Pharmaceutical Excipients Market Forecasts to 2030 - Global Analysis By Product, Functionality, Route of Administration, Distribution Channel End User and By Geography

According to Stratistics MRC, the Global Pharmaceutical Excipients Market is accounted for $9.2 billion in 2023 and is expected to reach $15.8 billion by 2030 growing at a CAGR of 7.9% during the forecast period. Excipients have been described in a variety of ways, including as inert materials employed as medication diluents and carriers. The issue with this description is that excipients have recently shown themselves to be anything from inert, being capable of reacting not only with other components in the formulation but also with patients, leading to unpleasant and hypersensitive responses. These can cause anything from a little rash to a response that might be fatal. Different excipients, particularly preservatives and colourants, may be present in several brands of the same medication.

According to the European Federation of Pharmaceutical Industries and Associations, 2022 report, the production of pharmaceuticals in the European region was valued at EUR 286,697 million in 2020 and EUR 300,000 million in 2021.

Market Dynamics:

Driver:

Increasing production and use of generic drugs

The National Centre for Biotechnology Information (NCBI) and the U.S. Food and Drug Administration (FDA) have decided to increase the generic medication and they define a generic drug as a medication that has been produced to resemble an authorised brand-name medication in terms of dosage form, safety, and strength, route of administration, quality, and performance. The cost reductions linked to using common drugs are not immediately evident when the drug's patent expires. Generic pharmaceuticals, like brand-name drugs, need competition in the generic drug market before costs may be reduced. These generic medicines would save money because India has the greatest per-capita spending. The usage of generic medications has dramatically expanded nationwide in recent years. Additionally, because generic medications are less expensive, they are used more frequently thus propelling the growth of the market.

Restraint:

Concerns about quality and safety

Despite the expanding usage of excipients in medicines, the industry still has a difficult time living up to the high standards set by regulators, consumers, medication manufacturers, and patients. The efficacy and vital quality characteristics of the medicine are impacted by variations in excipient manufacture. Excipient variability from supplier to supplier or batch to batch influences the excipient-drug interaction, which in turn affects the drug. Smaller businesses in low-cost nations handle a significant portion of the manufacturing of pharmaceutical excipients. Due to the limited level of control over the excipient manufacturing process and quality, process transparency throughout the whole supply chain is now more important than ever.

Opportunity:

Increase in multifunctional excipients

Excipients with numerous uses have been developed as a fresh approach to the lengthy and expensive process of bringing a medicine to market, which can take, on average, 10 to 12 years. Multifunctional excipients increase flowability, compressibility, bioavailability, and particle size distribution throughout the medication production process. They have a number of benefits, including increased productivity, lower costs, faster manufacturing, the creation of novel chemical entities, and the formulation of ODT. Multifunctional excipients will make optimisation studies easier and aid with formulation development problems. To enhance their performance for certain applications, such as excipients for orally disintegrating tablets, controlled-release formulations, immediate-release applications, and topical formulations, the majority of market companies are currently concentrating on developing new grades of existing excipients.

Threat:

Increasing regulatory stringency for drug and excipient approval

The procedures for approving generic drugs are essentially the same everywhere, with very minor variations in underdeveloped nations. This is due to the fact that he is exempt from the bioequivalence (BE) research requirement in this region of the world. Medical professionals assert that governments must guarantee the uniform quality of all generic medications. Only then can physicians be content and confident in writing generic medicine prescriptions. The lack of strong regulatory criteria surrounding the number of generic pharmaceuticals and the number of allowable contaminants has been a key factor in physician's lack of faith in generic medications. Furthermore, improved management of the supply and quality of pharmaceutical excipients has become more crucial in the context of in vivo activity as a result of the development of novel excipients and delivery methods.

COVID-19 Impact:

The COVID-19 pandemic has had a significant negative impact on the pharmaceutical sector. Lockdowns implemented as a result of the outbreak have stopped the flow of raw materials from countries with large industrial bases, such China and India. This adversely affected businesses that significantly depended on outsourcing by slowing down the research and manufacture of pharmaceuticals. The whole pharmaceutical ecosystem was first upended. In order to assure the highest level of patient safety following drug use, regulatory bodies had to continually craft new legislation. After the shutdowns were over, the pharmaceutical sector took up, thanks in large part to the increased demand for medications like hydroxyl chloroquine and Remdesivir that were effective against COVID-19.

