Pharmaceutical Contract Manufacturing Market to Surpass $300 Billion by 2032, Driven by Outsourcing & Biologics Demand

Rising Demand for Advanced Therapeutics and Regulatory Reforms Propel Market Growth at a 7.15% CAGR

AUSTIN, TX, UNITED STATES, January 17, 2025 /EINPresswire.com/ -- According to Research by SNS Insider, The Pharmaceutical Contract Manufacturing Market size was estimated at USD 161.76 billion in 2023 and is expected to reach USD 300.34 billion by 2032 at a CAGR of 7.15% during the forecast period of 2024-2032.

The Evolving Landscape of the Pharmaceutical Contract Manufacturing Market, Driving Innovation and Growth

The Pharmaceutical Contract Manufacturing Market is changing rapidly with regulatory changes, technological advancement, and an increased demand for innovative drug formulations. Stricter policies, such as the U.S. FDA's 2023 GMP guidelines and reforms in Europe, China, and Japan, emphasize transparency, compliance, and enhanced production standards. Technological innovations like AI are streamlining production and supply chains, while blockchain technology improves security and combats counterfeiting. Continuous manufacturing and biologics production is the way forward in the wake of rising demand for personalized medicines among key players like Lonza and Catalent. The focus on cost efficiency has made outsourcing a preferred strategy today, placing greater emphasis on biologics, injectables, and advanced therapies. The market is therefore poised for much innovation and expansion in the years ahead.

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Key Players in Pharmaceutical Contract Manufacturing Market
• Catalent (Sterile Manufacturing, Oral Solid Dose Manufacturing)
• Lonza (Biologic Drug Substance Manufacturing, Cell Therapy Manufacturing)
• Boehringer Ingelheim (Biopharmaceuticals, Contract Development)
• Samsung Biologics (Biologics Manufacturing, Fill/Finish Services)
• WuXi AppTec (Small Molecule Manufacturing, Biologics Manufacturing)
• Patheon (Pharmaceutical Development, API Manufacturing)
• AMRI (API Development, Drug Product Manufacturing)
• Recipharm (Inhalation Product Manufacturing, Drug Development Services)
• Siegfried (Drug Substance Manufacturing, Drug Product Manufacturing)
• Jubilant Life Sciences (Sterile Injectable Manufacturing, Solid Oral Dosage Manufacturing)
• Famar (Sterile Manufacturing, Packaging Services)
• Thermo Fisher Scientific (Pharmaceutical Development, Biologics Manufacturing)
• Piramal Pharma Solutions (API Manufacturing, Drug Product Manufacturing)
• Almac Group (Drug Development Services, Clinical Trial Manufacturing)
• Cambrex (API Manufacturing, Drug Substance Manufacturing)
• BioDuro-Sundia (Biologics Manufacturing, Drug Discovery)
• Vetter Pharma (Fill & Finish Services, Packaging Services)
• AbbVie Contract Manufacturing (API Development, Solid Oral Dose Manufacturing)
• Baxter BioPharma Solutions (Injectable Manufacturing, Biologics Manufacturing)
• Pfizer CentreOne (API Manufacturing, Biologics Manufacturing)

Segmentation Analysis
By service
In 2023, the Pharmaceutical Manufacturing Services segment dominated the market with 32% of the market share. This supremacy is linked to the growing need for sophisticated manufacturing solutions, as pharmaceutical firms progressively delegate non-core activities to emphasize research and development. Among these services, the manufacturing of Pharmaceutical APIs has gained notable importance, as organizations utilize specialized knowledge for producing active pharmaceutical ingredients, thereby ensuring efficiency and adherence to quality standards.

The Drug Development Services segment is expected to expand at the fastest rate, with an anticipated CAGR of 9.72% between 2024 and 2032. This swift growth is driven by the increasing focus on innovative treatments, such as biological therapies and personalized medications. Contract manufacturers are improving their abilities to offer complete assistance, ranging from drug discovery and development to preclinical testing. The growing need for drug development pipeline products emphasizes the segment’s vital function in providing comprehensive solutions, extending beyond standard manufacturing to foster innovation in the pharmaceutical field.

By end user
In 2023, the Large pharmaceutical companies segment dominated the market, representing roughly 30% of the market share. These companies are progressively depending on contract manufacturing to enhance production efficiency while concentrating on essential tasks like drug discovery and commercialization. Due to rising R&D expenses, outsourcing production has emerged as a tactical method to optimize supply chains, increase output, and maintain compliance with strict quality regulations, reinforcing their market leadership.

Small and medium-sized pharmaceutical firms are expected to expand at the fastest pace, boasting a CAGR of 8.21% between 2024 and 2032. Restricted internal manufacturing capabilities compel these companies to effectively outsource product development and market entry processes. Numerous smaller firms focus on niche therapeutic domains, such as orphan drugs and biologics, resulting in an increasing need for highly specialized contract manufacturing services. This trend underscores their important role in market expansion as they meet the demand for novel and specific therapies.

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Pharmaceutical Contract Manufacturing Market Segmentation
By Service
• Pharmaceutical Manufacturing Services
• Pharmaceutical API Manufacturing Services
• Pharmaceutical FDF Manufacturing Services
• Drug Development Services
• Biologic Manufacturing Services
• Biologic API Manufacturing Services
• Biologic FDF Manufacturing Services

By End User
• Big Pharmaceutical Companies
• Small & Mid-Sized Pharmaceutical Companies
• Generic Pharmaceutical Companies
• Other

Regional Analysis
In 2023, North America dominated the market with a 25% market share, fueled by prominent pharmaceutical firms, sophisticated healthcare systems, and strong government backing. The United States, especially, holds a crucial position, directed by regulatory bodies like the FDA, which establish industry norms. Moreover, substantial investments in biologics and personalized medicine have reinforced the area's dominance in contract manufacturing, securing its notable standing in the worldwide market.

The Asia Pacific area is expected to experience the fastest growth throughout the forecast duration from 2024 to 2032, anticipating a CAGR of 8.42%. Nations such as China, India, and Japan are rising as significant manufacturing centers, driven by economic benefits and supportive government initiatives. China's NMPA has simplified its approval procedures to promote innovation and draw in international pharmaceutical companies, whereas Japan's Ministry of Health is focusing on advancing biologics and biosimilars. These elements establish the Asia Pacific as a vibrant expansion area in the pharmaceutical contract manufacturing sector.

Recent Developments
• In October 2024, South Korea-based global Contract Development and Manufacturing Organization (CDMO) Samsung Biologics announced a landmark contract manufacturing agreement with an Asia-based pharmaceutical company. Valued at USD 1.24 billion, this deal marks the largest contract ever signed with a single client. The production will take place at Samsung Biologics’ biomanufacturing site in Songdo, South Korea, and is set to continue through December 2037. With this latest agreement, the company’s accumulated contract value for 2024 has exceeded USD 3.3 billion.
• In 2024, Eli Lilly and Company and Nexus Pharmaceuticals, LLC revealed a definitive agreement under which Lilly acquired a manufacturing facility from Nexus. Nexus, a leading sterile pharmaceutical manufacturer, adds to Lilly’s strategic manufacturing capabilities with this acquisition.

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Table of Contents – Major Key Points
1. Introduction
2. Executive Summary
3. Research Methodology
4. Market Dynamics Impact Analysis
5. Statistical Insights and Trends Reporting
6. Competitive Landscape
7. Pharmaceutical Contract Manufacturing Market by Service
8. Pharmaceutical Contract Manufacturing Market by End user
9. Regional Analysis
10. Company Profiles
11. Use Cases and Best Practices
12. Conclusion

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