Pharmaceutical Excipients Market, Opportunity, Growth Drivers, Industry Trend Analysis and Forecast, 2024-2032

Pharmaceutical Excipients Market, Opportunity, Growth Drivers, Industry Trend Analysis and Forecast, 2024-2032

The global pharmaceutical excipients market was valued at USD 9.1 billion in 2023 and is estimated to register 8% CAGR between 2024 and 2032. With the rising demand for dietary supplements alongside the increasing need for pharmaceuticals, excipients have grown essential as they help in enhancing drug formulations. These excipients improve the stability, solubility, and bioavailability of active pharmaceutical ingredients, ultimately boosting the efficacy of drug formulations. The emergence of new drug delivery technologies is also presenting an opportunity for ingredient manufacturers to cater to evolving production needs.

Increased activities in contract development and manufacturing organizations will spur market expansion. Outsourcing allows companies to focus on R&D while utilizing the expertise and infrastructure of CDMOs/CMOs for drug production. Legal standards for drug manufacturing require high-quality supplements from reliable suppliers, further boosting the product demand. For instance, in October 2023, Clariant launched three new VitiPure® excipients to enhance API formulations, especially for delicate products like mRNA vaccines and biologics.

The pharmaceutical excipients industry is segmented into product, functionality, formulation and region.

Based on product, the market value from the inorganic chemicals segment is projected to witness 7.9% growth rate through 2032. Inorganic chemicals are essential for pharmaceutical formulations to maintain quality and potency. They offer high levels of purity, stability, and compatibility with active ingredients. Surfactants provide unique functional properties like controlled release and binding. Inorganic additives, such as salts, minerals, and metals can also be used to customize formulations to meet specific requirements.

Pharmaceutical excipients market from the parenteral segment is anticipated to observe 7.9% CAGR from 2024 to 2032, owing to unique requirements for formulation and delivery of injectable pharmaceuticals. Parenteral products like injections and IV medications need additives for stability and compatibility with the active ingredient. Excipients are crucial in improving solubility, controlling delivery, and meeting regulatory standards for cleanliness and purity. As the demand for parenteral drug delivery continues to rise due to the increasing prevalence of chronic diseases and strong need for targeted therapies, the demand for quality developers for key infrastructure is increasing, favoring the segment growth.

Asia Pacific pharmaceutical excipients industry will record impressive growth, depicting an 8.4% CAGR through 2032. The expansion of the pharmaceutical industry in developing countries like China, India, and Southeast Asian countries is driving the demand for excipients due to increased healthcare infrastructure and spending, as well as the rising need for affordable medicines. Investments in healthcare infrastructure and increasing chronic diseases are also contributing to the need for excipients in APAC.