Pharmaceutical Contract Manufacturing Market – Global Industry Analysis and Forecast (2024–2030)

The Pharmaceutical Contract Manufacturing Market was valued at USD 152.73 Bn. in 2023 and is projected to reach USD 251.09 Bn. by 2030 at the end of the forecast period. It is expected to grow at a CAGR of 7.36 %.
Pharmaceutical Contract Manufacturing Market Overview:
The Pharmaceutical contract manufacturing is an organization that serves the pharmaceutical industry and offers clients with comprehensive services from drug development over drug manufacturing. Pharmaceutical Contract Manufacturing (CMO) is a partnership between a pharmaceutical company and a third-party manufacturer to produce or package pharmaceutical products. CMOs can improve production processes and costs for new operational strategies, including continuous production with reduced wastage of resources.

It is anticipated that pharmaceutical contract manufacturers would embrace new manufacturing technologies as a result of pressure from small and medium-sized drug pharma companies, who are in charge of the increasing number of new medication approvals but frequently lack manufacturing capacity. Through outsourcing, businesses can obtain knowledge and resources for a fraction of the price of hiring and training staff members internally, which lowers operating and capital expenses. In addition, CMOs increased production by acquiring pharmaceutical companies' manufacturing facilities in response to the surge in demand price in pharmaceutical contract manufacturing market.

The growing demand for outsourcing services and ongoing technical improvements are driving up the size and share of the pharmaceutical contract manufacturing industry. Strategic acquisitions and developments are being utilized by prominent industry companies to uphold and increase their pharmaceutical contract manufacturing market dominance. The pharmaceutical contract manufacturing industry is poised for sustained expansion and advancement, given its auspicious future outlook. This is ultimately propelling the pharmaceutical contract manufacturing market's growth.

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Global Pharmaceutical Contract Manufacturing Market Dynamics:
Development of new medicines for older population in market

The worldwide population is getting older leading to upsurge in chronic diseases as well as increased need for medications. This increase can be addressed by CMOs through additional manufacturing capacities. The subcontract manufacturing to CMOs enables drug makers to avoid costs such as constructing as well as maintaining their own facilities. The developments of new medicine specifically biologics require specialization in certain areas. Pharmaceutical contract manufacturing market provide these functions allowing pharmaceutical companies to introduce groundbreaking treatments much quicker. By using large volumes of production, CMOs are in a better position to negotiate with suppliers on matters related to raw materials and equipment, thus reducing unit costs for drug manufacturers. CMO services enable firms shrink or expand production when demand necessitates thus minimizing the chances of having underutilized internal facilities.

Current trend is growing on developing cheap medicines for domestic markets

Biologics, gene treatments, and other sophisticated drugs are witnessing more and more in demand. In response to this transition, CMOs are increasingly focusing on these areas and providing knowledge of managing these complex production processes. As a result of businesses looking for "one-stop-shop" solutions, integrated CMOs and CDMOs (Contract Development and Manufacturing Organizations) are starting to appear. These CMOs provide a broader array of services, ranging from commercial manufacture to drug development. To take advantage of reduced costs and serve the expanding local pharmaceutical markets in these countries, CMOs are setting up shop in rising markets such as Asia-Pacific. Pharmaceutical contract manufacturing market and pharmaceutical companies are collaborating strategically to share resources, risks, and knowledge along the drug development and manufacturing process. In the pharmaceutical sector, sustainable manufacturing techniques are receiving more attention. CMOs are minimizing their environmental impact by implementing eco-friendly technologies and procedures.

Restraints: Different regulatory standards across global regions

Adherence to legal requirements is crucial in the pharmaceutical sector. Under the contract, CDMOs sell the drug material or formulation under their brand. This necessitates the submission of a substantial amount of data to the regulatory body during the drug's research and clinical trial phases. Therefore, over the forecast period, CDMOs are expected to find it challenging to manage the data and submit diverse formulas across multiple nations. One significant barrier to growth in the pharmaceutical contract manufacturing business is reliance on contract manufacturers. Pharmaceutical firms may become vulnerable if they depend too much on outside partners. A number of problems could affect the timely and dependable production of pharmaceuticals, such as supply chain disruptions, concerns about financial stability, or limitations on capacity. The dependency, pharmaceutical companies run the danger of experiencing delays in the launch of new products and the distribution of existing ones due to difficulties the contract manufacturer may encounter impacting pharmaceutical contract manufacturing market.

