Pharmaceutical Excipient Market

Pharmaceutical Excipient Market Outlook for 2024 to 2034

FMI’s comprehensive reports on the pharmaceutical sector now see the addition of an updated study on the pharmaceutical excipient market. According to updated research, the market is set to hold a valuation of USD 972.9 million in 2024. Thereafter, the market’s progress over the coming decade is suggested to be solid, with a CAGR of 5.1%. As such, the market’s value by 2034 is marked to jump to USD 1,600.0 million.

Consumption Analysis of the Pharmaceutical Excipient Market

• Governments putting more focus on expanding the reach of the healthcare sector, reaching far and wide into remote and rural areas, is beneficial for the market. As pharmaceutical sales rise, the dependence on excipients increases and vendors benefit.
• While the traditional function of excipients is akin to playing a supporting role, modern applications are seeing them play more of an important role. Whether through modifying the taste or enhancing the effect of the main ingredient, excipients are now in the limelight.
• Emulsifiers, binders, gelling agents, and other such ingredients that play a perhaps unsung role in formulations are receiving increased attention. A key purpose of excipients is to hold the medicine together, and thus, the product is riding the wave of popularity of such ingredients.
• Studies have shown that colors play a part in patients' perception of medicines. As manufacturers become more aware of the effect of color on patients, they resort to excipients to influence patient perception.
• Innovations in nanotechnology are enhancing the functionality of excipients and lending them more importance in the pharmaceutical sector.

Attributes	Details
Market Value for 2024	USD 972.9 million
Market Value for 2034	USD 1,600.0 million
Value-based CAGR of Market for 2024 to 2034	5.1%

Trends in the Pharmaceutical Excipient Market

• To overcome the traditional bitterness of medicines, excipients are being used to mask the taste. Thus, pharmaceutical excipients are especially seeing more applications in children’s medicine.
• Development of new drugs with the help of biologics is bolstering the market.
• Faster approvals and increased funding for orphan drugs are proving to be beneficial to the demand for excipients in the pharmaceutical industry.
• With increasing research regarding cancer and treatments, including cell therapy, there is greater demand for these excipients.
• Constant development of novel excipients keeps the demand for the product fresh and enhances the reputation of the market.

Challenges in the Pharmaceutical Excipient Market

• Regulatory challenges and waiting for approval are two of the challenges that cut into the demand for the product. This problem is especially faced regarding novel excipients.
• While excipients playing a more active role in medicines is considered a plus for the market, there is also a downside. Patient hesitation about the potential negative impact of excipients is a hurdle in the path of the market.

Category-wise Outlook

Artificial excipients maintain the top position in the pharmaceutical excipient industry. Coating is the technique generally used in the formulation of medicines using excipients.

Low-cost Nature of Artificial Excipients Makes them Desired among End Users

For 2024, artificial excipients are expected to account for 34.7% of the market share by type. Some of the key drivers for the developing demand for artificial excipients are:

• Even though natural ingredients are receiving the nod of approval in increased measures from patients, the sourcing and development of natural excipients are not cheap. Thus, manufacturers in the pharmaceutical industry prefer using artificial versions of the product.
• Artificial excipients can be more easily modulated to achieve the correct color, dosage, etc. in medicines and thus continue to receive the vote of confidence from manufacturers.

Attributes	Details
Top Type	Artificial
Market Share (2024)	34.7%

Coating Technique is Widely Used for Excipients to become a Part of Pharmaceuticals

Coating is anticipated to account for 33.0% of the market share in 2024. Some of the key drivers for the dominance of coating of excipients in pharmaceutical formulations include:

• Safety provided by coating tablets from moisture in the air is cherished by both manufacturers and patients.
• Presence of cellulose ether hydroxypropyl methylcellulose (HPMC), which is free of sugars and allergens, is a plus point in the use of coating in medicine formulation.

Attributes	Details
Top Technique	Coating
Market Share (2024)	33.0%

Country-wise Analysis

The immense popularity of biologics and new research in the pharmaceutical field are two of the reasons the market is expanding in Europe. The influence of pharmaceutical giants is also felt in the European market.

Focus on research and development is lending positivity to the market in the Asia Pacific. Focus on novel excipients is encouraging for market growth in North America.

Countries	CAGR from 2024 to 2034
United States	5.3%
Germany	5.4%
China	5.6%
Japan	5.3%
Italy	5.2%

Popularity of Functional Excipients Key to Growth of the Market in the United States

The market is set to register a CAGR of 5.3% in the United States during the forecast period. Key drivers for growth are:

• Functional excipients are performing a key role in the United States when it comes to medicine. With excipients no longer relegated to being the sideshow, the market is in for sturdy growth over the forecast period in the country.
• Launch of novel excipients at a fast rate keeps the market moving in an upward direction in the United States.

Government Encouragement for Pharmaceutical Sector’s Development is Shaping Germany’s Market Growth

The CAGR for the market in Germany is tipped to be 5.4% over the forecast period. Some of the key factors driving the growth are:

• Germany’s government is encouraging the fast development of its pharmaceutical sector by seeking to curb frivolous regularity requirements and making the introduction of new excipients a more favorable process.
• Both local and foreign medical entities are expanding production facilities in Germany, creating a conducive environment in the country for the market.

