Pharmaceutical water is used for cleaning, rinsing, preparation of solutions, solvents in various manufacturing processes in the pharmaceutical industry. It requires water of high purity standards as even minute impurities in water can have detrimental effects on product quality, safety and efficacy. The exact quality standards depend on the application, with water used for injectable and sterile preparations requiring the highest purity levels. The global pharmaceutical water market is estimated to be valued at USD 6.26 billion in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The need for highly purified process water presents a key market opportunity. Stringent regulatory norms mandating the use of purified water during various stages of drug production like cleaning, rinsing and formulation to minimize contaminants have been driving the demand. Additionally, the growing injectables market is another major factor expected to fuel pharmaceutical water usage. Injectable drugs such as vaccines, intravenous fluids, and solutions are administered directly into the body through veins or muscles and hence require water that meets the highest purity criteria to eliminate any risk to patients. With increasing investments in injectables production by major players, the demand for pharmaceutical grade water is projected to rise significantly over the forecast period.
Porter's Analysis
Threat of new entrants: The pharmaceutical water industry requires significant investments for setting up manufacturing facilities and R&D activities. Regulations also pose a barrier for new players.
Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of a large number of manufacturing players.
Bargaining power of suppliers: Suppliers of raw materials have moderate bargaining power due to established supply relationships of manufacturers.
Threat of new substitutes: There are limited substitutes for water in pharmaceutical manufacturing given its regulatory requirements.
Competitive rivalry: The industry has few global players and several regional mid-sized firms competing on pricing and quality.
SWOT Analysis
Strengths: Stringent regulations ensure consistent quality and safety of pharmaceutical water. Growing generic drug industry increases demand.
Weaknesses: High setup and maintenance costs of water treatment systems. Dependence on a few global suppliers for technology and equipment.
Opportunities: Expanding into emerging markets. Adoption of advanced water treatment techniques like high purity water systems.
Threats: Price fluctuations in raw material costs. Increased environmental regulations around wastewater treatment.
Key Takeaways
The Global Pharmaceutical Water Market Demand is expected to witness high growth over the forecast period of 2024 to 2031.
North America currently dominates the market owing to presence of leading players and stringent regulatory environment ensuring quality standards. The Asia Pacific region is expected to grow at the fastest pace with expansion of pharmaceutical manufacturing in countries like India, China and South Korea.
Key players operating in the pharmaceutical water market are Suez, Veolia Water Technologies, Dow Water & Process Solutions, and others. Pharmaceutical water finds widespread application across various stages of drug manufacturing fromActive Pharmaceutical Ingredient (API) production to final drug formulation. Adoption of ultrapure water systems for critical cleanroom operations and increased outsourcing of manufacturing will drive market revenues. However, consolidation of pharmaceutical suppliers and price pressures may act as challenges over the coming years.
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