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Pharmaceutical Excipients Market worth $7,356.2 Million by 2018

The "Pharmaceutical Excipients Market [By Products (Carbohydrates, Oleochemicals, Petrochemicals, Polymers, Microcrystalline Cellulose, Sugar, Calcium carbonate), By Functionality (Fillers, Binders, Lubricants, Preservatives)] – Global Forecast to 2018 " analyzes and studies the major market drivers, restraints, and opportunities in North America, Europe, Asia-Pacific, and the Rest of the World.

The global pharmaceutical excipients market is segmented by product, functionality, geography, and country. It also discusses the key market drivers, restraints, and opportunities of this market and its sub-markets. The market is valued at $5.7 billion  in 2013 and is expected to grow at a healthy CAGR from 2013 to 2018.

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The pharmaceutical excipients market is highly fragmented, with none of the major players accounting for more than 10% of the market share. The market comprises of several small players, each accounting for a market share of less than 1%. A majority of such players are based across low-cost manufacturing locations such as China, India, and Brazil.

In this fragmented market, Ashland, Inc. (U.S.) and BASF (Germany) were the leading players in the pharmaceutical excipients market with market shares of approximately 9%, each in 2012. Ashland has a diversified product portfolio, which includes a wide range of tablet binding, tablet disintegration, tablet film coating, solubilizer, and rheology modifier excipients. Ashland’s leading position in the market is attributed to its strong manufacturing and distribution footprint across the world, which enables it to serve customers in more than 100 countries. The company acquired International Specialty Products (ISP) in 2011, which enabled Ashland to gain a leading market position in 2012. The addition of ISP expanded the breadth of the companys technology platforms and provided Ashland with new resources and capabilities to better capitalize on market opportunities. The company intends to further strengthen its market position by focusing on new product launches and by diversification of its revenue streams to stabilize its financial growth.

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The key strategies followed by most companies in the global pharmaceutical excipients market in 2012 and 2013 are new product launches, mergers and acquisitions, partnerships and agreements, and expansions. Broad research in this market has brought into view that the new product launch strategy is the key strategy followed by major players and accounts for 27% of the total strategies. The pharmaceutical industry’s need for novel functional excipients formed the basis for innovations in the market during this period. By adopting this strategy, leading players launched various advanced excipients in the market, such as multifunctional excipients and co-processed excipients. Furthermore, the market players also launched modified grades of existing pharmaceutical excipients in the market. The key players involved in these strategies are Avantor Performance Materials, Inc. (U.S.), DFE Pharma (Germany), Ashland, Inc. (U.S.), BASF SE (Germany), and FMC Corporation (U.S.).

In this fragmented market, the top players struggle to maintain their leadership positions. To maintain their market shares, many players in this market aim to either diversify their product portfolios or expand their geographic presence. While organic expansions have been followed by some companies, a majority of the top players have adopted mergers and acquisitions as their key growth strategy.

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