Global Pharmaceutical Excipients Market: Rising adoption of orphan drugs and increasing uptake of biopharmaceuticals are driving the market for pharmaceutical excipients.

Published Date: 16/05/2021

The pharmaceutical excipients market is projected to reach USD 11.14 billion by 2027 from USD 7.36 billion in 2020, at a CAGR of 6.1 %. Factors such as the growing pharmaceuticals industry coupled with advancements in functional excipients, rising adoption of orphan drugs and increasing uptake of biopharmaceuticals, are driving the market for pharmaceutical excipients.

The emergence of multifunctional excipients, shifting the focus of pharmaceutical manufacturing to emerging markets, and the growing Biosimilars industry also present significant growth opportunities for market players in the pharmaceutical excipients market. The world has been witnessing rising demand for medicines, led by an increase in the number of chronic diseases, greater awareness towards physical well-being, and rising incidence of lifestyle diseases such as diabetes and obesity-related disorders. This has been fueling demand for and production of drugs and thus excipients. Excipients are believed to aid active pharmaceutical ingredients achieve better functionalities such as longer shelf-life, and also render competitive advantage in formulation.

Demand for oral solid drug formulations has been witnessing a steady increase over the past few years owing to ease of consumption by patient classes, including children. Oral dosage forms generally require more amount of excipients than other forms during the drug manufacturing process and is being promoted due to adoption of increased patient-centricity approaches by drug manufacturers. For example, over 50% of patients find it difficult to swallow conventional hard solid tablets. This has prompted drug companies to devise more innovative solid oral product forms such as orally disintegrating granules (ODGs), effervescent tablets, lozenges, instant drinks, and chewable tablets. This is expected to create substantial demand for excipients in the near future.

Lack of separate guidelines for manufacturing and approval of excipients is deterring R&D initiatives related to novel excipients. Under the present regulatory scenario, if a new drug approval (NDA) fails, the excipients also fails even if it is not due to anything related to the excipients. Furthermore, clinical trial data from that failed excipients is not usable. This leads to major financial loss on the part of both the drug and the excipients manufacturer. The cost and time frame to develop novel excipients under proper regulatory compliances are both uneconomical for manufacturers, thus limiting the outlook for getting a novel excipients approved.

DuPont de Nemours, Inc. (US) and RoquetteFeres (France) dominated the global pharmaceutical excipients market in 2018. The prominent players in the global pharmaceutical excipients market are Ashland Global Holdings, Inc. (US), BASF SE (Germany), Evonik Industries AG (Germany), Associated British Foods plc (UK), Archer Daniels Midland Company (US), Lubrizol Corporation(US), and Croda International (UK). Other players in this market are Innophos Holdings (US), Kerry Group plc (Ireland), WACKER Chemie AG (Germany), Colorcon, Inc. (US), DFE Pharma (Germany), JRS Pharma (Germany), and Air Liquide (France).

Based on region, the pharmaceutical excipients market is categorized into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. This emerging market in the Asia-Pacific region is expected to witness a robust growth during the forecast period, owing to the availability of cheap labor and lower cost of the raw materials. Countries like Brazil, India, and China are expected to be the major contributors in the growth of the market mainly due to the rising per capita income and increase in the number of companies from the developed regions willing to outsource their excipients manufacturing activities due to low manufacturing and labor costs in the region.