// changes done below on July 01 2024 // till here on July 01 2024

Pharmaceutical Contract Manufacturing Market Revenue to Cross US$ 156 billion by 2035 | Roots Analysis

Published: July 2024


According to a recently published report by Roots Analysis, the development of personalized medicines has revolutionized the treatment of a range of therapeutic conditions, which has further contributed to a steady growth in the current demand for small molecule therapies, thereby creating lucrative opportunities for pharmaceutical contract manufacturers

Pharmaceutical Contract Manufacturing Industry Overview

The global pharmaceutical contract manufacturing market size was estimated to be USD 99 billion in 2024 and is expected to reach over USD 156 billion by 2035, growing at a CAGR of 4.3% in the forecast period 2024-2035.

Pharmaceutical contract manufacturing organizations provide specialized services for the production of pharmaceutical products, allowing companies to outsource various stages of drug manufacturing and development to experts in the field. Outsourcing manufacturing operations to CMOs and CDMOs entails the implementation of specialized solutions to optimize production workflows, ensure regulatory compliance, and maintain product quality standards. Furthermore, there is a growing emphasis on personalized medicinal products, necessitating flexible manufacturing capabilities to meet diverse patient needs. This shift entails the essential role of CMOs and CDMOs in innovating production and meet the evolving healthcare demands.

Browse 150+ figures and 200+ market data tables spread across 540+ pages and detailed Table of Content on “Pharmaceutical Contract Manufacturing Market: Industry Trends and Global Forecasts, till 2035, by Type of Product Manufactured, Type of API, API Potency, Type of FDF, Dosage Form, Type of Packaging Offered, End-users, Scale of Operation, Key Geographical Regions and Leading Players” here:
https://www.rootsanalysis.com/reports/pharmaceutical-contract-manufacturing-market/191.html

Market Drivers

The pharmaceutical contract manufacturing market is primarily driven by the demand for efficiency and flexibility in bringing products to market. CMOs and CDMOs offer specialized expertise and scalable solutions that enable pharmaceutical companies to accelerate development timelines and respond swiftly to market needs. Additionally, the ability to mitigate geopolitical instability is crucial. By outsourcing manufacturing operations to CMOs and CDMOs with a global footprint, companies can diversify their supply chains and reduce risks associated with political and economic uncertainties. Furthermore, the growing adoption of advanced technologies, such as automation, continuous manufacturing, and data analytics, enhances production capabilities and ensures high-quality outputs. These technologies improve operational efficiency and facilitate compliance with stringent regulatory standards, positioning the pharmaceutical contract manufacturing sector for robust growth.

Market Restraints

Over the past several years, the small molecule contract manufacturing market has witnessed an alternating series of excess and insufficient capacities. Limited capacity utilization can undermine profitability. Overcapacity or underutilization of manufacturing capabilities often results from fluctuations in demand or inefficient production planning, impacting the overall operational efficiency and financial stability of contract manufacturing organizations. Additionally, events such as pandemics, natural disasters, and geopolitical conflicts can hinder the timely procurement of raw materials and components, leading to delays and increased costs in production. In addition, the high cost of investment in cutting-edge manufacturing technologies and facilities is a significant barrier. CMOs and CDMOs must continuously invest in advanced equipment and compliance measures, which can strain financial resources and deter new entrants.

Growth Factors

Despite the challenges, various growth factors continue to drive the pharmaceutical contract manufacturing market forward. One of the notable factors is availability of low-cost outsourcing options in the emerging geographies which has led to a noteworthy rise in the outsourcing manufacturing operations, and this trend is likely to persist in the future, as well. The evident rise in the outsourcing activity can be attributed to the increased demand for small molecules, which further necessitates an increase in the production capacities. Moreover, the increase in the amount spent on contract services is also a reflection of the heightened involvement of companies in the pharmaceutical industry.

Pharmaceutical Contract Manufacturing Market Segments

Based on the type of product manufactured, the market is segmented into API & Intermediates and FDF

  • The API & intermediates segment led the pharmaceutical contract manufacturing market, capturing the largest revenue share of close to 56% in 2024.
  • The API & intermediates segment is anticipated to be the fastest growing segment in this industry, with an annualized rate (CAGR) of 5.1% during the forecast period.

