Contract Pharmaceutical Manufacturing Market - Comprehensive Study Report & Recent Trends 2024-2032

Contract Pharmaceutical Manufacturing Market Synopsis:

Contract Pharmaceutical Manufacturing Market Size Was Valued at USD 170 Billion in 2023, and is projected to Reach USD 329 Billion by 2032, growing at a CAGR of 6.4 % from 2024-2032.

The Contract Pharmaceutical Manufacturing Market is defined as the industry that encompasses outsourcing of manufacture of APIs, formulations and packaging by the pharmaceutical firms to a third party manufacturer. This market has actually only recently begun to gain much attention for a number of reasons such as the increasing complexity of formulations, the concerns for cost, as well as the key requirements for speed to market. Outsourcing enables the original equipment manufacturers and the pharmaceutical companies to streamline their operations, to concentrate on the vertical strategies especially on research rather than mastering the expertise in production or in the complex operational methodologies which are already ably managed by the contract manufacturers who have sophisticated technologies and the knowledge of the rigorous regulatory classifications.

Contract Pharmaceutical Manufacturing Market is an indispensable part in today’s increasing global pharmaceutical industry, providing contractual services for a variety of pharmaceutical products. This market includes a range of services, from the production of APIs to formulation services and product packaging services. External sourcing has been on the rise with the drug makers looking for way to cut costs, increase productivity and bring new products to the market. The market structure is complex and consists of many different types of players; the simplest being CMOs with a local focus, while the most complex one is multinational companies with coverage of all services, research and development, compliance with the legal framework, and others. Therefore with changes in medication forms to complex forms such as biologics and personalized medicines, there has been a need for specialized technique in manufacturing.

In addition, the outsourcing of API manufacturing along with growth in the overall pharmaceutical business in the emerging markets along with more focused investments on the healthcare sector has defined enormous growth opportunities for the contract manufacturing. This is also responsible for the stringent regulatory demands that always ensure that the quality and safety standards are enhance by the manufacturers. On balance therefore, the market for Contract Pharmaceutical Manufacturing is set to surge strongly forward particularly based on ongoing improvement in existing and new technology as well as the sturdy pipeline of new pharmaceutical products in development and expanding globalization of pharmaceutical and biotechnology product supplies.

Contract Pharmaceutical Manufacturing Market Trend Analysis:

Streamlining manufacturing processes and enhancing operational efficiency

• The two major targets cutting down manufacturing costs and improving operational efficiency are essential for companies in the Contract Pharmaceutical Manufacturing Market, given the growing speed of technological development and stiff competition in the industry. Applying lean manufacture strategies leads to demingishing sources of waste, cutting cycle time and enhancing productivity. Purchasing strategies such as JIT, implementing automation and using value stream maps make it possible for manufacturers to time efficient methods while offering high quality products. This focus on process improvement goes further to create the efficiency of directing cost savings and improvement of market response to create a faster delivery of drug type products to the market. In addition, increasing real operational productivity also requires the implementation of new complex technologies including artificial intelligence (AI), machine learning, and data analytics for manufacturing systems.
• They allow monitoring production processes, with the exception of the speed at which products are created, which helps the manufacturers of the products know some of the hindering factors that face the production process. Data analysis for decision-making can also reduce possible breakdowns and enhance the durability of used tools for operations that do not allow cuts in production processes. Besides, through the generation of digital twins—that are, virtual representations of real-life production processes—it is possible to both analyze and adjust production lines prior to full-scale adoption, and thereby reduce many of the risks inherent to changes of manufacturing setups. In combination, these strategies help to create a more flexible manufacturing landscape and place CMs in a suitable position to better address clients’ requirements while, at the same time, adhere to the current high enforced regulatory standards.

