Pharmaceutical Excipients Market

Pharmaceutical Excipients Market Size

Pharmaceutical Excipients Market size was valued at USD 9.1 billion in 2023 and is expected to grow at a CAGR of 8% between 2024 and 2032, driven by factors such as the growing adoption of biopharmaceuticals and biologics, including proteins, peptides, and nucleic acids. Also, the expanding pharmaceutical sector and rising pharmaceutical manufacturing activities contribute significantly to the growth of the market.

For instance, as per the European Federation of Pharmaceutical Industries and Associations report 2022, pharmaceutical production in the European region surged by 4.6% in 2021. This notable increase in production directly correlates with a rise in the volume of pharmaceutical manufacturing, thereby driving the demand for pharmaceutical excipients.

Pharmaceutical excipients are inactive substances or compounds that are combined with active pharmaceutical ingredients (APIs) in pharmaceutical formulations to improve accessibility, mask taste, increase stability, improve bioavailability, alter drug release kinetics, and ensure patient safety and compliance. These excipients are crucial to the formulation, production, and distribution of pharmaceutical products even though they do not directly produce therapeutic effects.

Pharmaceutical Excipients Market Trends

• The expiration of drug patents can lead to increased demand for excipients. As drug patents expire, generic drug manufacturers enter the market and use different excipients to produce bioequivalent products. This can increase the utilization of excipients.
  
• Also, with the expiration of patents, pharmaceutical companies may reformulate their products to extend their market exclusivity or improve efficacy. Reformulation often involves testing various excipients to optimize drug delivery, stability, or other properties, thereby driving up demand for excipients.
  

• Furthermore, patent expiration stimulates R&D efforts by both pharmaceutical and excipient manufacturers to innovate and develop new formulations or improve existing ones. This R&D activity can drive demand for excipients as companies seek novel solutions to remain competitive. Thus, aforementioned factors are anticipated to accelerate the market growth.
  

Pharmaceutical Excipients Market Analysis

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Based on the product, the market is classified into organic chemicals, inorganic chemicals, and other chemicals. Organic chemicals are further classified into oleochemicals, carbohydrates, petrochemicals, proteins, and other organic chemicals. Inorganic chemicals are further segmented into calcium phosphate, metal oxides, halites, calcium carbonate, calcium sulphate, and other inorganic chemicals. The organic segment dominated the pharmaceutical excipients market with revenue of USD 4.4 billion in 2023.

• The demand for organic pharmaceutical excipients derived from natural sources such as plant-based polymers, sugars, and proteins is growing majorly owing to increasing consumer preference for natural and organic products.
  
• Additionally, pharmaceutical companies are increasingly seeking excipients that are biodegradable and environmentally sustainable. Organic chemicals that meet these criteria, such as cellulose derivatives and polysaccharides, are gaining popularity as excipients for novel drug delivery systems and formulations, thereby augmenting the market growth.
  

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Based on functionality, the pharmaceutical excipients market is classified into binder, suspension and viscosity agents, glidants, preservatives, filler & diluent, lubricant, emulsifier, disintegrant, and other functionalities. The binder segment held the highest market share of 18.7% in 2023.

• Binder excipients are utilized to serve as an adhesive that binds together granules, powders, and other dry ingredients, thus imparting mechanical strength to the final dosage form. They play a crucial role in providing the desired shape to capsules or tablets and preventing the separation of active pharmaceutical ingredients from other excipients like lubricants, fillers, and disintegrants. Few of the commonly used binders include starch, gelatin, polyvinylpyrrolidone (PVP), and hydroxypropyl methylcellulose (HPMC).
  
• Furthermore, the segment is expected to witness significant growth in the forecast period owing to escalating demand for biopharmaceutical and pharmaceutical drugs, advancements in drug delivery technologies such as multi-particulate systems and controlled-release dosage forms, and active participation of key market players in introducing high-quality binder. Such aforementioned factor is set to spur the market growth.
  

Based on formulation, the pharmaceutical excipients market is classified into oral, liquid, parenteral, topical, and other formulations. The oral formulation segment is poised to exhibit 8.5% CAGR from 2024 to 2032.

• Oral forms such as tablets and capsules are convenient for patients to take and ensure accurate dosing. Excipients play a crucial role in formulating solid dosage forms that are easy to swallow and provide controlled release of the active pharmaceutical ingredient (API), thereby improving patient compliance.
  
