According to a new report published by Introspective Market Research, titled, Pharmaceutical Excipients Market by Product, Functionality, and Formulation, The Global Pharmaceutical Excipients Market Size Was Valued at USD 10.0 Billion in 2023 and is Projected to Reach USD 18.07 Billion by 2032, Growing at a CAGR of 6.8%. The global pharmaceutical excipients market is experiencing steady growth as the demand for advanced drug formulations and drug delivery systems rises worldwide. Pharmaceutical excipients are inactive substances formulated alongside the active pharmaceutical ingredient (API) to serve various purposes such as enhancing drug stability, bioavailability, solubility, and patient compliance. These compounds are essential in modern pharmaceutical manufacturing, enabling consistent drug delivery and performance across various dosage forms.
Excipients play a vital role in improving the efficacy and safety of medications without possessing therapeutic effects themselves. Their usage extends across tablets, capsules, injectables, topical, and liquid formulations. With the increasing trend toward personalized medicine, biologics, and novel drug delivery systems, pharmaceutical companies are actively investing in the development of multifunctional excipients to enhance formulation effectiveness. The growing prevalence of chronic diseases, aging populations, and rising global healthcare expenditure are driving demand for high-performance excipients in both generic and branded drugs.
The Pharmaceutical Excipients Market is segmented into Product, Functionality, and Formulation. By Product, the market is categorized into (Organic Chemicals, Inorganic Chemicals, Others). By Functionality, the market is categorized into (Fillers & Diluents, Binders, Disintegrants, Lubricants & Glidants, Preservatives, Others). By Formulation, the market is categorized into (Oral Formulations, Topical Formulations, Parenteral Formulations, Others).
One of the primary growth drivers for the pharmaceutical excipients market is the increasing demand for innovative drug delivery systems. With advancements in pharmacology and the need for targeted, controlled, and sustained release therapies, pharmaceutical manufacturers are developing complex formulations that require sophisticated excipients. These include polymer-based excipients for extended-release tablets, lipid-based carriers for enhanced bioavailability, and solubilizing agents for poorly water-soluble drugs. The ability of excipients to modify drug release profiles and improve patient outcomes is accelerating their adoption across therapeutic areas.
A major opportunity in the pharmaceutical excipients market lies in the growing development and production of biologics and biosimilars. As the biopharmaceutical sector continues to expand, there is a rising need for specialized excipients that ensure the stability, delivery, and preservation of large-molecule drugs. Unlike small molecules, biologics are highly sensitive to environmental factors, making the selection of compatible excipients crucial. Companies focusing on protein-based formulations, monoclonal antibodies, and gene therapies are increasingly seeking excipients that enhance solubility, reduce aggregation, and maintain bioactivity, presenting a promising growth avenue for excipient manufacturers.
Pharmaceutical Excipients Market, Segmentation
The Pharmaceutical Excipients Market is segmented on the basis of Product, Functionality, and Formulation.
Product
The Product segment is further classified into Organic Chemicals, Inorganic Chemicals, and Others. Among these, the Organic Chemicals sub-segment accounted for the highest market share in 2024. Organic chemicals, such as carbohydrates (sugars), petrochemicals, and polymers, are widely used as binders, fillers, and coating agents in solid oral dosage forms. Their biocompatibility, functionality, and ease of processing have led to their dominance in pharmaceutical formulations. The surge in demand for oral medications, particularly in chronic therapies, has reinforced the market share of organic excipients due to their superior compatibility and performance.
Functionality
The Functionality segment is further classified into Fillers & Diluents, Binders, Disintegrants, Lubricants & Glidants, Preservatives, and Others. Among these, the Fillers & Diluents sub-segment accounted for the highest market share in 2024. These excipients are essential in tablet and capsule production, ensuring consistent weight, volume, and drug distribution. Widely used in both high-dose and low-dose medications, fillers and diluents contribute to tablet compressibility and stability. The increasing demand for solid oral formulations globally, along with innovations in controlled-release technologies, has reinforced the prominence of this functional category in excipient usage.
Some of The Leading/Active Market Players Are–
- BASF SE (Germany)
- DuPont de Nemours, Inc. (United States)
- Evonik Industries AG (Germany)
- Ashland Global Holdings Inc. (United States)
- Croda International Plc (United Kingdom)
- Lubrizol Corporation (United States)
- Roquette Frères (France)
- Kerry Group plc (Ireland)
- Colorcon Inc. (United States)
- JRS Pharma (Germany
- DFE Pharma (Netherlands)
- Archer Daniels Midland Company (United States)
- Associated British Foods plc (United Kingdom)
- …and other active players.
Key Industry Developments
In May 2024, BASF SE launched a new multifunctional excipient, Kollitab DC 87 L, designed for direct compression applications. The product enhances tablet stability and manufacturing efficiency while supporting high drug loading. It is especially suited for use in high-speed tableting, offering improved flowability and compression, helping manufacturers reduce production costs.
In January 2024, Roquette expanded its pharmaceutical excipient facility in France to meet rising demand for plant-based and multifunctional excipients. This expansion focuses on producing high-purity sorbitol and mannitol grades, addressing growing global requirements for bio-based, sustainable excipients in oral and injectable formulations.
Key Findings of the Study
- Organic chemicals dominated the product segment due to broad application in oral formulations.
- Fillers & diluents led the functionality segment, driven by increased demand for solid dosage forms.
- Growing biologics development is creating demand for specialized, stabilizing excipients.
- North America and Europe are key regional markets due to advanced pharmaceutical infrastructure.
- Innovation in multifunctional excipients is a key trend shaping market dynamics.
