Life Science Chemicals

Life Science Chemicals Market Analysis

Life Science chemicals are typically known as Acetyls. They are referred to as organic intermediates and are typically used as precursors to Active Pharmaceutical Ingredients (APIs). These chemicals are used by researchers and scientists in various fields of biosciences including microbiology, biotechnology, etc. The chemicals and laboratory techniques utilized in this segment require a high level of purity. These chemicals are essentially high-value products. It has a rapidly growing value chain owing to it’s expanding applications. The growth rate of this segment is approximately 1.5-6 times that of the GDP.

These products are sold in much smaller volumes as compared to other chemical-based products. Additionally, the cost associated with these substances amounts to a value of roughly USD 10/lb. Bio-chemicals are hereby costlier on an average due to the high degree of purity affiliated with them. 

Life Science chemicals are increasingly used in the development of biosimilars. The rapid expansion associated with the therapeutics sector accounts for the growth of this segment. Life science chemicals comprise of differentiated chemicals and biological substances. These substances are widely used in the production of animal health products, vitamins, etc. Due to the high specifications of these products, the R&D spending incurred amounts to a value of 15-20% of the total revenue generated by the company. These products are closely scrutinized by government agencies such as the Food and Drug Administration. Additionally, due to the advent of organic farming- 10% of these substances are used in the production of crop protection chemicals.

Chemical Market Forecast focuses on the sub-segments within the Life Science Chemicals sector. The changing market trends and the impact of the changing dynamics are hereby assessed both quantitatively and qualitatively in our reports. The Life Science Chemicals Market Reports will hereafter adhere to the upcoming opportunities and technological growth within this sector.

North America Life Science Chemicals Market Analysis

North America has the largest market size in terms of life science chemicals owing to its application in various fields of study. Life science chemicals are extensively employed in the development of pharmaceuticals and for biology-based research. The region invests highly in R&D because of which this segment has experienced tremendous growth. NA provides a strong infrastructure that facilitates research-based activities because of which the investments within this segment have been increasing.

According to the data obtained from OECD, the pharmaceutical spending within North America accounts for a value of approximately 1.9% of the GDP. The region accounts for more than 40% of the pharmaceutical sales produced worldwide. Factors like the growth in the aging population have aided the expansion of this market. Moreover, people are becoming increasingly susceptible to diseases because of which the market is experiencing tremendous growth. The use of therapeutics like biologicals and precision medicines also propels the growth of this market.

Within North America, the United States accounted for roughly 47.2 % of the pharmaceutical sales generated. Owing to the per capita health expenditure, the North American pharmaceutical sector is expected to have a growth dynamics of 5-7%. On a global scale, the oncology sector is seen to experience maximum growth within the pharmaceutical industry. The segment accounted for a value of USD 125.9 Billion in the year 2017. Additionally, the number of cancer fatalities per 100,000 individuals within the U.S is amounted to be 178.3. This value is above the OECD average. Therefore, the use of life sciences in the oncology department further promotes the growth of this segment.

Apart from healthcare life science chemicals are also used in Agriculture. Steam cell therapy and plant tissue culture are some of the biotechnological processes used to increase crop quality. Botanicals are expected to experience rapid growth within this market owing to the increased use of herbal medicine within the U.S and Canada.

Life science chemicals are also used in the North American market within the Food Additives segment. The North American dietary supplements market size was estimated at USD 37.37 billion in 2016. According to life science chemicals market forecast analysis, increasing health awareness amongst the population is expected to propel the growth of this market. The Protein segment accounts for a major market share owing to its use as a nutritional additive.

The food additives segment forms a major part of NA’s life sciences market. Pfizer is one of the key players in this market. The company generated a revenue of USD 51.75 Billion in the year 2019. The company employs 88,300 people on an overall scale. In the year 2018, the company announced a joint merger of its consumer health division with the UK based company GlaxoSmithKline. The British company is enlisted to hold 68% of the shares. The company develops medicines as well as vaccines for a wide range of medical disciplines. Some of the prominent consumer drugs developed by this company include Azithromycin (anti-biotic) and Celebrex (an anti-inflammatory drug).

Amway is another company that is one of the downstream users of life science chemicals. The company generated a revenue of USD 8.8 Billion in the year 2018 along with its sister company Alticor. Amway was ranked by Forbes as the 42nd-largest privately held company in the United States in 2018.

Europe Life Science Chemicals Market Analysis

On average, the EU’s health spending accounts for roughly 10-12% of the total GDP. The U.K Stands as one of the largest markets within this segment. Although, the biotech and pharmaceutical clusters within the EU have lesser investments on an average as compared to NA and APAC. One of the key reasons is UK’s, “Brexit” or its departure from the European Union. Moreover, heavy regulations have been imposed on the production and distribution of drugs within this region. Regulations like REACH cater to environmental protection within the EU. These environmental standards are issued as a part of the safety regulations since the effluents released from plants consist of several toxins.

The top 3 Biopharmaceutical segments within the EU include- the U.K, Germany, and France. According to the CORIS (European Union Community Research and Development Information Service), the current Horizon 2020 research funding program was issued in the year 2018 under Biopharmaceutical R&D expenditure. The U.K stands as the leading producer or Biopharma with the E.U owing to the broad academic, regulatory, and clinical expertise. The U.K generates roughly 120,000 direct as well as indirect biopharma jobs within the EU. The country is home to roughly 2066 Biopharmaceutical companies. The U.K’s Biopharmaceutical segment has a venture capital of USD 670 Million.

