Pharmaceutical Excipients Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Pharmaceutical Excipients Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The pharmaceutical excipients market is expected to register a CAGR of 6.01% over the forecast period (2022-2027).

The COVID-19 pandemic had a significant impact on the pharmaceutical industry. Initially, pharmaceutical excipients companies faced substantial challenges, such as a low supply of medical items and a strict lockdown imposed by the government all over the world that impacted the global supply chain of raw materials from manufacturing hubs such as India and China. These restrictions disrupted the drug development and manufacturing processes and severely impacted the companies that were dependent on this outsourcing. However, the increased focus on the development of therapeutics for COVID-19 positively impacted the market. For instance, in February 2021, Evonik signed a strategic partnership with BioNTech on the COVID-19 vaccine. Evonik also planned to invest in the short-term expansion of its specialty lipid production, an excipient essentially required for the development of mRNA-based COVID-19 vaccines. Thus, Evonik made an important contribution to the Pfizer BioNTech COVID-19 vaccine by supplying lipids to speed up the COVID-19 vaccine development process. Thus, COVID-19 had a considerable impact on the growth of the market.

The major factors responsible for the growth of the pharmaceutical excipients market include the increasing demand for functional excipients; recent patent expiries driving the demand for pharmaceutical excipients; and rapid advancements in nanotechnology.

The growing pharmaceutical industry and increasing production of pharmaceuticals also propel the growth of the market. For instance, according to the European Federation of Pharmaceutical Industries and Associations, 2022 report, the production of pharmaceuticals in the European region was valued at EUR 286,697 million in 2020 and EUR 300,000 million in 2021. Such an increase in production value corresponds to an increase in the volume of production of pharmaceuticals, in turn, boosting the demand for pharmaceutical excipients. Moreover, the expansion of facilities by the market players to develop high-performance ingredients is also expected to propel the growth of the market. For instance, in July 2021, Croda International Plc opened a new high-purity excipients facility in Mill Hall, London. The investment led to Croda’s commitment to develop innovative pharmaceutical excipients for use in smart science.

Additionally, the launch of products also contributes to the growth of the market. For instance, in July 2021, DFE Pharma launched a new addition to its broad excipient portfolio, named Pharmacel sMCC 90. It is a silicified microcrystalline cellulose (MCC).

Thus, owing to the abovementioned factors, the market is expected to project growth over the forecast period. However, the lack of a proper approval process, adverse reactions of excipients, and contamination in formulations may hinder the growth of the market.

Key Market TrendsBinders Segment is Expected to Show a Significant Growth Over the Forecast Period

The binders segment is expected to project significant growth over the forecast period owing to increasing demand for pharmaceutical and biopharmaceutical drugs, and the launch of products.

The pharmaceutical industry has gradually recognized binders to be able to assist active pharmaceutical ingredients to achieve better functionality and provide a competitive advantage. Additionally, with the increase in the production of pharmaceuticals, the requirement for binders is also expected to increase, which is expected to propel the growth of the segment. For instance, according to the India Brand Equity Foundation, 2022 report, globally, India ranked third for pharmaceutical production by volume and 14th by value in 2022.

The launch of technologically advanced and innovative products is propelling the growth of the market segment. For instance, in October 2021, Beneo launched galenIQ 721. It is a filler binder that improves the taste and stability of effervescent tablets and powders. It is a non-hygroscopic, water-soluble, and directly compressible excipient and thus offers high-content uniformity and production efficiency for effervescent applications.

Additionally, the strategic initiatives taken by the market players also contribute to the growth of the market segment. For instance, in January 2022, DFE Pharma expanded its nutraceutical portfolio with the launch of three starch-based excipients, namely Nutroféli ST100 (native starch), Nutroféli ST200 (partially pregelatinized starch), and Nutroféli ST300 (completely gelatinized starch). These are naturally sourced, multifunctional excipients that can be used as binders, fillers, and other applications for oral solid dosage forms and conform to both food and pharma monographs.

Thus, owing to the abovementioned factors, the market segment is expected to show significant growth over the forecast period.

North America is Expected to Dominate the Market Throughout the Forecast Period

North America holds the major share in the pharmaceutical excipients market and is expected to follow a similar trend over the forecast period. Factors such as the fast-growing pharmaceutical industry; increasing demand for functional excipients; the presence of major players in the region; and advancements in technology will majorly drive the growth of the market over the forecast period.

The launch of technologically advanced or superior excipients also propels the growth of the market. For instance, in May 2022, Lubrizol Life Science (LLS) Health, one of the global leaders in accelerating success and innovation in pharmaceutical development, launched Apisolex in the United States. It is a novel solubility-enhancing excipient for use in parenteral drug products. This technology overcomes solubility hurdles that cannot be resolved by existing excipients or manufacturing techniques.

Similarly, in November 2021, Roquette launched its ready-to-use, pharmaceutical-grade solution for vegetarian soft gel capsule formulation, namely LYCAGEL Premix. It is developed based on Roquette’s market-first pea starch technology called lycagel, which was launched in 2020. The new soft gel blend provides manufacturers with an easy-to-use and convenient solution that ensures fast and reproducible scale-up for both nutraceutical and pharmaceutical applications. Such product launches bring more innovative products to the market, which fuels the growth of the market.

Thus, the aforementioned factors are anticipated to bolster the market's growth in the North American region.

Competitive Landscape

The pharmaceutical excipients market is moderately competitive and has the presence of a large number of small and big companies. Some of the market players are BASF SE, Croda International PLC, DuPont, Evonik Industries AG, Innophos, Kerry, Roquette Frères, and others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.