Adoption of Cutting-Edge Strategies

• There are new procedures being introduced to the market for pharmaceutical contract manufacturing, and, therefore, new approaches to improving efficiency and coming up with innovations. By modernising, via the use of methodologies such as digitalisation and continuous manufacturing, contract makers are able to enhance manufacturing, reduce costs and make manufacturing more flexible. When corporations consider such technologies, the firms become more attractive to the drug companies seeking new, efficient methods of producing their goods.
• Further, contract makers can also provide the flexibility of production through ability to address new markets because of new technologies in production. New techniques of formulating drugs make it easier to give out improved quality products and this is a guarantee that better quality drugs will be made. With the changing pharma industry, if contract manufacturing adopt these paradigm shifting technologies it can order serve the industry need today and at the same time be in vantage position to capitalize on any changes in future. For this reason, they play an active role in the dynamic industry of pharmaceutical contract manufacturing.

Contract Pharmaceutical Manufacturing Market Segment Analysis:

Contract Pharmaceutical Manufacturing Market is Segmented on the basis of Type, Application, End User, and Region

By Type, Pharmaceutical Ingredients (APIs) segment is expected to dominate the market during the forecast period

• Pharmaceutical Ingredients (APIs) segment is expected to lead the Contract Pharmaceutical Manufacturing Market due to various factors. One of the main drivers for this trend is the increased need for better quality APIs for the synthesis of generics, biologics, among other goods and services. Considering the fact that pharmaceutical companies are looking for ways to diversify and improve their product offerings bearing in mind the growing incidence of lifestyle diseases, the need for raw material sourcing in Api has gained immense importance. This shift has forced many organisations to source API from contract manufacturers who have the capabilities, skills and equipment needed to meet the regulatory requirements of production.
• Moreover, research and development is experiencing a lot of focus within the pharmaceutical industry, which is contributing to API demand. Where innovation resides, there is focus and investment and that explicitly includes investment in higher quality active ingredients. This trend is also underlined by the growing number of outsourcing and cooperation agreements between pharmaceutical companies and contract manufacturers to improve their production technologies and reduce the time to bring new products to the market. Consequently, the API segment looks set to register healthy growth it will be at the forefront of the Contract Pharmaceutical Manufacturing Market in the future years.

By Application, Generic Drugs segment expected to held the largest share

• The Generic Drugs segment is expected to be the largest revenue generator in the Contract Pharmaceutical Manufacturing Market over the forecast period for a number of reasons. With the ongoing global trend of focusing on the cost containment strategies of the health care delivery systems, generics drugs have thus presented the need for affordable price medication options for use by patients. This shift has been accelerated by the that has expried on many branded pharmaceuticals, thereby resulting into more production and introduction of the generic formulations. In addition it benefits health care providers by lessen the costs incurred in an attempt to sell the same drugs and patients because it assists in making drugs affordable to the common populace and also helps in breaking the barriers in the market and thus increasing competition and hence more options for the consumer.
• In addition, the rise of chronic diseases like diabetes, hypertension, respiratory diseases among others has also led to large demand for many therapeutic products most of which have their generic counterpart present in the market. The industry is still experiencing the shift in the perception of pharma companies as they are realizing the benefits of outsourcing the production of these products to specialized contract manufacturers so that the pharma companies can keep concentrating on research and development and let partners with the capabilities of providing cost-efficient high-quality generic medicines. Besides, there has been a significant improvement with health insurance affordable brands in the market moving ahead to embrace generic drugs in their insurance cover. Consequently, the Generic Drugs segment is expected to leapfrog and become the leading segment in the Contract Pharmaceutical Manufacturing Market.

