Pharmaceutical Excipients - Market Insights, Competitive Landscape, and Market Forecast - 2030

Pharmaceutical Excipients Market by Type (Organic Chemicals, Inorganic Chemicals, and Others), Application (Oral, Parenteral, and Topical), Functionality (Fillers, Binders, Coatings and Colorants, Flavouring Agents, Preservatives, and Others), and Geography (North America, Europe, Asia-Pacific, and Rest of the World) is expected to advance at a respectable CAGR forecast till 2030 due to the rising demand for pharmaceutical manufacturing owing to investments and the latest innovations in pharmaceutical research and development activities across the globe.

The Pharmaceutical Excipients market was valued at USD 9.18 billion in 2023, growing at a CAGR of 6.43% during the forecast period from 2024 to 2030 to reach USD 14.12 billion by 2030. The Pharmaceutical Excipients market is growing significantly due to the rising demand for pharmaceutical manufacturing owing to investments, the latest innovations in the research and development of pharmaceuticals, and the growing number of product development activities for excipients among biotech companies and pharmaceutical firms, among others that are expected to drive the Pharmaceutical Excipients market from 2024 to 2030.

Pharmaceutical Excipients Market Dynamics:

In recent years, the increasing investments in the pharmaceutical sector is expected to spur the market growth for pharmaceutical excipients, which is expected to increase their demand in the coming years.

For example, as per data by the Congressional Budget Office (2021), spending on Research and Development and the introduction of new drugs in the US had substantially increased in the past two decades. The private investment in drug R&D among member firms of the Pharmaceutical Research and Manufacturers of America (PhRMA), was about USD 83 billion in 2019, up from about USD 5 billion in 1980 and USD 38 billion in 2000.

Also, in major regions such as Europe, there is a strong and competitive pharmaceutical industrial market. As per data by the European Commission (2020), medicine producers made the largest contribution of Euros 37 billion for research investment in 2019.

Presence of authorities such as the European Health Emergency Response Authority (HERA) helps in the strengthening the overall healthcare infrastructure through investments in research, manufacturing, and development of drugs including excipients.

Figures by the Atradius Industry Trends Pharmceuticals (2022) highlight that in major developing countries in the Asia-Pacific such as India, the pandemic spurred the Indian drug producers to crucially enhance their R&D spending. Moreover, due to the supply chain disruption in 2020, Indian drug producers are keen on increasing the local production of Active Pharmaceutical Ingredients (APIs) and pharmaceutical excipients.

Also as per data by the China Embassy Government (2022), China's investment on research and development (R&D) is growing rapidly. The country's spending on R&D climbed to 14.2 percent to 2.79 trillion RMB in 2021, according to preliminary estimates of the National Bureau of Statistics. Owing to the country's steady economic recovery and increasing innovation momentum, the country's R&D spending is expected to grow by more than seven percent every year.

The increasing investments in the pharmaceutical sector by the various countries shall propel the demand for more pharmaceutical manufacturing, thus ultimately driving the market for pharmaceutical excipients during the given forecast period from 2024 to 2030.

However, the risk of contamination and adverse reactions associated with excipients, and the high cost of development of novel excipients, among others may act as key constraints limiting the growth of the pharmaceutical excipients market.

Pharmaceutical Excipients Market Segment Analysis:

Pharmaceutical Excipients Market by Type (Organic Chemicals, Inorganic Chemicals, and Others), Application (Oral, Parenteral, and Topical), Functionality (Fillers, Binders, Coatings and Colorants, Flavouring Agents, Preservatives, and Others), and Geography (North America, Europe, Asia-Pacific, and Rest of the World)

In the functionality segment of the pharmaceutical excipients market, the binders category is expected to have a significant revenue share in the year 2023. The rapid growth of this product category can be attributed to the various applications of binders and the product development activities taking place in this category during the study period.

Pharmaceutical tableting relies heavily on binders. They are used to increase the cohesiveness and flexibility of the powder combination, hence increasing tablet processability and lowering the risk of tablet breakage during manufacturing.

Binders are added to tablet formulations to provide cohesiveness to powders, allowing the essential bonding to create granules, which when compacted form a compact mass known as a tablet. In other words, binders are required to achieve the tablet's "hardness". The pharmaceutical industry uses a wide range of binder excipients, including povidone, hydroxypropyl cellulose, microcrystalline cellulose, polyethylene glycol, gelatin, starch, carbomers, and sodium carboxymethyl cellulose, among others.

Binders are typically chosen based on prior experience, specific product requirements, or the preferences of individual scientists or manufacturing units. The fundamental criterion for selecting a binder is compatibility with other tablet components.

Additionally, the introduction of technologically improved and new products also propels the market for this category's growth. For example, in October 2021, Beneo introduced galenIQ 721, a filler binder that enhanced the flavor and stability of effervescent tablets and powders. It is a non-hygroscopic, water-soluble, and immediately compressible excipient, resulting in high content consistency and manufacturing efficiency in effervescent applications.

Therefore, owing to all the above-mentioned factors, the demand for binders upsurges, thereby the category is expected to witness considerable growth, thus contributing to the overall growth of the pharmaceutical excipients market during the forecast period.

North America is expected to dominate the overall Pharmaceutical Excipients market:

Among all the regions, North America is expected to dominate the pharmaceutical excipients market in the year 2023 and is expected to do the same during the forecast period. This can be attributed to the growing market for pharmaceuticals, increasing investments in the research and development sector for the pharmaceutical industry along with the product development activities taking place in North America.

According to data by the National Association of Manufacturers (2021), pharmaceutical manufacturing is primarily essential to America's health and well-being and to the success of their economy.

The source further stated that the pharmaceutical and medicine manufacturing generates nearly USD 339 billion in output, directly employing an estimated 267,000 workers in the United States and supporting nearly 1.9 million more jobs across the country.

