Pharmaceutical Excipients Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 9.94 Billion |
| Market Size (2029) | USD 14.56 Billion |
| CAGR (2024 - 2029) | 7.93 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Pharmaceutical Excipients Market Analysis
The Pharmaceutical Excipients Market size is estimated at USD 9.94 billion in 2024, and is expected to reach USD 14.56 billion by 2029, growing at a CAGR of 7.93% during the forecast period (2024-2029).
The COVID-19 pandemic had a significant impact on the pharmaceutical industry. Initially, pharmaceutical excipient companies faced substantial challenges, such as a low supply of medical items and a strict lockdown imposed by the government worldwide that impacted the global supply chain of raw materials from manufacturing hubs such as India and China.
However, the increased focus on developing therapeutics for COVID-19 significantly impacted the market growth. For instance, in February 2021, Evonik signed a strategic partnership with BioNTech on the COVID-19 vaccine. Evonik also planned to invest in the short-term expansion of its specialty lipid production, an excipient essentially required to develop mRNA-based COVID-19 vaccines. Thus, Evonik made an important contribution to the Pfizer BioNTech COVID-19 vaccine by supplying lipid excipients to speed up the COVID-19 vaccine development process. The COVID-19 pandemic initially had a positive impact on the market; however, as the pandemic has subsided, the market has lost some traction, and thus the market is expected to grow steadily during the forecast period.
The major factors responsible for the growth of the pharmaceutical excipients market include the increasing demand for functional excipients, recent patent expiries driving the need for pharmaceutical excipients, and rapid advancements in nanotechnology.
The growing pharmaceutical industry and increasing pharmaceutical production also propel the market's growth. For instance, according to the European Federation of Pharmaceutical Industries and Associations, 2022 report, the production of pharmaceuticals in the European region increased by 4.6% to EUR 300,000 million in 2021. Thus, such an increase in production value corresponds to an increase in the volume of production of pharmaceuticals, in turn boosting the demand for pharmaceutical excipients.
Furthermore, the expansion of facilities by the market players to develop high-performance ingredients is also expected to propel the market's growth. For instance, in July 2021, Croda International Plc opened a new high-purity excipients facility in Mill Hall, London. The investment led to Croda's commitment to developing innovative pharmaceutical excipients for use in smart science. Moreover, the increase in the launch of new products also contributes to the market's growth. For instance, in July 2021, DFE Pharma launched a new addition to its broad excipient portfolio, Pharmacel sMCC 90. It is silicified microcrystalline cellulose (MCC).
Thus, the market is expected to project growth over the forecast period due to the abovementioned factors. However, the lack of a proper approval process, adverse reactions of excipients, and contamination in formulations may hinder the market's growth.
Pharmaceutical Excipients Market Trends
Binders Segment is Expected to Show a Significant Growth Over the Forecast Period
Binder excipients are formulated to act as an adhesive to bind together granules, powders, and other dry ingredients to provide mechanical strength to the finished dosage form. Binders such as starch, gelatin, polyvinylpyrrolidone (PVD), and hydroxypropyl methylcellulose (HPMC) also provide the desired shape to capsules or tablets and prevent the separation of active pharmaceutical ingredients from other excipients such as fillers, lubricants, disintegrants, among others.
The binders segment is expected to project significant growth over the forecast period owing to increasing demand for pharmaceutical and biopharmaceutical drugs, advancements in drug delivery technologies such as multi-particulate systems, controlled-release dosage forms, and the active participation of prominent players in the launch of high-quality binders.
The pharmaceutical industry has gradually recognized binders to be able to assist active pharmaceutical ingredients in achieving better functionality and providing a competitive advantage. Additionally, with the increase in the production of pharmaceuticals, the requirement for binders is also expected to increase, propelling the segment's growth. For instance, according to the India Brand Equity Foundation (IBEF) 2022 report, globally, India ranked third for pharmaceutical production by volume and 14th by value in 2022. Therefore, India's strong position in the pharmaceutical industry by volume and value is projected to drive the segment's growth by increasing demand for binder and offering binders at competitive prices, making them an attractive option for global pharmaceutical companies.
