Drug Formulation Global Market Report 2024

The drug formulation market size has grown strongly in recent years. It will grow from $1780.87 billion in 2023 to $1931.05 billion in 2024 at a compound annual growth rate (CAGR) of 8.4%. The growth observed during the historic period can be attributed to advancements in biopharmaceutical innovation, a shift towards patient-centric drug development approaches, the emergence of personalized medicine, regulatory support for orphan drugs, and an increase in research and development investments.

The drug formulation market size is expected to see strong growth in the next few years. It will grow to $2682.41 billion in 2028 at a compound annual growth rate (CAGR) of 8.6%. The anticipated growth in the forecast period can be attributed to advancements in 3D printing, a heightened focus on pediatric formulations, the development of biological drug delivery systems, the application of green chemistry in formulation processes, and the integration of artificial intelligence (AI). Major trends expected in the forecast period encompass the dominance of biopharmaceuticals and biologics, the emergence of advanced drug delivery systems, the emphasis on personalized medicine and individualized formulations, the incorporation of nanotechnology, and the implementation of lifecycle management and reformulation strategies.

The increasing prevalence of chronic diseases is anticipated to drive the expansion of the drug formulation market. Chronic diseases persist for a year or longer, demanding continual medical attention and often restricting daily activities. Drug formulation stands as a potential solution to alleviate the prevalence of chronic ailments, employing multiple drug delivery methods to optimize therapeutic effectiveness while minimizing adverse effects. As per a report from the National Institutes of Health (NIH) in September 2022, the United States expects a 99.5% increase in the number of individuals aged 50 and older with at least one chronic illness, rising from 71.52 million in 2020 to an estimated 142.66 million by 2050. Moreover, the count of individuals with multimorbidity is projected to rise by 91.16%, from 7.8304 million in 2020 to 14.968 million in 2050. Therefore, the growing prevalence of chronic diseases fuels the expansion of the drug formulation market.

The escalating adoption of personalized medicine is poised to drive the growth of the drug formulation market. Personalized medicine represents an innovative healthcare approach tailoring medical treatments and interventions based on individual patient characteristics. This approach necessitates customized drug formulations to optimize efficacy and safety for each patient, considering individual traits such as genetics and biomarkers. The impact includes tailored treatment plans, formulations integrating genomic insights, enhanced drug responses, and personalized therapies for rare diseases. For instance, according to the Personalized Medicine Coalition in 2022, the Food and Drug Administration’s Center for Drug Evaluation and Research (CDER) approved 37 new molecular entities (NMEs), with approximately 34% (12 of them) classified as personalized medicines by the Personalized Medicine Coalition (PMC). Thus, the increasing adoption of personalized medicine is a key driver of growth in the drug formulation market.

Technological advancements emerge as a prominent trend fueling the drug formulation market. Key industry players are directing their focus toward introducing innovative technologies to fortify their market positions. For instance, in June 2022, Merck & Co., Inc., a US-based pharmaceutical company, unveiled the Merck Digital Sciences Studio (MDSS), aiming to develop innovative technologies for drug research and development. Leveraging Azure Cloud's robust computing and Merck's expertise, MDSS collaboratively accelerates the creation of novel digital technologies. The initiative, a collaboration between Merck and the New Jersey Innovation Institute (NJII), has secured investments from the Merck Global Health Innovation Fund, Northpond Ventures, and McKesson Ventures. Microsoft will extend technological support to startup companies involved in the initiative.

Leading companies within the drug formulation market are actively developing new fixed-dose combination drugs tailored for type 2 diabetes to establish a competitive advantage in the market. Fixed Dose Combination (FDC) drugs comprise two or more active ingredients blended in fixed doses within a single dosage form. For example, in October 2021, Glenmark Pharmaceuticals Limited, an India-based pharmaceutical company, introduced Zita DM. This triple-drug fixed-dose combination (FDC) integrates Teneligliptin with Dapagliflozin and Metformin, aiming to enhance glycemic control in patients with Type 2 diabetes. Zita DM stands out as an innovative and cost-effective anti-diabetic medication, targeting challenges such as uncontrolled Hemoglobin A1C, beta cell dysfunction, and associated conditions such as weight gain.

In July 2021, AstraZeneca PLC, a UK-based pharmaceutical and biotechnology company, finalized the acquisition of Alexion Pharmaceuticals Inc. for approximately $13.3 billion. This strategic acquisition marks AstraZeneca's entry into the realm of medications for rare disorders. The acquisition significantly bolsters AstraZeneca's scientific presence in immunology, leveraging Alexion's advanced complement-biology platform and extensive pipeline. Alexion Pharmaceuticals Inc., headquartered in the US, specializes in formulating, developing, and commercializing various pharmaceuticals targeting specific medical conditions.

Major companies operating in the drug formulation market report are AstraZeneca PLC, The Bristol-Myers Squibb Company, Eli Lilly and Company, Gilead Sciences Inc., Merck & Co. Inc., Novartis AG, Pfizer Inc., AbbVie Inc., C.H. Boehringer Sohn AG & Co. KG, F. Hoffmann-La Roche AG, Johnson & Johnson, 3M Company, Bayer AG, Teva Pharmaceutical Industries Ltd., Sanofi S.A., GlaxoSmithKline plc, Boston Scientific Corporation, Novo Nordisk A/S, Amgen Inc., Viatris Inc., Sandoz International GmbH, Takeda Pharmaceutical Company Limited, Sun Pharmaceutical Industries Ltd., Dr. Reddy's Laboratories Ltd., Cipla Ltd., Lupin Limited, Torrent Pharmaceuticals Limited, Jubilant Life Sciences Limited, Cadila Healthcare Limited, Glenmark Pharmaceuticals Ltd., Wockhardt Ltd., Hikma Pharmaceuticals plc.

North America was the largest region in the drug formulation market in 2023. Asia-Pacific is expected to be the fastest-growing region in the drug formulation market report during the forecast period. The regions covered in the drug formulation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the drug formulation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of dosage forms for drug formulations include oral formulations, parenteral formulations, topical formulations, and inhalation formulations. Oral formulations involve the development and manufacturing of pharmaceuticals intended for oral delivery. They come in various forms such as tablets, capsules, injectables, sprays, suspensions, powders, and others. These formulations are utilized in treating various conditions such as cardiovascular diseases (CVDs), pain, diabetes, cancer, respiratory diseases, among others. End-users of these formulations include big pharmaceutical companies, small and medium enterprises, as well as biotech companies.

The drug formulation market research report is one of a series of new reports that provides drug formulation market statistics, including drug formulation industry global market size, regional shares, competitors with a drug formulation market share, detailed drug formulation market segments, market trends and opportunities, and any further data you may need to thrive in the drug formulation industry. This drug formulation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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