Published: Sep, 2016
The global excipients market is marked by frequent mergers and acquisitions and partnered alliances as companies vie to enhance their products’ reach, states a new report by Transparency Market Research (TMR). Excipients manufacturers are also engaging in long-term strategic agreements to ensure customer retention. There exists a close working relationship between excipient suppliers and customers. In addition, there is a significant threat of backward integration from buyers to reduce cost and bring supplier power under control. Thus, buyer power is expected to rise from medium to high in the coming years.
According to the report, the global market opportunity in excipients is expected to rise from US$3.87 bn in 2015 to US$4.61 bn by 2018. On the basis of product, the polymers segment led in the past and will continue to do so even in the coming years owing to the growing use of cellulose as fillers, diluters, binders, lubricants, film coating, disintegrants, and anti-adherent in the cosmetics and pharmaceutical industries. By region, Europe, followed by North America, is projected to lead in the excipients market. Europe is expected to account for 30% of the market by 2018.
Growth in Pharmaceuticals Industry to Drive Demand for Excipients
One of the key factors driving the global excipients market is the high demand from pharmaceutical industries. Excipients are used as binders, coating agents, flavoring agents, disintegrants in manufacturing capsules, tablets and other drug delivery sources in the pharmaceutical industry. The recent times have seen a high growth of the pharmaceutical industry, owing to rising incidences of health issues and this is subsequently leading to a high demand for excipients.
Another factor aiding the growth of the excipients market is the demand for new and innovative excipients. This demand is on account of past incidents, where patients have died owing to contaminated or substandard excipients used by pharmaceutical companies. Thus, producers are shifting their focus to find new excipients, which will result in the development of new dosage forms, improve efficiency, and may reduce cost of drugs. As such, emergence of new excipients will help the market to grow.
High Cost of Manufacturing to Hinder Market
Organic excipients, which are derived from corn, maize, and starch have maximum market share. Corn and maize are also in demand as they are used for clean energy solutions. As such, their prices are rising and poor harvesting causes an overall cost of manufacturing excipients. “The increased pressure from pharmaceutical and bio-pharmaceutical regulatory bodies is also having some amount of impact on the overall price hike,” states a TMR analyst.
The U.S. Food and Drugs Administration (FDA) has been paying increased attention to excipients, right from the production stage to the distribution stage owing to an increasing number of drug contamination cases. In order to maintain safety, FDA has imposed stringent regulations regarding the production of excipients and further drugs, thus hampering the market.
BRIC Nations to Emerge as Lucrative Markets for Excipients
Brazil, Russia, India and China (BRIC) are experiencing healthy growth rates in the pharmaceuticals market owing to the growing health concerns and disposable income in these region. Growth in the outsourcing of drug manufacturing and the lower-production cost in countries in Southeast Asia and South America are expected to provide an opportunity for growth in the market.
New product development by players in order to sustain in the market has led to the development of new excipients that have new applications. This is also expected to create a new opportunity in the global excipients market.
This information is based on the findings of a report published by Transparency Market Research titled “Excipients Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2012 - 2018.”
The global excipients market is segmented as follows:
- Ethyl Cellulose
- Methyl Cellulose
- Croscarmellose Sodium
- Pregelatinized Starch
- Sodium Starch Glycolate
- Polyethylene Glycol
- Acrylic Polymers
- Propylene Glycol
- Calcium Phosphate
- Calcium Carbonate
- Silicon Dioxide
- Titanium Dioxide
Sugar and Other
- North America
- Rest of the World (RoW)
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