The global demand for drug formulation is expected to increase at 5.6% CAGR over the forecast period from 2022 to 2032. The sales of the drug formulations market are estimated to reach a valuation of USD 1.58 Trillion by 2022. According to the study, oral formulations projects to grow exponentially with a CAGR of 6.0% during the forecast period.
Market Outlook
| Data Points | Market Insights |
|---|---|
| Drug Formulation Market Value 2021 | USD 1.50 Trillion |
| Drug Formulation Market Value 2022 | USD 1.58 Trillion |
| Drug Formulation Market Value 2032 | USD 2.87 Trillion |
| Drug Formulation Market CAGR 2022 to 2032 | 5.6% |
| Market Share of Top 5 Countries | 68.4% |
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According to Future Market Insights (FMI), the overall sales of drug formulation grew at a CAGR of 5.1% between 2012 and 2021. However, the demand in the drug formulation market is expected to increase at a CAGR of 5.6%, surpassing USD 2.87 Trillion by the end of 2032.
The pharmaceutical industry has experienced a substantial revolution with the introduction of novel technologies as well as more affordable and cost-effective manufacturing methods.
Robotics and artificial intelligence are increasingly being used in the pharmaceutical industry to decrease production waste and downtime on the factory floor. Personalized medicine's continual breakthroughs have also made it feasible to establish patient-centric models by opening up several chances to address a wide range of medical conditions.
In addition, the growing prevalence of the chronic disease among the population, and rising investment flow in this sector are positively driving the market growth. The consumption of pharmaceuticals is also being influenced by the growing world population, which has helped the drug formulation industry rise recently.
As a result, the use of antidepressants doubled, consumption of antihypertensive and antidiabetic medications almost doubled, and consumption of cholesterol-lowering medications nearly quadrupled between 2000 and 2015 in Organization for Economic Cooperation and Development (OECD) nations.
Increasing the focus on non-communicable diseases (NCDs), such as diabetes and hypertension, which are already widespread in developed nations, while communicable diseases, such as Acquired immunodeficiency syndrome (AIDS), malaria, and tuberculosis, which affect many developing economies, continue to exist.
The global drug formulation market is expected to be valued at USD 2.87 Trillion by the end of 2032, registering a CAGR of 5.6% in the forecast period.
Until the 20th century, there were relatively limited medicines and treatment options available for chronic diseases like cancer or other rare diseases which indeed projected limited treatment options.
However, the growth in research efforts and investment for drug development has projected a positive impact projecting an opportunistic factor for the manufacturers for new drug development in the market. The opportunities are growing because of the increasing advances in molecular biology to develop new agents.
The amount of revenue that pharmaceutical companies anticipate gaining from a new drug, the estimated cost of developing that drug, and laws that affect the supply and demand for drugs also play a role in the amounts of money they invest in research and development (Research and Development).
For instance, according to Federal Government Statistics, pharmaceutical businesses invested an average of about 25% of their revenue in Research and Development. In 2019, Top Research and Development spenders 2021 spent close to one-fifth of their income on Research and Development.
The pharmaceutical industry is undoubtedly a global one, although US-based businesses often spend the most on Research and Development. Such conditions are anticipated to create lucrative opportunities for local players to reinforce their position and increase their market share over the forecast period.
Principal Consultant
Currently, trial and error procedures are used to generate pharmaceutical compositions. This process is a time-consuming method that takes a long time to complete, involving high expenses, and a significant amount of work labors to build and maintain.
However, complexity in compliance with the regulatory values would impact the drug development process, if the formulation is unable to comply with the regulatory requirement the repeat process for drug development would negatively impact the pharmaceutical industry economy to a high extent.
The pharmaceutical sector is under pressure to lower healthcare costs and the production of new active pharmaceutical ingredients (APIs). Thus this factor expects to restrain the pharmaceutical industries to involve in the drug development process which in turn expects to hamper the market growth.
Additionally, complexity in the supply chain exists to be a restricting factor expected to hamper the drug formulation market growth. Most pharmaceutical companies have a complex supply chain, which is either inefficient or under-utilized.
The complexity of the supply chain is due to low flexibility or its cost-effective nature. However, increasing generic competition has dented the profitability of big players and the trend expects to continue over the years.
Many pharmaceutical companies have started to reorganize their supply chain in response to changing market structures, but these changes are only meant to address short-term challenges. Along with patent cliffs, the shortening of effective patent life is the major issue in the drug formulation market due to increasing time-to-market and stringent regulations.
According to Future Market Insights, the US witnessed dominance in the North American drug formulation market, accounting for the highest total market share of 91.3% in 2021, and is projected to continue to exhibit high growth through 2022 & beyond.
