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April 2025
Principal Consultant
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The global pharmaceutical excipients market size is calculated at USD 10.41 billion in 2024, grew to USD 10.83 billion in 2025, and is projected to reach around USD 15.49 billion by 2034. The market is expanding at a CAGR of 4.06% between 2025 and 2034. The growing demand for specialty drugs and biologics, as well as increasing research and development activities, drive the market.
| Metric | Details |
| Market Size in 2024 | USD 10.41 Billion |
| Projected Market Size in 2034 | USD 15.49 Billion |
| CAGR (2025 - 2034) | 4.06% |
| Leading Region | Europe |
| Market Segmentation | By Product, By Formulation, By Function and By Region |
| Top Key Players | Ashland, Inc., Clariant Health Care, DFE Pharma, DuPont, Evonik, GELITA, Ingredion, Lubrizol Corporation, MEGGLE Pharma |
Pharmaceutical excipients are substances used in addition to active pharmaceutical ingredients (APIs) in a formulation. Ideally, they should be inert. However, some report adverse reactions. Some common examples of excipients include corn, wheat, polyethylene glycol, starch, and dextran. They aid in the processing of drug delivery systems during their manufacture and protect, support, or enhance their stability. They also assist in product identification and maintain the integrity of drug products during storage.
The rising prevalence of acute and chronic disorders has led to the development of novel drugs. The growing research and development activities promote the market. Ongoing efforts are made to produce novel and complex excipients for new drug delivery systems. The increasing use of small molecules as therapeutics, along with new product launches, boosts the market. The growing demand for generic pharmaceuticals potentiates the demand for excipients. Technological advancements drive the latest innovations in excipient research.
Artificial intelligence (AI) has been widely adopted in the pharmaceutical sector, leading to advancements in technology. AI can play a vital role in the research and development process, assisting researchers in identifying the potential excipients suitable for a formulation. It can suggest the type and amount of excipients required for a formulation. It can also aid in developing personalized formulations based on a patient’s specific conditions. Additionally, AI can be used to design and produce novel excipients for complex formulations. AI and machine learning (ML) algorithms can analyze vast amounts of data of existing excipients and predict the physicochemical properties of novel excipients. This enhances the accuracy and reproducibility of the dosage form preparation, reducing manual errors. AI can also suggest the safety and effectiveness of excipients to decrease potential side effects.
New Product Launches
The major growth factor of the pharmaceutical excipients market is the new product launches and favorable regulatory frameworks. Several regulatory agencies approve numerous drugs with novel APIs, new indications, or generic drugs. The rising prevalence of chronic disorders due to the increasing geriatric population necessitates the development of novel drugs for their treatment. Current research also includes the development of novel drug delivery systems for targeted delivery of drugs, reducing systemic side effects. All these aspects necessitate the use of pharmaceutical excipients. Excipients range from inert and simple to complex and active substances that can be difficult to characterize. These excipients ensure quality, stability, and efficacy, impacting drug delivery and bioavailability. There are currently more than 13,000 small molecules as therapeutics in the market and under clinical trials.
Supply Chain Disruption
The major challenge of the market is the supply chain disruption of pharmaceutical excipients due to rising demand globally. Supply chain challenges include sourcing issues, leading to excipient quality issues and drug shortages. The complex regulatory frameworks of different geographical locations also limit the timely availability of excipients, restricting market growth.
Technological Advancements
The future of the pharmaceutical excipients market is promising, driven by technological advancements. The growing demand for pharmaceutical excipients facilitates researchers to develop novel excipients with multiple functions. The method of co-processing multifunctional excipients is an emerging trend that involves mixing two or more existing excipients to produce a single, enhanced multifunctional excipient. This provides the benefits of multiple functions, such as enhanced flow, compressibility, compatibility, and disintegration ability in a single excipient. Another technological advancement is the advent of 3D printing technology. This technology is increasingly used in the pharmaceutical sector to produce complex formulations. Excipients are required to create precisely dosed medications and tailored drug delivery systems. The rising need for personalized medicines also increases the demand for pharmaceutical excipients.
By product, the polymers segment held a dominant presence in the pharmaceutical excipients market in 2024. Polymers are preferably used to enhance the properties of drug delivery systems and improve their bioavailability. The growing demand for natural and synthetic polymers due to their inertness potentiate the use of polymers. They are responsible for numerous functions, such as solubility, swellability, viscosity, and biodegradability. They are comparatively safer, cost-effective, and easily available, boosting the segment’s growth. They are widely used as they can be modified to alter their physical and chemical properties. This helps researchers get the desired properties.
By product, the alcohols segment is expected to grow at the fastest rate in the market during the forecast period. Alcohols such as ethanol, isopropyl alcohol, and benzyl alcohol are widely preferred as pharmaceutical excipients. They are used primarily as preservatives, solubilizing agents, and taste-masking agents. Alcohols are soluble in both water and oils. The growing demand for liposomes or other drug delivery systems with lipid and aqueous substances requires the use of alcohol to enhance their solubility and to stabilize the formulation. Many active ingredients are bitter, potentiating the demand for alcohols to improve the after-taste of bitter drugs.
