Market Analysis And Insights
With a CAGR of 6.9% between 2023 and 2032, the market for pharmaceutical contract manufacturing is anticipated to reach USD 277.3 Billion by 2032.
The market is influenced by a variety of things, such as the difficult and tightly controlled procedure involved in making pharmaceutical items. The production of these goods is being outsourced by pharmaceutical corporations to CMOs with the knowledge and means to satisfy these needs. By service type, end user, and area, the pharmaceutical contract manufacturing marketplace is divided. The increasing need for generic pharmaceuticals and biologics, the intricate manufacturing needs of these goods, and the increased emphasis on drug discovery are projected to fuel the growth of the worldwide pharmaceutical contract production market in the upcoming years.
Pharmaceutical Contract Manufacturing Market Scope :
|Revenue forecast in 2032
|USD 277.3 Billion
|CAGR of 6.9% during 2022-2032
|By Services ,By Type,By End Users.By Regional Analysis.
|North America, Europe, Asia Pacific, South America Middle East and Africa
|Key Players Profiled
|Catalent Inc., Lonza Group Ltd., Recipharm AB, Jubilant Lifesciences Ltd., and Patheon Inc.
Pharmaceutical contract manufacturing (PCM) is the method of contracting with a different business to manufacture your pharmaceutical products. Production of active pharmaceutical ingredients (APIs), final dosage forms (FDFs), or both are included in this. There are many reasons why pharmaceutical corporations outsource their manufacture. It can be expensive to manufacture pharmaceutical products, and CMOs frequently offer these services for less money than it would cost pharmaceutical businesses to manufacture the items themselves. Pharmaceutical items can be efficiently and legally produced by CMOs thanks to their knowledge and resources. By contracting with CMOs for manufacturing, pharmaceutical companies can concentrate on their core capabilities, such as medication development and discovery.
Key Market Segments
Insights on Key Services
Around 75% of the market share for pharmaceutical contract manufacturing will be held by pharmaceutical services in 2023, making it the most prominent sector. This is a result of the fact that small-molecule medications continue to represent the most prevalent class of pharmaceutical goods. Manufacturing of small molecule, medications’ final dosage forms (FDFs) and active pharmaceutical ingredients (APIs) is one of the services provided by the pharmaceutical industry. Pharmaceutical products are created using APIs as their primary basic material. In addition to tablets, capsules, and injectable solutions, FDFs are the last kinds of pharmaceuticals that patients are allowed to consume. Biologic Services Manufacturing of biologic drug APIs and FDFs is one of the biologic services offered. The ingredients used to create biological medications include live things like yeast, bacteria, and mammalian cells. Infectious diseases, autoimmune conditions, and cancer are just a few of the many illnesses they are employed to treat. Due to the rising need for biologic medications, the segment of “biologic services” is expanding quickly. Small molecule medications can be produced more easily than biologic pharmaceuticals, which call for specialised knowledge and tools. The production process of biologic medications is now increasingly being outsourced to CMOs by pharmaceutical corporations.
Insights on Key Types
In the worldwide pharmaceutical contract manufacturing market, API manufacturing holds the largest share. This is because the building blocks for all pharmacological products—the APIs—are found in them. The market for pharmaceutical contract manufacturing is anticipated to represent over 55% of the global market by 2023. Manufacturing of APIs (Active Pharmaceutical Ingredients) is the process of producing the essential components for the creation of pharmaceutical goods. Chemical synthesis, fermentation, and extraction are some of the different manufacturing processes that can be used to create APIs. FDF (Finished Dosage Form) Manufacturing FDF (Finished Dosage Form) manufacturing is the procedure of creating pharmaceutical drugs in the final dosage forms that patients use, such as tablets, capsules, and injectable solutions. FDFs can be produced using a variety of techniques, including coating, granulation, compression, and blending. In terms of pharmaceutical contract manufacturing worldwide, FDF manufacturing is the second- biggest market sector. Because FDFs are the last forms of pharmaceuticals that patients consume, this is the case. The FDF manufacturing sector is anticipated to make up about 40% of the worldwide pharmaceutical contract manufacturing industry by 2023. Drug Development Services The services offered to aid in the development of novel medicines are referred to as drug development services. These solutions may involve manufacturing for clinical trials, scale-up production, and formulation development. The pharmaceutical contract manufacturing market’s smallest sub segment is drug development services. This is because these services are usually only needed for the creation of new pharmaceutical goods.