According to C&EN, the second-largest Biopharmaceutical segment includes Germany. The country generated a total of 174,205 direct as well as indirect jobs in the Biopharma segment. Additionally, the country generated roughly 128,545 pharmaceutical jobs in the year 2018. Germany also employs 45,660 people in the Biotechnology segment. The Life Sciences segment has completed 4317 research grants and the country has the highest number of research patents within the EU.

France is the third-largest segment within the European Union. The country aspires to be the world leader in terms of AI. In 2018 USD 1.7 Billion was invested into the artificial intelligence segment. Chemical market research reports state that concepts of AI are now being integrated with Life Science Technology to present lucrative solutions to healthcare as well as therapeutics. The country invests USD 116 Million into healthcare-based startups in the year 2018.  France ranks second in terms of biopharmaceutical patents. The country has the third-largest research funding ability within the EU. It completed 3814 grants in the year 2017. France has approximately 870 Biotechnology companies. The country’s Biopharmaceutical segment has a venture capital of USD 362.2 Million.

The region is home to key players of this market including Bayer and Boehringer Ingelheim. The company BioNTech, which is one of the leading biotechnological firms has also been headquartered in Germany. In 2018, the company initiated a strategic alliance with Pfizer to develop mRNA-based flu vaccines.

The France based company Sanofi is another key player in this market. The company generated a revenue of approximately USD 5.26 Billion in the year 2018 and it employs 104,226 people. The company invests heavily in the R&D segment for pharmaceuticals. In 2005, the company was awarded a grant worth USD 97 Million by the United States Department of Health and Human Services. The company also signed an agreement with the Charite University of Berlin for collaborative research.

Asia Pacific Life Science Chemicals Market Analysis

The rising geriatric population within APAC in combination with rapid urbanization are some of the factors that accelerate the growth of the life science chemicals segment. According to life science chemical reports, the countries China and India have the highest number of diabetes cases. China has around 114 Million patients followed by India with 69 Million patients. By 2030, roughly 1.3 Billion of the population will constitute of elderly people. By the year 2028, 31.4% and 7.1% of Japan and South Korea’s population will reach the age of 65 respectively.

APAC’s Life sciences segment hereby tries to make health services more accessible to people in order to increase the healthy life of the population. Telehealth services in combination with precision medicine technology are now being employed to cater to this segment. The effect of the drug used on the patient is closely monitored through the personalized medicines segment. Data handling and AI are hereafter extensively used while synthesizing a drug. Additionally, owing to the incorporation of Industry 4.0 technologies in existing processes, IoT based spending is expected to increase by 35% in the year 2028.

The number of cancer incidents per 100,000 people is estimated to be 130.1. Therefore, Oncology based therapeutics have also been accelerating the growth of the Life Sciences sector within this market. South East and East Asia are poised to attain pharmaceutical spending of roughly USD 260 Billion by the year 2022. In the year 2018, Japan’s pharmaceutical spending constituted for 1.97% of the GDP. While countries like China and India contributed 2.7% and 1.28% to the pharmaceutical expenditure respectively.

APAC is the third-largest pharmaceutical market worldwide after North America and Europe. The development of generic medicines is one of the key drivers for this industry. For 2020 Q1, the pharmaceutical segment experienced a growth of 16.6%. Pharmaceutical companies within APAC recorded a QoQ growth of 21% from USD 179 billion to USD 216.6 billion. Additionally, biopharma companies reported 7.6% QoQ growth from USD 87 billion to USD 93.7 billion.

Within APAC, China is the leading market in terms of the Biopharmaceuticals sector. The R&D spending within this market accounted for a value of USD 451.201 Billion in the year 2016. The country is the world’s second-largest Biotechnology based firm. China is home to 7500 biopharmaceutical firms worldwide. The cumulative workforce accounts for a value of 2,882,903 residents through both direct as well as indirect employment. Hong Kong has emerged as a preferred destination for public biotechs owing to the regulation that allows pre-revenue companies to go public. The country’s, “Made in China” initiative also acts as a promoting factor for this market.

India is the second-largest market in terms of the number of research patents approved. The country invested USD 50.289 Billion into the R&D sector. India consists of 4000+ pharmaceutical companies in addition to about 800 listed biotechnology firms. The biopharmaceutical segment employs roughly 587,468 people within this nation. In August 2018, Telangana proposed to design a biopharmaceutical hub which includes a scale-up manufacturing facility and an incubator space. An investment of roughly USD 8.2 Million was made by the country.

Australia is the third-largest biopharmaceutical cluster present within APAC. The country spent value of USD 335.3 Million on the very first genome project in the year 2018. The area consists of 876 Biopharmaceutical companies. In 2016, the Biopharma R&D spending of this country accounts for a value of USD 22.153 Billion. The country employs 69,108 people through its biopharma segment.

One of the key players of this market includes Otsuka Pharmaceuticals situated in Tokyo, Japan. The company acquired Valpiform in the year 2012. Post this company also went on to purchase Astex in 2013. In the year 2012, the company entered the medical endoscope business. Otsuka has released food and beverages product within the Japanese market. The company acquired VV Foods and Beverages in the year 2005. In the same year, Otsuka also expanded Soyjoy and entered the Chinese market. Other pharmaceutical companies based in Japan include Eisai, Daiichi Sankyo, and Meiji.

China’s leading pharmaceutical distributors, Sinopharm Group and Shanghai Pharmaceutical are headquartered in Shanghai. The Sinopharm Group generated revenue of 227.06 Billion in the year 2015. Sinopharm Group was ranked 829th in the 2016 Forbes Global 2000 list.

Rest of the World Life Science Chemicals Market Analysis