• Also, oral forms offer better stability and longer shelf life compared to liquid or semi-solid formulations. This is crucial for pharmaceutical manufacturers in terms of storage, distribution, and ensuring the efficacy of the drug over an extended period. Therefore, owing to several advantages, demand for solid dosage form is anticipated to grow in analysis timeframe.
  

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The North America secured a substantial revenue share of 42.7% in the pharmaceutical excipients market and is expected to dominate throughout the forecast period.

• The factors such as the rapidly expanding pharmaceutical sector, rising demand for functional excipients, the presence of prominent competitors in the region, and technological improvements will contribute significantly to the market's growth over the projection period.
  
• Moreover, technologically enhanced, or superior excipients also drives market expansion. For instance, in May 2022, Lubrizol Life Science (LLS) Health introduced Apisolex in the U.S. market. It is a new solubility-enhancing excipient for parenteral medication formulations. This approach overcomes solubility barriers that cannot be addressed by conventional excipients or production methods.
  

Pharmaceutical Excipients Market Share

The competitive landscape of the pharmaceutical excipients industry is characterized by the presence of established pharmaceutical companies vying for market share. Key players are engaging in strategic initiatives such as mergers, acquisitions, and partnerships to strengthen their product portfolios. The companies are actively adopting a multi-pronged approaches to address the rising demand for effective pharmaceutical excipients.

Pharmaceutical Excipients Market Companies

Prominent players operating in the pharmaceutical excipients industry are as mentioned below:

• Air Liquide S.A.
• Archer Daniels Midland Company
• Ashland
• Associated British Foods PLC
• BASF SE
• Croda International PLC
• Evonik Industries AG
• Innophos
• Kerry Group plc
• Merck KGaA
  

Pharmaceutical Excipients Industry News

• In June 2023, Ashland introduced Polyplasdone Plus, a co-processed multifunctional direct compression superdisintegrant that includes a glidant and lubricant. The product has developed to simplify development processes and save time by providing enhanced lubrication and powder flow during pharmaceutical manufacture. Therefore, the launch of this innovative formulation helped company to reduced two steps of manufacturing, and enhanced process and tablet quality.
  
• In January 2022, BASF Pharma Solutions announced the U.S. Food and Drug Administration (FDA) Center for Drug Evaluation and Research (CDER), Office of New Drugs, had accepted their excipient, Soluplus, into the FDA’s Pilot Program for the Review of Innovation and Modernization of Excipients (PRIME). This program aimed to reduce the risk and burden for pharmaceutical companies wishing to utilize novel excipients for modern drug development challenges as well as to provide a pathway for excipient manufacturers. This strategy enhanced company’s overall capability in excipient sector, thereby strengthening its market position.
  

The pharmaceutical excipients market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2021 – 2032 for the following segments:

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Market, By Product

• Organic chemicals
  • Oleochemicals
    • Fatty alcohols
    • Mineral stearates
    • Glycerin
    • Other oleochemicals
  • Carbohydrates
    • Sugar
      • Actual sugar
      • Sugar alcohols
      • Artificial sweeteners
    • Cellulose
      • Microcrystalline cellulose
      • Cellulose ethers
      • CMC & croscarmellose sodium
      • Cellulose esters
    • Starch
      • Modified starch
      • Dried starch
      • Converted starch
  • Petrochemicals
    • Glycols
    • Minerals hydrocarbons
    • Acrylic polymers
    • Other petrochemicals
  • Proteins
  • Other organic chemicals
• Inorganic chemicals
  • Calcium phosphate
  • Metal oxides
  • Halites
  • Calcium carbonate
  • Calcium sulfate
  • Other inorganic chemicals
• Other products

Market, By Functionality

• Binder
• Suspension and viscosity agents
• Glidants
• Preservatives
• Filler & diluent
• Lubricant
• Emulsifier
• Disintegrant
• Other functionalities

Market, By Formulation

• Oral
  • Tablet
  • Capsule
    • Hard gelatin
    • Soft gelatin
  • Other oral formulations
• Liquid
• Parenteral
• Topical
• Other formulations

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East and Africa
  • South Africa
  • Saudi Arabia
  • Rest of Middle East and Africa