Pharmaceutical Intermediates Market Size to Worth USD 57.15 Bn by 2034

The global pharmaceutical intermediates market size was valued at USD 35.28 billion in 2024 and is expected to be worth around USD 57.15 billion by 2034 up from USD 37.04 billion in 2025. The market is poised to grow at a CAGR of 4.94% between 2025 and 2034.

The increasing prevalence of chronic diseases in the population and the demand for efficient chemical compounds used in the production of drugs are driving the growth of the market.

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Pharmaceutical Intermediates Market Key Takeaways

•  North America dominated the market with the largest market share of 33.14% in 2024.

•  The bulk drug intermediates segment held the major market share in 2024.

•  The analgesics segment accounted for a largest market share in 2024.

•  The CROs/CMOs segment led the global market in 2024.

Market Overview and Industry Potential

A pharmaceutical intermediate is simply the synthesized chemical compound that is used in the making or production of active pharmaceutical ingredients (APIs). It is derived during the different stages of the synthesis of APIs. The pharmaceutical intermediate plays an important role in API synthesis, which helps in controlling the modification of chemical structure, purity, and potency. The intermediate is efficiently used in the exact modification of APIs and contributes to the formulation of drugs and other pharmaceutical products.

The increasing pharmaceutical and biopharmaceutical industry is accelerating the increased quality of active pharmaceutical ingredients, which drives the demand for pharmaceutical intermediates. The increased prevalence of research and development activities in the pharmaceutical and cosmetics industry is accelerating the growth of the pharmaceutical intermediates market.  

Artificial Intelligence (AI) in Pharmaceutical Processes

The integration of artificial intelligence in the pharmaceutical industry and production applications enhances the overall efficiency in operation and ongoing performance. AI can address the associated challenges in the pharmaceutical industry, such as supply chain management, production, and others. Artificial Intelligence can help with different pharmaceutical applications such as rapid control over production quantity and quality, raw material orchestration, data accuracy, demand forecasting, inventory status, shipment and delivery, and digital twin.

🔹In December 2024, ACG Inspection launched Life Sciences Cloud, a revolutionary complete end-to-end analytical and traceability solution vision to develop manufacturing efficiency, deliver production quality, and transformational supply chain traceability for enhancing the pharmaceutical industry.

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Major Trends in the Pharmaceutical Intermediates Market

Rising Demand for the Biopharmaceutical Industry

The increasing prevalence of chronic diseases in the population and the rise in lifestyle diseases such as cardiovascular disease, diabetes, high blood pressure, and other diseases are accelerating the demand for efficient drugs.

Growing Cosmetic Application

The intermediate is widely used in the formulations of cosmetics products. The increasing demand for tailored cosmetics products based on customer needs and skin type boosts the growth of the market.

Government Participation

The increasing government participation in pharmaceutical and biopharmaceutical applications boosts the demand for pharmaceutical intermediates. The governments of economically developed countries are highly investing in the expansion and ongoing research and development activities in the pharmaceutical industry for the innovation and expansion of drug production to accelerate the growth of the market.

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Pharmaceutical Intermediates Market Report Coverage

Report Coverage

Key Statistics

Market Size in 2025

USD 37.04 Billion 

Market Size by 2034

USD 57.15 Billion 

CAGR from 2025 to 2034

4.94% 

Leading Regio

North America

Fastest Growing Region

Asia Pacific

Base Year

2024

Forecast Period

2025 to 2034

Segments Covered

Product, Application, and Regions

Regions Covered

North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

 

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U.S. Pharmaceutical Intermediates Market Size to Hit USD 14.16 Bn by 2034

According to Precedence Research. the U.S. pharmaceutical intermediates market size is calculated at USD 8.71 billion in 2025 and is projected to surpass around USD 14.16 billion by 2034, growing at a CAGR of 5.55% from 2025 to 2034.

North America dominated the pharmaceutical intermediates market in 2024.

The growth of the market is attributed to the availability of the developed healthcare and pharmaceutical infrastructure, which causes the demand for pharmaceutical intermediates for drug formulation. The increasing investment in further innovations in chemicals and technology utilization to increase production and enhance the quality of drugs is accelerating the growth of the market. The increasing research and development activities in the pharmaceutical and cosmetics industry for product innovations and formulation accelerate the growth of the regional market.

🔹According to the Pharmaceutical Research and Manufacturers of America (PhRMA), in the United States, the pharmaceutical industry spends 21% of its global revenue on research and development activities in 2023.

🔹PhRMA trade group members generated global revenues of approximately USD 448 billion in 2023, of which 70% is covered by the domestic revenue. Its members spent USD 96 billion on R&D expenditure globally in 2023, in which the domestic market accounted for 74% of the worldwide figure.

Asia Pacific is expected to have the fastest growth in the market during the forecast period.

The growth of the market is attributed to the rising regional population, and the increasing prevalence of chronic diseases in people is driving the demand for pharmaceutical intermediates for drug formulation and production. The increasing investment in research and development activities in innovations and the expansion of drugs are also important. Additionally, the increasing cosmetics industry and related startups across the world are contributing to the market across the region.

🔹The pharmaceutical industry in India will reach USD 65 billion by 2024 USD 130 billion by 2030 and USD 450 billion by 2047.

🔹India is the 3rd largest contributor or producer of API, accounting for an 8% share of the Global API Industry. There are 500+ different APIs produced in India, and 57% of APIs to the prequalified list of the WHO. 

Pharmaceutical Intermediates Market Segmentation Analysis:

Product Analysis

The bulk drug intermediates segment dominated the market with the largest share in 2024.