Contract Pharmaceutical Manufacturing Market Regional Insights:

North America is Expected to Dominate the Market Over the Forecast period

• North America is believed to account for a major share of the global Contract Pharmaceutical Manufacturing Market in the course of the forecast period due to a well-established pharmaceutical sector and increased expenditure in the health care sectors. It is also an area of residence to some of the biggest pharmaceutical manufactures globally; have trough the recent past been contracting manufacturers to achieve optimum value for money and efficiency. The existence of complex production facilities as well as highly qualified human capital also strengthens the leading position of North American in the sphere of contract pharmaceutical industry. Besides, chronic diseases are more rampant in North America, and the population is aging hence demands for generic as well as brand drugs are on the rise.
• It is this demand that is forcing pharmaceutical manufacturers to subcontract production to these specialized contract manufacturers which in turn lets them concentrate on research and development of new products. Furthermore, the regulatory rules and policies in North America are so complex that companies have no option but to look for partners who can meet FDA and other regulatory requirements for manufacturing.

Active Key Players in the Contract Pharmaceutical Manufacturing Market:

• AbbVie Contract Manufacturing (USA)
• Aenova Group (Germany)
• Almac Group (UK)
• Amgen Inc. (USA)
• Boehringer Ingelheim (Germany)
• Bristol-Myers Squibb (USA)
• Cambrex Corporation (USA)
• Catalent, Inc. (USA)
• Emergent BioSolutions (USA)
• Eurofins Scientific (France)
• Famar (Greece)

• Haplogen GmbH (Germany)

• KBI Biopharma (USA)
• Lonza Group AG (Switzerland)
• Pfizer CentreOne (USA)
• Piramal Pharma Solutions (India)
• Recipharm AB (Sweden)
• Samsung Biologics (South Korea)
• Seikagaku Corporation (Japan)
• Siegfried Holding AG (Switzerland)
• WuXi AppTec (China)
• Other Active Players

Chapter 1: Introduction
 1.1 Scope and Coverage

Chapter 2:Executive Summary

Chapter 3: Market Landscape
 3.1 Market Dynamics
  3.1.1 Drivers
  3.1.2 Restraints
  3.1.3 Opportunities
  3.1.4 Challenges
 3.2 Market Trend Analysis
 3.3 PESTLE Analysis
 3.4 Porter's Five Forces Analysis
 3.5 Industry Value Chain Analysis
 3.6 Ecosystem
 3.7 Regulatory Landscape
 3.8 Price Trend Analysis
 3.9 Patent Analysis
 3.10 Technology Evolution
 3.11 Investment Pockets
 3.12 Import-Export Analysis

Chapter 4: Contract Pharmaceutical Manufacturing Market by Type
 4.1 Contract Pharmaceutical Manufacturing Market Snapshot and Growth Engine
 4.2 Contract Pharmaceutical Manufacturing Market Overview
 4.3 Active Pharmaceutical Ingredients (APIs)
  4.3.1 Introduction and Market Overview
  4.3.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  4.3.3 Key Market Trends, Growth Factors and Opportunities
  4.3.4 Active Pharmaceutical Ingredients (APIs): Geographic Segmentation Analysis
 4.4 Formulations
  4.4.1 Introduction and Market Overview
  4.4.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  4.4.3 Key Market Trends, Growth Factors and Opportunities
  4.4.4 Formulations: Geographic Segmentation Analysis
 4.5 Packaging Services
  4.5.1 Introduction and Market Overview
  4.5.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  4.5.3 Key Market Trends, Growth Factors and Opportunities
  4.5.4 Packaging Services: Geographic Segmentation Analysis

Chapter 5: Contract Pharmaceutical Manufacturing Market by Application
 5.1 Contract Pharmaceutical Manufacturing Market Snapshot and Growth Engine
 5.2 Contract Pharmaceutical Manufacturing Market Overview
 5.3 Generic Drugs
  5.3.1 Introduction and Market Overview
  5.3.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  5.3.3 Key Market Trends, Growth Factors and Opportunities
  5.3.4 Generic Drugs: Geographic Segmentation Analysis
 5.4 Branded Drugs
  5.4.1 Introduction and Market Overview
  5.4.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  5.4.3 Key Market Trends, Growth Factors and Opportunities
  5.4.4 Branded Drugs: Geographic Segmentation Analysis
 5.5 Biologics
  5.5.1 Introduction and Market Overview
  5.5.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  5.5.3 Key Market Trends, Growth Factors and Opportunities
  5.5.4 Biologics: Geographic Segmentation Analysis
 5.6 Over-the-Counter (OTC) Drugs
  5.6.1 Introduction and Market Overview
  5.6.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  5.6.3 Key Market Trends, Growth Factors and Opportunities
  5.6.4 Over-the-Counter (OTC) Drugs: Geographic Segmentation Analysis