The organic chemicals segment is expected to be the largest during the forecast period

The organic chemicals segment is estimated to have a lucrative growth, due to the fact that organic compounds are non-toxic and work well as excipients in oral medication formulations. Oil chemicals, carbohydrates, petrochemicals, proteins, and other organic chemicals make up the next five key divisions of the market for organic chemicals. Given that carbon is a component of all living things, organic molecules are crucial. They are the fundamental parts of a lot of the earth-moving cycles. Take the carbon cycle as an illustration, which involves the transfer of carbon between plants and animals during photosynthesis and cellular respiration.

The binders segment is expected to have the highest CAGR during the forecast period

The binders segment is anticipated to witness the highest CAGR growth during the forecast period, due to the rising demand for pharmaceutical and biopharmaceutical medications as well as the introduction of new products, the binders category is anticipated to have considerable expansion throughout the projected period. Over time, the pharmaceutical industry has come to understand that binders may help active medicinal compounds perform better and provide them a competitive edge. Additionally, the need for binders is anticipated to rise along with the increase in pharmaceutical output, which is anticipated to fuel the segment's expansion. The introduction of cutting-edge and creative items is accelerating the market segment's growth.

Region with largest share:

North America is projected to hold the largest market share during the forecast period owing to the rapidly expanding pharmaceutical sector, rising demand for functional excipients, the existence of significant competitors in the area, and technological improvements will all significantly contribute to the market's growth throughout the forecast period. The new soft gel mix offers producers a simple, handy option that guarantees quick, repeatable scale-up for both pharmaceutical and nutraceuticals applications. Such new launches provide more cutting-edge items to the market, which stimulates market expansion.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to the imminent expiration of the drug patents, several European nations are concentrating on the generics industry. As a result, considerable growth rates in European nations like Germany, the United Kingdom, France, and others are predicted to occur throughout the projection period. This is projected to increase demand for pharmaceutical excipients in the area. Additionally, it is projected that the market for generic medications in these nations would be driven by the expanding government initiatives for lowering the prices of the drugs on the market.

Key players in the market

Some of the key players profiled in the Pharmaceutical Excipients Market include: Evonik Industries AG, KerryBASF SE, Innophos, Archer Daniels Midland Company, Air Liquide group, Associated British Foods PLC, Croda International PLC, Roquette Freres, The Lubrizol Corporation, DuPont, Ashland, International Flavors & Fragrances, Inc., FMC Corporation, The Dow Chemicals Company, Akzo Nobel NV, Crode International PLC and Ferro Corporation

Key Developments:

In June 2023, Evonik company, launches the wound dressing epicite® balance onto the German market. Available from June 2023, the dressing is particularly suited and optimized for the treatment of chronic wounds with low to medium exudation.

In May 2019, Ashland launched the Aquaflow NMS 460E rheology modifier, a nonionic synthetic associative thickener.

In May 2019, Colorcon launched STARTAB, a new starch tableting excipient designed specifically for the direct compression process.

Products Covered:

• Organic Chemicals
• Oleochemicals
• Inorganic Chemicals
• Other Products

Functionalities Covered:

• Antifoaming Agents
• Antioxidants
• Binders
• Buffers
• Chelating Agents
• Coatings
• Colorants
• Disintegrants
• Emollients
• Emulsifying Agents
• Fillers and Diluents
• Flavoring Agents & Sweeteners
• Lubricants and Glidants
• Preservatives
• Solvents
• Sorbents
• Suspension and Viscosity Agents
• Other Functionalities

Route of Administrations Covered:

• Oral
• Parenteral
• Topical
• Enteral
• Sublingual & Buccal
• Intramuscular
• Intravenous
• Other Route of Administrations

Distribution Channels Covered:

• Retail Sales
• Direct Tender
• Online Pharmacy
• Other Distribution Channels

End Users Covered:

• Academics
• Contract Formulators
• Pharmaceuticals Companies
• Research Organization
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances