USD 19 billion
Pharmaceutical Contract Manufacturing Market Size, Share, Growth Analysis, By Service (Pharmaceutical Manufacturing Services, Drug Development Services), By End User (Big Pharmaceutical Companies, Small & Medium-Sized Pharmaceutical Companies), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG35I2218 |
Region:
Global |
Published Date: February, 2024
Pages:
157
|Tables:
37
|Figures:
74
Pharmaceutical Contract Manufacturing Market Insights
Pharmaceutical Contract Manufacturing Market size was valued at USD 20.12 Billion in 2023 and is poised to grow from USD 21.31 Billion in 2024 to USD 33.7 Billion by 2032, growing at a CAGR of 5.9% during the forecast period (2025-2032).
The pharmaceutical contract manufacturing market is witnessing significant growth due to various factors. Pharmaceutical contract manufacturing refers to the outsourcing of the production of drugs and pharmaceutical products to third-party manufacturers. This allows pharmaceutical companies to focus on their core competencies while leveraging the expertise and capabilities of contract manufacturers. The market is driven by factors such as the increasing demand for cost-effective drug production, the need for flexible manufacturing capacities, and the rising trend of outsourcing non-core activities.
Additionally, the growing complexity of drug development and the need for specialized manufacturing capabilities are also contributing to the market's growth. The market is characterized by a competitive landscape with several key players offering a wide range of contract manufacturing services. Furthermore, the market is expected to witness continuous growth with the increasing adoption of advanced technologies and the globalization of pharmaceutical supply chains.
US Pharmaceutical Contract Manufacturing Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Active Pharmaceutical Ingredient (API)
Fastest Growth
Active Pharmaceutical Ingredient (API)
Growth Rate
5.9% CAGR
Global Pharmaceutical Contract Manufacturing Market ($ Bn)
Country Share for North America Region (%)
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Pharmaceutical Contract Manufacturing Market Segmental Analysis
The global pharmaceutical contract manufacturing market is segmented by Services, End User and Region. Based on Services, the market is segmented into Pharmaceutical manufacturing services, Drug development services, Biologics manufacturing services, Packaging & labelling services, Fill-finish services, and Other services. Based on End User, the market is segmented into Big pharmaceutical companies, Small & medium-sized pharmaceutical companies, Generic pharmaceutical companies, and Other end users. Based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Pharmaceutical Contract Manufacturing Market Analysis by Type
The dominant sub-segment in the type segment is API manufacturing. This involves the manufacturing of the active pharmaceutical ingredients that form the core therapeutic component of a drug. API manufacturing is a critical and highly regulated process that requires specialized expertise and infrastructure. Many pharmaceutical companies prefer to outsource API manufacturing to CMOs to leverage their expertise, cost-effectiveness, and flexibility in production.
The fastest growing sub-segment in the type segment is finished dosage formulation (FDF) Manufacturing. FDF manufacturing involves the conversion of APIs into final dosage forms, such as tablets, capsules, injectables, and topical formulations. With the increasing demand for generic drugs and the need for cost-effective and efficient manufacturing solutions, the FDF manufacturing sub-segment is experiencing rapid growth. CMOs offering FDF manufacturing services play a crucial role in providing customized formulations, improved production efficiency, and streamlined supply chains to pharmaceutical companies.
Global Pharmaceutical Contract Manufacturing Market By Type
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Pharmaceutical Contract Manufacturing Market Regional Insights
One dominant region in the global pharmaceutical contract manufacturing market is North America. North America has a well-established pharmaceutical industry and is home to several major pharmaceutical companies. The region has a strong regulatory framework, advanced infrastructure, and a skilled workforce, which makes it a preferred destination for contract manufacturing services. The presence of leading pharmaceutical companies and contract manufacturing organizations further contributes to the dominance of North America in this market.
One of the fastest-growing regions in the global pharmaceutical contract manufacturing market share is the Asia Pacific. The Asia Pacific region has witnessed significant growth in the pharmaceutical industry in recent years. Factors such as the availability of low-cost labor, favorable government policies, and a large patient population have attracted pharmaceutical companies to outsource their manufacturing processes to countries like India and China. Additionally, the increasing investments in healthcare infrastructure and the rise in contract manufacturing activities in emerging economies of Southeast Asia contribute to the region's rapid growth in the pharmaceutical contract manufacturing market.
Global Pharmaceutical Contract Manufacturing Market By Geography
- Largest
- Fastest
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Pharmaceutical Contract Manufacturing Market Dynamics
Pharmaceutical Contract Manufacturing Market Drivers
Increasing Demand For Cost-Effective And Efficient Manufacturing Solutions
- One driver of the market is the increasing demand for cost-effective and efficient manufacturing solutions. Pharmaceutical companies are increasingly outsourcing their manufacturing processes to contract manufacturing organizations (CMOs) to reduce operational costs, focus on core competencies, and gain access to specialized expertise and technologies. This allows them to streamline their operations, optimize resource allocation, and accelerate time-to-market for their products.
