Global Pharmaceutical Excipients Market - 2022-2029

Market Overview

Pharmaceutical Excipients Market was valued at USD XX million in 2021. It is forecasted to reach USD XX million by 2029, growing at a CAGR of 5.5 % during the forecast period (2022-2029).

Pharmaceutical excipients are harmless compounds used in the production process used in the dosage form of a pharmaceutical product but are not pharmacologically active components. Excipients are often used in drug formulation to provide long-term stabilization, bulk up stable formulations, and aid absorption. They often improve the product's overall protection or reliability during storage or use. Pharmaceutical excipients are being driven by factors such as the growing pharmaceutical industry, advances in functional excipients, the introduction of orphan drugs, and the penetration of biopharmaceuticals.

Market Dynamics: The rise in demand for generic drugs drives market growth.

Over the last decade, the generics sector has had a phenomenal streak, with businesses earning above-average shareholder returns. Generic products are generic versions of branded drugs with the same dosage type, weight, route of delivery, and cost. According to the India Brand Equity Foundation, India is a rising player in the global pharmaceutical sector. India is one of the world's leading generic medication suppliers, accounting for 20% of volume worldwide and supplying about 60% of the global vaccination demand. The Indian pharmaceutical sector is continuously growing at around US$ 42 billion worldwide. For instance, in August 2021, the Indian pharmaceutical market increased by 17.7% annually, up from 13.7% in July 2020. It is the 12th largest exporter of medical goods in the world. Indian drugs are exported to more than 200 countries worldwide, with the US being the key market. Generic drugs account for 20% of the global export volume, making the country the largest provider of generic medicines globally. Indian drug & pharmaceutical exports stood at US$ 24.60 billion in FY22 and US$ 24.44 billion in FY21.

However, regulatory hurdles restrict the development of novel pharmaceutical excipients. The lack of independent rules for excipient manufacturing and clearance is deterring R&D projects involving novel excipients. In the current regulatory environment, if a new drug application (NDA) fails, the excipient still fails, even if the failure is not attributed to the excipient. Furthermore, the evidence from the unsuccessful excipient's clinical trials was useless. The drug and the excipient maker suffer significant financial losses due to this. The cost and time required to produce novel excipients when adhering to regulatory requirements are prohibitively expensive for manufacturers, reducing the likelihood of a novel excipient being accepted.

Market Segmentation: The organic segment is projected to be the dominant segment in the market during the forecast period.

Based on the Product, the pharmaceutical excipients market has been classified into Organic, Inorganic and Others.

Organic dominated the global market in 2019, owing to the wide usage of organic in the majority of pharmaceutical formulations available in the pharmaceutical market. At the same time, organic is expected to present considerable growth in the near future. Natural excipients are primarily used in oral formulations as binders and fillers, which aid segmental growth during the forecast period.

Pharmaceutical excipients are segmented based on formulation, which includes oral, parenteral, topical and others.

The oral segment held a significant market share in the forecast period as oral formulations are the most common route of drug delivery, which supports the segment growth during the forecast period. Moreover, the Topical is expected to project a considerable CAGR during the forecast period. Strong assimilation of topical excipients with liquid APIs and improved patient compliance due to sensorial effects drive this segment's development.

Geographical Penetration: Europe is the dominating region during the forecast period.

Based on geography, the study analyzes the pharmaceutical excipients market in the global market, including North America, Europe, Asia-Pacific, South America, and the Middle East & Africa.

Europe held a dominant position in the global pharmaceutical excipients market in 2021. Excipient consumption in the region is high due to the emergence of various pharmaceutical behemoths with massive manufacturing capacities. The increased demand for novel excipients is also due to the increasing reliance on superior pharmaceutical drugs, generics, and biosimilars. Moreover, Europe is expected to represent significant growth in terms of value during the forecast period.

The pharmaceutical excipients market for the Asia Pacific is expected to observe rapid growth over the forecast period, backed by the large population base, especially in India and China. Moreover, the developing healthcare facilities, large number of generic manufacturers and rise in government initiatives and specialist communities are expected to augment the growth of the Asia Pacific pharmaceutical excipients market.

Competitive Landscape:

The Pharmaceutical Excipients market is highly competitive, owing to the presence of big medical companies. The key Pharmaceutical Excipients players which are contributing to the growth of the global market include DuPont de Nemours Inc, Roquette Feres, Ashland Global Holdings Inc.., BASF SE., Evonik Industries AG., Associated British Foods plc, Archer Daniels Midland Company, Lubrizol Corporation, Croda International, Innophos Holdings, among others. The major players are adopting new Product launches and expansion strategies for global growth in the Pharmaceutical Excipients market. In April 2022, Ashland expands its distribution deal with Univar for pharma ingredients. Through this agreement, Univar Solutions customers in Brazil and Mexico have access to Ashland's binders and disintegrants for solid dosage forms, matrix formers for modulated release drugs and coatings for regular and modulated release solid dosage forms. This agreement combines the strengths and offerings of two sustainability-focused companies delivering science-based pharmaceutical solutions in Latin America and globally. In December 2021, Roquette, a global leader in plant-based ingredients and a leading provider of naturally-derived pharmaceutical excipients, announced its plan to open a new Innovation Center in the US to further the advancement of prescription drugs. In February 2022, Azelis strengthened its pharmaceutical presence in India by expanding its partnership with Roquette, a leading provider of pharmaceutical excipients, to distribute its pharmaceutical cellulose product range in India. The company expanded its comprehensive product portfolio through this partnership by including Roquette's Microcrystalline Cellulose (MCC) and Croscarmellose Sodium (CCS) products.

COVID-19 Impact: Positive impact on the global pharmaceutical excipients market.

The growth of global demand for pharmaceutical excipients is projected to increase throughout the emergence of the COVID-19 pandemic as non-COVID-related healthcare facilities continue to run at a regular pace. The market for pharmaceutical excipients is expected to grow in the wake of the current COVID-19 pandemic. Market participants must concentrate on solving the supply chain issues raised by the COVID-19 pandemic and designing appropriate solutions to resolve them.

The global pharmaceutical excipients market report would provide an access to approximately 61 market data tables, 57 figures and 170 pages