Complex combination of factors are driving the market of specialty excipients for OSDF globally
On a global scale, the oral solid dosage form (OSDF) excipients market is growing sustainably, historically exhibiting a robust increase. This market is valued at nearly $2.3 billion in the United States, Europe, India, and China, according to recently published Specialty Excipients for Oral Solid Dosage Form Pharmaceuticals Global Series: Business Analysis and Opportunities by worldwide consulting and research firm Kline & Company.
In the emerging Indian and Chinese markets, growth in consumption of excipients is driven by rising incomes and willingness to spend more on healthcare. Key factors driving growth in major markets like the United States and Europe include the aging populations and high demand for pharmaceuticals.
Nikola Matic, Industry Manager at Kline’s Chemicals & Materials practice, states, “Due to this growing demand, the major markets will continue to flourish; however, it is worth noting that emerging markets will outpace major markets. Driven by the Indian and Chinese markets, the consumption of OSDF excipients is expected to grow at a healthy pace of 7.4% per year until 2018.”
Although the major markets of Europe and the United States have similar volume to the emerging markets of India and China, which currently stand at approximately 100,000 tons per region, the market values are very different from one region to another. This is due to the different types of excipients used based on the geography. While mature markets are dominated by functional and usually more expensive excipients, emerging markets are looking to use cheaper alternatives, such as native starches.
“The added properties of some excipients allow more functional finished products, for instance, offering sustained-release of the active ingredient. Excipients vary greatly in price from $1.00 to $40.00 per kilo, and emerging markets are dominated by cheaper alternatives. However, prices are not the only factor affecting the excipients market, as the consumption of OSDF excipients is driven by three different levels of drivers and restraints,” explains Nikola Matic.
The consumption of excipients is primarily driven by the global growth of the pharmaceutical industry itself. This is the first of the three levels, and its key drivers includeaging populations in mature markets and economic growth in emerging markets. These macro drivers are continuing to drive demand for pharmaceuticals. The second level consists of the factors affecting OSDFs in particular. For their easy use and manufacturing, OSDFs are favored over other dosage forms, which again positively affect the market of OSDF excipients. The third level affecting growth consists of the trends shaping the OSDF excipients market internally. It notably includes the larger growth of excipients used in tablets due to the increased instances where tablets are preferred to capsules; Another example is the expansion of orally disintegrating tablets (ODTs),a successful sub-segment within OSDFs, which also benefit specific excipients. Finally, the growth of functional excipients which allow controlled-release and sustained-release of active ingredients within a pharmaceutical product is also a micro-factor reshaping the consumption of excipients in both, mature and emerging market.
It is important to understand how all levels interact to understand the current and future excipients market, notably as certain facts create important market opportunities. For instance, excipients such as povidone are seeing consumption increase significantly in some regions. The reason why these excipients are seeing increased consumption is due to the fact that they are enhancing the solubility of the actives, something troubling the industry for many years. For more information regarding this topic, it is covered as a standalone in Kline’s in-progress Polymers for Solubility Enhancement in Pharmaceutical Oral Solid Dosage Forms: Global Market Analysis and Opportunities report.