Global Study on Pharmaceutical Excipients Market Size, Share Analysis Report, 2024-2032
Pharmaceutical Excipients Market Growth Analysis, Leading Companies, 2024-2032

Pharmaceutical Excipients Market Share, Size, Trends, Industry Analysis Report, By Product (Inorganic Chemicals, Organic Chemicals); By Formulation; By Functionality; By Region; Segment Forecast, 2024 - 2032

  • Published Date:Jan-2024
  • Pages: 117
  • Format: PDF
  • Report ID: PM3919
  • Base Year: 2023
  • Historical Data: 2019-2022

Report Outlook

The global pharmaceutical excipients market size and share was valued at USD 9.28 Billion in 2023 and is expected to grow at a CAGR of 6.82% during the forecast period.

Pharmaceutical excipients are components added to pharmaceutical formulations, not for their primary therapeutic effects, but rather to facilitate the manufacturing process, safeguard, bolster, or improve stability, enhance bioavailability, or ensure patient acceptance. Additionally, they may play a role in product identification and contribute to the overall safety and functionality of the product throughout storage and use.

The research report offers a quantitative and qualitative analysis of the Pharmaceutical Excipients Market to enable effective decision-making. It covers the key trends and growth opportunities anticipated to have a favorable impact on the market. Besides, the study covers segment and regional revenue forecasts for market assessment.

Pharmaceutical excipients are important to drug transportation within the body. Usually, an excipient has nil medicinal attributes. Its customary motivation is to smoothen the making of the drug commodity and eventually ease the physiological soaking up of the drug. Excipients may help in lubricity, deluge, dissolution, and flavor and might bestow some configuration of antimicrobial function.

Selecting one or many excipients for a drug formulation is a crucial measure in drug advancement. The pharmaceutical excipients market size is expanding as a meticulously selected excipient may diminish manufacturing prices by being multipurpose or may improvise patient ordeal by providing taste masking attributes. An excipient must be appropriate for the deliberated dosage configuration of the drug, display pronounced organoleptic attributes, follow pharmacopeial directives, and be effortless to source and operate effectively.

The research study offers an in-depth analysis of the competitive landscape in the industry. It examines the top players in the pharmaceutical excipients market on the basis of multiple factors, including market position, sales, new developments and products/services offered. Also, it details the key strategies like mergers, partnerships and collaborations that have been taken by pharmaceutical excipients industry key players to improve their position in the market. 

Pharmaceutical Excipients Market Size

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Pharmaceutical excipients play a crucial role in enhancing the drug administration process, promoting dosing adherence, maintaining uniformity, stabilizing active pharmaceutical ingredients, regulating drug absorption, and ensuring the reliability and consistency of the final product.

The Global Pharmaceutical Excipients Market is currently experiencing growth, driven by two key factors. The first factor is the expiration of patents, which is expected to have a significant impact on revenue and sales volume in the branded drugs industry, as it will allow more affordable generic alternatives to enter the market. This influx of generics is expected to increase the overall drug sales volume. The second factor is the expanding biopharmaceuticals sector. Additionally, the pharmaceutical excipients market is benefiting from the rising accessibility of healthcare and increased healthcare spending in emerging economies. These factors together contribute to a positive outlook for the growth of the pharmaceutical excipients market.

  • For instance, Liposomes, which are spherical vesicles composed of a phospholipid bilayer, offer a versatile solution for drug delivery because they can accommodate both hydrophilic and hydrophobic medications. In addition to liposomes, innovative drug delivery techniques are being developed by incorporating excipients such as polymers and cyclodextrins. These advanced methods enable precise targeting of specific organs or tissues within the human body.

Increasing investments in research and development (R&D) are driving market growth. Pharmaceutical firms are allocating substantial resources to R&D initiatives aimed at developing more effective and safer medications. Excipients play a vital role in this process by improving the efficiency and safety of medication formulations. As R&D expenditures continue to climb, the demand for innovative and top-tier excipients is expected to surge.

The pharmaceutical industry underwent significant transformations due to the profound impact of the COVID-19 pandemic. The implementation of lockdown measures, as a response to the outbreak, disrupted the supply chain of essential raw materials sourced from key manufacturing hubs like India and China. Consequently, this disruption had a detrimental effect on the progress of drug development and manufacturing processes, particularly affecting companies heavily reliant on outsourcing. The pandemic initially caused upheaval throughout the entire pharmaceutical ecosystem.

