Dry Granulated Excipients Market Set for Strong 8.6% CAGR Growth Through 2032 - Persistence Market Research

The global dry granulated excipients market is witnessing robust expansion, supported by evolving pharmaceutical manufacturing techniques and an increasing emphasis on product stability and efficiency. Valued at US$1.5 billion in 2025, the market is projected to reach US$2.7 billion by 2032, growing at a CAGR of 8.6% between 2025 and 2032. This strong growth trajectory is primarily fueled by the expanding demand for efficient pharmaceutical formulations, the rising adoption of dry granulation technology, and rapid advancements in excipient functionality and composition.

Dry granulated excipients play a crucial role in oral solid dosage (OSD) production, enhancing powder flowability, compressibility, and tablet integrity-attributes essential for large-scale, high-speed manufacturing. Moreover, the pharmaceutical industry's pivot toward bio-based, multifunctional, and sustainable excipients has further invigorated market momentum. These next-generation materials not only support formulation performance but also align with the increasing regulatory and consumer demand for eco-friendly and high-quality drug components.

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Regionally, North America leads the market with a 35% share in 2025, underpinned by advanced R&D capabilities, a strong regulatory landscape, and widespread adoption of efficient manufacturing processes in the U.S. Meanwhile, Asia Pacific stands as the fastest-growing region, driven by the rapid rise of pharmaceutical manufacturing in China and India, the proliferation of contract manufacturing organizations (CMOs), and heightened investment in healthcare infrastructure.

Key Highlights from the Report

• Global market value expected to reach US$2.7 billion by 2032, expanding at 8.6% CAGR.
• North America leads the market with a 35% share in 2025 due to strong pharmaceutical R&D and FDA-backed standards.
• Asia Pacific emerges as the fastest-growing region with rapid CMO expansion and rising healthcare investments.
• Binders dominate the product segment, holding about 40% share for their critical role in tablet cohesion and stability.
• Compression excipients lead by function, capturing over 35% of revenue for their use in direct compaction OSD production.
• Pharmaceutical applications represent nearly 60% of total market revenue due to the need for reliable, flowable excipients.

Market Segmentation

The dry granulated excipients market is intricately segmented based on product type, function, and application, each category offering distinct opportunities and insights into evolving pharmaceutical manufacturing dynamics.

By Product Type

Among all excipient categories, binders hold a commanding position, accounting for roughly 40% of the total market share in 2025. Their fundamental role in ensuring particle cohesion, enhancing tablet strength, and promoting uniform compaction renders them indispensable in dry granulation processes. Binders contribute to improved mechanical integrity of tablets, ensuring they withstand both manufacturing and handling stresses while maintaining consistent disintegration properties.

Lubricants represent the fastest-growing product category, owing to the need for smoother powder flow and efficient tablet ejection during high-speed manufacturing. Their ability to reduce friction between formulation components and tooling helps maintain tablet uniformity, prevent sticking, and enhance production throughput. As pharmaceutical companies continue to scale up operations, lubricants are gaining significant traction as a critical enabler of efficiency in oral solid dosage production.

By Function

When analyzed by function, compression excipients dominate the market with a 35% share in 2025. These materials are favored for their superior performance in direct compression processes, eliminating the need for time-consuming wet granulation. Their efficiency in achieving uniform weight and consistent drug content in tablets significantly reduces manufacturing complexity and cost.

Meanwhile, drug release control excipients are witnessing rapid growth, primarily due to the rising demand for controlled-release and sustained-release formulations for chronic conditions. These excipients allow for gradual drug release, improving patient adherence, therapeutic outcomes, and the overall effectiveness of medication regimens. The growing emphasis on advanced drug delivery systems is expected to accelerate adoption in this segment through 2032.

By Application

The pharmaceutical industry remains the dominant end-user, contributing approximately 60% of total market revenue in 2025. Dry granulated excipients serve as essential components in tablets, capsules, and other oral dosage forms, improving drug stability, bioavailability, and manufacturability. The segment's growth is driven by the surge in generic drug production, the proliferation of biopharmaceuticals, and the expanding use of direct compression technologies.

Conversely, the nutraceuticals sector represents the fastest-growing application area, supported by increasing consumer interest in functional supplements, clean-label ingredients, and natural formulations. Excipients in this space are used to improve the flowability and consistency of vitamins, minerals, and herbal products. The rising preference for plant-derived, allergen-free ingredients aligns with global trends toward sustainability and wellness-driven innovation.

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Regional Insights
North America

Holding approximately 35% of the global market in 2025, North America remains the most mature and technologically advanced region for dry granulated excipients. The U.S. leads regional growth, backed by the FDA's stringent quality standards, which promote the use of high-performance excipients to enhance drug safety, stability, and manufacturability. A thriving pharmaceutical R&D ecosystem, extensive investments in biopharma, and the proliferation of novel drug delivery systems all contribute to the region's leadership.

Companies in North America are pioneering the development of multifunctional and bio-based excipients that not only simplify production but also reduce environmental impact. This regulatory alignment and innovation-focused culture have established the region as a hub for excipient innovation and premium-quality formulations.

Europe

Europe accounts for nearly 30% of global market share, led by countries such as Germany, France, and the U.K. The region's growth is driven by stringent quality and safety standards enforced by the European Medicines Agency (EMA), pushing pharmaceutical companies to adopt compliant and high-purity excipient solutions. A defining trend in Europe is the movement toward sustainable and eco-conscious manufacturing, with many manufacturers investing in plant-based, biodegradable excipients to align with regulatory and consumer sustainability goals. The emphasis on multifunctionality and formulation simplification is also fostering demand for next-generation excipients across the continent.