The worldwide pharmaceutical market is significantly supported by the USmarket. Growing Research and Development spending has sped up FDA approvals, which are expected to remain stable until 2021. In 2021, the government approved 50 innovative medications, which was broadly in pace with the approval of 53 drugs the year before.
According to FMI Analysis, US pharmaceutical production and sales are expected to continue strong due to the ongoing global vaccination campaign and the accumulated demand for both necessary and optional medical treatments in 2022.
Germany is set to exhibit growth at a CAGR of around 5.2% in the Europe drug formulation market during the forecast period.
The German healthcare industry is heavily controlled, and pharmaceutical companies do not face a lot of legal pressure to cut their drug sales prices for final consumers exploring opportunities for new entrance and positive opportunities for the existing manufacturers to invest and develop products in the market. Additionally, the presence of major players like Boehringer Ingelheim International Gmbh, Bayer AG, Merck KGa, Fresenius Kabi, and many more expect to augment the production capacity and make high product availability in the market witnessing the country’s dominance in the Europe market.
China is projected to expand at a CAGR rate of 7.3% and is anticipated to account the half of the East Asia drug formulation marker revenue valued to reach around USD 320.7 Billion in2032.
The pharmaceutical industry in China is also very fragmented; most producers are small and medium-sized businesses. As a result, Research and Development investment is modest in comparison to international competitors. By 2025, the 14th Five-Year Plan wants to raise spending to 10% of sales. Pharmaceutical multinational companies (MNCs) with large market positions include AstraZeneca, Novartis, and Novo Nordisk, each of which held between 8 and 10% of the domestic market share in 2019.
Since distribution networks are so important to the industry, domestic pharmaceutical companies like Sinopharm and Shanghai Pharmaceuticals have a firm grip on them. The government has been attempting to consolidate the pharmaceutical business and raise the average size of firms as a result of the industry's fragmentation to assist in quality inspection and improvement.
Major medical reforms have also been implemented in order to advance the development and maturity of China's pharmaceutical industry, in addition to the aforementioned policy changes.
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The oral formulation contribute about 42.2% of the market share in 2021 and is expected to register a CAGR of 6.0% in the forecast period. Oral formulations are highly preferred over other dosage forms owing to their advantageous factors, including patient compliance, non-invasiveness, and ease of drug administration.
Central Nervous System Disorders are expected to hold more than a 14% market share, exhibiting growth at 3.1% CAGR in the forecast period.
The growing prevalence of central nervous system disorders among the growing population has surged the demand for novel drugs in the market intending to explore opportunities in the market. For instance, the development of novel biologic drugs, such as recombinant proteins or gene therapies, is essential for the treatment of Alzheimer's disease (AD) and the therapy of the aging brain.
Based on end user, the big pharma companies held the highest market share of 39.9% in 2021 and is poised to expand at a CAGR of 5.1% over the upcoming decade. Big pharma companies with well-structured research and development sector along with high investment in product development and innovation has accelerated the production capacity of novel drug formulations.
Key manufacturers are implementing strategies in the drug formulation market, including mergers and acquisitions and advanced product launches by acquiring approvals. To acquire a competitive edge in the market, the key companies are focusing on collaborating with the research institutes.
| Attribute | Details |
|---|---|
| Forecast Period | 2022 to 2032 |
| Historical Data Available for | 2012 to 2021 |
| Market Analysis | USD Billion for Value |
| Key Regions Covered | North America, Latin America, Europe, South Asia, East Asia, Oceania, and Middle East & Africa |
| Key Countries Covered | US, Canada, Brazil, Mexico, Argentina, UK, Germany, France, Italy, Spain, Russia, BENELUX, China, Japan, South Korea, India, Thailand, Indonesia, Malaysia, Australia, New Zealand, North Africa, GCC Countries, Turkey, Egypt, and South Africa |
| Key Market Segments Covered | Dosage form, Indication, End User, and Region |
| Key Companies Profiled | AstraZeneca plc.; Bristol-Myers Squibb; Eli Lilly and Company; Gilead Sciences, Inc.; Merck & Co., Inc.; Novartis AG; Pfizer Inc.; AbbVie Inc.; Boehringer Ingelheim International GmbH; F. Hoffmann-La Roche AG; Johnson & Johnson; 3M Company; Bayer AG; Teva Pharmaceuticals Industries Ltd.; Amgen, Inc.; Sanofi SA; GlaxoSmithKline plc; Boston Scientific Corporation; Gerresheimer AG; Nimbus Therapeutics; Antares Pharma, Inc.; IDEAYA Biosciences, Inc. |
| Pricing | Available upon Request |
The global drug formulation market is expected to be worth USD 1.50 Trillion in 2021 and is set to expand by 1.8x over the next eleven years.
