Small Molecule API Market Gains from Increase in Clinical Trials -

According to a new report by Grand View Research, Inc., the global small molecule API market is projected to reach USD 297.0 billion by 2030, growing at a CAGR of 5.6% from 2025 to 2030. This growth is primarily fueled by rising global demand for pharmaceuticals and a high rate of approvals for new small molecule-based drugs.

The continuous influx of new pharmaceutical products into the market presents lucrative opportunities for industry players. For example, the NCBI reported that in 2021, 75% of the drugs approved by the FDA were small molecules, with oncology being the most prominent therapeutic area. Notably, over half of these approvals came from small and mid-sized companies, which often rely on CDMOs (Contract Development and Manufacturing Organizations) to support product commercialization—contributing significantly to CDMO market expansion.

The COVID-19 pandemic exposed vulnerabilities in the supply chain of the small molecule API industry, particularly due to its concentration in Asian countries like India and China. This has prompted a strategic shift toward building end-to-end integrated supply chains and increasing production facilities in Western countries, supported by government initiatives.

To meet growing global demand, companies are increasingly engaging in mergers and acquisitions. A case in point is the strategic merger announced in April 2022 between Novasep and PharmaZell, aiming to form a leading, technology-focused CDMO specializing in complex small molecules and specialty APIs.

Key players are also adopting expansion and diversification strategies to maintain market presence. In April 2021, Lonza announced a USD 218.6 million investment to construct a new small molecule manufacturing facility in Switzerland. The facility is designed to ensure consistent and flexible supply.

Emerging markets such as China, India, and Southeast Asia offer substantial growth potential. In addition, specialized segments like “halal API” are gaining momentum due to rising drug demand in Middle Eastern and Southeast Asian regions. The synthetic small molecule API segment is notably driven by smaller firms and CDMOs responding to evolving industry needs.

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Small Molecule API Market Report Highlights

In 2024, synthetic APIs held the largest market share due to the strong demand for high-volume pharmaceutical production.
The outsourced manufacturing segment led the market, as many small and mid-sized firms rely on external partners for commercial-scale production.
Oncology is expected to exhibit the fastest growth among application segments, driven by the increasing adoption of cancer treatments.
North America dominated the market in 2024, supported by the presence of major players and government initiatives aimed at boosting API manufacturing capacity.

Leading Companies in the Small Molecule API Market