Industry Outlook
The pharmaceutical excipients market expected to reach US$ 11,938.1 Mn by 2026 from US$ 6,615.7 Mn in 2017 projecting a steady growth at a compound annual growth rate (CAGR) of 6.87% during the forecast period from 2018 to 2026. The World Health Organization (WHO) 2013 initiative states that there is need for optimum research in healthcare in order to provide universal healthcare facilities to public. Pharmaceutical and biotechnology industries are working diligently to meet this aspiration. In the current scenario, a trend is noticed in the pharmaceutical industry wherein polymers obtained from natural resources are being replaced by synthetic polymers to achieve the desired drug release profile. Acrylic polymers are widely utilized owing to their increasing application in novel drug delivery systems and its easy manufacturing process. Another important trend noticed in the pharmaceutical drug manufacturing is the increasing preference for binders and coating materials e.g. Benecel™, Prosolv®, Soluplus® etc., due to their easy availability as raw material and ability to alter the drug pharmacokinetic profile either as a fast releasing or controlled release of API. North America and Europe currently dominates the pharmaceutical excipients market, as they are domicile to key players possessing developed healthcare infrastructure. Asia Pacific will be the fastest growing regional segment owing to rising prevalence of chronic diseases requiring immediate medical attention, proactive government policies majorly focusing on the expansion of pharmaceutical and biotechnology sector and tapping potential market in the far-flung remote areas with unmet medical needs.
Polymers will continue to register their significant growth in the pharmaceutical excipients market
Polymers are currently dominating the products segment in terms of market revenue and are determined to be the fastest growing segment during the forecast period from 2018 to 2026. The International Federation of Pharmaceutical Manufacturers and Associations (IFPMA) are working in synchronization with the International Conference on Harmonization (ICH) to meet the cGMP guidelines mandated for drug formulation. In the last decade, numerous adverse events related to drug formulations were registered in the global pharmacovigilance monitoring center in Uppsala (Sweden). Polymers currently constitutes over 30% of pharmaceutical excipients market due to its increasing importance in determining the safety and efficacy of the drug formulation. They are being currently produced in large scale by manufacturers such as Ashland, Inc., Lubrizol Corporation and FMC Corporation. Polymers are gaining huge popularity owing to the ease of production from natural resources and its tremendous application in novel drug delivery system, co-processing of excipients and nanotechnology (DaunoXome®).
Binders segment to record highest double digit CAGR during the forecast period
Pharmaceutical excipients are used in drug formulation owing to their varied functions such as diluents and fillers, binders, solvents, coatings, flavoring agents, disintegrants, colorants, lubricants & glidants and preservatives. Currently the pharmaceutical companies such as BASF SE and The Dow Chemical Company are being driven by multifaceted demands. The rising demand for pharmaceutical products has resulted in the growth of API production and excipient consumption. Within the pharmaceutical industries the latest trend observed is the reduced R&D activity for novel excipients, decreasing price pressure and stringent regulation has forced drug manufacturers to develop excipients such as binders, coating agents and diluents to create value added products at low cost without comprising quality. The latest example is the burgeoning demand for extended release drug formulation which is made by proper application of excipients such as binders and coating agents.
Proactive government policies in Asia Pacific to set the stage for swift growth during the forecast period
Major pharmaceutical excipients manufacturers such as BASF SE and Roquette Group are located in the Western Europe. Moreover, Europe has been pioneering in the development of APIs and pharmaceutical excipients for almost a century. The Dow Chemical Company, FMC Corporation and Lubrizol Corporation are situated in the United States and majorly contribute to the market growth in North America. Rising patient pool, proactive government policies actively engaged in the expansion of the pharmaceuticals manufacturing industry drive the pharmaceutical excipients market growth in Asia Pacific. In addition, the emergence of local players and government initiatives such as Make in India and China’s 13th annual policy plan are responsible for the growth of pharmaceutical excipients market in Asia Pacific. Key vendors are establishing manufacturing subsidiaries to overcome the loss in revenue during shipment of pharmaceutical excipients. Moreover, factors such as rising prevalence of chronic diseases, availability of cheap labor and raw material serves as potential indices for the growth of pharmaceutical excipient market in Latin America and Middle East & Africa region. In Indian context, the Department of pharmaceuticals has drafted a new National Pharmaceutical Policy (NPP) that has resulted in the banishment of loan licensing to third parties for manufacturing pharmaceutical products. The intentions behind the policy was to cap trade margins, reduce unfair practices and boost domestic production.
Market assessment is an important tool that furnishes us with the latest trend prevalent in the pharmaceutical excipients market with the help of compound annual growth rate and market size. Competitive analysis helps in mapping the key vendors engaged in the manufacturing of pharmaceutical excipients with a brief elucidation on the existing competition among them. Product portfolio covers the entire range of excipients utilized for the drug formulation and development. Recent news coverage gives valuable insights regarding the latest merger and acquisition and its impact on the pharmaceutical excipients market. The major players spearheading in the pharmaceutical excipients market are Archer Daniels Midland Company, Ashland, Inc., Associated British Foods Plc., Ashland, Inc., BASF SE, Croda International Plc., The Dow Chemical Company, Evonik Industries AG, FMC Corporation, Lubrizol Corporation and Roquette Group.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Pharmaceutical Excipients market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
