PHARMACEUTICAL EXCIPIENTS MARKET ANALYSIS

Pharmaceutical Excipients Market Size and Trends

Global pharmaceutical excipients market is estimated to be valued at USD 10.96 Bn in 2025 and is expected to reach USD 19.29 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 8.4% from 2025 to 2032.

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The market growth is driven by increasing demand for generic and biologic drugs, rising geriatric population, and growth of pharmaceutical industry. Emerging markets and increasing demand for multifunctional excipients can offer market growth opportunities.

Growing pharmaceutical industry and increasing pharmaceutical production

The pharmaceutical industry has witnessed significant growth in recent years due to increasing drug development activities and production worldwide. This rising pharmaceutical production can boost demand for pharmaceutical excipients. Pharmaceutical excipients refer to the inactive substances used as carriers or diluents in drug formulations and delivery systems to facilitate administration of the active pharmaceutical ingredient in the body. These play vital roles in ensuring the accuracy of dosages and enhancing efficacy, stability and safety of drug products. With numerous new drugs in the pipeline and growing patient volumes globally, pharmaceutical manufacturers are heavily investing in scaling up production capacities. According to the World Health Organization (WHO), between 2019-2021, there was a 30% increase in the number of medicines approved by Stringent Regulatory Authorities across major markets like U.S., Europe and Japan. This increase in newly developed and approved drugs require precise excipients to produce final drug formulations in large commercial quantities. Excipients help pharmaceutical companies to efficiently manufacture medications in tablets, capsules, creams, ointments and other dosage forms for widespread distribution and access. As drug manufacturing activities continue expanding, there will be need for compatible and high-quality excipients.  For instance, according to the European Federation of Pharmaceutical Industries and Associations in 2022, the pharmaceutical production in Europe had increased by 4.6% to EUR 300 billion in 2021. This increase in production value reflects rise in the volume of pharmaceutical manufacturing, thus, boosting demand for pharmaceutical excipients.