Bulk drug c are the type of intermediates that are used as raw material in the formulation or production of bulk drugs. The bulk drug intermediates are highly used by the cosmetics or pharmaceutical industry, mostly in operations like research and development.

The increasing prevalence of chronic diseases in the world causes a higher demand for drugs and pharmaceutical products that boosts the research and development program for new initiatives toward drug formulation, which drives the demand for bulk drug intermediates. The bulk drug intermediates are divided into two types: API intermediates and advanced intermediates. The rising demand for pharmaceutical and cosmetics products drives the demand for the intermediates segment.

The custom intermediates segment is anticipated to grow rapidly over the forecast period.

Custom intermediates are intermediates that are specifically made according to personalization or the client's demand. It is the process in which the compound is produced as per the exact needs or specifications. The custom intermediates are basically made for some research program or other commercial applications. The custom intermediates provide enhanced precision, flexibility, and cost-effectiveness.

Application Analysis

The analgesics segment accounted for the largest pharmaceutical intermediates market share in 2024.

There is an increasing demand for analgesic drugs for the treatment of drug therapeutics in different types of diseases to elevate pain and provide rapid relief. The increasing population and the rising cases of chronic diseases such as cancer, arthritis, cardiovascular disease, and others, and the rise in the geriatric population that are more likely to get affected by chronic illnesses and lifestyle diseases like high blood pressure, diabetes, and others are collectively driving the demand for the analgesic drug formulation which causes the higher demand for the pharmaceutical intermediated for the drug production.

🔹In September 2024, Mankind Pharma, a leading pharmaceutical firm in India, announced its entrance into the topical analgesic market via its consumer business division.

The anti-cancer drugs segment is expected to show the fastest growth during the forecast period.

The increasing prevalence of cancer around the world population due to changing lifestyles, environmental impacts, genetics, and others boosts the demand for efficient treatment and drugs, which boosts the demand for pharmaceutical intermediates for anti-cancer drug production.

In August 2024, Lupin, a leading pharmaceutical company, launched a generic cancer treatment drug in the U.S. market. The company launched the Doxorubicin Hydrochloride Liposome Injection single-dose vials in the U.S.

End User Analysis

The CROs/CMOs segment dominated the pharmaceutical intermediates market with the largest share in 2024.

The increasing number of CROs/CMOs around the world is due to the increasing preference for outsourcing drug production. Contract manufacturing organizations and contract research organizations play an important part in the drug production process. The increasing demand to produce different types of drugs via contract manufacturing organizations and contract research organizations is driving the demand for the pharmaceutical intermediates market.

The research laboratories segment is expected to show the fastest growth during the forecast period.

The increasing number of research laboratories in economically developed or developing countries that have robust healthcare and pharmaceutical infrastructure boosts the demand for pharmaceutical intermediates. The pharmaceutical intermediates help in processing the different types of research and development programs that boost the demand for the pharmaceutical intermediates in the research laboratories.

Browse More Insights:

•  Pharmaceutical CRO Market: https://www.precedenceresearch.com/pharmaceutical-cro-market

•  Generic Drugs Market: https://www.precedenceresearch.com/generic-drugs-market

•  Cancer/Oncology Drugs Market: https://www.precedenceresearch.com/cancer-drugs-market

•  Pharmaceutical Contract Manufacturing Market: https://www.precedenceresearch.com/pharmaceutical-contract-manufacturing-market

•  Anti-Inflammatory Biologics Market: https://www.precedenceresearch.com/anti-inflammatory-biologics-market

•  Contract Development and Manufacturing Organization Outsourcing Market: https://www.precedenceresearch.com/contract-development-and-manufacturing-organization-outsourcing-market

•  Preclinical CRO Market: https://www.precedenceresearch.com/preclinical-cro-market

•  Biopharmaceutical CMO and CRO Market: https://www.precedenceresearch.com/biopharmaceutical-cmo-and-cro-market

•  Dermatology CRO Market: https://www.precedenceresearch.com/dermatology-cro-market

•  In Vivo CRO Market: https://www.precedenceresearch.com/in-vivo-cro-market

Pharmaceutical Intermediates Market Companies

• Aceto Corporation

• BASF SE

• Chiracon GmbH

• Yin-sheng Bio-tech Co. Ltd.

• Dishman Group

• Green Vision Life Sciences

• Midas Pharma GmbH

• Sanofi SAIS

• Vertellus Holdings LLC.

• Lonza Group

What is Going Around the Globe?

• In July 2024, Pfizer launched the Pfizer CentreOne (Booth 1235), an integrated contract manufacturing organization on API synthesis and sterile injectables fill-finish. The launched brand united Hospira One 2 One, a global specialty API provider and sterile injectables CMO.

• In February 2025, Glenmark Pharmaceuticals Inc., the United States-based pharmaceutical company, launched the Latanoprost Ophthalmic Solution. It is the therapeutic and bioequivalent equivalent to the reference listed Xalatan Ophthalmic Solution of Upjohn US 2 LLC.

Segments Covered in the Report

By Product

  • Chemical Intermediates

  • Bulk Drug Intermediates

  • Custom Intermediates

By Application

  • Analgesics

  • Ant-inflammatory Drug

  • Cardiovascular Drugs

  • Anti-Diabetic Drugs

  • Anti-Cancer Drugs

  • Others

By End User

  • Biotech and Pharma Companies

  • Research Laboratory

  • CMO/CRO

By Regions

  • North America

  • Europe

  • Asia Pacific

  • Latin America

  • Middle East & Africa (MEA)

Thanks for reading you can also get individual chapter-wise sections or region-wise report versions such as North America, Europe, or Asia Pacific.

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