Based on the type of API, the market is segmented into generic API and originator API

  • The generic API led the pharmaceutical contract manufacturing market, capturing the largest revenue share of more than 50% in 2024.
  • The generic API segment is anticipated to be the fastest growing segment in this industry, with an annualized rate (CAGR) of 5.5% during the forecast period.

Based on API potency, the market is segmented into low potent API and high potent API

  • The low potent API segment led the pharmaceutical contract manufacturing market, capturing the largest revenue share of close to 85% in 2024.
  • The high potent API segment is anticipated segment is anticipated to be the fastest growing segment in this industry, with annualized rate (CAGR) over 9.0% during the forecast period.

Based on the type of FDF, the market is segmented into generic FDF and originator FDF

  • The originator FDF segment led the pharmaceutical contract manufacturing market, capturing the largest revenue share of close to 55% in 2024.
  • The generic FDF segment is anticipated to be the fastest growing segment in this industry, with an annualized rate (CAGR) of 3.5% during the forecast period.

Based on the dosage form, the market is segmented into oral solids, liquids, emulsions and other dosage form

  • The oral solid segment led the pharmaceutical contract manufacturing market, capturing the largest revenue share of close to 50% in 2024.
  • The liquids segment is anticipated to be the fastest growing segment in this industry, with an annualized rate (CAGR) of 3.3% during the forecast period.

Based on the type of packaging offered, the market is segmented into bottles, blisters, parenteral and others

  • The bottles segment led the pharmaceutical contract manufacturing market, capturing the largest revenue share of close to 35% in 2024.
  • The blisters segment is anticipated to be the fastest growing segment in this industry, with an annualized rate (CAGR) of about 6% during the forecast period.

Based on the scale of operation, the market is segmented into commercial and clinical

  • The commercial segment led the pharmaceutical contract manufacturing market, capturing the largest revenue share of close to 95% in 2024.
  • The clinical segment is anticipated to be the fastest growing segment in this industry, with an annualized rate (CAGR) of about 8% during the forecast period.

Based on the end-users, the market is segmented into small, mid-sized and large and very large companies

  • The small companies segment led the pharmaceutical contract manufacturing market, capturing the largest revenue share of over 45% in 2024.
  • The small companies segment is anticipated to be the fastest growing segment in this industry, with an annualized rate (CAGR) of over 4.5% during the forecast period.

Based on the Regional Insights, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East and North Africa

  • North America dominated the pharmaceutical contract manufacturing market and accounted for the largest revenue share of close to 40% in 2024.
  • In the Middle East and North Africa, the pharmaceutical contract manufacturing market is anticipated to demonstrate lucrative growth during the forecast period.

Based on the leading players, the majority market share is captured by Lonza, Catalent, Fareva, Siegfried, AMRI, Jubilant LS, Aenova and Patheon

  • Lonza emerged as the leading player in terms of revenues generated from the pharmaceutical contract manufacturing business segment of close to 65% in 2023.

Key Companies Profiled 

The pharmaceutical contract manufacturing market report also includes detailed profiles of key players (listed below) that offer pharmaceutical contract manufacturing services:

  • AMRI
  • Altasciences
  • Cambrex
  • Catalent
  • DPT Laboratories
  • Aenova
  • Almac
  • Corden Pharma
  • Fresenius Kabi
  • Glatt
  • Hovione
  • Recipharm
  • Siegfried
  • CMIC
  • Nectar Lifesciences
  • Syngene
  • WuXi AppTec

You Can Download Free Sample PDF Copy of This Report At: 
https://www.rootsanalysis.com/reports/pharmaceutical-contract-manufacturing-market-2nd-edition-2018-2028/request-sample.html

About Roots Analysis

Roots Analysis is a global leader in the pharma / biotech market research. Having worked with over 750 clients worldwide, including Fortune 500 companies, start-ups, academia, venture capitalists and strategic investors for more than a decade, we offer a highly analytical / data-driven perspective to a network of over 450,000 senior industry stakeholders looking for credible market insights. All reports provided by us are structured in a way that enables the reader to develop a thorough perspective on the given subject. Apart from writing reports on identified areas, we provide bespoke research / consulting services dedicated to serve our clients in the best possible way.

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Gaurav Chaudhary
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Email: Gaurav.chaudhary@rootsanalysis.com or sales@rootsanalysis.com

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