Pharmaceutical Excipients Market Size

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Amid the COVID-19 pandemic, pharmaceutical and biotech firms demonstrated resilience and innovation in developing therapeutics, vaccines, and scientific methodologies. Moreover, regulatory bodies found themselves compelled to revise and establish new regulations to ensure the safety of patients consuming pharmaceutical products.

With the easing of lockdown measures, the pharmaceutical industry experienced a resurgence due to increased demand for drugs like hydroxychloroquine and Remdesivir which showed promising efficacy against COVID-19. This increased demand for the medications translated into significant revenue growth for some companies. As a result, the mass production of drugs had a positive impact on the demand for pharmaceutical excipient products.

Industry Dynamics

Market Growth Drivers

  • Increasing the intake of pharmaceutical products across the Globe will Facilitate Market Growth

The pharmaceutical excipients market is experiencing substantial growth, primarily due to the rising demand for pharmaceutical products, including generic drugs. This surge is bolstered by innovations in drug delivery methods and a heightened emphasis on improving patient compliance and convenience. Furthermore, the pharmaceutical industry's expansion in emerging economies, increased research and development efforts, and advancements in excipient manufacturing technology are all contributing to this growth.

In addition to these factors, other significant drivers propelling the pharmaceutical excipients market forward include a strong focus on ensuring product safety and quality, the growing prevalence of chronic diseases in an aging population, and the establishment of strategic collaborations and partnerships within the industry.

The demand for innovative excipients, chemically modified grade excipients, versatile administration routes for existing excipients, and co-processed excipients is increasing. These substances offer opportunities for developing new formulations and drug delivery systems.

With the growing demand for pharmaceutical products, including generic drugs, the need for pharmaceutical excipients is on the rise. To meet this demand, pharmaceutical companies are investing heavily in expanding or building manufacturing facilities.

Report Segmentation

The market is primarily segmented based on product, formulation, functionality, and region.

By Product

By Formulation

By Functionality

By Region

  • Inorganic Chemicals
  • Organic Chemicals
  • Tablets Formulation
  • Capsules Formulation
  • Parental Formulation
  • Liquid Formulation
  • Oral Formulation
  • Binders
  • Fillers & Diluents
  • Suspending & Viscosity Agents
  • Preservatives
  • Flavoring agents & Sweeteners
  • Coating agents  
  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Netherlands, Spain, Russia)
  • Asia Pacific (Japan, China, India, Malaysia, Indonesia, South Korea)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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By Product Analysis

  • The Organic chemicals segment held the largest revenue share in 2022

In 2022, the Organic Chemicals segment held the largest revenue share. The majority of pharmaceutical formulations use compounds that contribute to the expansion of the Global Pharmaceutical Excipients Market in the projected period. The market growth is driven by the rising need for drug manufacturing using natural resources with reduced or minimal side effects. Moreover, the demand for pharmaceutical products and the application of HPMC organic compounds in the life sciences industry are boosting the growth of this particular segment. The market is also benefiting from factors such as the widespread adoption of derivatives in solid oral dosage forms, along with increasing advancements in generic product development on a global scale.

Many pharmaceutical excipients primarily consist of organic compounds, including carbohydrates, petrochemicals, oleochemicals, and proteins. These constituents hold immense significance in drug formulation, playing a pivotal role in achieving the desired therapeutic effects. As the pharmaceutical industry experiences escalating demand for drug production worldwide, there is a corresponding anticipation of a substantial increase in the utilization of organic pharmaceutical excipients. This is poised to contribute significantly to market expansion.

By Functionality Analysis

  • The Binders segment accounted for the largest market share in 2022

The Binders segment accounted for the largest market share during the forecast period. Binder excipients serve as a crucial adhesive in pharmaceutical formulations, effectively binding together powders, granules, and other dry components to provide structural integrity to pharmaceutical products. These excipients also hold significant importance in drug formulation, as they enhance drug volume, facilitate disintegration, and accelerate dissolution rates. Consequently, the pharmaceutical industry has witnessed a rising demand for these excipients in drug and medicine manufacturing.

As the risk of illnesses and medical conditions continues to increase, there is a heightened need for medications and treatments. This heightened demand for pharmaceuticals is driving an increased requirement for binder excipients essential in the production of medical drugs. This, in turn, is expected to play a pivotal role in driving market growth in the forthcoming years.  