Opportunity-Emerging Markets and Advanced manufacturing technologies

Emerging countries are bioprocesses outsourcing hubs because of their cost advantages and workforce. Further driving the expansion of pharmaceutical contract development and manufacturing services in emerging markets is the growing interest of pharmaceutical companies in drug discovery outsourcing as a result of their growing pipelines for drug antibiotics, vaccines, and research and development expenses. Modern production techniques are expanding the pharmaceutical contract manufacturing sector and bringing with them chances for increased productivity and creativity. Modern techniques such as digitalization and continuous manufacturing enable contract manufacturers to increase manufacturing agility, save expenses, and maximize output. Furthermore, contract manufacturers provides flexibility in production and quickly adjust to shifting pharmaceutical contract manufacturing market demands thanks to advanced manufacturing technologies. The introduction of modern technology boosts the precision of medicine manufacture, ensuring greater quality standards.
Global Pharmaceutical Contract Manufacturing Import-Export Analysis:
The world's largest importers of Pharmaceutical Contract Manufacturing Market in 2022:
1. USA - 22% of the world imports ($164 billion)
2. Germany - 8% ($81 billion)
3. Switzerland - 6.96% ($48 billion)
4. Belgium - 3.91% ($48 billion)
5. China - 6.88% ($39 billion)


Global Pharmaceutical Contract Manufacturing Market Segmentation:
By Services, the services category contains these—pharmaceutical manufacturing services, biological manufacturing services, and drug manufacturing services. It ranges from tasks like pre-clinical and clinical trial support, process optimization to formulation development. One of the newer issues in pharmaceutical contract manufacturing market is the raising necessity of integrated drug development services, when pharmaceutical companies and contract manufacturers are working thoughtfully from the very early stage to develop solutions that cover every part of the drug development process in product development and total production which brings efficiencies like never before. This covers tasks like creating new formulations and streamlining procedures for clinical studies. An interesting development in this market is the growing need for integrated drug development services, in which pharmaceutical companies and contract manufacturers work closely together from the outset to provide comprehensive solutions that speed up the drug development process and improve overall efficiency.

By End-User, the pharmaceutical services provided by the big pharma companies are made up from the major drug manufacturers who engage their production to the specialized contracting agencies (CMOs). Pharmaceutical contract manufacturing market is identified by the successful companies that are seeking cheap and effective methods of production. the pharmaceutical services provided by the big pharma companies are made up from the major drug manufacturers who engage their production to the specialized contracting agencies (CMOs). This market is identified by the successful companies that are seeking cheap and effective methods of production. The market currently experiences a major trend which is initiated by the most important pharmaceutical companies' and CMOs' collaboration in order to leverage the added external knowledge and resources. This allows the former to concentrate on its core competences such as xxxx, while ensuring a timely and scalable production through the outsourcing. In the constantly changing space of the pharmaceutical contract manufacturing, this concept provides the workers of the field with the capacity to imagine and adapt.

The latest tendency in this field is the shift of production parts of businesses to specialized factories which are not owned by them. This makes vigorous development possible for small pharmaceutical companies such as research, and development through the infrastructural and experienced setup of contract manufacturers in pharmaceutical contract manufacturing market.

Regional Analysis of the Global Pharmaceutical Contract Manufacturing Market:

The well-established regulatory framework and robust pharmaceutical industry, region like North America currently have a significant market share. With around xx% of the worldwide pharmaceutical contract manufacturing market share in 2023, North America is in a strong position. The presence of a firmly established pharmaceutical sector with significant pharmaceutical corporations. Because of the stringent regulatory landscape, CMOs present an alluring option for businesses that prioritize compliance. a workforce with skills and a robust infrastructure. As the pharmaceutical contract manufacturing market leader at the moment, North America is seeing more competition from the Asia-Pacific area.

Asia-Pacific is the region in the worldwide pharmaceutical contract manufacturing market that is expanding the fastest. This development potential is driven by a number of factors, including the quickly expanding domestic pharmaceutical sector and the increasing demand for reasonably priced drugs. Cheaper production costs in comparison to Europe and North America make it a desirable choice for pharmaceutical companies on a tight budget. In many Asian nations, government measures are supporting the CMO sector. Asia-Pacific has very high growth potential because of its expanding domestic pharmaceutical contract manufacturing market and cheaper expenses. Asia-Pacific is anticipated to expand at the quickest rate because of its workforce's talent and cost-competitiveness.