In addition, the launch of technologically advanced and innovative products is propelling the growth of the market segment. For instance, in October 2021, Beneo launched galenIQ 721. It is a filler binder that improves the taste and stability of effervescent tablets and powders. It is a non-hygroscopic, water-soluble, and directly compressible excipient and thus offers high-content uniformity and production efficiency for effervescent applications. Moreover, the strategic initiatives taken by the market players also contribute to the growth of the market segment. For instance, in January 2022, DFE Pharma expanded its nutraceutical portfolio with the launch of three starch-based excipients, namely Nutroféli ST100 (native starch), Nutroféli ST200 (partially pregelatinized starch), and Nutroféli ST300 (completely gelatinized starch). These are naturally sourced, multifunctional excipients that can be used as binders, fillers, and other applications for oral solid dosage forms and conform to food and pharma monographs.
Thus, the market segment is expected to show significant growth over the forecast period due to the abovementioned factors.
North America is Expected to Witness Significant Market Share over the Forecast Period
North America holds a significant share in the pharmaceutical excipients market and is expected to follow a similar trend over the forecast period. Factors such as the fast-growing pharmaceutical industry, increasing demand for functional excipients, the presence of major players in the region, and advancements in technology will majorly drive the growth of the market over the forecast period.
Launching technologically advanced or superior excipients also propels the market's growth. For instance, in May 2022, Lubrizol Life Science (LLS) Health, one of the global leaders in accelerating success and innovation in pharmaceutical development, launched Apisolex in the United States. It is a novel solubility-enhancing excipient for use in parenteral drug products. This technology overcomes solubility hurdles that cannot be resolved by existing excipients or manufacturing techniques.
Similarly, in November 2021, Roquette launched its ready-to-use, pharmaceutical-grade solution for vegetarian soft gel capsule formulation, LYCAGEL Premix. It was developed based on Roquette's market-first pea starch technology called lycagel. The new soft gel blend provides manufacturers with an easy-to-use and convenient solution that ensures fast and reproducible scale-up for nutraceutical and pharmaceutical applications. Such product launches bring more innovative products to the market, which fuels the growth of the market.
Thus, the factors above are anticipated to bolster the market's growth in the North American region.
Pharmaceutical Excipients Industry Overview
The pharmaceutical excipients market is fragmented in nature. Also, the key market players are involved in various strategic activities such as product launches, collaborations, and agreements to increase their presence and product availability across the globe. Some of the market players are BASF SE, Croda International PLC, DuPont, Evonik Industries AG, Innophos, Kerry, Roquette Frères, and others.
Pharmaceutical Excipients Market Leaders
-
Lubrizol Corporation
-
Archer Daniels Midland Company
-
DuPont
-
BASF
-
Evonik Industries AG (RAG-Stiftung)
*Disclaimer: Major Players sorted in no particular order
Pharmaceutical Excipients Market News
- October 2023: Clariant, a sustainability-focused specialty chemicals company, launched its portfolio of high-performing pharmaceutical ingredient solutions to support the evolution of safe and effective medicines. Also, Clariant Health Care expanded its range of functional excipients to solve active pharmaceutical ingredient (API) delivery & bioavailability challenges.
- September 2023: Roquette, a company focused on plant-based ingredients and a provider of pharmaceutical and nutraceutical excipients, launched three new excipient grades to its portfolio of solutions for moisture-sensitive active pharmaceutical and nutraceutical ingredients.