By End User
In the international market for pharmaceutical contract manufacturing, Big Pharma Companies represent the largest end-user group. This is because huge pharma firms need the assistance of CMOs to successfully and efficiently manufacture their extensive portfolios of medicinal medicines. Around 60% of the market for pharmaceutical contract manufacturing is anticipated to come from big pharma in 2023. Small & Medium-sized Pharma Small and medium-sized pharmaceutical businesses are the second-biggest end-user category in the global market for contract manufacturing of pharmaceuticals. Because they frequently lack the internal resources to produce their goods, small and medium-sized pharmaceutical enterprises are the cause of this. The market for pharmaceutical contract manufacturing is anticipated to represent 30% of the global market by 2023 in the small and medium-sized pharmaceutical sector. Generic Pharma In the worldwide pharmaceutical contract manufacturing industry, generic pharmaceutical businesses make up the lowest end-user group. Because generic pharmaceutical companies frequently have their production facilities, this is the case. To cut costs and concentrate on their core strengths, however, generic pharmaceutical businesses increasingly outsource the production of their drugs to CMOs. The generic pharmaceutical market is projected to represent 10% of the worldwide pharmaceutical contract manufacturing market by 2023.
Insights on Key Regions
The largest regional category in the global market for pharmaceutical contract manufacturing is North America. This is because the pharmaceutical sector is significant and well-established in North America. Around 40% of the world’s market for pharmaceutical contract manufacturing is anticipated to come from North America in 2023. The market for pharmaceutical contract manufacturing in North America is expanding as a result of rising rates of chronic diseases, the creation of novel pharmaceutical medications, and an emphasis on efficiency. Europe Europe is the second-largest geographic market for the contract production of pharmaceuticals. This is because Europe has a sizable population and a robust pharmaceutical sector. By 2023, the market for pharmaceutical contract manufacturing is expected to account for around 30% of the global market. The European pharmaceutical contract manufacturing business is expanding due to the ageing population, rising rates of chronic diseases, and a greater emphasis on innovation. Asia Pacific The area with the quickest rate of growth in the market for pharmaceutical contract manufacturing is Asia Pacific. This is a result of the Asia Pacific region’s huge and expanding population as well as its expanding pharmaceutical sector. By 2023, it is predicted that Asia Pacific will account for about 25% of the global market for pharmaceutical contract manufacturing. The pharmaceutical contract manufacturing market in Asia Pacific is expanding as a result of the rising population, rising prevalence of chronic diseases, and rising need for accessible healthcare. Latin America and the Middle East & Africa The smallest regional segments of the global pharmaceutical contract manufacturing market are found in Latin America, the Middle East, and Africa. The rising need for pharmaceutical items in these regions, however, is likely to propel these regions’ quick growth in the upcoming years. The pharmaceutical contract manufacturing industry is expanding in Latin America as a result of the region’s ageing population, growing population, and rising prevalence of chronic diseases. Due to the region’s growing population, increased prevalence of chronic diseases, and growing need for easily accessible healthcare, the market for pharmaceutical contract manufacturing is growing throughout the Middle East and Africa.
These businesses provide a variety of services, including services for drug development and the production of API and FDF. Among the leading companies in the world market for pharmaceutical contract manufacturing are Catalent Inc., Lonza Group Ltd., Recipharm AB, Jubilant Lifesciences Ltd., and Patheon Inc.