Pharmaceutical Contract Manufacturing Market Competitive Landscape:

The argument that the number of cell therapy applications is increasing, the applicant's quick progress through several stages of development is added, and the complicated manufacturing process is increased demand for centres that offer these therapies with the aim of the pharmaceutical contract manufacturing market’s growth.

The report includes the adoption lifecycle of the pharmaceutical contract manufacturing market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Costumer Landscape

1. In April 2023, Bridgewest will kick off a new specialty CDMO named NovaCina in Taiwan. The company will only make injectable sterile pharmaceuticals, and its headquarters will be located in Australia. Bridgewest Group formed a contract manufacturer and development organization (CDMO) after obtaining a Pfizer sterile injectable medicine production business in Perth, Australia.

2. In January 2023, Sarepta's most advanced gene therapy candidate, delandistrogene moxeparvovec, was supported by Catalent to treat Duchenne muscular dystrophy.

3. Redhill Biopharma stated in December 2022 that Recipharmm will continue to manufacture Telicia, a medication used to treat H. pylori infections, commercially through 2026. Redhill and Recipharm have collaborated extensively since 2015 to develop and manufacture Talicia, a range of delayed-release capsules containing rifabutin (10 mg250 mg12.5 mg), amoxicillin, and omeprazole magnesium.

4. The Lonza Group and Touchlight, a biotechnology startup, partnered in September 2022. Lonza added a second source of DNA to their comprehensive mRNA synthesis offering.
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Global Pharmaceutical Contract Manufacturing Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 152.73 Bn.


Forecast Period 2024 to 2030 CAGR:
7.36%
Market Size in 2030:
US $ 251.09 Bn.


 Segments Covered:
by Service
Pharmaceutical Manufacturing Services
Biologics Manufacturing Services
Drug Development Services


by End User
Big Pharma
Small & Mid-size Pharma
Generic Pharmaceutical Companies
Other End Users



Global Pharmaceutical Contract Manufacturing Market, by Region
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
North America (United States, Canada and Mexico)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Pharmaceutical Contract Manufacturing Market, Key players:
1. Abbvie Inc. (USA)
2. Aenova Group (Germany)
3. Almac Group (UK)
4. Beijing Landscape (China)
5. Boehringer Ingelheim (Germany)
6. Boehringer Ingelheim International GmbH (Germany)
7. Bushu Pharmaceuticals (Japan)
8. Cambrex Corporation (USA)
9. Catalent, Inc. (USA)
10. Consort Medical Plc (UK)
11. CordenPharma International (Germany)
12. Curia Global, Inc. (USA)
13. Dr. Reddy's Laboratories (India)
14. Evonik Industries AG (Germany)
15. Famar Health Care Services (Italy)
16. Fareva (Luxembourg)
17. Jubilant Life Sciences (India)
18. Lonza Group Ltd (Switzerland)
19. Patheon (Now part of Thermo Fisher Scientific) (USA)
20. Pfizer (USA)
21. Piramal Pharma Solutions (India)
22. Porton Fine Chemicals (China)
23. Recipharm AB (Sweden)
24. Samsung Biologics (South Korea)
25. Siegfried Holding AG (Switzerland)
26. Thermo Fisher Scientific Inc. (USA)
27. Tianjin Pharmaceuticals (China)
28. Vetter Pharma (Germany)
29. WuXi AppTec (China)

Frequently Asked Questions:
1. Which region has the largest share in Global Pharmaceutical Contract Manufacturing Market?
Ans: North American region holds the highest share in 2023.

2. What is the growth rate of the Global Pharmaceutical Contract Manufacturing Market?
Ans: The Global Market is growing at a CAGR of 7 % during the forecasting period 2024-2030.

3. What is the scope of the Global Pharmaceutical Contract Manufacturing market report?
Ans: Global Pharmaceutical Contract Manufacturing Market report helps with the PESTEL, PORTER, COVID-19 Impact analysis, Recommendations for Investors & Leaders, and market estimation of the forecast period.

4. What is the study period of this market?
Ans: The Global Pharmaceutical Contract Manufacturing Market is studied from 2024 to 2030.