Expected Revenue Growth:
The pharmaceutical excipients market is projected to reach USD 10.6 billion by 2026 from USD 7.9 billion in 2021, at a CAGR of 5.8% during the forecast period. The overall growth of the pharmaceutical excipients market is largely driven by the growing pharmaceuticals market, advancements in functional excipients, and the growing generics market.
The rapidly growing biopharmaceuticals sector will also influence market growth for pharmaceutical excipients. However, the increasing regulatory stringency regarding the approval of drugs and excipients along with the cost and time-intensive drug development process are expected to restrain the growth of this market during the forecast period.
COVID-19 Impact on Global Pharmaceutical Excipients Market
The COVID-19 pandemic had a significant impact on the pharma industry. Lockdowns imposed in the wake of the outbreak disrupted the supply of raw materials from manufacturing hubs such as India and China. This slowed drug development and manufacturing, with severe impacts on companies that relied heavily on outsourcing. The entire pharmaceutical ecosystem was disrupted initially. Moreover, regulatory authorities also had to reframe and construct new laws to ensure maximum patient safety after drug consumption.
The end of the lockdowns saw the pharma industry gaining momentum, especially given the demand for drugs such as hydroxychloroquine and Remdesivir, which showed positive results against COVID-19. The increasing demand for these drugs drove revenue growth for some companies. The above mentioned factors suggest that the Covid-19 impact on the pharmaceutical excipients market is negligible as it is the starting material in manufacturing of pharmaceutical drugs.
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Global Industry Segmentation:
The organic excipients segment is expected to grow at the highest CAGR during the forecast period
Based on the products, the pharmaceutical excipients market is segmented into organic and inorganic chemicals. Organic chemicals segment held significant share in 2021. The large share of this segment can be attributed to the use of these chemicals in a majority of pharmaceutical formulations. Moreover, rising global demand for pharmaceuticals has fueled the growth of drug production, thereby, positively influencing the segmental growth.
The oral formulations segment is expected to account for the largest share of the Pharmaceutical Excipients market
Based on formulation, the pharmaceutical excipients market is segmented into oral, topical, parenteral, and other formulations. In 2021, the oral formulations segment accounted for the largest share of the pharmaceutical excipients market, mainly because oral formulations are the most common drug delivery route.
The fillers & diluents segment is expected to have substantial market size during the forecast period.
Based on functionality, the pharmaceutical excipients market is segmented into fillers & diluents, binders, suspending & viscosity agents, flavoring agents & sweeteners, coating agents, colorants, disintegrants, lubricants & glidants, preservatives, emulsifying agents, and other functionalities. The fillers & diluents segment accounted for the largest share of the pharmaceutical excipients market in 2020. This can be attributed to the increased use of fillers and diluents in solid oral drug development and production.
Asia Pacific is expected to account for the highest CAGR for players operating in the Pharmaceutical Excipients market
The Asia Pacific is the fastest-growing and most dynamic pharmerging market globally, poised to be the most attractive regional market due to its large base of generic drug manufacturers. Several factors, such as the growing Asian scientific base (due to the establishment of R&D centers and manufacturing facilities by major players in recent years); growth in the Asian pharmaceutical markets and pharmaceutica manufacturing capabilities; and the large patient pool are contributing to the growth of the pharmaceutical excipients market in the APAC.
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The prominent players in this market are DuPont (US), Colorcon Inc. (US), BASF SE (Germany), Evonik Industries AG (Germany), Ashland Global Holdings Inc. (US), Kerry Group plc (Ireland), Roquette Freres (France), Eastman Chemical Company (US), Air Liquide S.A. (France), and Merck KGaA (Germany).