast period.