Asia Pacific

The Asia Pacific region represents about 20% of the global market but is expanding at the fastest pace through 2032. The surge in pharmaceutical manufacturing in China and India, combined with the growth of contract development and manufacturing organizations (CDMOs), has positioned the region as a vital production hub for global supply chains. Favorable government initiatives, lower production costs, and rising investments in healthcare infrastructure further fuel demand for excipients.

Local manufacturers are rapidly advancing in bio-based excipient development, while global companies are increasing regional partnerships to strengthen supply capabilities. The region's shift toward high-quality, GMP-compliant manufacturing and the expansion of biopharmaceutical R&D underline Asia Pacific's pivotal role in the market's long-term evolution.

Market Drivers

The primary driver propelling the dry granulated excipients market is the growing demand for efficient pharmaceutical formulations capable of supporting large-scale, high-speed production. Dry granulation techniques are particularly advantageous for moisture- or heat-sensitive active pharmaceutical ingredients (APIs), offering improved powder flow, compressibility, and tablet integrity. Additionally, the rising adoption of oral solid dosage forms-which account for the majority of global pharmaceutical output-continues to bolster excipient demand.

Another significant growth catalyst is the expansion of generic and contract manufacturing sectors. Pharmaceutical companies are increasingly seeking cost-effective, scalable, and efficient processes, making dry granulated excipients indispensable for reducing production time and ensuring consistency. Furthermore, ongoing innovation in multifunctional excipients-which combine multiple performance attributes such as binding, disintegration, and controlled release-enhances formulation efficiency and supports the development of complex drugs.

Environmental sustainability is also a critical driver, as manufacturers invest in bio-based and renewable excipient technologies to align with both consumer expectations and regulatory mandates for greener manufacturing processes.

Market Restraints

Despite its promising outlook, the market faces certain challenges. One major restraint is the high production cost associated with dry granulated excipients. The specialized roll compaction equipment and complex processing techniques required for producing these materials often increase manufacturing expenses. This poses difficulties for cost-sensitive markets, especially in developing regions where price competitiveness remains crucial.

Moreover, performance trade-offs-such as variations in tablet hardness, disintegration time, or compressibility-may necessitate additional formulation optimization, extending development timelines. Regulatory challenges also persist, particularly concerning novel excipient approval, which demands comprehensive safety and quality evaluations. These extensive regulatory hurdles can delay commercialization and limit the introduction of innovative materials, thereby tempering overall market growth potential.

Market Opportunities

Advancements in bio-based and multifunctional excipients present lucrative opportunities for future expansion. Manufacturers are increasingly focusing on formulations that offer dual functionality-for instance, acting both as a binder and disintegrant-thereby simplifying processing and reducing additive use. Such innovations enhance tablet performance, drug stability, and patient compliance, particularly for complex formulations like biologics and sustained-release drugs.

Additionally, the integration of 3D printing technologies into pharmaceutical manufacturing opens new pathways for excipient innovation. Tailored, modular excipient systems designed for additive manufacturing enable personalized drug delivery and controlled release mechanisms, revolutionizing how oral solid dosage forms are developed. The rising consumer preference for clean-label, eco-friendly, and sustainable ingredients is further driving investment into plant-derived excipient technologies across both pharmaceutical and nutraceutical sectors.

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Company Insights

The global dry granulated excipients market is characterized by a mix of established global leaders and innovative regional manufacturers, each contributing to the industry's rapid advancement.

• DFE Pharma
• Gattefosse
• BASF
• MultiMedia Pharma Sciences, LLC
• Colorcon
• GEA Group Aktiengesellschaft
• Others

Market Segmentation

By Product Type

Binders
Fillers
Disintegrants
Lubricants
Glidants

By Function

Compression
Power Flowability
Moisture Absorption
Stability Enhancement
Drug Release Control

By Application

Pharmaceutical
Nutraceutical
Cosmetics
Food and Beverages

By Region

North America
Europe
East Asia
South Asia & Oceania
Latin America
Middle East & Africa

These companies focus heavily on R&D, product innovation, and strategic partnerships to enhance their competitive positioning. Global players like BASF and DFE Pharma leverage strong technological expertise and quality assurance frameworks to serve high-end pharmaceutical clients, while regional firms in Asia Pacific emphasize cost-effective and customizable excipient solutions to attract international customers.

Recent Developments

In August 2025, DFE Pharma launched Pharmacel® 101, a microcrystalline cellulose (MCC) optimized for both wet and dry granulation. Known for its superior disintegration and compaction characteristics, it supports improved OSD performance.

In February 2025, BASF introduced KolliproTM Urea Granules, designed to enhance flowability and compressibility during drug manufacturing. This innovation optimizes high-speed tableting efficiency, reducing material waste and improving production throughput.

These advancements underscore the ongoing industry focus on enhancing formulation efficiency, improving compressibility, and promoting sustainable excipient design.

Conclusion

The dry granulated excipients market is on a firm growth trajectory, driven by the increasing complexity of modern pharmaceuticals and the rising preference for efficient, eco-friendly manufacturing solutions. The market's evolution reflects a broader industry transition toward multifunctional, bio-based, and performance-enhanced excipients that streamline production and improve therapeutic outcomes.

While challenges such as high production costs and regulatory constraints persist, innovations in excipient chemistry, modular formulations, and 3D printing applications promise to redefine the future of pharmaceutical manufacturing. With North America leading in innovation and Asia Pacific accelerating in production capacity, the global landscape is poised for significant transformation. The convergence of technology, sustainability, and advanced formulation science will continue to shape the market's path toward 2032, positioning dry granulated excipients as a cornerstone of next-generation pharmaceutical development.

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