Segmentation By Product (Organic, Inorganic and Other Chemicals); By Functionality (Fillers & Diluents, Binders, Coating Agents, Disintegrants, Suspending & Viscocity Agents, Flaboring Agents & Sweeteners, Lubricants & Glidants, Preservatives, Emulsifying Agents and Others); and By Formulation (Oral, Topical, Parenteral and Others) – Global Demand Analysis & Opportunity Outlook 2027
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Growing Demand for Medicines Globally
According to the World Health Organization (WHO), projections for deaths caused by communicable, maternal, perinatal, nutritional, noncommunicable and injuries will grow from 56,873 thousands in 2016 to 101,831 thousands in 2060. CLICK TO DOWNLOAD SAMPLE REPORT
Demand for pharmaceutical drugs and consumption of medicines globally have grown manifold owing to rise in the number of diseases, growing geriatric population and the increasing mortality rates. With increased consumption of drugs, pharmaceutical drug manufacturers are also raising their production levels to meet the demand supply gap. The increasing demand for drugs and the rising consumption levels of such drugs are anticipated to raise the demand for pharmaceutical excipients amongst drug manufacturers during the forecast period.
According to OECD, R&D spends in the pharmaceutical industry in the United States grew from 983.99 USD/capita in 2010 to 1220.40 USD/capita in 2017.
With increasing R&D spends in the pharmaceutical industry, there is a growing demand for continuous up gradation in drug manufacturing processes, and the substances used to manufacture the drugs. It is anticipated that increased patient complaince, and the demand for different form of drugs from doctors for easy consumption by patients will support the growth of the pharmaceuticals excipients market throughout the forecast period.
Restraints
Higher Production Cost and Stringent Government Regulations
Manufacturing costs associated with the production of pharmaceutical excipients is anticipated to hamper the growth of the market. Additionally, stringent norms by governmental organizations, such as IPEC Federation is anticipated to act as a barrier to the growth of the pharmaceutical excipient market during the forecast period.
The pharmaceutical excipient market is observing vibrant growth on account of growing pharmaceutical industry and the rising adoption of orphan drugs. Furthermore, advancements in functional excipients, increasing uptake of biopharmaceuticals, emergence of multifunctional excipients, shifting focus of pharmaceutical manufacturing to emerging markets, and the growing biosimilars industry are some of the notable factors that are expected to boost the growth of the pharmaceutical excipients market. According to the statistics by Organisation for Economic Co-operation and Development (OECD), export market share of the pharmaceutical industry in Switzerland grew from 9.80% in 2006 to 13.43% in 2017.
The market is anticipated to record a CAGR of around 5.01% throughout the forecast period, i.e. 2019-2027. The pharmaceutical excipients market is segmented by segmented by formulation into oral, topical, parenteral and others, out of which, oral formulation segment is anticipated to hold largest market share. Oral solid drug formulations are easily consumable by the patient classes, such as children. During the drug manufacturing process, oral dosage forms require more amount of excipients than other forms. Patients find it difficult to swallow conventional hard solid tablets, which has prompted drug manufacturers to devise more innovative solid oral product forms, for instance, oral disintegrating granules (ODGs), effervescent tablets, lozenges and others, which is anticipated to fuel the growth of the segment.
Our in-depth analysis of the pharmaceuticals excipients market includes the following segments:
By Product
By Functionality
Emulsifying Agents
By Formulation
By Region
On the basis of regional analysis, the pharmaceutical excipients market is into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
Europe is expected to have largest market share on the back of presence of a number of pharmaceutical giants with large production capacities. It is anticipated that these leading giants will have high consumption of excipients. Additionally, growing emphasis on superior pharmaceutical products, generics, and biosimilars is raising the demand for novel excipients, which is expected to support the growth of the market in the region.
The pharmaceutical excipients market is further classified on the basis of region as follows:
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
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