Tablet Coatings

Tablet Coatings Global Market Outlook

• The global tablet coatings market is expected to reach $ 1245.2 Million by 2028 by growing at a CAGR of 5.9 percent between 2021 and 2028F

• Pharmerging nations are expected to lead the demand for tablet coatings with anticipated CAGR of 8–9 percent by 2022F

• Currently, pharmaceutical tablet coatings dominate the tablet coatings market with a market share of 70 percent

Industry Drivers and Constraints : Tablet Coatings

Drivers

Growth in modified release technologies

• Market is driven by demand from oral solid dosage forms, such as sustained, enteric and immediate release tablets

• The modified release market is expected to grow at a CAGR of 6 percent until 2022

Pharmaceutical tablets coatings

• There is a growing demand for pharmaceutical tablet coatings, which currently accounts for about 70 percent and is expected to drive the tablet coatings market

Demand for pigmented film coatings

• Demand for pigmented film coatings is growing mainly due to its application in the prevention of counterfeit drugs. Also, the visual differentiation of products helps in enhanced brand recognition

Constraints

Fluctuating raw material cost

• Pricing risk exists as the prices fluctuate for different raw materials, which has a negative impact on the coatings market

Consolidated market

• The supply base for tablet coatings is consolidated resulting in a low negotiation power for buyers

Need for coatings technology and Quality by design

• High expectations of different coatings technology and US FDA requirement for quality by design from pharmaceutical and nutraceutical industries, have led to an innovation driven market, in turn making it difficult for new suppliers to enter

Tablet Coatings Cost Structure

Since, raw material constitutes majority of the manufacturing cost for coatings, fluctuations in the price of raw materials (especially when it is single sourced) would have an impact on the coatings price.

• Raw material constitute nearly 90 percent of the total manufacturing cost for the coatings. Raw materials are homogenized together in aqueous or organic medium to form tablet coatings.

• Utility cost accounts for around 7–8 percent of the total cost. However, these costs are quite less in coatings as machines are only used to blend the raw materials. Labor cost account for 2–3 percent share in coatings production. Labor costs are incurred only for quality checks and maintenance.

• It is expected that the price for raw materials such as HPMC, HPC, Methylcellulose, Ethyl Cellulose, PVA may increase by 2-3 percent per annum owing to its demand in the market which may reflect in the overall cost structure of the tablet coatings.

Global Tablet Coatings Market Demand by End-use

Pharmaceutical tablet coatings account for about 70 percent of the overall tablet coatings market. Pharmerging nations are expected to lead the demand owing to expanding middle class and governments’ incentive and initiatives.

• Pharmaceutical tablet coatings market was around $824 million in 2021 and is expected to reach $969 million by 2025, growing at 5.6 percent annually. North America accounts for 53 percent of the world’s consumption of solid oral dosage forms 

• Pharmerging nations are expected to lead the demand for tablet coatings with an anticipated CAGR growth rate of 8-9 percent. High growth rates in demand could be attributed to:

–Rapidly expanding middle class and government incentives to provide drugs at a lower cost

–Expansions by private firms and governments allowing FDI to penetrate into untapped markets

• Formulated and customizable blends are key areas, in which drug manufacturers are displaying their interest. This is expected to increase the total addressable market for tablets and hence demand for tablet coatings

Why You Should Buy This Report

• The report gives details on price trend analysis, cost structure and feedstock analysis of the tablet coating industry.
• It lists out the major players in the pharmaceutical coatings market and gives an overview of the regional and emerging markets such as India, China and Japan.  
• The report provides a thorough SWOT and Porter’s Five Force analysis.
• It gives information about major industry trends such as the development of new coatings, partnerships, acquisitions, and strategic alliances. 
• The report details the constraints and drivers in the tablet coatings industry.