The most recent biotech industry forecast for the period covering 2021 to 2028 is upbeat. Yet experts caution that availability limitations of materials may deter the industry’s maximum growth.
Allied Market Research (AMR) projected that the global market for ingredients required for biotech development and production might reach $75.3 billion, provided that the industry’s CAGR registers at 4.8% throughout the timeframe.
AMR analysts have noted a steady rise in the demand for bio-based or natural ingredient. Consumers now prefer these to synthetics which have been noted to have adverse effects on human health and general wellbeing.
Likewise, ongoing research in biotechnology spurred on by the ongoing pandemic heightened the demand for raw materials to be used in developing potential solutions such as vaccines and curative modalities.
However, as lucrative as this sounds, the same team cautioned that the limited amounts available of such materials may hamper market growth to a certain degree. Such growth may be offset at some point by potential advancements in the field of bio-engineering or by government policies formulated and ratified in favor of biotech development.
Biotech vs. COVID-19
Unfortunately, the pandemic has forced many biotech companies to suspend their operations or to shut down some of their initiatives. This has resulted in a considerable slowdown in terms of market growth where biotech ingredients are concerned.
Nevertheless, relaxed government policies in various counties and the increasing demand for solutions against COVID-19 and its variants are pushing biotech firms to keep going. Such policies are envisioned to help the industry’s APIs (active pharmaceutical ingredients) segment to get back on top come 2028.
APIs made up more than 60% of the total market share in 2020 – and that number is projected to rise exponentially thanks to an increased demand for generic pharmaceuticals and biomedical solutions such as organic immunity boosters.
For now, it has been noted that the monoclonal antibodies segment is the leading segment in the market. Monoclonal antibodies made up over 20% of the overall market share for biotech ingredients over the past year. This was mostly due to an increased demand for natural solutions to common ailments and other diseases.
Another potential growth center would be the biosimilars segment. This segment may have the fastest CAGR during the stipulated time frame at 5.0%.
Products and ingredients under this category are highly similar to recognized biologics (pharmaceutical preparations extracted or synthesized from natural sources) and are approved for consumer use under the same standards of quality, safety, and efficacy as their referent meds. Biosimilar materials are frequently used for a number of generic meds, as well as branded medications.