US excipients market forecast to rise

Monday, 28 April, 2014

US research firm The Freedonia Group has released the report ‘Excipients’, an industry study showcasing trends and forecasts in the pharmaceutical excipients market. The study also analyses market environment factors, evaluates company market share and profiles 47 US industry competitors.

Demand for pharmaceutical excipients in the US is projected to rise 4.3% per year to $2 billion in 2018. In volume terms, demand is expected to grow 1.9% annually to 408,000,000 kg over the same period. While continued growth in pharmaceutical output will be the primary driver of increases in excipient demand, gains will accelerate as excipients play a larger role in bringing additional value to pharmaceutical products by improving properties such as the controlled release or improved absorption of active ingredients.

Trends in pharmaceutical output by dosage formulation will have a strong influence on excipient demand by application. Output of parenteral preparations is expected to rise at an especially strong pace through 2018, supporting demand for suspension agents and preservatives. Solvents are also projected to benefit from increased shipments of parenteral drugs, although gains in dollar terms will be limited by the continued decline in glycerin prices due to oversupply.

Oral preparations are the largest category of pharmaceutical dosage formulations and oral pharmaceuticals tend to require more excipients than other types of drugs; thus, they have a significant impact on excipient demand. Shipments of oral pharmaceuticals are forecast to rise at a faster pace than seen in the 2008-2013 period, supporting accelerated gains in demand for fillers, binders, coatings, flavouring agents, capsules and disintegrants. In addition, oral formulations are expected to boost their market share, further raising demand for excipients such as binders and disintegrants.

US excipient demand (million dollars)

Item	2008	2013	2018	Annual growth 2008-2013	Annual growth 2013-2018
Excipient demand	1405	1620	2000	2.9%	4.3%
Polymers	596	708	890	3.5%	4.7%
Alcohols	303	331	400	1.8%	3.9%
Minerals	123	140	170	2.6%	4.0%
Gelatin	95	111	140	3.2%	4.8%
Sugars	38	43	50	2.5%	3.1%
Other	250	287	350	2.8%	4.0%

Product differentiation will play an increasingly important role as generic pharmaceutical products increase their market share and as consumers take a more active role in choosing their drugs from among a wide range of products with the same active pharmaceutical ingredients. Product versatility will be a key factor impacting product mix in excipient demand, especially as specialty excipient blends play an increasingly important role in pharmaceutical formulation. Polymers are expected to benefit from this trend as many of these products can function in multiple applications and are easily formulated with other excipients.

The report can be purchased at http://www.freedoniagroup.com/industry-study/3146/excipients.htm.