The drug formulation market is expected to reach USD 2.87 Billion by end of 2032, exhibiting growth at a CAGR of 5.6% between 2022 and 2032.
Key trends influencing the sales in the drug formulation market include a focus on production capacity expansion by implementing an outsourcing strategy, an approach towards advanced manufacturing techniques, expanding product sales through the online platform, and adopting strategic alliances are the emerging trends adopted by the key players.
North America is expected to lead the global market, with the US contributing over 91.3% of the revenue share to the regional market in 2022.
The US China, Japan, Germany, and Canada are the top five countries, which are expected to drive demand in the drug formulation market.
1. Executive Summary | Drug Formulation Market 2. Market Overview 3. Key Market Trends 4. Key Inclusion 5. Market Background 6. COVID-19 Crisis Analysis 7. Global Drug Formulation Market Demand (in Value USD Million) Analysis 2012 to 2021 and Forecast, 2022 to 2032 8. Global Drug Formulation Market Analysis 2012 to 2021 and Forecast 2022 to 2032, By Dosage Form 8.1. Oral formulations 8.1.1. Tablets 8.1.2. Capsules 8.1.3. Powders & Granules 8.1.4. Lozenges & Pastilles 8.1.5. Gummies 8.1.6. Others 8.2. Parenteral formulations 8.2.1. Solutions 8.2.2. Suspensions 8.2.3. Emulsions for injection or infusion 8.2.4. Powders for injection or infusion 8.2.5. Gels for injection implants 8.3. Topical formulations 8.3.1. Pastes 8.3.2. Ointments and oils 8.3.3. Creams, lotions, and foams. 8.3.4. Gels, tinctures, and powders. 8.3.5. Sprays and patches. 8.4. Inhalation formulations 8.4.1. Pressurized Metered Dose Inhaler 8.4.2. Dry Powder Inhaler (DPI) 8.4.3. Nebulizer 9. Global Drug Formulation Market Analysis 2012 to 2021 and Forecast 2022 to 2032, By Indication 9.1. Infectious Diseases 9.2. Cancer 9.3. Cardiovascular Diseases 9.4. Diabetes 9.5. Respiratory Diseases 9.6. Central Nervous System Disorders 9.7. Autoimmune Diseases 9.8. Gastrointestinal Disease 9.9. Musculoskeletal disorders 9.10. Dermatology disorders 9.11. Others 10. Global Drug Formulation Market Analysis 2012 to 2021 and Forecast 2022 to 2032, By End User 10.1. Big pharma 10.2. Small & Medium Size Pharma- Companies 10.3. Biotech Companies 11. Global Drug Formulation Market Analysis 2012 to 2021 and Forecast 2022 to 2032, By Region 11.1. North America 11.2. Latin America 11.3. Europe 11.4. South Asia 11.5. East Asia 11.6. Oceania 11.7. Middle East & Africa (MEA) 12. North America Drug Formulation Market Analysis 2012 to 2021 and Forecast 2022 to 2032 13. Latin America Drug Formulation Market Analysis 2012 to 2021 and Forecast 2022 to 2032 14. Europe Drug Formulation Market Analysis 2012 to 2021 and Forecast 2022 to 2032 15. South Asia Drug Formulation Market Analysis 2012 to 2021 and Forecast 2022 to 2032 16. East Asia Drug Formulation Market Analysis 2012 to 2021 and Forecast 2022 to 2032 17. Oceania Drug Formulation Market Analysis 2012 to 2021 and Forecast 2022 to 2032 18. Middle East and Africa Drug Formulation Market Analysis 2012 to 2021 and Forecast 2022 to 2032 19. Market Structure Analysis 20. Competition Analysis 20.1. AstraZeneca plc. 20.2. Bristol-Myers Squibb 20.3. Eli Lilly and Company 20.4. Gilead Sciences, Inc. 20.5. Merck & Co., Inc. 20.6. Novartis AG 20.7. Pfizer Inc. 20.8. AbbVie Inc. 20.9. Boehringer Ingelheim International GmbH 20.10. F. Hoffmann-La Roche AG 20.11. Johnson & Johnson 20.12. 3M Company 20.13. Bayer AG 20.14. Teva Pharmaceuticals Industries Ltd. 20.15. Amgen, Inc. 20.16. Sanofi SA 20.17. GlaxoSmithKline plc 20.18. Boston Scientific Corporation 20.19. Gerresheimer AG 20.20. Nimbus Therapeutics 20.21. Antares Pharma, Inc. 20.22. IDEAYA Biosciences, Inc. 21. Assumptions and Acronyms Used 22. Research Methodology
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Drug Formulation Market
