Pharmaceutical excipients play a crucial role in medication formulations, acting as inactive substances alongside active pharmaceutical ingredients (APIs). Their functions include simplifying manufacturing, improving drug distribution, and enhancing stability, safety, and effectiveness. Various types of excipients, such as fillers, binders, lubricants, disintegrants, coloring agents, preservatives, and flavoring agents, are carefully chosen and tested for compatibility with APIs. The selection and proper use of excipients significantly influence a drug’s characteristics and performance.
The global pharmaceutical excipients market was valued at US$ 8,765.4 Million in 2022 and is anticipated to reach US$ 13,346.0 Million by the end of 2030 with a CAGR of 5.4% from 2023 to 2030.
In drug development, excipients play a pivotal role beyond the active drug compound. They aid in precise drug delivery to the intended site of action, enhance medication efficacy, and prevent premature release. Some excipients contribute to optimal drug integration and absorption into the bloodstream, improving therapeutic outcomes.
Increasing Prevalence of Chronic Diseases, Development of Novel Drug Delivery Systems and Rising Use of Generic Drugs to Boost Pharmaceutical Excipients Market
The pharmaceutical excipients market is experiencing growth in tandem with the increasing prevalence of chronic diseases such as cancer, diabetes, cardiovascular disorders, and neurological conditions. Pharmaceutical excipients, which are inactive components, play a crucial role alongside active pharmaceutical ingredients (APIs) in drug manufacturing. Their purpose is to enhance the effectiveness, stability, and safety of medications. These excipients perform various functions, such as regulating the release of drugs, improving the bioavailability of APIs, and safeguarding APIs from degradation.
As the global population ages and chronic diseases become more widespread, the demand for pharmaceutical treatments is on the rise. This trend is propelling the pharmaceutical excipients market forward. Additionally, the market is being driven by the emergence of innovative drug delivery methods like targeted and controlled-release systems. Notably, Europe is poised to lead the way in advancing the pharmaceutical excipients market.
Another contributing factor is the increasing demand from contract manufacturing organizations (CMOs) for high-quality, cost-effective excipients to formulate drugs. This trend is shaping the landscape of the pharmaceutical excipients market. The popularity of biosimilars and generic drugs further adds to the market’s momentum due to the essential role excipients play in their formulation.
Geographical Analysis
Europe is the fastest-growing segment in the global pharmaceutical excipients market due to several factors, including:
The demand for inventive drug formulations is steadily increasing. Excipients play a pivotal role in the development of such formulations, aiding in enhancing the solubility, stability, and bioavailability of active pharmaceutical ingredients (APIs) within the drug products.
Across Europe, the generic medicine sector is experiencing rapid growth. Excipients are a critical component in formulating generic drugs to ensure their efficacy and safety.
The popularity of biopharmaceuticals is on the rise, resulting in an escalated need for excipients. These substances are essential for maintaining the stability of proteins and peptides present in these medications, thereby upholding their potency.
Given the ageing demographic in Europe, there is a heightened requirement for pharmaceuticals tailored to older individuals. Excipients play a pivotal role in producing medications that possess improved taste, texture, and ease of ingestion, catering to this specific population.
Moreover, investments directed towards research and development are witnessing an upswing, particularly in the realm of excipient studies. These endeavours are aimed at elevating drug formulations and overall therapeutic efficacy.
Overall, these elements support the expansion of the European market for pharmaceutical excipients.
Competitive Insights
Companies operating in the global pharmaceutical excipients market have adopted several growth strategies to expand their market share and increase their revenue. Some of the main players operating in the market include Kerry Group plc., DFE Pharma, Cargill, Incorporated, Pfanstiehl, Colorcon, MEGGLE GmbH & Co. KG, Omya AG, Peter Greven GmbH & Co. KG, Ashland., Evonik, Dow, Croda International Plc, Roquette Frères., The Lubrizol Corporation, BASF SE, Avantor, Inc., BENEO, Chemie Trade.
Enterprises are forming collaborative partnerships to pool their knowledge and resources, effectively expediting the development of new pharmaceutical excipients. These collaborative efforts enable companies to capitalize on their individual strengths, fostering greater efficiency in the creation of novel therapies. For instance, in 2019, DuPont Nutrition and Colorcon, Inc. joined forces, resulting in an expanded range of products and solutions.
Investments channelled into research and development are propelling advancements in product innovation within the field. Companies are actively engaged in crafting fresh pharmaceutical excipients while also refining existing offerings. This strategy of introducing innovative products bolsters their portfolios, bestowing them with a competitive advantage. A notable example is Dow Inc.’s introduction of METHOCELTM DC2 in December 2022—a pioneering excipient designed to enhance the solubility and bioavailability of poorly soluble medications.
To broaden their influence and tap into high-growth regions, companies are strategically extending their geographical footprint. This strategic manoeuvre allows them to access untapped customer bases, contributing to amplified overall revenue. For instance, Dow Inc. responded to escalating demand for pharmaceutical excipients in the Asia Pacific region by revealing plans in August 2022 to amplify their excipient production capacity in China.
The landscape of the pharmaceutical excipients sector is also being shaped by acquisitions and mergers. Companies are either acquiring or merging with counterparts to access advanced technologies, specialized expertise, and diversified product pipelines. Such strategic endeavours empower companies to augment their capabilities, expand their array of offerings, and fortify their market presence. An example of this trend is the acquisition of Croda International Plc’s excipients business by Lubrizol Corporation in October 2022, a move aimed at broadening its excipients portfolio and solidifying its standing in the pharmaceutical excipients arena.
Overall, these growth strategies enable companies to expand their market presence, develop new products, and increase their revenue in the pharmaceutical excipients market.
