PHARMACEUTICAL SOLVENTS MARKET ANALYSIS

The Global Pharmaceutical Solvents Market is projected to surpass US$ 5.1 billion by the end of 2030 in terms of revenue, growing at CAGR of 5.2% during the forecast period (2023 to 2030).

Global Pharmaceutical Solvents Market

Growth Drivers

• Increasing use of a pharmaceutical solvent in the medicine encapsulation and packaging

The growing aging population around the globe is projected to augment the pharmaceutical solvent market growth. For instance, in 2021, BSAF SE, launched a new product, TBAc, which is designed to improve the solubility and bioavailability of less soluble medicines and also boost the pharmaceutical solvent industry.

The increasing use of a pharmaceutical solvents in the medicine encapsulation and packaging sectors 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 pharmaceutical solvents in medicine encapsulation will favor the market growth over the forecast period.

Global Pharmaceutical Solvents market

Market Restraints

• Increasing occurrence of causalities because of fire hazardous in the pharmaceutical industry owing to its highly flammability

Increasing occurrences of causalities due to fire hazards in the pharmaceutical industry as solvents are highly flammable is projected to restrict the use of solvents. This factor is expected to hinder the pharmaceutical solvent market growth.

• Transportation and storage concern associated with solvent as it is highly volatile fluid

Transportation and storage concerns associated with solvents, as they are highly volatile fluids, are expected to hamper the pharmaceutical solvent market growth. In 2020, Thermo Fisher announced AcroSeal Packaging Solution, which was just introduced. This substance is intended for use in medication development to extend the shelf-life of solvents.

Global Pharmaceutical Solvent Market

Market Opportunities

• Active Pharmaceutical Ingredients (APIs) in production of Pharmaceutical solvents

The growing application of pharmaceutical solvents in the manufacturing of Active Pharmaceutical Ingredients (APIs) is projected to serve as a major growth opportunity for the market. APIs are widely used in the production of medicines capsules and tablets. They are produced using an organic solvent. Therefore, the growing use of organic solvents in the manufacturing of Active Pharmaceutical Ingredients (APIs) is expected to augment the market growth.

• Seeking of manufactures in green chemicals

Increasing focus of manufacturers on green chemistry has propelled the demand for green chemicals, such as an organic solvents, for the manufacturing of drugs is expected to offer immense growth opportunities for market growth. These initiatives focus on reducing the risks associated with environmental hazards caused due to synthetic solvents. Thus, the growing demand for organic solvents will favor the market growth over the forecast period.

Global Pharmaceutical Solvent market

Market Trends

Increasing adoption of ultra-high purity organic solvents for the production of various healthcare electronic devices, such as LCDs for imaging systems, is expected to augment the market growth. Increasing research and development activities supported by favorable government regulations in order to develop innovative and eco-friendly solvents for pharmaceuticals is further expected to augment the market growth.

Increasing expenditure by the government in the healthcare sector for improving medical facilities is expected to shape the industry structure in the near future. This is expected to augment the pharmaceutical solvent market growth.

Key Developments

• ­­­In 2021 may, Merck collaborated with Artios pharma, Merck is Medicines, vaccines, biologic treatments, and animal health products are being developed. To create novel DNA damage responses for cancer treatments
• In 2020 August, Thermo Fisher announced the debut of its Acroseal packaging solution. This substance is intended for use in drug development to increase the self-life of solvents.
• In 2021 November, Ark pharma was acquired by Sigma-Aldrich Co, LLC. This transaction was made for the purpose of developing and discovering drug solvents.

Global Pharmaceutical Solvent Market: Segmentation

Figure 1: Pharmaceutical Solvent Market, By chemical, in 2022

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On the basis of chemical type, alcohol dominated the pharmaceutical solvent market in 2022 with around 34% of the market share in terms of revenue, followed by ethanol, isopropanol, propanol, and propylene glycol, respectively.

Alcohol is expected to account for 34% of the worldwide market based on the chemical type. However, the pharmaceutical business is seeing a surge in the demand for alcohol. The increasing capacity of alcohol to dissolve polar compounds is accelerating the acceptance of additional chemical groups such as ethers, hydrocarbons, and esters.

For high-quality tablet coatings, solvents such as methanol, acetone, ethyl acetate, and ethanol, are increasingly being used. However, with rising ethanol and isopropanol sales, the demand for alcohol-based pharmaceutical solvents is expected to rise. Water is widely used due to its low toxicity, and its availability is supporting the market expansion.

Global Pharmaceutical Solvent Market Segmentation; by Region

Due to the region's significant number of developed pharmaceutical industries, the Asia Pacific pharmaceutical solvent market is expected to hold the largest market share (37%), out of all other regions. Furthermore, greater spending on pharmaceutical research and development is likely to encourage the usage of pharmaceutical solvents in the region.

Figure 2: Pharmaceutical Solvent Market, By region, in 2022

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Global Pharmaceutical Solvents Market

Key Companies

The key players 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.

Global Pharmaceutical Solvents Market

Impact of Coronavirus (COVID-19) Pandemic

Countries in Asia Pacific are focusing on shifting their production facilities of active Pharmaceutical Ingredients (APIs) outside China. For capitalizing this opportunity, in March 2020, the government of India announced a 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 fostered the CAGR of the market in 2021.

Definition: Solvents are chemicals used in the manufacturing of drugs. They also act as a reaction medium and are used in the extraction and purification processes. They can be inorganic or organic, which is important in the manufacture of active medicinal substances. Moreover, they are also used in medicine encapsulation and packaging processes. These solvents can be classified on the basis of the chemical type into ethers, alcohols, amines, and chlorinated solvents.