Latin America Active Pharmaceutical Ingredients Market

Latin America Active Pharmaceutical Ingredients Market Size

The size of the Latin America active pharmaceutical ingredients market was valued at USD 30.43 million in 2024. This market is expected to grow at a CAGR of 20.05% from 2025 to 2033 and be worth USD 54 million by 2033 from USD 32 million in 2025. 

MARKET DRIVERS

Rising Geriatric Population and Health Spending Boost API Market in Latin America

The active pharmaceutical ingredients market is one of the lucrative and fast-growing markets in the domain of the pharma industry. Latin American API market is one of the markets that is registering a higher CAGR year on year. The market's major drivers are the rising geriatric population, increased expenditure on health, increased R&D investments in the pharma industry, rise in chronic diseases, less utilization of generic drugs, and government policy towards the API industry.

In Latin America, 52% of the population is geriatric, and they are aged above 60 years; this results in chronic diseases like cardiovascular disorders and diabetes. Moreover, with the less penetration of generic drugs, increased expenditure on health by the people contributing a lot to the market growth. Increased R&D expenditure in pharmaceutical production and govt policy on the API industry is also propelling the growth in the market of API. Moreover, with the use of APIs in drug manufacturing, the disease-causing cells can be targeted easily without disturbing the adjoining healthy cells and tissues. This is one of the major drivers for oral medicine and chemotherapy in the case of cancer patients.

MARKET RESTRAINTS

Delayed Regulatory Approvals and Heavy Dependence on Imports Limit API Market in Latin America

The main restraints of the API market in the case of Latin America can be attributed to many factors such as delay in regulatory approvals, less development of pharma sector, extreme protocols for testing, API’s outsourcing, high investments for manufacturing, and less presence of manufacturing companies.

In Latin America, science and technology development is far behind when compared with other developed countries. So, the inordinate delay in the testing and application of APIs inhibits the market to a large extent. Apart from this, as there is a huge population living near the poverty line, they find API’s infused drugs to be more costly and relying solely on generic drugs, which is restraining the market for further expansion. API’s manufacturing usually requires highly sophisticated manufacturing units, so the pharma companies in these countries outsource the APIs from countries like China and India to minimize the costs. This is one of the major factors that are restraining the growth in the API market in Latin America. 

COUNTRY LEVEL ANALYSIS

The APIs market of the Latin American region is mainly driven by countries like Brazil, Argentina, and chile. All these countries follow different regulatory practices. Brazil is expected to become a pharmaceutical manufacturing hub for the Latin America region due to the fewer regulatory approvals and conformance to the procedures of all the countries in the region. Brazil’s generic drug sector is valued at USD 5.25 billion, which is expected to grow at a CAGR of 5%. Argentina and Chile have decided to acquire self-sufficiency in making APIs avoid supply chain disruptions in testing times like Covid 19. These countries in the region are trying to incentivize the captive manufacturing markets for API production. This is contributing a lot to the market expansion in the region.

KEY MARKET PLAYERS

Major companies operating in the Latin American active pharmaceutical ingredients profiled in this report are AbbVie Inc., AstraZeneca, Aurobindo Pharma Ltd., BASF, Bayer AG, Boehringer Ingelheim, Dr. Reddy's Laboratories, F. Hoffmann-La Roche, GlaxoSmithKline plc, Lonza Group, Lupin Limited, Merck & Co., Inc., Mylan NV, Novartis International AG, Pfizer Inc., Sanofi, Sun Pharmaceutical Industries Ltd., and Teva Pharmaceutical Industries Ltd.

MARKET SEGMENTATION

This Asia Pacific active pharmaceutical ingredients market research report is segmented and sub-segmented into the following categories.

By Type of Manufacturing Process

• Captive Manufacturing
• Contract Manufacturing

By Type of Synthesis

• Synthetic
• Biotech

By API Formulation

• Generic API
• Innovative API

By Application

• Cardiovascular Diseases
• Oncology
• Neurological Disorders
• Orthopedic Disorders
• Respiratory
• Gastrointestinal Disorders
• Urology
• Others

By Molecule

• Large Molecule
• Small Molecule

By Country

• India
• China
• Japan
• South Korea
• Australia
• New Zealand
• Thailand
• Malaysia
• Vietnam
• Philippines
• Indonesia
• Singapore
• Rest Of APAC