The global excipients market was valued at USD 9.5 billion in 2022 and is projected to grow to USD 13.05 billion by 2030, registering a CAGR of 4.03% from 2023 to 2030. The market’s expansion is primarily driven by the increasing use of generic medicines and the rising demand for multifunctional excipients, which offer enhanced performance and versatility in drug formulations.

Excipients are recognized for providing better functionality, stability, and competitive advantages in pharmaceutical products, which has significantly increased their adoption among pharmaceutical companies in recent years. Continuous research and discovery of ideal or near-ideal excipients has further boosted market growth, as firms develop advanced substances with improved roles in drug delivery, enabling more effective, targeted, and patient-friendly formulations.

The COVID-19 pandemic presented substantial challenges for excipient manufacturers, including low inventory levels of critical raw materials and disruptions in the global supply chain, affecting procurement, production, and distribution of pharmaceutical products. Despite these challenges, many key players took strategic initiatives to maintain operations and drive growth. For example, in November 2020, Croda International Plc entered into an agreement with Pfizer Inc. to supply excipients for the production of its COVID-19 vaccine. This multi-year agreement included an initial supply contract for four-part excipients used in vaccine manufacturing, which significantly boosted Croda’s market position and stock performance.

Key Market Trends & Insights:

• In 2022, Europe dominated the global excipients market, holding the largest regional share of 37.26%. The region’s leadership can be attributed to its well-established pharmaceutical industry, high adoption of advanced drug formulations, and strong focus on research and development.

• By product type, the polymers segment led the market in 2022, accounting for over 45.69% of total revenue. Polymers are widely used due to their versatility, stability, and multifunctional properties, making them essential in a wide range of pharmaceutical applications, including controlled-release and targeted drug delivery systems.

• Considering function, the binders segment held the largest share of 12.98% in 2022. Binders play a critical role in ensuring the structural integrity of tablets and other solid dosage forms, which is essential for consistent drug performance and patient safety.

• By formulation type, the oral formulation segment dominated the market in 2022, representing 55.49% of the total share. Oral dosage forms remain the most widely used and preferred method of drug administration due to their convenience, patient compliance, and versatility, reinforcing their leading position in the excipients market.

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Market Size & Forecast:

• 2022 Market Size: USD 9.5 Billion

• 2030 Projected Market Size: USD 13.05 Billion

• CAGR (2023-2030): 4.03%

• Europe: Largest market in 2022

Key Companies & Market Share Insights:

The global excipients market is characterized by a highly competitive and fragmented landscape, with numerous international companies striving to capture a substantial share of global revenue. A key factor driving competition is the development of multifunctional and novel excipients, which enhance drug delivery, efficacy, and patient compliance. In addition, mergers and acquisitions are increasingly being leveraged by market participants as a strategic approach to expand product portfolios, enter new markets, and increase revenue share.

For example, in March 2022, Evonik increased its supply of plant-derived cholesterol, a critical component used in the production of gene therapies and mRNA vaccines. This large-scale production of PhytoChol aims to meet the growing cholesterol demand in Germany, highlighting the importance of securing essential raw materials in high-demand therapeutic areas.

Another major strategy adopted by key players is the expansion of manufacturing facilities to meet increasing global demand. For instance, in March 2023, Evonik announced the construction of a new facility dedicated to the production of RNA vaccine excipients. This investment ensures a reliable supply chain for RNA medicine excipients and supports the company’s growing involvement in advanced therapies. The facility is projected to become operational by 2025, further strengthening Evonik’s position in the competitive excipients market.

Key Players

• Eastman Chemical Corporation

• P&G Chemicals

• Avantor Performance Materials, LLC

• Huntsman Corporation

• BASF SE

• Ashland Inc.

• FMC Corporation

• Roquette

• Colorcon Inc.

• Lubrizol Corporation

• Valeant

• JRS Pharma

• Shin-Etsu Chemical Co., Ltd.

• DFE Pharma

• Finar Limited

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Conclusion:

The global excipients market is experiencing steady growth, driven by factors such as the increasing use of generic medicines and the rising demand for multifunctional excipients. Excipients play a crucial role in enhancing the functionality and stability of drug formulations, contributing to their widespread adoption by pharmaceutical companies. Ongoing research and development efforts are focused on discovering ideal substances that can improve drug delivery systems. Strategic initiatives, such as collaborations and facility expansions, are being undertaken to meet the growing demands of the market and ensure a reliable supply of essential excipients. These developments are expected to continue driving the market's expansion in the coming years.