Global pharmaceutical solvent market is set to gain significant momentum over 2021-2027. This is due to the increasing use of the compounds in the crystallization, processing, extraction, and cleaning of purified active pharmaceutical substances. Likewise, the strong focus on the adoption of advanced technologies to increase pharmaceutical manufacturing flexibility and cater to the drug shortage issues will further drive the demand for pharma solvents.
Solvent refers to a liquid substance capable of dispersing or dissolving one or more substances. These liquids are considered an indispensable building block in the pharmaceutical industry, owing to varied advantages such as no sensitivity to oxidation and high stability in storage for a longer period. In addition, pharmaceutical solvents act as a reaction medium and provide molecules for drug manufacturing.
Significant increase in pharma exports and the rapid production of innovative generic drugs in emerging countries are the key trends expediting the pharmaceutical solvent market share across developing regions. According to officials from the Indian commerce ministry, pharmaceutical exports from the country were projected to surpass nearly $23 billion for the first time in FY2021. Increasing elderly population and the subsequent escalation of the healthcare sector, particularly in the U.S., will also push the industry demand in the forthcoming years. However, rising concerns regarding the toxicity of solvents, causing breathing problems and temporary nervous system symptoms among humans, may limit substance usage to a certain extent.
With regards to application, the global pharmaceutical solvent market from the chemical applications segment is poised to depict a commendable growth rate through 2027. This can be credited to the high contributions of solvents to the cradle-to-gate life cycle of fine chemical and agrochemical products.
The North America pharmaceutical solvent industry will garner considerable revenue by 2027, on account of the robust presence of medical device manufacturers in the region. Moreover, increased spending on the research and development of pharmaceutical products will also stimulate the deployment of medical solvents in the region, predominantly in the U.S.
Major pharmaceutical solvent industry players include Parchem Fine & Specialty Chemicals, Brenntag (DB US Holding Corporation), Yip's Chemical Holdings Limited, Merck KGaA, Procter & Gamble Chemicals, Alfa Aesar (Thermo Fisher Scientific), Clariant AG, The Dow Chemical Company, Sigma-Aldrich Company LLC, Avantor Performance Materials, and BASF SE, among others. Strategic mergers and acquisitions and business expansions are among the key initiatives being employed by these firms to broaden their stance in the global market.
For instance, in August 2021, BASF and SINOPEC announced the expansion of their Verbund site operated by a 50-50 joint venture, BASF-YPC Co., Ltd. This announcement was geared towards increasing the production capacities of compounds such as propionic acid, which is used in the manufacturing of pharmaceuticals and solvents.
The medical community has been witnessing drug shortage issues for decades; however, these concerns have been exacerbated worldwide by the ongoing coronavirus pandemic. In Europe, the pandemic severely impacted trade, logistics, and manufacturing, with significant challenges in matching the medicine supply to fluctuating demand. Drug export restrictions also became a major concern, potentially hindering the consumption of pharmaceutical-grade solvents for use in drug manufacturing.
In the face of drug shortages, pharmacy personnel has responded by initiating various local policy changes, with an aim to bridge the shortage gaps through effective action plans. The implementation of protocols to save stocks, along with the increasing need for drugs to treat COVID-19 symptoms, may help the pharmaceutical solvent industry regain traction over the foreseeable future.