Solvents are chemicals used in the manufacturing of the drugs. They also act as a reaction medium and used in the extraction and purification process. They can be inorganic and organic which are also useful in the production of active pharmaceutical ingredients. Moreover, they are also used in medicine encapsulation and packaging process. These solvents can be classified on the basis of the chemical group into ethers, alcohols, amines, and chlorinated solvents.
The global pharmaceutical solvent market is projected to surpass US$ 4.3 billion by the end of 2027, in terms of revenue, growing at CAGR of 4.4% during the forecast period (2020 to 2027).
Drivers
The growing aging population around the globe is projected to augment the market growth of the pharmaceutical solvent. According to the World Health Organization, during 2015 and 2050, the proportion of the world's population over 60 years will nearly double from 12% to 22%. In 2050, 80% of older people will be living in low & middle-income countries. Thus, growth in the aging population is expected to stimulate market growth.
Increasing use of a pharmaceutical solvent in the medicine encapsulation and packaging is projected to bolster the market growth. Various manufacturers are introducing liquid additives for pharmaceutical solvents and medical devices which is further expected to accelerate the market growth. The aforementioned application of the pharmaceutical solvent in medicine encapsulation will favor the market growth over the forecast period.
Regionally, Asia-pacific dominated the global pharmaceutical solvent market in 2019, reporting 37% market share in terms of revenue, followed by Europe and North America, respectively.
Figure 1. Global Pharmaceutical Solvent Market, Revenue Share (%), By Region, 2019
Market Restraints
Increasing occurrence of causalities because of fire hazardous in the pharmaceutical industry as solvent is highly flammable is projected to restrict the use of solvent. This factor is expected to hinder the market growth of the pharmaceutical solvent.
Transportation and storage concern associated with solvent as it is highly volatile fluids is expected to hamper the market growth of the pharmaceutical solvent.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2019 | Market Size in 2019: | US$ 3.0 Bn |
| Historical Data for: | 2016 to 2019 | Forecast Period: | 2020 to 2027 |
| Forecast Period 2020 to 2027 CAGR: | 4.4% | 2027 Value Projection: | US$ 4.3 Bn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
BASF SE, The Dow Chemical, Alfa Aesar, Clariant AG, Merck KGaA, and Yip’s Chemical Holdings Limited |
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| Growth Drivers: |
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| Restraints & Challenges: |
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Market Opportunities
The growing application of pharmaceutical solvent in the manufacturing of the Active Pharmaceutical Ingredients (API) is projected to serve as a major growth opportunity to the market. API's are widely used in the production of medicines capsules and tablets. API's are produced by using an organic solvent. Therefore, the growing use of the organic solvent in the manufacturing of Active Pharmaceutical Ingredients is expected to augment the market growth.
Increasing focus of manufacturers on green chemistry has propelled the demand for green chemicals such as an organic solvent for the manufacturing of drugs which is expected to offer immense growth opportunities to the market. These initiatives focus on reducing the risk associated with environmental hazards caused due to synthetic solvents. Thus growing demand for organic solvent will favor the market growth over the forecast period.
Figure 2. Global Pharmaceutical solvent Market – Opportunity Analysis
Market Trends
Increasing adoption of ultra-high purity organic solvents for the production of various healthcare electronic devices such as LCD for imaging systems is expected to augment the market growth. Growing research and development activities supported by favorable government regulations in order to develop innovative and eco-friendly solvent for pharmaceuticals is further expected to augment the market growth.
Increasing expenditure by the government in the healthcare sector for improving the medical facilities is expected to shape the industry structure in the near future. This is expected to augment the market growth of the pharmaceutical solvent. According to the World Health Organization, global spending on health continues to rise. It was US$ 7.8 trillion in 2017 or about 10% of GDP and US$ 1,080 per capita – up from US$ 7.6 trillion in 2016.
Regulations
Western Europe
The European government has established various regulations based on the testing of medicines and creating a common market for medicines. The council regulation (EEC/2309/93) had established the European Medicines Evaluation Agency (EMEA) and Committee on Proprietary Medicinal Products (CPMP), CPMP is a committee to EC the multistate procedure known now as the mutual recognition procedure.
Figure 3. Global Pharmaceutical Solvent Market, Revenue Share (%), By Chemical Type, in 2019
On the basis of chemical type, alcohol dominated the global pharmaceutical solvent market in 2019 with around 34% of market share in terms of revenue, followed by others and ester respectively.
Global Pharmaceutical solvent Market - Impact of Coronavirus (Covid-19) Pandemic
Countries in Asia-Pacific are focusing on shifting the production facilities of active pharmaceutical ingredients (APIs) outside China. For capitalizing this opportunity, in March 2020, the Indian Government announced US$ 1.2 Billion subsidy for the production of active pharmaceutical ingredients (APIs) in the country for boosting the morale of major players in generics drugs, to commence domestic manufacturing of APIs, and become self-reliant. This scenario is expected to foster the CAGR of the market till the end quarter of 2021.
Competitive Section
Key players are operating in the global pharmaceutical solvent market are BASF SE, The Dow Chemical, Alfa Aesar, Clariant AG, Merck KGaA, and Yip’s Chemical Holdings Limited
Few Recent Developments
Pharmaceutical solvents such as isopropanol, propylene glycol, ethanol and propanol are the chemicals which can be easily suspended, dissolved into and extracted in other materials without any alteration to other materials. These solvents provide molecules for drug manufacturing, purification and extraction.
Market Dynamics
The global pharmaceutical solvent market has witnessed significant growth in recent past years, owing to the rising pharmaceutical and healthcare across the globe especially in emerging economies in Asia Pacific region such as India, South Korea and China. In addition to this, increasing disposable income and growing awareness regarding health awareness among consumers has amplified investments on preventive healthcare products and drugs, which in turn is expected to provide lucrative growth to the global pharmaceutical solvent market over the forecast period.
Major players in the global pharmaceutical solvent market are increasing their investment on innovative product launchings, research & development and marketing & promotional activities to capitalize on emerging trends in pharmaceutical industry. This scenario is expected to fuel the market during the forecast period.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective
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