June 22, 2024
Pharmaceutical Excipients Market

Pharmaceutical Excipients Market Trends: Growing Demand for Biosimilars to Drive the Market

The pharmaceutical excipients market plays a vital role in drug formulation and drug delivery with excipients assisting in improving a drug’s efficacy, stability, and safety. Excipients include binders, lubricants, glidants, coloring agents, coatings, sweeteners, flavoring agents, and preservatives that improve drug absorption and achieve the desired therapeutic effect. They aid in enhancing product shelf life, improving stability, and achieving targeted release profiles for drugs. Commonly used excipients include lactose, sucrose, starch, magnesium stearate, gum acacia, hydroxyethyl cellulose, microcrystalline cellulose, sodium croscarmellose, crospovidone, and povidone.

The Global pharmaceutical excipients market is estimated to be valued at US$ 12.33 Bn in 2024 and is expected to exhibit a CAGR of 6.9% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the Pharmaceutical Excipients market are Waters Corporation, Agilent Technologies Inc., Bruker Corporation, SCIEX, Shimadzu Corporation, Danaher, Thermo Fisher Scientific Inc., Shimadzu, PerkinElmer Inc. The demand for pharmaceutical excipients is increasing globally due to the growing generics market and biosimilars industry. Key players are focusing on expanding their geographical presence with capacity additions and acquisitions to meet the growing demand.

The adoption of biosimilars has increased significantly over the past few years due to the expiration of patents of major biologics and their lower costs compared to originator biologics. Excipients play a vital role in the development and delivery of large molecule biosimilars. This rising demand for biosimilars is expected to drive the need for specialized excipients over the forecast period.

Pharmaceutical excipients manufacturers are actively expanding their global footprint with a focus on emerging economies in Asia Pacific, Latin America, Middle East, and Africa. Strategic investments and acquisitions in developing markets allow companies to establish manufacturing and distribution capabilities closer to regional customers. This helps reduce supply chain costs and facilitates timely delivery.

Market Key Trends

The development of multifunctional excipients is a key trend being witnessed in the Global Pharmaceutical Excipients Market Size. Excipients with multiple functionalities offer formulation benefits by reducing the number of excipients required in a formulation. This helps address issues related to bioavailability, stability, and manufacturability. It also allows designing simpler formulations for specialized drug delivery. Leading excipient makers are investing in R&D to develop excipients with properties like controlled release, taste masking, and self-emulsification for improved drug deliveries.

Porter’s Analysis

Threat of new entrants: Require high R&D investments and regulatory approvals pose barriers.

Bargaining power of buyers: Large pharmaceutical companies have substantial bargaining power.

Bargaining power of suppliers: Suppliers have less bargaining power due to availability of substitute excipients.

Threat of new substitutes: New drug delivery methods can pose threat of substitution.

Competitive rivalry: Market consolidated with major players differentiating through quality and innovation.

Geographical Regions

North America currently holds the major share of the pharmaceutical excipients market due to well-established pharmaceutical industry and presence of key market players. Asia Pacific is expected to grow at the fastest pace during the forecast period due to rising pharmaceutical production, increasing R&D investments and favourable government policies supporting local manufacturers.

Growing geriatric population, increasing demand for generic drugs and biologics will drive the pharmaceutical excipients market in developing regions like Latin America and Middle East & Africa. Government focus on healthcare infrastructure development presents new growth avenues.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it