Global Market Outlook on Tablet Coatings

  • The global tablet coatings market is expected to reach $830 million in 2022 by growing at a CAGR of 5–6 percent between 2018 and 2022F 
  • Pharmerging nations are expected to lead the demand for tablet coatings with anticipated CAGR of 8–9 percent between 2018 and 2022F 
  • Currently, pharmaceutical tablet coatings dominate the tablet coatings market with a market share of 70 percent

tablet-coatings-market-size

Value Chain Analysis

  • Coatings are the mixture of four broad categories of raw materials namely polymers, plasticizers, colorants, and solvents 
  • For coatings, the major cost factor is the raw material, which is around 90 percent of the total cost because coatings are composed of blends of two or more excipients. The remaining 10 percent of the cost is contributed by utilities and labour with 7 percent and 3 percent, respectively

Pharma Coatings Supply Concentration

  • Coatings industry is consolidated with four major players, such as Colorcon, Sensient, Evonik, and BASF holding close to 85–90 percent of the global market share in 2017 
  • With over 6 manufacturing facilities and market presence across the globe, Colorcon is the market leader in coatings market with around 50–60 percent of the market share in the US and is expected to retain the same due to its superior technological capabilities, R&D and product differentiation

Tablet Coatings Market 

  • Pharmaceutical tablet coatings account for about 70 percent of the overall tablet coatings market 
  • Pharmerging nations are expected to lead the demand for tablet coatings with an anticipated CAGR growth rate of 8–9 percent

Global Tablet Coatings Market Demand by End-use

  • Pharmaceutical tablet coatings market was around USD 635 million in 2017 and is expected to reach USD 830 million by 2022 growing at 5–6 percent annually
  • 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

Major Players

  • With over 6 manufacturing facilities and market presence across the globe, Colorcon is the market leader for coatings with close to 50-60 percent market share in the US. Colorcon is persistently pursuing the film coatings market by continuously bringing up innovative products along with excellent technical and regulatory support to their customers 
  • Sensient is rapidly trying to increase its market share in the pharmaceutical coatings systems as it is the leading global manufacturer of flavors & colors, one of its competitive advantages, and thus offering customized coatings products and solutions to pharmaceutical/nutraceutical companies 
  • Companies are increasing their capability by expanding capacity and introducing new technology. E.g., in 2016:

–Colorcon invested in a new film coating manufacturing plant in Sao Paulo, Brazil

–Colorcon has added a new film coating system, Opadry EC

–Sensient has introduced Flexicoat technology and SPECTRABLEND MB-H

–BASF introduced Kollicoat® MAE 100-55