The global pharmaceutical excipients market, valued at $10.0 billion in 2023, is anticipated to reach $13.9 billion by 2028. Key factors contributing to this growth include the rising demand for generic drugs and pharmaceutical products, increased investments in research and development (R&D) for novel excipients, and a growing emphasis on patient-centric formulations. Collaborations and partnerships with pharmaceutical companies for customized excipient solutions are expected to further fuel market expansion.
The market is segmented based on product, functionality, formulation, functionality application, and geography. Organic chemicals, inorganic chemicals, and other chemicals constitute the product segments. The market is dominated by organic chemicals, driven by their non-toxic nature.
Functionality application segments include fillers and diluents, binders, suspension and viscosity agents, coatings, disintegrants, flavouring agents and sweeteners, lubricants and glidants, preservatives, and others. Among these, the fillers and diluents segment held the largest market share in 2022. This segment is expected to witness continued growth due to the rising use of fillers and diluents in developing and producing solid oral drugs.
Geographically, the Asia Pacific region is projected to experience the fastest growth during the forecast period, driven by lower labour and manufacturing costs in countries like China and India. Additionally, the region benefits from increased investments by pharmaceutical giants and government initiatives to improve healthcare infrastructure.
However, challenges such as stringent regulatory requirements and high development costs associated with novel excipients may hinder market growth. Despite these challenges, opportunities in the form of increasing growth of functional/multifunctional pharmaceutical excipients and advancements in nanotechnology are anticipated to contribute positively to the market.
The competitive landscape includes key players such as International Flavors & Fragrances Inc., Ashland Inc., Evonik Industries AG, BASF SE, Kerry Group Plc, Roquette Frères, Merck KgaA, Associated British Foods Plc, ADM, and Wacker Chemie AG, among others. These companies are competing for market share and driving innovation in the pharmaceutical excipients market. Recent developments in the market include product launches and awards, contributing to the overall dynamism and evolution of the pharmaceutical excipients industry.
