Pharmaceutical Grade Silica Gel Market - Industry Analysis, Market Size, Share, Trends, Growth and Forecast 2024 – 2030

Pharmaceutical Grade Silica Gel Market Overview

Pharmaceutical Grade Silica Gel Market size is expected to be $101.1 million by 2030 and is set to grow at a CAGR of 9.2% during the forecast period from 2024-2030. The gel made from silica, also known as silica dioxide, is an excellent adsorbent and can hold moisture to a great extent, one of the significant reasons driving the growth of the pharmaceutical grade silica gel market. Silicon Dioxide, also known as silica gel is extensively used in the preservation of medicines and other products in the pharmaceutical industry for their excellent property of acting as a viscosity agent. The growing pharmaceutical industry has increased the production of drugs which has given a boost to the pharmaceutical grade silica gel market as they are used as colorants, glidants, lubricants, viscosity agents, solvents, preservatives and many more in the pharmaceutical industry.

Pharmaceutical-grade silica gel has undergone significant advancements in manufacturing processes, resulting in heightened purity standards. These innovations are pivotal for pharmaceutical applications, where maintaining rigorous quality standards is of utmost importance. The refined manufacturing techniques ensure that the silica gel meets elevated purity levels, addressing the stringent requirements of the pharmaceutical industry. This enhancement underscores a commitment to delivering top-tier quality and reliability in pharmaceutical manufacturing processes, aligning with the industry's uncompromising standards for purity and efficacy.

Continual advancements in pharmaceutical-grade silica gel focus on tailoring formulations to meet specific industry needs. These innovations prioritize enhanced compatibility with active pharmaceutical ingredients (APIs), ensuring optimal efficacy. The development of sophisticated drug delivery systems underscores the commitment to precision and efficiency in pharmaceutical applications. This strategic evolution positions silica gel as a versatile and crucial component in pharmaceutical formulations, driving advancements in drug delivery technology and reinforcing its role in pharmaceutical manufacturing.

COVID-19 Impact

The covid-19 pandemic has affected the pharmaceutical grade silica gel market in various ways such as production halt, piling of stocks, blockage in supply chain and others. This has affected the business of pharmaceutical grade silica gel industry leaving the pharmaceutical grade silica gel major suppliers in huge losses. The global Foreign Direct Investments decreased up to 40% in 2020 due to the pandemic. However, the pharmaceutical grade silica gel market found some demand in the pandemic period, as they are widely used in the healthcare industry, and the healthcare industry was in a rise during the pandemic. Furthermore, there were restrictions on exports and imports due to the restrictions related to the pandemic. However, the pharmaceutical grade silica gel industry is however recovering from the losses, and restored by the year ending 2021.

Report Coverage

The report: “Pharmaceutical Grade Silica Gel Market – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the Pharmaceutical Grade Silica Gel Industry.

By Type: Liquid Silica Gel, Solid Silica Gel and Others.

By Packaging Type: Packets, Pouch, Bag, Sachets and Others.

By Application: Desiccant, Drug Carrier, Adsorbent, Glidants, Gas Drying, Filtration and Others.

By Geography: North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Russia and Others), APAC (China, Japan India, South Korea, Australia and Others), South America (Brazil, Argentina and others), and RoW (Middle East and Africa).

Key Takeaways

• Asia-Pacific market held the largest share in the pharmaceutical grade silica gel market owing to the increase in the investments from the pharmaceutical industry in countries like China, India and Japan.
• The increase in the pharmaceutical grade silica gel market can be attributed to the adsorbent properties of silicon dioxide or silica.
• The growth in pharmaceutical industry which is giving boost to the production of medical drugs is one of the significant factors driving the pharmaceutical grade silica gel industry.
• The covid-19 pandemic has affected the pharmaceutical grade silica gel market in many ways including halting of the production and disrupting the supply chain of the pharmaceutical grade silica gel market eventually halting the growth of the pharmaceutical grade silica gel industry.

Pharmaceutical Grade Silica Gel Market Segment Analysis - By Type

Liquid Silica Gel segment held the largest share of more than 35% in the pharmaceutical grade silica gel market in the year 2023. Liquid Silica Gel is used as a desiccant to control humidity, avoid spoilage and degradation of medical goods. It does not dissolve so quickly and acts as a good adsorbent agent, making it a most sought out product in the pharmaceutical grade silica gel industry. According to Centers for Medicare & Medicaid Services, Spending on medicines in the U.S. at invoice prices is expected to increase by $134Bn through 2027. The increase in the production of medicines and other devices is fuelling the demand for pharmaceutical grade silica gel market, as they are exclusively used for preservation and packaging for keeping the products moisture-free. This is a significant factor driving the pharmaceutical grade silica gel market.

