The global pharmaceutical excipients market is entering a period of steady and structurally supported growth. According to the latest analysis from Kings Research, the industry was valued at USD 10.21 billion in 2023, is expected to reach USD 10.92 billion in 2024, and is projected to climb to USD 17.50 billion by 2031, registering a compound annual growth rate (CAGR) of 6.97% across the 2024–2031 forecast period.
Excipients are the inactive substances blended with active pharmaceutical ingredients to turn a molecule into a usable medicine. They act as binders, fillers, stabilizers, preservatives, colorants, flavoring agents, and disintegrants, and they strongly influence how a drug is manufactured, stored, absorbed, and tolerated. As formulations become more sophisticated, the humble excipient has moved from a commodity input to a strategic enabler of drug performance.
Market Overview
The research describes a market that spans production, distribution, and use of excipients across the pharmaceutical sector. Growth is being propelled by the rising need for effective drug formulations and by the expanding use of specialized excipients within new drug delivery systems. Advances in controlled-release and targeted delivery technologies are widening the range of applications where carefully engineered excipients are essential, rather than optional.
Capacity investment is another important thread. Manufacturers are expanding facilities and production capacity to improve supply security and shorten delivery times, while placing greater emphasis on sustainable and innovative manufacturing processes. A notable example came in September 2024, when Evonik opened a new facility in Darmstadt, Germany, dedicated to drying aqueous dispersions of EUDRAGIT polymers. The plant is designed to meet rising demand for functional excipients in oral drug delivery and operates on green electricity and steam from local waste incineration, cutting carbon dioxide emissions by more than 1,000 tons a year.
Key Highlights from the Report
Several findings frame the market’s trajectory. North America accounted for a 35.95% share in 2023, equal to USD 3.67 billion. By product, the inorganic chemicals segment generated USD 6.36 billion in revenue in 2023. By functionality, fillers and diluents are expected to reach USD 2.86 billion by 2031. Asia Pacific is forecast to be the fastest-growing region, advancing at a CAGR of 7.83% through the forecast period and reaching an estimated USD 4.35 billion by 2031.
Market Driver: Advancements in Drug Delivery Systems
The principal growth engine is the development of advanced drug delivery systems. Modern pharmaceutical and nutraceutical products increasingly rely on moisture-sensitive active ingredients, which demand excipients capable of protecting product integrity under challenging conditions. This is stimulating demand for specialized materials that improve moisture protection, formulation flexibility, stability, shelf life, and consistent performance.
Industry activity reflects this need. In October 2023, Roquette widened its portfolio for moisture-sensitive ingredients with three new grades, including LYCATAB CT-LM, a partially pregelatinized starch, and two microcrystalline cellulose products, MICROCEL 103 SD and MICROCEL 113 SD. Introduced at CPHI Barcelona, the grades offer enhanced stabilization and moisture protection across a range of production methods and dosage formats.
Market Challenge: Supply Chain Disruptions
The report identifies supply chain disruption as the most significant constraint. Because many raw materials originate in specific regions and the market operates globally, interruptions can delay production, raise costs, and cause shortages of critical excipients, with knock-on effects for drug manufacturing timelines and pricing.
Companies are responding by diversifying their supplier base, establishing local sourcing options, and strengthening supplier relationships. Investment in supply chain technology for better forecasting and risk management, along with the maintenance of safety stock, is helping build more resilient networks that can protect production continuity.
Market Trend: The Rise of Multifunctional Excipients
A defining trend is the shift toward multifunctional excipients that combine several roles, such as disintegration, lubrication, and improved powder flow, within a single product. By reducing the number of ingredients and process steps, these materials deliver cost savings and simpler production. Their appeal is growing as manufacturers adopt direct compression and continuous manufacturing, techniques that benefit from excipients capable of supporting consistent tablet hardness and quality.
In June 2023, Ashland introduced Polyplasdone Plus, a co-processed direct compression superdisintegrant that contains a glidant and lubricant. The product improves powder flow and lubrication, removes two steps from equipment setup, and supports high-quality output in both batch and continuous manufacturing.
Segmentation Insights
The study segments the market by product and by functionality. Under product, inorganic chemicals, including calcium phosphate, metal oxides, halites, and calcium carbonate, held the leading position with USD 6.36 billion in 2023, supported by demand for excipients that enhance the stability and bioavailability of active ingredients in solid dosage forms such as tablets and capsules. Organic chemicals, covering oleochemicals, carbohydrates, petrochemicals, and proteins, form the second group. The inorganic segment is projected to generate USD 10.59 billion by 2031.
By functionality, fillers and diluents held a 16.69% share in 2023, reflecting their central role in determining tablet size, consistency, and overall stability. Other categories include binders, suspension and viscosity agents, coatings, flavoring agents, disintegrants, colorants, and preservatives.
Regional Analysis
North America’s leadership is underpinned by strong demand for generic and biologic drugs, the presence of major pharmaceutical companies, and a mature manufacturing and distribution infrastructure. Strategic acquisitions have broadened production capabilities and regional reach. In March 2024, Roquette acquired IFF Pharma Solutions, a leading global producer of excipients for oral dosage forms, strengthening its United States presence and its formulation and drug delivery capabilities.
Asia Pacific is the region to watch. Expanding pharmaceutical manufacturing capacity, rising demand for both generic and branded drugs, growing healthcare infrastructure investment, and a large and growing population are all contributing to a projected 7.83% CAGR. In November 2024, Clariant showcased its made-in-India healthcare portfolio at CPHI India, highlighting expertise in biologics, generics, and excipient production for the Indian market.
Regulatory Landscape
Regulation shapes product development and market entry. In Europe, excipients must meet European Pharmacopoeia quality standards under the oversight of the European Medicines Agency, and those with known actions or effects must be clearly labeled. In the United States, the Food and Drug Administration regulates excipients under the Federal Food, Drug, and Cosmetic Act, and products must comply with United States Pharmacopeia standards. In China, the National Medical Products Administration enforces a stringent registration process that requires Drug Master Files detailing excipient quality, manufacturing, and safety.
Competitive Landscape
The market is moderately consolidated, with multinational corporations competing alongside specialized regional players. Participants are broadening product portfolios, entering new geographies, and offering versatile excipients tailored to varied pharmaceutical applications. Leading companies profiled in the report include Evonik Industries AG, BASF SE, Roquette, Lubrizol Corporation, Ashland Inc, DMV-Fonterra Excipients GmbH & Co. KG, Archer Daniels Midland Company, Croda International PLC, Kerry Group, Associated British Foods PLC, Avantor, Colorcon, DuPont, IFF, and JRS PHARMA.
Partnerships and acquisitions continue to define strategy. In February 2025, Brenntag announced a partnership with MEGGLE Excipients to distribute a portfolio of more than 30 lactose-based excipients across the Netherlands, Belgium, Norway, Finland, and Sweden, covering applications from tableting to dry powder inhalation. In February 2024, IMCD N.V. acquired the remaining 30% stake in Signet Excipients Private Limited, securing full ownership, and in May 2023 Roquette launched PEARLITOL ProTec, a plant-based co-processed mannitol and maize starch blend that improves the stability and shelf life of moisture-sensitive ingredients such as probiotics.
Outlook
With demand anchored in advanced drug delivery, rising pharmaceutical research and development spending, and continuous capacity expansion, the excipients industry is well positioned for sustained growth through 2031. Companies that invest in multifunctional and co-processed materials, secure resilient supply chains, and align with evolving regional regulations will be best placed to capture the opportunity in a market that is steadily growing in both scale and strategic importance.