Regional Insights

  • Asia-Pacific held the largest market share in 2022

In 2022, Asia-Pacific held the largest market share in the Pharmaceutical Excipients market. According to a recent study, the traditional pharmaceutical industry in China brought in approximately $28.8 billion in sales revenue, and it is expected to continue growing in the coming years. India also plays a significant role in the global pharmaceutical sector, supplying over 50% of the world's vaccines, 40% of the United States' generic demand, and 25% of all medicines for the United Kingdom, especially during the ongoing COVID-19 pandemic. Additionally, India has the second-largest pharmaceutical and biotech workforce worldwide. The Indian Economic Survey of 2021 projects that the domestic pharmaceutical market will triple in size in the next decade.

India is also planning to establish a fund of nearly INR 1 lakh crore (equivalent to US$ 1.3 billion) by 2023 to incentivize domestic pharmaceutical ingredient manufacturing, further strengthening the pharmaceutical industry in the country.

As a result, the global demand for medicines and drugs from the pharmaceutical industry is expected to drive an increase in demand for pharmaceutical excipients such as Gelatin, Polyethylene Glycol, Cellulose Esters, and Sweetening Agents, which are essential for pharmaceutical production. This is likely to contribute to the growth of the pharmaceutical excipients market.

Europe is anticipated to fastest growth during the forecast period. The region is experiencing a significant surge in excipient utilization, primarily driven by the rise of prominent pharmaceutical giants equipped with extensive manufacturing capabilities. This heightened consumption of excipients is further fueled by the growing need for innovative excipient ingredients, as the pharmaceutical industry increasingly depends on advanced pharmaceutical drugs, generic medications, and biosimilar products.

This market was influenced by factors such as the continuous development of new drugs, the expansion of the generic drug sector, and a focus on patient-friendly formulations, including oral dissolvable tablets and taste-masking excipients. Regulatory oversight from the European Medicines Agency (EMA) ensured product safety and compliance.

Key Market Players & Competitive Insights

The market is characterized by intense competition, with established players relying on advanced technology, high-quality products, and a strong brand image to drive revenue growth. These companies employ various strategies such as research and development, mergers and acquisitions, and technological innovations to expand their product portfolios and maintain a competitive edge in the market.

Some of the major players operating in the global market include:

  • Ashland Inc.
  • Associated British Foods Plc
  • BASF SE
  • Croda International Inc.
  • DOW Chemical Company
  • DuPont de Nemours Inc.
  • Evonik Industries AG
  • FMG Corporation
  • Innophos Holdings Inc.
  • Lubrizol Corporation
  • MEGGLE Excipients & Technology
  • Roquette Group 

Recent Developments

  • In 2021, BASF SE unveiled plans to increase its manufacturing capabilities for excipients in Germany in response to the rising pharmaceutical demand in the area. This expansion initiative encompassed the introduction of a fresh production line and the integration of state-of-the-art equipment to enhance the production of top-tier excipients.
  • In 2020, Kerry Group made public its intention to acquire Biosearch Life, a Spanish firm with expertise in creating and manufacturing natural extracts for the pharmaceutical, nutraceutical, and food sectors. This strategic move was undertaken to broaden Kerry Group's range of products within the pharmaceutical excipient market.
  • In 2020, Ashland Inc. unveiled a brand-new series of excipients under the name Plasdone™ S630 Ultra. This innovative product serves as a top-tier excipient designed for solid-dosage forms and boasts numerous benefits compared to conventional excipients. Notably, it enhances disintegration and dissolution characteristics, setting it apart in the field.

Pharmaceutical Excipients Market Report Scope

Report Attributes

Details

Market size value in 2024

USD 9.83 Billion

Revenue Forecast in 2032

USD 16.79 Billion

CAGR

6.82% from 2024 – 2032

Base year

2023

Historical data

2019 – 2022

Forecast period

2024 – 2032

Quantitative units

Revenue in USD billion and CAGR from 2024 to 2032

Segments Covered

By Product, By Formulation, By Functionality, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America; Middle East & Africa

Customization

Report customization as per your requirements with respect to countries, regions, and segmentation.

We provide our clients the option to personalize the Pharmaceutical Excipients Market report to suit their needs. By customizing the report, you can get data as per your format and definition. Also, the customization option allows you to gain a deeper dive into a specific segment, region, customer, or market competitor.

Uncover the dynamics of the pharmaceutical excipients sector in 2024 with detailed statistics on market share, size, and revenue growth rate meticulously curated by Polaris Market Research Industry Reports. This all-encompassing analysis extends to a forward-looking market forecast until 2032, complemented by a perceptive historical overview. Immerse yourself in the profound insights offered by this industry analysis through a complimentary PDF download of the sample report.

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