Chapter 6: Contract Pharmaceutical Manufacturing Market by End User
 6.1 Contract Pharmaceutical Manufacturing Market Snapshot and Growth Engine
 6.2 Contract Pharmaceutical Manufacturing Market Overview
 6.3 Pharmaceutical Companies
  6.3.1 Introduction and Market Overview
  6.3.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  6.3.3 Key Market Trends, Growth Factors and Opportunities
  6.3.4 Pharmaceutical Companies: Geographic Segmentation Analysis
 6.4 Biotechnology Companies
  6.4.1 Introduction and Market Overview
  6.4.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  6.4.3 Key Market Trends, Growth Factors and Opportunities
  6.4.4 Biotechnology Companies: Geographic Segmentation Analysis
 6.5 Contract Research Organizations
  6.5.1 Introduction and Market Overview
  6.5.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  6.5.3 Key Market Trends, Growth Factors and Opportunities
  6.5.4 Contract Research Organizations: Geographic Segmentation Analysis

Chapter 7: Company Profiles and Competitive Analysis
 7.1 Competitive Landscape
  7.1.1 Competitive Benchmarking
  7.1.2 Contract Pharmaceutical Manufacturing Market Share by Manufacturer (2023)
  7.1.3 Industry BCG Matrix
  7.1.4 Heat Map Analysis
  7.1.5 Mergers and Acquisitions  
 7.2 ABBVIE CONTRACT MANUFACTURING (USA)
  7.2.1 Company Overview
  7.2.2 Key Executives
  7.2.3 Company Snapshot
  7.2.4 Role of the Company in the Market
  7.2.5 Sustainability and Social Responsibility
  7.2.6 Operating Business Segments
  7.2.7 Product Portfolio
  7.2.8 Business Performance
  7.2.9 Key Strategic Moves and Recent Developments
  7.2.10 SWOT Analysis
 7.3 AENOVA GROUP (GERMANY)
 7.4 ALMAC GROUP (UK)
 7.5 AMGEN INC. (USA)
 7.6 BOEHRINGER INGELHEIM (GERMANY)
 7.7 BRISTOL-MYERS SQUIBB (USA)
 7.8 CAMBREX CORPORATION (USA)
 7.9 CATALENT INC. (USA)
 7.10 EMERGENT BIOSOLUTIONS (USA)
 7.11 EUROFINS SCIENTIFIC (FRANCE)
 7.12 FAMAR (GREECE)
 7.13 HAPLOGEN GMBH (GERMANY)
 7.14 KBI BIOPHARMA (USA)
 7.15 LONZA GROUP AG (SWITZERLAND)
 7.16 PFIZER CENTREONE (USA)
 7.17 PIRAMAL PHARMA SOLUTIONS (INDIA)
 7.18 RECIPHARM AB (SWEDEN)
 7.19 SAMSUNG BIOLOGICS (SOUTH KOREA)
 7.20 SEIKAGAKU CORPORATION (JAPAN)
 7.21 SIEGFRIED HOLDING AG (SWITZERLAND)
 7.22 WUXI APPTEC (CHINA)
 7.23 OTHER ACTIVE PLAYERS

