The world excipients market is projected to reach $6.4 billion by 2020, according to a new report from Allied Market Research. The projection is based on a 7.6 percent compounded annual growth rate (CAGR) during 2015 and 2020.

The pharmaceutical market division is driven by factors including rising demand for pharmaceutical drugs, increasing popularity of functional excipients, drug pipeline, novel excipients development, and increasing generic drugs as bestseller drugs patents expire. On the market, supply chain issues, high market fragmentation, and implementation of stringent regulations could hurt the market.

The highest revenue-generating segment during the period would remain organic chemicals, with North America and Europe the lead revenue generating economies. Asia-Pacific is anticipated to be the fastest growing market in volume and revenue during the next five years. The market in the developing economies has strong growth opportunities due because inexpensive raw materials and economical workforce are available, and many manufacturers are relocating to these areas.

Looking at specific categories, the highest revenue segment for 2015 was binders, and it is projected to remain at the top because they are being used more than fillers diluents in pharmaceuticals. Still, fillers and diluents hold about a quarter of the market.

Among inorganic chemicals, halites is projected to grow at the highest CAGR of 29.2 percent during the forecast period, and calcium to grow at 10.5 percent CAGR to $539.9 million. The carbohydrates generated the highest revenue last year and is expected to remain at the top.

In the petrochemicals category, the proteins segment earned highest revenue in 2015, but it is the mineral hydrocarbons segment that is projected to grow at the highest CAGR of 7 percent. Additionally, the disintegrants segment should grow at a highest CAGR of 12.6 percent.

Key manufacturing companies in the report are Ashland, Inc., BASF SE, Associated British Foods Plc, Akzo Nobel N.V., The Dow Chemical Company, Evonik, Merck, J.M. Huber Corporation, Covidien Plc and Archer Daniels Midland.