Pharmaceutical excipients market is estimated to witness high growth, owing to increasing generic drug production and rising adoption of orphan drugs
Pharmaceutical excipients market is estimated to be valued at USD 10.11 Bn in 2024, exhibiting a CAGR of 8.2% over the forecast period 2024-2031. The market growth is driven by factors such as growing pharmaceutical industry and increasing generic drug production. Furthermore, innovation in new drug delivery systems can also drive the market growth during the forecast period.
Market Dynamics:
Global pharmaceutical excipients market growth is driven by increasing generic drug production and rising adoption of orphan drugs. There has been huge demand for generic drugs as these offer cost-effective treatment alternatives. This has encouraged several pharmaceutical companies to focus on expanding their generic drugs portfolio. As generic drugs utilize the same excipients as their branded counterparts, increasing generic drugs production can drive the market growth. Orphan drugs development for rare diseases has grown remarkably due to certain regulatory benefits and incentives provided to drugmakers. This rising orphan drugs market also contributes to market growth by requiring excipients for their formulation and production processes. Introduction of innovative formulations and drug delivery systems necessitates specialized excipients, and this can drive the market growth.
Increasing demand for generic drugs
Rising demand for generic drugs due to their lower costs as compared to branded drugs can drive the market growth. Generic drugs contain the same active pharmaceutical ingredients as their branded counterparts, but are not protected by patents. Since excipients are used in both branded and generic drugs, increasing demand and consumption of generic drugs can drive the pharmaceutical excipients market growth. According to estimates, the global generic drug market was valued at more than US$ 300 billion in 2020 and is expected to exhibit a CAGR of over 7% until 2027.
Growing geriatric population
Growing elderly population, aged 65 years and above, can drive the market growth. According to the data from United Nations, number of people aged 65 years or over is expected to rise from 703 million in 2019 to 1.5 billion in 2050. Elderly people are more susceptible to chronic diseases like cancer, diabetes, cardiovascular diseases, and others which require long-term pharmaceutical treatment. Growing geriatric population can boost demand for medicines and subsequently pharmaceutical excipients, and this can drive the market growth.
Stringent regulatory frameworks
The pharmaceutical industry is one of the most highly regulated sectors across the world. Regulatory authorities have implemented stringent quality standards and guidelines for pharmaceutical excipients to ensure patient safety. Any change in the excipient source or manufacturing process requires regulatory review and approval, which makes the overall drug development and approval process complicated and time-consuming. The extensive regulatory approvals and compliance requirements can pose a major challenge for market players.
High dependency on API suppliers
Pharmaceutical excipient manufacturers are dependent on active pharmaceutical ingredients (API) supplied by drug makers. Since APIs account for a major portion of the overall drug development costs, any fluctuations in API prices can significantly impact the profit margins of excipient suppliers. These have little control over API prices and supply disruptions. Unexpected hikes in API costs stemming from regulatory issues or production problems can hamper the market growth.
Increasing demand for functional excipients
Traditionally, excipients were used as inactive fillers and binders in drugs. Nowadays, researchers are focusing on developing multifunctional excipients, which can actively enhance drug efficacy. Excipients with functional properties like sustained release, taste masking, enhanced solubility, and others allow for novel drug delivery mechanisms and formats like orally disintegrating tablets. Rising demand for such value-added excipients with functional benefits from pharmaceutical companies can offer market growth opportunities.
Emerging markets in Asia Pacific and Latin America
While North America and Europe currently dominate the pharmaceutical excipients market, regions like Asia Pacific and Latin America are identified as high potential emerging markets. Factors like huge patient populations, rising healthcare investments, increasing generic drugs consumption, and growing local manufacturing capabilities can boost demand for excipients in these developing economies in the near future. Market players should focus on expanding to emerging pharma hubs in Asia Pacific and Latin America to capitalize on new opportunities.
Link: https://www.coherentmarketinsights.com/market-insight/pharmaceutical-excipients-market-124
Key Development
- In March 2024, Roquette, a prominent player in plant-based ingredients and pharmaceutical excipients, announced an agreement to acquire IFF Pharma Solutions, a global producer of excipients for oral dosage forms. This strategic move aims to strengthen Roquette's position as a key partner in the pharmaceutical industry.
- In October 2023, Clariant, a company dedicated to sustainability and specialty chemicals, introduced a new lineup of advanced pharmaceutical ingredient solutions aimed at advancing the development of safe and efficient medicines. Clariant Health Care expanded its selection of functional excipients to address challenges related to the delivery and bioavailability of active pharmaceutical ingredients (APIs).
- In September 2023, Roquette, a company known for its plant-based ingredients and its provision of pharmaceutical and nutraceutical excipients, added three new grades of excipients to its portfolio. These new additions are designed to cater specifically to moisture-sensitive active pharmaceutical and nutraceutical ingredients, enhancing their stability and performance.
Key Players: Ashland Global Holdings Inc., BASF SE, Innophos, DuPont de Nemours, Inc, Roquette Frères, Evonik Industries AG, Merck KGaA, JRS Pharma, Croda International Plc, Colorcon Inc., Archer Daniels Midland Company (ADM), The Lubrizol Corporation, Innophos Holdings Inc., Kerry Group plc, WACKER Chemie AG, Meggle Group, DFE Pharma
