Crunching the numbers
The global excipients market is expected to grow at a moderate pace through 2016 in line with overall pharmaceutical industry growth. The global pharmaceutical market is expected to reach $1 trillion by 2014 and nearly $1.1 trillion by 2015, according to the IMS Institute for Healthcare Informatics. The market is projected to increase at a compound annual growth rate (CAGR) of 3–6% during the next five years, slowing from the 6.2% annual growth rate that occurred during the past five years. For purposes of this analysis, the pharmaceutical market includes all types of biopharmaceuticals, including biologics, over-the-counter drugs, and traditional medicines distributed and administered through regulated delivery systems, such as pharmacies, hospitals, clinics, physician offices, and mail order. Spending figures are reported as ex-manufacturer estimates that do not reflect off-invoice discounts and rebates (1).
BCC segments the market for excipients into three major areas: organic excipients, inorganic excipients, and US Pharmacopeia (USP) water. Organic excipients represent the bulk of the global excipients market, accounting for approximately 93% by value in 2010. The market for organic excipients was valued at $4.3 billion 2010. It is expected to reach $4.5 billion in 2011 and $6.3 billion in 2016, representing a five-year CAGR of 6.6%. The market for inorganic excipients was $248 million in 2010. It is expected to reach $268 million in 2011 and $350 million by 2016, representing a five-year CAGR of 5.5%, according to BCC. USP water is the smallest segment in the global excipients market. In 2010, the market for USP water accounted for only $88 million. It is projected to increase to $92 million in 2011 and to $114 million by 2016, representing a five-year CAGR of 4.4%.