The shift toward regionalized manufacturing – building production sites closer to end markets to avoid tariffs and trade restrictions – is a core trend in pharma.
At the same time, pharmaceutical manufacturing is growing rapidly in Asia, increasing the potential risk for supply chain disruptions for other regions. According to a 2026 article by McKinsey & Company (3), Asia contributed more than 85% of the global growth in innovative drug pipelines in 2024, “with China and South Korea leading the surge in new clinical assets.”
The active pharmaceutical ingredients (API) production has already grown massively in Asia (4). In 2024, the US accounted for just 3% of API Drug Master File (DMF) filings (down from 23% in the early 1980s), the European Union for 6% (down from 63% in 1981), while India was 43% and China 45% in 2024 (both were zero in 1981).