By formulation, the oral segment held the largest share of the pharmaceutical excipients market in 2024. Oral formulations, including tablets, capsules, and syrups, are predominantly prescribed as they are easy to administer. Oral formulations can be administered to patients of all age groups and are very cost-effective. Thus, they increase patient medication adherence and ease large-scale manufacturing. Advancements in the manufacturing of oral formulations increase the use of pharmaceutical excipients. It is estimated that more than 84% of the best-selling pharmaceutical products are orally administered.
By formulation, the topical segment is predicted to witness significant growth in the market over the forecast period. Topical formulations include creams, ointments, and gels to be applied on the skin. The increasing incidence of burns and injuries augment the segment’s growth. The demand for topical formulation increases as it is easy to apply and provides targeted action. The dose delivery can be controlled, reducing systemic side effects. Topical formulations are delivered non-invasively and are beneficial for patients who are unable to take oral drugs or injections.
By function, the binders segment led the global pharmaceutical excipients market in 2024. The primary function of the binders is to improve the cohesion and plasticity of the powder mixture, enabling the processibility of tablets. Binders combine all the ingredients of a tablet, reducing the risk of tablet breakage during manufacturing. Some common examples of binders include povidone, microcrystalline cellulose, polyethylene glycol, gelatin, and starch. The selection of binders depends on the drug’s properties, desired release profile, and processing considerations.
By function, the coating agents segment is projected to expand significantly in the market in the coming years. Coating agents are used to protect formulations from environmental factors, mask unpleasant tastes, and control drug release. Common examples of coating agents include hydroxypropyl methylcellulose, ethylcellulose, polyvinyl alcohol, and methacrylic acid copolymers. They play a major role in protecting the API from moisture, light, or the acidic environment of the stomach.
Europe held the largest share of the pharmaceutical excipients market in 2024. The rapidly expanding pharmaceutical sector and the rising adoption of advanced technologies are the major growth factors of the market. Favorable government policies and increasing collaborations among government and private organizations fuel the market. The International Pharmaceutical Excipient Council (IPEC) Europe is a non-profit organization that brings together producers, distributors, and users of pharmaceutical excipients to develop harmonized standards.
The growing research and development activities and the increasing number of clinical trials propel the market. The German government provides funding and supports the domestic manufacturing of pharmaceuticals to overcome drug shortages, especially generic medications. The government made amendments to the Medicines Act to establish an early warning system to identify potential supply shortages.
Asia-Pacific is projected to host the fastest-growing pharmaceutical excipients market in the coming years. The rising prevalence of chronic disorders necessitates the development of novel medications. The growing research and development activities also contribute to the market. The availability of suitable manufacturing facilities encourages foreign companies to set up their facilities in Asia-Pacific countries. The presence of an affordable labor force and manufacturing infrastructure in Asia governs market growth. Favorable trade policies also foster the demand for pharmaceutical excipients. Countries like India and China are at the forefront of pharmaceutical excipients’ export.
The Chinese government is encouraging R&D in the pharmaceutical sector, with special emphasis on biologicals and biosimilars. According to the WHO, all the world’s 20 leading pharmaceutical companies have manufacturing facilities in China, potentiating the demand for excipients. The National Medical Products Administration (NMPA) regulates the approval of pharmaceutical excipients in China.
India is the leading exporter of pharmaceutical excipients globally. India exported 1,940 shipments of pharmaceutical excipients from March 2023 to February 2024. Favorable government policies, such as the Make in India policy, encourage the domestic manufacturing of excipients. The Indian regulatory agency, Central Drugs Standard Control Organization (CDSCO), approved a total of 21 drugs in 2024.
North America is estimated to grow at a significant rate in the global pharmaceutical excipients market during the forecast period. State-of-the-art research and development facilities and advancements in manufacturing technology drive the market. The increasing investments, collaborations, and mergers & acquisitions boost the market. Favorable government policies for advanced research and personalized patient treatment potentiate the demand for excipients. Suitable regulatory frameworks favor the development of novel drugs and drug delivery systems, thereby increasing the use of pharmaceutical excipients. The presence of key players such as DFE Pharma, SD Head USA LLC, and Cargill Canada hold a major share of the market.
The Food and Drug Administration regulates the approval of pharmaceutical excipients in the U.S. The growing demand for OTC and generic medications contributes to market growth. It is estimated that more than 90% of the prescriptions in the U.S. are for generic drugs. Compounding pharmacies are experiencing significant growth due to the rising need for personalized therapeutics. About 1-3% of the total prescriptions in the U.S. are for compounded drugs.
Favorable government policies and increasing investments promote the market. The Canadian government provides sufficient funding to support the manufacturing of pharmaceutical ingredients in Canada. In March 2023, the Canadian government announced $80 million over five years to support the Canadian Critical Drug Initiative to increase the domestic manufacturing of critical medicines.
Ruth Leinenbach, Director BU Excipients at MEGGLE, commented on its collaboration with Brenntag Specialties, that the partnership enables them to make their excipients more accessible to their customers. The company can ensure consistent and efficient delivery with Brenntag’s extensive logistics network, proven expertise, and reliable infrastructure.
By Product
By Formulation
By Function
By Region
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