Pharmaceutical Grade Silica Gel Market Segment Analysis - By Packaging Type

Pouch segment held the largest share of more than 32% in the pharmaceutical grade silica gel market in the year 2023. The silica gel is mostly used as desiccants in the medical industries for various applications and devices. They are used in storage purposes to ward off moisture and foul smell in the medical devices and applications. According to World Packaging Organization The transit packaging is expected to reach the USD 174.83 billion by 2029. The continuous improvement in the medicine technology and the increased production of medical devices is one of the significant factors driving the pouch segment in the pharmaceutical grade silica industry. Silica Gel pouches helps in preserving the quality of medical instruments and apparatuses. This eventually gives rise to the need of silica pouches to preserve and maintain the devices and applications.

Pharmaceutical Grade Silica Gel Market Segment Analysis - By Application

Desiccants segment held the largest share of more than 32% in the pharmaceutical grade silica gel market in the year 2023. Pharmaceutical grade silica gel is used extensively in the desiccant application segment owing to its property of exhibiting low vapor pressure. It facilitates the sustaining of dryness in a drug formulation. The rise in the production of medicines and other medical devices leads to the increase in the need for storage with good moisture absorption and sustaining dryness, which eventually leads to the increase in the need for desiccants in the pharmaceutical grade silica market. According to World Health Organization, In the United States, the total amount of money spent on medicines reached approximately 574 billion U.S. dollars in 2022. which eventually leads to the increase in demand for pharmaceutical grade desiccants silica gels.

Pharmaceutical Grade Silica Gel Market Segment Analysis - By Geography

Asia-Pacific region held the largest share of more than 38% in the pharmaceutical grade silica gel market in the year 2023. The growth of pharmaceutical industry in countries like China, India and Japan is the factor driving the pharmaceutical grade silica gel in the Asia Pacific region. According to invest INDIA The pharmaceutical industry in India is expected to reach $65 Bn by 2024 and to $130 Bn by 2030. The growth of pharmaceutical industry coupled with investments like Production Link Incentive (PLI) scheme in India by the Government of India for enhancing India’s manufacturing capabilities and enhancing exports is driving the pharmaceutical grade silica gel market in the Asia Pacific region. These initiatives by the government along with the growing concern of health is contributing to the growth of the pharmaceutical grade silica gel industry in the Asia Pacific region.

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Pharmaceutical Grade Silica Gel Market Drivers

Investments and initiatives from pharmaceutical industry

Initiatives and investments made by government is one of the biggest factors steering the pharmaceutical grade silica gel market. For instance, the Government of India came up with an initiative called Atal Innovation Mission, which is about developing new complex generic drugs, supplemented by the New Drugs and Clinical Trial Rules. Initiatives like these gives boost to the production of medicines and medical devices & equipment which is eventually driving the pharmaceutical grade silica market. The Government of Singapore has announced an investment of US $4.2 billion for developments in the pharmaceutical industry. Circa pharmaceuticals Inc. has invested an amount of US $ 20 billion for the next few years for the development of pharmaceutical industry in Indonesia Such investments and initiatives is increasing the drugs production which is eventually driving the pharmaceutical grade silica gel market.

Increasing demand from major application industries

The increase in demand from major application industries such as adsorbents, drug carrier, lubricants, desiccants and others are driving the pharmaceutical grade silica gel industry. According to IEA, the report has assessed those global upstream investments in oil and gas exploration, extraction and production are on course to reach their highest levels since 2015, growing 11% year-on-year to USD 528 billion in 2023. which eventually boosts the growth of the pharmaceutical grade silica gel market. The increase in the need and production of applications where lubricants are extensively used such as medical equipment, medical infrastructures are one of the major factors driving the growth of the pharmaceutical grade silica gel market.

Pharmaceutical Grade Silica Gel Market Challenges

Stringent government regulations

There are various stringent regulations regarding the pharmaceutical business in various countries which is one of the major challenges to the pharmaceutical grade silica gel market. For instance, The Pharmacy Act 1948 of India, there are various stringent regulations regarding the composition of drugs, which requires the pharmacists/chemists to follow various procedures and screening to get approved by the government. These stringent rules and regulations, are one of the biggest challenges faced by the pharmaceutical grade silica gel market.

Market Landscape

New product launches, expansion, investments, acquisitions & mergers and collaborations are some of the key strategies adopted by players in the Pharmaceutical Grade Silica Gel Market. Major players in the Pharmaceutical Grade Silica Gel Market are Sorbead India, Clariant International Ltd., Solvay S.A, The Dow Chemical Company, E. I. du Pont de Nemours and Company, Multisorb Technologies, Inc., W. R. Grace & Co.-Conn, Evonik Industries, Desiccare Inc. and Fuji Silysia Chemical among others.

Acquisitions/Technology Launches

• In July 2022, AGC Si-Tech Launches Integrated Silica Product Brand RESIFATM, a focus on pharmaceutical applications, this silica gel is poised to contribute significantly to the growing Pharmaceutical Grade Silica Gel Market, providing innovative solutions to meet evolving industry demands. AGC's launch signals a commitment to advancing pharmaceutical manufacturing processes and ensuring the highest standards of quality in the industry.