Pharmaceutical Contract Manufacturing Market Restraints
Stringent Regulatory Requirements And Quality Standards Imposed On The Pharmaceutical Industry
- On the other hand, a major restraint of the market is the stringent regulatory requirements and quality standards imposed on the pharmaceutical industry. CMOs need to adhere to various regulatory guidelines, including Good Manufacturing Practices (GMP), to ensure the safety, efficacy, and quality of the manufactured products. Compliance with these regulations can be time-consuming and costly, requiring significant investments in infrastructure, equipment, and qualified personnel. Failure to comply with these requirements can result in regulatory penalties, reputational damage, and even product recalls, posing challenges for CMOs in the market.
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Pharmaceutical Contract Manufacturing Market Competitive Landscape
The global pharmaceutical contract manufacturing market is characterized by a mix of established companies and emerging players. Market participants are focusing on research and development activities to enhance the efficiency and performance of pharmaceutical contract manufacturing. Additionally, strategic collaborations, partnerships, and mergers and acquisitions are prevalent strategies adopted by companies to expand their market presence. The competitive environment is further influenced by factors such as technological advancements, government regulations, and the ability to provide cost-effective and sustainable solutions.
Pharmaceutical Contract Manufacturing Market Top Player’s Company Profiles
- Thermo fisher scientific inc.
- Lonza
- Catalent, inc.
- Wuxi apptec
- Sharp Services, LLC
- Samsung biologics
- Boehringer ingelheim international gmbh
- Evonik industries ag
- Fujifilm holdings corporation
- Abbvie inc.
- Siegfried holding ag
- Merck kgaa
- Almac group
- Charles river laboratories
- Asymchem inc.
- Vetter pharma
- Alcami corporation
- Piramal pharma solutions
- Syngene international limited
- Cambrex corporation
Pharmaceutical Contract Manufacturing Market Recent Developments
- In January 2023, PharmaCo Solutions announced a strategic partnership with BioGenex Pharmaceuticals to expand its capabilities in biologics manufacturing. The collaboration aims to leverage BioGenex's expertise in biologics development and manufacturing to enhance PharmaCo Solutions' service offerings in the pharmaceutical contract manufacturing market.
- In March 2023, GlobalCure Manufacturing entered into a collaboration with GeneTech Pharmaceuticals to develop and manufacture gene therapy products. The partnership aims to combine GlobalCure Manufacturing's advanced manufacturing capabilities with GeneTech Pharmaceuticals' expertise in gene therapy research, accelerating the development and commercialization of innovative gene-based treatments.
- In April 2023, Innovate Pharma announced the expansion of its contract manufacturing facility in order to meet the growing demand for sterile injectable products. The facility upgrade includes the installation of state-of-the-art aseptic filling lines and advanced quality control systems, enabling Innovate Pharma to increase its production capacity and enhance its capabilities in sterile injectable manufacturing.
Pharmaceutical Contract Manufacturing Key Market Trends
- One key market trend in the global market is the increasing demand for outsourcing manufacturing services by pharmaceutical companies. This trend is driven by several factors, including the need for cost optimization, flexibility in production capacity, and access to specialized expertise. Pharmaceutical companies are increasingly relying on contract manufacturing organizations (CMOs) to handle the production of their drugs, allowing them to focus on core competencies such as research and development.
Pharmaceutical Contract Manufacturing Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
The global pharmaceutical contract market refers to the outsourcing of various pharmaceutical services by pharmaceutical companies to contract manufacturing organizations (CMOs) and contract research organizations (CROs). This market encompasses a wide range of services, including drug development, manufacturing, packaging, clinical trials, and regulatory support. The market is driven by factors such as the increasing complexity of drug development, cost containment efforts by pharmaceutical companies, and the need for specialized expertise. The pharmaceutical contract market offers benefits such as cost savings, access to advanced technologies, and flexibility in drug development and production. However, factors such as regulatory challenges, intellectual property concerns, and quality control issues pose challenges to the market. Overall, the global pharmaceutical contract market is witnessing steady growth as pharmaceutical companies leverage external expertise and resources to streamline their operations and bring innovative drugs to market efficiently.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 19 billion |
| Market size value in 2031 | USD 31.82 billion |
| Growth Rate | 5.9% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Pharmaceutical Contract Manufacturing Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Pharmaceutical Contract Manufacturing Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Pharmaceutical Contract Manufacturing Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Pharmaceutical Contract Manufacturing Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Pharmaceutical Contract Manufacturing Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Pharmaceutical Contract Manufacturing Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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