Press Release   -

Pharmaceutical Excipients Market Poised for Expansion as Innovation and R&D Investment Transform Drug Development

The global pharmaceutical excipients market is on a steady growth trajectory, driven by expanding pharmaceutical manufacturing, the shift toward specialised dosage forms and formulation innovations. According to Vantage Market Research, this market was valued at approximately USD 8.82 billion in 2024 and is projected to reach around USD 16.934 billion by 2035, registering a CAGR of 6.15 % over the period 2025–2035. This press release outlines key trends, segmentation insights, regional dynamics, key company moves, recent developments and the overall market scope to support strategic decision-making for stakeholders in the excipients supply chain.

Key Takeaways

1. The pharmaceutical excipients market is poised to nearly double in revenue from 2024 to 2035, reflecting growing formulation complexity and drug development activity.
2. Growth is fuelled by rising generic drug manufacturing, increased adoption of novel dosage forms (oral solid, parenteral, controlled-release) and demand for multifunctional excipients supporting formulation efficacy and stability.
3. Segmentation by product (organic vs inorganic chemicals), functionality (fillers, coatings, emulsifiers etc.), end-user (oral, tablets, liquid, parenteral) reveals shifting value chains and higher-value excipient demands.
4. Geographically, mature markets such as Europe are major value contributors, while high growth is expected in Asia Pacific and Latin America due to expanding pharma manufacturing and improved access.
5. Leading companies are investing in capacity expansions, sustainability initiatives, and specialised excipient offerings for advanced drug delivery systems (e.g., injectables, biologics) signalling strategic importance of excipients in the pharmaceutical value chain.

Key Market Trends & Insights

The market for pharmaceutical excipients is evolving under a number of key trends: The patent expirations of blockbuster drugs boost generic drug production, which increases demand for cost-effective excipient solutions. Simultaneously, the increasing prevalence of chronic diseases and growth in formulation innovation (e.g., controlled release, oral solid dose combinations, parenteral biologics) are driving demand for advanced excipients that ensure stability, bioavailability and patient-compliance. The trend toward multifunctional excipients those that can act as binder, disintegrant, coating agent adds value and supports manufacturers’ push toward streamlined formulations. Lastly, sustainability and regulatory pressures are pushing excipient makers to innovate in raw material sourcing, process efficiency and compliance.

Market Size & Forecast

In 2024 the global pharmaceutical excipients market size stood at USD 8.82 billion. By 2035 it is forecast to reach approximately USD 16.934 billion, achieving a CAGR of about 6.15 % during 2025–2035. This forecast underscores that while the market is not growing at hyper-speeds compared to some adjacent segments, it is nonetheless offering robust, sustained growth and value opportunities for excipient manufacturers, formulators and raw material suppliers.

The pharmaceutical excipients market is moderately concentrated. A handful of large specialty chemical companies (e.g., Evonik Industries AG, Ashland Global Holdings Inc., BASF SE) hold major shares in high-value excipient categories especially those tailored for advanced formulations, biologics and controlled release. On the other hand, the market for commodity excipients (standard fillers, diluents) is more fragmented, with many regional players. Key differentiators include R&D capabilities, formulation support services, regulatory compliance (e.g., IPEC-GMP excipients), raw material sourcing, and global supply chain reliability. Regulatory oversight around excipients is intensifying, particularly for novel excipients and excipients used in biologics or complex dosage forms.

Product Insights

The pharmaceutical excipients market by product includes organic and inorganic excipients. Organic excipients dominate the market, attributed to their wide compatibility with active pharmaceutical ingredients (APIs) and extensive use in drug formulation stability, solubility, and bioavailability enhancement. These include polymers, alcohols, and carbohydrates that improve drug delivery efficiency. Inorganic excipients, though a smaller segment, play a critical role in buffering, tonicity adjustment, and sustained-release formulations, supporting precision medicine and specialized dosage forms.