In addition as per data by the Congressional Budget Office (2021), it found that the pharmaceutical industry devoted USD 83 billion to R&D expenditures in 2019. The expenditures covered a variety of activities, including discovering and testing new drugs, developing incremental innovations, and clinical testing for safety-monitoring purposes. The US pharmaceutical industry invests on average roughly three times more in R&D as a percentage of sales than all other manufacturing industries.

The growing pharmaceutical industry along with increasing investments in R&D would spur the market demand for pharmaceutical excipients to be used for manufacturing, presenting a conducive growth environment for the pharmaceutical excipients market in the forthcoming years.

Moreover, in January 2022, Lubrizol Life Science (LLS) Health, a global leader in accelerating success and innovation in pharmaceutical research, introduced Apisolex in the United States. 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.

Therefore, the interplay of all the aforementioned factors would drive the North American pharmaceutical excipients market during the forecast period.

Pharmaceutical Excipients Market key players:

Some of the key market players operating in the Pharmaceutical Excipients market include BASF SE, ADM, DuPont, Croda International PLC, Kerry, Roquette Freres, Ashland, Innophos, Associated British Foods PLC, The Lubrizol Corporation, Evonik Industries AG, Air Liquide, DSM, Merck KGaA, Eastman Chemical Company, Clariant, Clyzo, Inc., SPI Pharma, Lavina Pharmaceuticals Pvt. Ltd, Freund Corporation, and others.

Recent Developmental Activities in the Pharmaceutical Excipients Market:

• In November 2023, IFF's and BASF's Pharma Solutions divisions collaborated to bring IFF's leading product brands in pharmaceutical excipients to BASF's Virtual Pharma Assistant platform - ZoomLab(TM). The platform is a science-based digital technology developed to quickly and accurately forecast the appropriate excipients required for the production of new pharmaceutical formulations, thereby overcoming formulation problems. ZoomLab(TM), powered by BASF's unique technology, helps formulators accelerate formulation design by predicting the most effective excipients for a specific active pharmaceutical ingredient. It also allows customers to create adjustments, with a variety of substances to choose from, including IFF's well-known high-quality excipients.
• In October 2023, Clariant announced new additions to its portfolio of high-performing pharmaceutical ingredient solutions to support the evolution of safe and effective medicines. Clariant launched three new VitiPure(R) excipients allowing for a multitude of Active Pharmaceutical Ingredient (API) formulations and administration routes.
• In January 2022, DFE Pharma expanded its nutraceutical offering with the introduction of three starch-based excipients; namely Nutrofeli ST100, Nutrofeli ST200, and Nutrofeli ST300 that are naturally derived, versatile excipients that can be utilized as binders, fillers, and other uses for oral solid dosage forms while adhering to food and pharmaceutical guidelines.

Key Takeaways from the Pharmaceutical Excipients Market Report Study

• Market size analysis for current pharmaceutical excipients market size (2023), and market forecast for 6 years (2024 to 2030)
• Top key product/services developments, mergers, acquisitions, partnerships, and joint ventures happened for the last 3 years.
• Key companies dominating the pharmaceutical excipients market
• Various opportunities available for the other competitors in the pharmaceutical excipients market space
• What are the top-performing segments in 2023? How these segments will perform in 2030?
• Which are the top-performing regions and countries in the current pharmaceutical excipients market scenario?
• Which are the regions and countries where companies should have concentrated on opportunities for pharmaceutical excipients market growth in the coming future?

Target audience who can be benefited from this pharmaceutical excipients Market Report Study

• Pharmaceutical excipients product providers
• Research organizations and consulting companies
• Pharmaceutical excipients-related organizations, associations, forums, and other alliances
• Government and corporate offices
• Start-up companies, venture capitalists, and private equity firms
• Distributors and traders dealing in pharmaceutical excipients
• Various end-users who want to know more about the pharmaceutical excipients market and the latest developments in the pharmaceutical excipients market

Frequently Asked Questions for the Pharmaceutical Excipients Market:

1. What are Pharmaceutical Excipients?

Pharmaceutical excipients are compounds other than the active pharmaceutical ingredient (API) that have been thoroughly tested for safety and are purposefully used in a medication delivery system.

2. What is the market for Pharmaceutical Excipients?

The Pharmaceutical Excipients market was valued at USD 9.18 billion in 2023, growing at a CAGR of 6.43% during the forecast period from 2024 to 2030 to reach USD 14.12 billion by 2030.

3. What are the drivers for the Pharmaceutical Excipients market?

The Pharmaceutical Excipients market is growing significantly due to the rising demand for pharmaceutical manufacturing owing to investments, the latest innovations in the research and development of pharmaceuticals, and the growing number of product development activities for excipients among biotech companies and pharmaceutical firms, among others that are expected to drive the pharmaceutical excipients market from 2024 to 2030.

4. Who are the key players operating in the Pharmaceutical Excipients market?

Some of the key market players operating in the Pharmaceutical Excipients market include BASF SE, ADM, DuPont, Croda International PLC, Kerry, Roquette Freres, Ashland, Innophos, Associated British Foods PLC, The Lubrizol Corporation, Evonik Industries AG, Air Liquide, DSM, Merck KGaA, Eastman Chemical Company, Clariant, Clyzo, Inc., SPI Pharma, Lavina Pharmaceuticals Pvt. Ltd, Freund Corporation, and others.

5. Which region has the highest share in the Pharmaceutical Excipients market?

Among all the regions, North America is estimated to hold a significant revenue share in the Pharmaceutical Excipients market. This can be attributed to the growing market for pharmaceuticals, increasing investments in the research and development sector for the pharmaceutical industry along with the product development activities taking place in North America.