Pharmaceutical Excipients Market Expands as Chronic Disease and Biopharmaceutical Adoption Rise

Pharmaceutical Excipients Market is expected to grow at a CAGR of 6.8 %, is reported by Maximize Market Research

Pharmaceutical Excipients Market is forecasted to reach USD 18.07 Bn by 2032. This growth is fueled by rising demand for innovative drug formulations, expanding generic drug manufacturing, and increasing biopharmaceutical production worldwide.

Market to Hit USD 18.07 Bn by 2032

Pharmaceutical Excipients Market was USD 10.68 Bn in 2024 and is expected to expand at a compound annual growth rate (CAGR) of 6.8% from 2025 to 2032, reaching USD 18.07 Bn by 2032. In 2020, European Pharmaceutical Excipients Market was worth more than USD 3.1 billion, which is around 29% of Total Worldwide market. The biologics and biosimilars sector reached a market value of USD 440 billion in 2024 and is a key growth adhere we find that over 45% of injectable drugs utilize specialized excipients for the purpose of stability and bioavailability. In 2024, greater than 60% of new drugs accepted by the FDA required tailor-made designed excipient mixes. Nevertheless, aside the clinical trial costs, the average R&D investment for excipient innovation is high (USD 50–70 million per product)227 making it a significant entry barrier for smaller players. Since 2022, the EMA and FDA have issued over 180 compliance notices around excipient quality and regulatory scrutiny has also grown.

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Market Segmentation

By Functionality: In 2024, binders made up a 26.7% share of the Pharmaceutical Excipients Market by functionality, due partly to robust demand from solid oral dosage generation, which represents roughly 70% percent of global pharmaceutical output. Synthetic binders such as hydroxypropyl methylcellulose (HPMC) account for 12% YoY, owing to their reliable performance in high-speed manufacturing. Since 2020, the worldwide requirement for clean-label and multifunctional binders has expanded at a CAGR of 5.5%.

By Formulation: Oral formulations dominate the Pharmaceutical Excipients Market with a 38% share, supported by their patient-friendly profile and long shelf life. Over 80% of global prescriptions are for oral drugs, making it the largest consumer of excipients. In pediatric formulations, the adoption of flavoring and sweetening excipients grew by 19.2% in 2024, enhancing treatment adherence.

Market Regional Analysis

North America:  U.S pharmaceutical excipients market was worth USD 3.01 billion in 2024, holding a 32% global share. More than 70% of pharmaceutical firms in the country now employ excipients custom formulated to handle high-potency APIs. In 2024, the U.S. also led with 21 of all FDA approved novel excipients (the highest worldwide)

Europe:  Germany was a USD 1.69 billion excipient predominant market with 18% European market revenue in 2024. It exports to more than 75 markets and boasts one of the most robust GMP enforcement regimes in the world, helping to earn its reputation for pharmaceutical ingredient quality.

Asia Pacific: Excipient exports from India were over USD 920 million in 2024, with a five-year CAGR of 7.6%. The size of the domestic excipient market experienced Y-o-Y growth and stood at USD 860 million, mainly due to increasing contract manufacturing organizations (CMOs) of which there were more than 1,500 active facilities in India.

Market Trends and Development

• Rising demand for multifunctional excipients to enhance formulation efficiency and drug performance.
• Biopharmaceutical growth driving use of stabilizing excipients like polysorbates and sugars—accounts for 45% of global excipient R&D.
• Novel drug delivery systems (e.g., nanoparticles, lipid carriers) increasing demand for advanced excipients 30% annual growth in lipid-based excipients (2020–2024).
• Quality-by-Design (QbD) adoption rising over 80% of U.S. firms apply QbD in excipient development.

Market Competitive Landscapes

• Lubrizol Corporation (USA), March 2025: Acquisition projected to boost its injectable excipient division by USD 75 million annually. Total pharma-related revenues stood at USD 520 million in 2024.
• Croda International Plc (UK), February 2025: Achieved USD 1.1 billion in revenue with 9% YoY growth, largely due to lipid-based delivery excipients which now represent 22% of their total excipient revenue.
• Evonik Industries AG (Germany), January 2025: Launched a colon-targeted polymer excipient, reducing drug release variability by 35%. Its healthcare segment contributes to 12.4% of total company revenue.
• Avantor, Inc. (USA), February 2025: Innovation center in Pennsylvania expected to increase excipient R&D output by 18 projects annually. 2024 global revenue was USD 7.8 billion, with 12% allocated to excipient development.

Conclusion

• Rising demand for innovative drug formulations and biologics.
• Over 70% of new drugs need specialized excipients.
• Global R&D in excipients exceeded USD 2.5 billion in 2024.
• Increasing use of novel excipients, digital tools, and regulatory acceptance to drive further growth.

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