Pharmaceutical Excipients Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Demand for Functionality Excipients
4.2.2 Recent Patents Expiries Driving the Demand for Pharmaceutical Excipients
4.2.3 Rapid Advancements in Nanotechnology
4.3 Market Restraints
4.3.1 Lack of Proper Approval Process
4.3.2 Adverse Reactions of Excipients and Contamination in Formulations
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value - USD)
5.1 By Product
5.1.1 Inorganic Chemicals
5.1.2 Organic Chemicals
5.2 By Functionality
5.2.1 Fillers and Diluents
5.2.2 Binders
5.2.3 Suspension and Viscosity Agents
5.2.4 Coatings
5.2.5 Flavoring Agents
5.2.6 Disintegrants
5.2.7 Colorants
5.2.8 Preservatives
5.2.9 Other Functionalities
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 France
5.3.2.4 Italy
5.3.2.5 Spain
5.3.2.6 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 Japan
5.3.3.3 India
5.3.3.4 Australia
5.3.3.5 South Korea
5.3.3.6 Rest of Asia-Pacific
5.3.4 Middle East and Africa
5.3.4.1 GCC
5.3.4.2 South Africa
5.3.4.3 Rest of Middle East and Africa
5.3.5 South America
5.3.5.1 Brazil
5.3.5.2 Argentina
5.3.5.3 Rest of South America
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Air Liquide group
6.1.2 Archer Daniels Midland Company
6.1.3 Ashland
6.1.4 Associated British Foods PLC
6.1.5 BASF SE
6.1.6 Croda International PLC
6.1.7 DuPont
6.1.8 Evonik Industries AG (RAG-Stiftung)
6.1.9 Innophos
6.1.10 Kerry
6.1.11 Roquette Frères
6.1.12 The Lubrizol Corporation
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Pharmaceutical Excipients Industry Segmentation
As per the scope of the report, pharmaceutical excipients are the pharmacologically inactive substances in the formulation that aid in manufacturing the finished pharmaceutical product. They also help transport the active pharmaceutical substance to the site of action in the body. The pharmaceutical excipients market is segmented by product (inorganic chemicals and organic chemicals), functionality (fillers and diluents, binders, suspension, and viscosity agents, coatings, flavoring agents, disintegrants, colorants, preservatives, and other functionalities), and geography (North America, Europe, Asia-Pacific, Middle East and Africa, and South America). The report also covers the estimated market sizes and trends for 17 countries across major regions globally. The report offers the value (in USD) for the above segments.
| By Product | |
| Inorganic Chemicals | |
| Organic Chemicals |
| By Functionality | |
| Fillers and Diluents | |
| Binders | |
| Suspension and Viscosity Agents | |
| Coatings | |
| Flavoring Agents | |
| Disintegrants | |
| Colorants | |
| Preservatives | |
| Other Functionalities |
| Geography | ||||||||
| ||||||||
| ||||||||
| ||||||||
| ||||||||
|
Pharmaceutical Excipients Market Research FAQs
How big is the Pharmaceutical Excipients Market?
The Pharmaceutical Excipients Market size is expected to reach USD 9.94 billion in 2024 and grow at a CAGR of 7.93% to reach USD 14.56 billion by 2029.
What is the current Pharmaceutical Excipients Market size?
In 2024, the Pharmaceutical Excipients Market size is expected to reach USD 9.94 billion.
Who are the key players in Pharmaceutical Excipients Market?
Lubrizol Corporation, Archer Daniels Midland Company, DuPont, BASF and Evonik Industries AG (RAG-Stiftung) are the major companies operating in the Pharmaceutical Excipients Market.
Which is the fastest growing region in Pharmaceutical Excipients Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Pharmaceutical Excipients Market?
In 2024, the North America accounts for the largest market share in Pharmaceutical Excipients Market.
What years does this Pharmaceutical Excipients Market cover, and what was the market size in 2023?
In 2023, the Pharmaceutical Excipients Market size was estimated at USD 9.21 billion. The report covers the Pharmaceutical Excipients Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Pharmaceutical Excipients Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the regulatory considerations for Pharmaceutical Excipient manufacturers?
The regulatory considerations for Pharmaceutical Excipient manufacturers are a) Compliance with safety standards b) Quality control measures
Pharmaceutical Excipient Industry Report
The global pharmaceutical excipients market is experiencing a robust growth trajectory, anticipated to expand significantly in the coming years. This surge is attributed to the escalating demand for generic drugs, alongside an increase in chronic disease cases worldwide, necessitating advanced medical interventions. Innovations within the sector, notably the development of multifunctional and novel excipients, are enhancing drug formulation efficiency and functionality, thus driving market progression. However, high development costs and stringent regulatory landscapes present challenges to market expansion. Despite these hurdles, the market sees promising opportunities in the elevation of functional excipients and the growing inclination towards organic and inorganic chemical-based excipients for diverse pharmaceutical applications. With oral formulations dominating demand and North America leading the market share, the pharmaceutical excipients sector is poised for significant advancements, bolstered by increasing research and strategic initiatives by key market players to cater to the evolving pharmaceutical landscape. For detailed insights, Mordor Intelligence™ Industry Reports provide comprehensive analysis, including market share, size, revenue growth rate, and a forecast outlook, available as a free report PDF download.