China’s Mammoth Production Facilities Facilitate Domestic and International Distribution

The CAGR for the market in China is tipped to be 5.6% over the forecast period. Some of the key factors driving the growth are:

• China’s considerable facilities in medicine manufacturing see demand for Chinese excipients increase not only in the country itself but also internationally.
• Possessing a gigantic healthcare industry, top 5 in the world in terms of size, there is thus ever-increasing scope for the market.

Fast Approval Processes of Regulatory Bodies Help Market Growth in Japan

The market is expected to register a CAGR of 5.3% in Japan for the forecast period. Some of the key trends include:

• Japan’s regulatory bodies are giving approvals to medicines as well as excipients at an increasing rate, thus creating potential for foreign players in the market.
• Increased foreign investment in local raw materials for pharmaceutical companies is bolstering the market in Japan.

Italy being at the Forefront of Technology aids in Market Growth in the Country

The market is expected to register a CAGR of 5.2% in Italy over the forecast period. Some of the key trends include:

• Italy is renowned for being at the forefront of technology when it comes to the pharmaceutical sector, and thus, novel excipients are finding an easy route towards progress in the country.
• Strict regulations, while encouraging cautiousness on the part of manufacturers, also see greater trust being built among end users for excipients in Italy.

Competitive Landscape in the Pharmaceutical Excipient Market

The pharmaceutical excipient industry is highly competitive, with newer entrants looking to distinguish themselves with novel products. On the other hand, established players are looking to expand production facilities to meet production targets.

One of the prominent companies in the market, Ashland Global Holdings, is looking to expand its portfolio with the help of biologics. As the company’s drug delivery focus enhances, even greater attention is being paid to excipients. Croda International, meanwhile, is looking to increase its functional excipients portfolio.

Recent Developments

• In October 2023, India-based Clariant Chemicals announced plans to launch three new excipients as part of its VitiPure range.
• In September 2023, United States-based Colorocon introduced its titanium dioxide (TiO2)-free Opadry film coating system for tablets to stop moisture from affecting them.
• In November 2021, French-based Gattefossé launched three new pharmaceutical excipients, named Labrafac MC60, Gelucire 59/14, and Emulfree Duo.

Key Companies in the Pharmaceutical Excipient Market

• Ashland Global Holdings
• Croda International
• BASF SE
• Lubrizol Corporation
• Evonik Industries AG
• Associated British Foods
• Roquette Feres
• Archer Daniels Midland Company
• DuPont
• Avantor Performance Materials, Inc.
• The Dow Chemical Company
• FMC Corporation
• Evonik Industries
• Lubrizol Corporation
• Roquette
• Colorcon, Inc.

Key Coverage in the Pharmaceutical Excipient Industry Report

• Pharmaceutical Excipient Market Size, Share, and Sales Analysis
• Pharmaceutical Excipient Industry Trends
• Excipients in Pharmaceuticals Global Market Report
• Active Pharmaceutical Ingredients Market Comparative Analysis
• Top Pharmaceutical Excipient Manufacturers

Key Segments

By Type:

• Organic Chemicals
• Oleochemicals
  • Fatty Alcohols
  • Mineral Stearates
  • Glycerin
  • Other Oleochemicals
• Carbohydrates
  • Sugars
    • Actual Sugars
    • Sugar Alcohols
    • Artificial Sweeteners
  • Cellulose
    • Microcrystalline cellulose
    • Cellulose ethers
    • Carboxymethyl cellulose (CMC) and croscarmellose sodium
    • Cellulose esters
  • Starch
    • Modified Starch
    • Dried Starch
    • Converted Starch
• Petrochemicals
  • Glycols
  • Povidones
  • Mineral Hydrocarbons
  • Acrylic Polymers
  • Other Petrochemical Excipients
• Proteins
• Other Organic Chemicals
• Artificial
• Calcium Phosphate
• Metal Oxides
• Halites
• Calcium Carbonate
• Calcium Sulphate
• Other Artificial Chemicals
• Other Chemicals

By Technique:

• Fillers & Diluents
• Suspending & Viscosity
• Coating
• Binders
• Flavoring & Sweeteners
• Disintegrants
• Colorants
• Lubricants & Glidants
• Preservatives
• Emulsifying

By Formulation:

• Oral Formulations
• Tablets
• Capsules
  • Hard-gelatin Capsules
  • Soft-gelatin Capsules
• Liquid Formulations
• Other Oral Formulations
• Topical Formulations
• Parenteral Formulations
• Other Formulations

By Application:

• Taste Masking
• Stabilizers
• Modified-Release
• Solubility & Bioavailability Enhancement
• Others

By Region:

• North America
• Latin America
• Europe
• South Asia
• East Asia
• Oceania
• Middle East and Africa (MEA)

Frequently Asked Questions

How Big is the Pharmaceutical Excipient Market?

The market size is expected to be worth US$ 972.9 million in 2024.

How Big Will the Pharmaceutical Excipient Market Be by 2034?

The market is estimated to get as big as US$ 1,600.0 million by 2034.

How will the Pharmaceutical Excipient Market Progress in the United States?

The CAGR of the market in the United States is estimated to be 5.3% from 2024 to 2034.

What are the Segments of the Pharmaceutical Excipient Industry?

The market can be divided into the following segments: type, technique, formulation, and application.

What is the Scope of the Pharmaceutical Excipient Market?

The market is expected to progress at a CAGR of 5.1% from 2024 to 2034.

Who are the Top Pharmaceutical Excipient Manufacturers?

Ashland Global Holdings, Croda International, BASF SE, and Lubrizol Corporation are some of the key manufacturers in the pharmaceutical excipient industry.