Functionality Insights

Based on functionality, the market is segmented into fillers & diluents, binders, disintegrants, lubricants, coatings, flavoring agents, and others. Fillers and binders hold the largest share due to their indispensable role in ensuring uniformity, consistency, and mechanical strength in tablets and capsules. Disintegrants and coatings are witnessing steady growth, driven by innovations in controlled-release and taste-masking technologies. The ongoing shift toward multifunctional excipients that enhance formulation performance and stability is further stimulating segment expansion across pharmaceutical manufacturing.

End User Insights

The market is segmented by end user into pharmaceutical companies, research organizations, and contract manufacturing organizations (CMOs). Pharmaceutical companies represent the largest end-user group, leveraging excipients for developing innovative formulations, biologics, and advanced delivery systems. CMOs are increasingly adopting high-quality excipients to optimize production efficiency and compliance with regulatory standards. Meanwhile, research organizations utilize excipients in formulation development and stability testing, contributing to innovation in excipient functionality, compatibility, and biopharmaceutical performance.

Regional Insights

North America Pharmaceutical Excipients Market Trends

In North America, the pharmaceutical excipients market benefits from the high concentration of drug manufacturers, advanced formulation R&D and strong regulatory infrastructure. The region is characterized by high entry cost but also high value per unit due to premium excipients for complex formulations. While North America may not have the fastest growth rate, it remains a key revenue driver due to the mix of high-margin products, biologics manufacturing and established formulation hubs.

Europe Pharmaceutical Excipients Market Trends

Europe is a mature market for pharmaceutical excipients. According to VMR, the Europe market was valued at USD 2,965.4 million in 2024 and is projected to reach USD 5,785.4 million by 2035, at a CAGR of 6.4 %. Europe benefits from strong generics production, stringent regulatory norms and a robust pharmaceutical manufacturing base. Growth is driven by rising demand for generics (which increases excipient volumes) and increasing adoption of advanced dosage forms. Western Europe holds the lion’s share and continues to invest in innovation and excipient-driven formulation technologies.

Asia Pacific Pharmaceutical Excipients Market Trends

The Asia Pacific region is expected to witness the fastest growth in the pharmaceutical excipients market, driven by expanding pharmaceutical manufacturing in China, India, Southeast Asia; increasing outsourcing of formulation activities; rising healthcare access; and growth of generic drug manufacturing. The lower cost base and rising middle-class demand for pharmaceuticals support excipient volume growth. This region offers attractive opportunities for excipient suppliers to scale volume operations, localise production and capitalize on growth of generics and bio-formulations.

Latin America Pharmaceutical Excipients Market Trends

Latin America presents moderate growth prospects for pharmaceutical excipients. Growth is underpinned by improving healthcare infrastructure, increased off‐patent drug production, and rising demand for generics. Constraints include regulatory heterogeneity and cost pressures. Nevertheless, as pharmaceutical manufacturing expands regionally (e.g., Brazil, Mexico), excipient consumption is expected to rise, creating opportunities for suppliers to establish local presence or partnerships to serve demand.

Middle East & Africa Pharmaceutical Excipients Market Trends

The Middle East & Africa region is currently a smaller share in the global excipients market but holds strategic potential. Market growth is driven by healthcare system upgrades, government initiatives to promote local manufacturing and increased import of pharmaceutical products. Challenges include limited manufacturing base and regulatory fragmentation. Still, excipient suppliers that can address local needs, provide cost-effective, regulatory-compliant solutions stand to gain as the region evolves.

Top Key Players Pharmaceutical Excipients Market

1. Ashland Global Holdings
2. BASF SE
3. DuPont
4. Evonik Industries AG
5. Associated British Foods
6. Archer Daniels Midland Company
7. Lubrizol Corporation
8. Croda International
9. Kerry Group

These companies are placing emphasis on R&D, advanced excipient technologies, strategic partnerships and capacity expansions to capture the evolving needs of pharmaceutical formulators globally.

