The global pharmaceutical excipients market is estimated to be valued at USD 8.6 billion in 2022 and is expected to exhibit a CAGR of 5.9% over the forecast period of 2022-2027, as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
Pharmaceutical excipients are substances used in the formulation of pharmaceutical drugs to aid in the manufacturing process and improve the stability, safety, and efficacy of the final product. These excipients include fillers, binders, diluents, disintegrants, lubricants, and flavoring agents, among others. They play a crucial role in drug formulation and are essential for ensuring the quality and performance of pharmaceutical products.
B) Market Dynamics:
The global pharmaceutical excipients market is driven by two main factors. Firstly, the increasing pharmaceutical manufacturing activities worldwide contribute to the growth of this market. As the demand for pharmaceutical drugs continues to rise, there is a need for efficient and cost-effective manufacturing processes. Pharmaceutical excipients help in improving the flowability, compressibility, and dissolution properties of drugs, thereby enhancing the manufacturing process.
Secondly, there is a growing demand for novel drug delivery systems that offer targeted drug delivery and improved patient compliance. Excipients play a vital role in the development of such systems by ensuring drug stability, release control, and bioavailability. For instance, the use of excipients in modified-release tablets allows for sustained drug release, reducing dosing frequency and improving patient convenience.
C) Market Key Trends:
One key trend in the pharmaceutical excipients market is the increasing demand for natural-based excipients. With the growing focus on sustainability and decreasing reliance on synthetic ingredients, pharmaceutical companies are turning towards natural excipients sourced from renewable plant-based materials. This trend is driven by consumer demand for clean-label, eco-friendly products.
An example of this trend is the use of cellulose derivatives derived from wood pulp or cotton in pharmaceutical formulations. These natural excipients offer improved film-forming and binding properties, ensuring drug stability and enhancing patient acceptability.
D) SWOT Analysis:
Strength:
1. Growing demand for pharmaceutical drugs worldwide
2. Increasing adoption of novel drug delivery systems
Weakness:
1. Stringent regulations and quality control standards for excipients
2. Limited availability of specialized excipients for complex formulations
Opportunity:
1. Rising investment in research and development
2. Expansion into emerging markets with high growth potential
Threats:
1. Intense competition among key players
2. Risk of product recalls and quality issues
E) Key Takeaways:
In summary, the global pharmaceutical excipients market is expected to witness high growth, exhibiting a CAGR of 5.9% over the forecast period. This growth is driven by increasing pharmaceutical manufacturing activities and the demand for novel drug delivery systems. The market is supported by the growing adoption of natural-based excipients and the opportunity for expansion in emerging markets.
In terms of regional analysis, North America is expected to dominate the market due to the presence of key pharmaceutical companies and extensive research and development activities. Europe is also a significant market, driven by the growing focus on sustainable and clean-label products.
Key players operating in the global pharmaceutical excipients market include MEGGLE Excipients & Technology, Innophos Holdings Inc., Lubrizol Corporation, Roquette Group, Ashland Inc., Croda International PLC, Evonik Industries AG, FMC Corporation, DOW Chemical Company, and BASF SE. These companies focus on product development, partnerships, and mergers to gain a competitive advantage in the market.