Covid-19 Impacts And Analysis
The COVID-19 pandemic has had a substantial effect on the world market for pharmaceutical contract manufacturing. The epidemic caused short-term hiccups in the production process and supply chain. On the other hand, the pandemic is anticipated to spur market expansion in the long run as pharmaceutical companies progressively outsource the production of their goods to CMOs to cut costs and concentrate on their core strengths. Demand for COVID-19 vaccinations and treatments has increased as a result of the COVID-19 pandemic. CMOs have been crucial to the manufacturing and distribution of these goods. The global supply chain has been disrupted by the COVID-19 pandemic, which has affected the pharmaceutical contract manufacturing sector. Raw material and packaging component shortages are two examples. Manufacturing operations have been affected by the COVID-19 epidemic as well, as seen by facility closures and a lack of workers. A greater emphasis on cost-effectiveness has emerged in the pharmaceutical sector as a result of the COVID-19 pandemic. CMOs are increasingly being used by pharmaceutical companies to manufacture their drugs when they outsource the production to cut costs. A ened emphasis on development in the pharmaceutical sector is another result of the COVID-19 pandemic. Pharmaceutical businesses are putting forth effort to create fresh, more potent remedies for COVID-19 and other illnesses. The need for CMO services is anticipated to increase as a result. The worldwide pharmaceutical contract manufacturing market is anticipated to have long-term growth as a result of the COVID-19 pandemic. Pharmaceutical businesses are increasingly turning to CMOs to manufacture their medicines to cut costs and concentrate on their core capabilities, and this trend is causing the market to rise.
Latest Trends and Analysis
2023: To increase its end-to-end mRNA manufacturing service, Lonza Group collaborates with biotechnology firm Torchlight. Through this cooperation, Lonza will have access to Touchlight’s exclusive DNA-to-mRNA technology, enabling Lonza to provide its mRNA customers with a more comprehensive solution.
2023: For the large-scale production of Spikevax, Moderna’s COVID-19 vaccine, and other investigational mRNA therapies in its pipeline, Thermo Fisher Scientific works in partnership with Moderna, Inc. This partnership will enable Moderna to address the increasing demand for its COVID-19 vaccination and other mRNA products.
2023: Delandistrogene moxeparvovec (SRP-9001), Sarepta’s most cutting-edge gene therapy candidate, is produced with the support of Catalent. This partnership shows Catalent’s capacity to produce sophisticated and cutting-edge treatments and represents a significant advancement in the field of gene therapy.
2022: Boehringer Ingelheim purchases US-based CDMO AMRI. Boehringer Ingelheim’s CDMO capabilities will likely be strengthened by this acquisition, which will also increase its global footprint.
2022: In South Korea, a new biologics production plant is being built by Samsung BioLogics for $2 billion. Samsung BioLogics will be better able to meet this demand thanks to this investment, which is a reflection of the rising demand for biologics production services.
Significant Growth Factors
In the upcoming years, a major increase in the market for pharmaceutical contract manufacturing is anticipated. Due to their reduced price and comparable effectiveness to branded medications, generic medications and biologics are growing in popularity. To cut costs and concentrate on their core strengths, pharmaceutical companies are contract manufacturing organisations (CMOs) for the production of these goods. Pharmaceutical product manufacture is a difficult and tightly controlled procedure. Pharmaceutical businesses contract out the production of these goods to CMOs who have the know-how and means to satisfy these demands. To bring fresh and cutting-edge products to market, pharmaceutical corporations are putting more of an emphasis on medication development. The demand for CMO services is rising as a result of this. Pharmaceutical manufacturing outsourcing to CMOs has become more popular as a result of the COVID-19 epidemic. CMOs are becoming more and more sought after by pharmaceutical corporations as a speedy and effective way to develop and produce novel medications and vaccines
In the upcoming years, numerous variables could limit the growth of the worldwide pharmaceutical contract manufacturing market, but it is anticipated to increase significantly. CMOs must abide by all laws and regulations that are relevant because the pharmaceutical sector is heavily regulated. Smaller CMOs may find it challenging to adhere to all of the standards in this complex and pricey process. The worldwide supply chain might be disrupted by geopolitical unrest, which makes it more challenging for pharmaceutical businesses to contract out manufacturing to CMOs.
Despite these difficulties, the industry for pharmaceutical contract manufacturing is anticipated to expand dramatically over the next few years. The market is being driven by factors including the increased demand for generic medications and biologics as well as the intricate production specifications for pharmaceutical products, which exceed the ones limiting it. CMOs can lessen the restrictions by making investments in capacity development, IP protection, and quality control measures. To lessen their risk exposure, they might also diversify their clientele and geographic reach.