PUBLISHER: The Business Research Company | PRODUCT CODE: 1664262
PUBLISHER: The Business Research Company | PRODUCT CODE: 1664262
Drug formulation refers to the process of combining various chemical and biological ingredients, including the active medicine, to produce a finalized pharmaceutical product. This process is crucial for modifying and optimizing drugs during the preclinical stage and initial research.
The primary types of dosage forms for drug formulations include oral formulations, parenteral formulations, topical formulations, and inhalation formulations. Oral formulations involve the development and manufacturing of pharmaceuticals intended for oral delivery. They come in various forms such as tablets, capsules, injectables, sprays, suspensions, powders, and others. These formulations are utilized in treating various conditions such as cardiovascular diseases (CVDs), pain, diabetes, cancer, respiratory diseases, among others. End-users of these formulations include big pharmaceutical companies, small and medium enterprises, as well as biotech companies.
The drug formulation market research report is one of a series of new reports from The Business Research Company that provides drug formulation market statistics, including drug formulation industry global market size, regional shares, competitors with a drug formulation market share, detailed drug formulation market segments, market trends and opportunities, and any further data you may need to thrive in the drug formulation industry. This drug formulation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The drug formulation market size has grown strongly in recent years. It will grow from $1908.89 billion in 2024 to $2064.68 billion in 2025 at a compound annual growth rate (CAGR) of 8.2%. The growth in the historic period can be attributed to biopharmaceutical innovation, patient-centric drug development, personalized medicine, regulatory support for orphan drugs, increased R&D investment.
The drug formulation market size is expected to see strong growth in the next few years. It will grow to $2948.64 billion in 2029 at a compound annual growth rate (CAGR) of 9.3%. The growth in the forecast period can be attributed to advancements in 3d printing, focus on pediatric formulations, biological drug delivery systems, green chemistry in formulation, integration of artificial intelligence (ai). Major trends in the forecast period include biopharmaceuticals and biologics dominance, advanced drug delivery systems, personalized medicine and individualized formulations, incorporation of nanotechnology, lifecycle management and reformulation strategies.
The increasing prevalence of chronic diseases is anticipated to drive the expansion of the drug formulation market. Chronic diseases persist for a year or longer, demanding continual medical attention and often restricting daily activities. Drug formulation stands as a potential solution to alleviate the prevalence of chronic ailments, employing multiple drug delivery methods to optimize therapeutic effectiveness while minimizing adverse effects. As per a report from the National Institutes of Health (NIH) in September 2022, the United States expects a 99.5% increase in the number of individuals aged 50 and older with at least one chronic illness, rising from 71.52 million in 2020 to an estimated 142.66 million by 2050. Moreover, the count of individuals with multimorbidity is projected to rise by 91.16%, from 7.8304 million in 2020 to 14.968 million in 2050. Therefore, the growing prevalence of chronic diseases fuels the expansion of the drug formulation market.
The escalating adoption of personalized medicine is poised to drive the growth of the drug formulation market. Personalized medicine represents an innovative healthcare approach tailoring medical treatments and interventions based on individual patient characteristics. This approach necessitates customized drug formulations to optimize efficacy and safety for each patient, considering individual traits such as genetics and biomarkers. The impact includes tailored treatment plans, formulations integrating genomic insights, enhanced drug responses, and personalized therapies for rare diseases. For instance, according to the Personalized Medicine Coalition in 2022, the Food and Drug Administration's Center for Drug Evaluation and Research (CDER) approved 37 new molecular entities (NMEs), with approximately 34% (12 of them) classified as personalized medicines by the Personalized Medicine Coalition (PMC). Thus, the increasing adoption of personalized medicine is a key driver of growth in the drug formulation market.
Technological advancements emerge as a prominent trend fueling the drug formulation market. Key industry players are directing their focus toward introducing innovative technologies to fortify their market positions. For instance, in June 2022, Merck & Co., Inc., a US-based pharmaceutical company, unveiled the Merck Digital Sciences Studio (MDSS), aiming to develop innovative technologies for drug research and development. Leveraging Azure Cloud's robust computing and Merck's expertise, MDSS collaboratively accelerates the creation of novel digital technologies. The initiative, a collaboration between Merck and the New Jersey Innovation Institute (NJII), has secured investments from the Merck Global Health Innovation Fund, Northpond Ventures, and McKesson Ventures. Microsoft will extend technological support to startup companies involved in the initiative.
Leading companies in the drug formulation market are focusing on the development of new fixed-dose combination drugs for type 2 diabetes to enhance their competitive advantage. A Fixed Dose Combination (FDC) refers to a pharmaceutical formulation that includes two or more active ingredients combined in a specific ratio within a single dosage form. For example, in October 2023, Glenmark Pharmaceuticals Limited, an India-based pharmaceutical firm, launched the first triple-drug fixed-dose combination under the brand name Zita DM. This formulation contains the DPP4 inhibitor Teneligliptin (20 mg), the SGLT2 inhibitor Dapagliflozin (10 mg), and Metformin SR (500 mg/1000 mg) in a fixed dose. It is prescribed to be taken once daily to enhance glycemic control in patients with type 2 diabetes.
In October 2022, Pfizer Inc., a US-based pharmaceutical and biotechnology firm, acquired Biohaven Pharmaceutical Holding Company Ltd. in a deal valued at $11.6 billion. This acquisition adds a portfolio of promising calcitonin gene-related peptide (CGRP) receptor antagonists to Pfizer's offerings. It enhances the potential to provide new treatment options for patients suffering from migraines, a condition that affects over 1 billion people worldwide. Biohaven Pharmaceutical Holding Company Ltd. is a US-based organization dedicated to the discovery, development, and commercialization of transformative treatments and medications in key therapeutic areas.
Major companies operating in the drug formulation market include AstraZeneca PLC, The Bristol-Myers Squibb Company, Eli Lilly and Company, Gilead Sciences Inc., Merck & Co. Inc., Novartis AG, Pfizer Inc., AbbVie Inc., C.H. Boehringer Sohn AG & Co. KG, F. Hoffmann-La Roche AG, Johnson & Johnson, Bayer AG, Teva Pharmaceutical Industries Ltd., Sanofi S.A., GlaxoSmithKline plc, Novo Nordisk A/S, Amgen Inc., Viatris Inc., Sandoz International GmbH, Takeda Pharmaceutical Company Limited, Sun Pharmaceutical Industries Ltd., Dr. Reddy's Laboratories Ltd., Cipla Ltd., Lupin Limited, Torrent Pharmaceuticals Limited, Jubilant Life Sciences Limited, Cadila Healthcare Limited, Glenmark Pharmaceuticals Ltd., Wockhardt Ltd., Hikma Pharmaceuticals plc
North America was the largest region in the drug formulation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the drug formulation market report during the forecast period. The regions covered in the drug formulation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the drug formulation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The drug formulation market includes revenues earned by entities by providing formulation optimization, process optimization, and scale-up services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Drug Formulation Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on drug formulation market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for drug formulation ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The drug formulation market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.