Recent Developments

1. In September 2024, Evonik Industries AG officially opened a new spray-drying facility for its EUDRAGIT® polymers (key excipients for oral drug delivery) at its Darmstadt site. The facility enhances supply security, shortens delivery times and is integrated into its global production network.
2. In August 2024, Ashland Global Holdings completed the second expansion of its Viatel™ bioresorbable polymers manufacturing and R&D lab in Mullingar, Ireland, reinforcing its capability to serve parenteral injectable formulations and high-value excipient segments.

Market Scope

This report covers the global pharmaceutical excipients market from base year 2024 with forecast until 2035. It includes market size, forecast, segmentation by product type (organic vs inorganic chemicals), functionality/application (fillers, coatings, emulsifiers etc.), end-use/dosage form (oral, parenteral, topical etc.), distribution channel (pharmaceutical manufacturers, CDMOs), regional analysis (North America, Europe, Asia Pacific, Latin America, Middle East & Africa) and competitive landscape (key companies, strategies, recent developments). The scope is intended to support excipient manufacturers, pharmaceutical formulators, investors and strategy planners in mapping opportunities, risks and growth levers in the excipient value chain.

Market Dynamics

Driver:

A primary growth driver is the rising demand for generic drug manufacturing and increased pharmaceutical production globally. According to VMR, as more patented drugs lose exclusivity, generic formulations increase, driving higher volumes of excipient consumption. Additionally, formulation complexity (controlled release, biologics, combination drugs) is driving demand for advanced, multifunctional excipients.

Restraint:

Restraint factors include regulatory burdens related to novel excipients, high cost of qualification and validation of new excipient chemistries, supply-chain volatility for raw materials, and pressure on pricing from formulators seeking cost containment. These can hamper entry of new excipient products and squeeze margins.

Opportunity:

Opportunities lie in advanced drug delivery segments (e.g., parenteral biologics, inhalables, nano-formulations), where excipient requirements are more specialised and premium. Suppliers who can provide high-purity, tailored excipients with strong regulatory documentation will be well positioned. Emerging markets (Asia Pacific, Latin America) also offer volume growth. Sustainability and green excipient trends (bio-based, low-carbon footprint) present additional strategic opportunities.

Challenges:

Challenges include managing raw materials cost inflation, maintaining global cGMP and regulatory compliance across multiple jurisdictions, ensuring supply-chain resilience (as excipients are often low-visibility but critical inputs), and differentiating commoditised excipients in a competitive market. Additionally, the time and expense to qualify a new excipient for a pharmaceutical formulation remain high, making innovation adoption slower.

Market Segmentation

1. By Product: Organic Chemicals / Inorganic Chemicals
2. By Functionality: Fillers & Diluents, Suspending & Viscosity Agents, Coating Agents, Flavoring & Sweeteners, Disintegrants, Colorants, Lubricants & Glidants, Preservatives, Emulsifying Agents, Others
3. By End-User: Oral Formulations, Tablets, Capsules, Liquid Formulations, Topical Formulations, Parenteral Formulations, Others
4. By Region: North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Frequently Asked Questions

1. What was the market size of the global pharmaceutical excipients market in 2024?

USD 8.82 billion.

1. What is the projected market value by 2035 and what is the CAGR from 2025-2035?

The market is projected to reach about USD 16.934 billion by 2035, growing at a CAGR of 6.15 %.

1. Which product segment dominates the excipients market?

The organic chemicals segment (oleochemicals, carbohydrates, polymers) leads the product category, given formulation complexity and premium excipient demand.

1. Which end-use dosage form segment holds largest share?

Oral formulations (tablets, capsules, liquids) dominate the end-use segment, due to high volumes and excipient usage in these dosage forms.

1. Which region is expected to grow fastest for pharmaceutical excipients?

The Asia Pacific region is expected to show the fastest growth, driven by rising pharmaceutical manufacturing, generics expansion, and improving healthcare infrastructure.