Chapter 8: Global Contract Pharmaceutical Manufacturing Market By Region
 8.1 Overview
 8.2. North America Contract Pharmaceutical Manufacturing Market
  8.2.1 Key Market Trends, Growth Factors and Opportunities
  8.2.2 Top Key Companies
  8.2.3 Historic and Forecasted Market Size by Segments
  8.2.4 Historic and Forecasted Market Size By Type
  8.2.4.1 Active Pharmaceutical Ingredients (APIs)
  8.2.4.2 Formulations
  8.2.4.3 Packaging Services
  8.2.5 Historic and Forecasted Market Size By Application
  8.2.5.1 Generic Drugs
  8.2.5.2 Branded Drugs
  8.2.5.3 Biologics
  8.2.5.4 Over-the-Counter (OTC) Drugs
  8.2.6 Historic and Forecasted Market Size By End User
  8.2.6.1 Pharmaceutical Companies
  8.2.6.2 Biotechnology Companies
  8.2.6.3 Contract Research Organizations
  8.2.7 Historic and Forecast Market Size by Country
  8.2.7.1 US
  8.2.7.2 Canada
  8.2.7.3 Mexico
 8.3. Eastern Europe Contract Pharmaceutical Manufacturing Market
  8.3.1 Key Market Trends, Growth Factors and Opportunities
  8.3.2 Top Key Companies
  8.3.3 Historic and Forecasted Market Size by Segments
  8.3.4 Historic and Forecasted Market Size By Type
  8.3.4.1 Active Pharmaceutical Ingredients (APIs)
  8.3.4.2 Formulations
  8.3.4.3 Packaging Services
  8.3.5 Historic and Forecasted Market Size By Application
  8.3.5.1 Generic Drugs
  8.3.5.2 Branded Drugs
  8.3.5.3 Biologics
  8.3.5.4 Over-the-Counter (OTC) Drugs
  8.3.6 Historic and Forecasted Market Size By End User
  8.3.6.1 Pharmaceutical Companies
  8.3.6.2 Biotechnology Companies
  8.3.6.3 Contract Research Organizations
  8.3.7 Historic and Forecast Market Size by Country
  8.3.7.1 Russia
  8.3.7.2 Bulgaria
  8.3.7.3 The Czech Republic
  8.3.7.4 Hungary
  8.3.7.5 Poland
  8.3.7.6 Romania
  8.3.7.7 Rest of Eastern Europe
 8.4. Western Europe Contract Pharmaceutical Manufacturing Market
  8.4.1 Key Market Trends, Growth Factors and Opportunities
  8.4.2 Top Key Companies
  8.4.3 Historic and Forecasted Market Size by Segments
  8.4.4 Historic and Forecasted Market Size By Type
  8.4.4.1 Active Pharmaceutical Ingredients (APIs)
  8.4.4.2 Formulations
  8.4.4.3 Packaging Services
  8.4.5 Historic and Forecasted Market Size By Application
  8.4.5.1 Generic Drugs
  8.4.5.2 Branded Drugs
  8.4.5.3 Biologics
  8.4.5.4 Over-the-Counter (OTC) Drugs
  8.4.6 Historic and Forecasted Market Size By End User
  8.4.6.1 Pharmaceutical Companies
  8.4.6.2 Biotechnology Companies
  8.4.6.3 Contract Research Organizations
  8.4.7 Historic and Forecast Market Size by Country
  8.4.7.1 Germany
  8.4.7.2 UK
  8.4.7.3 France
  8.4.7.4 The Netherlands
  8.4.7.5 Italy
  8.4.7.6 Spain
  8.4.7.7 Rest of Western Europe
 8.5. Asia Pacific Contract Pharmaceutical Manufacturing Market
  8.5.1 Key Market Trends, Growth Factors and Opportunities
  8.5.2 Top Key Companies
  8.5.3 Historic and Forecasted Market Size by Segments
  8.5.4 Historic and Forecasted Market Size By Type
  8.5.4.1 Active Pharmaceutical Ingredients (APIs)
  8.5.4.2 Formulations
  8.5.4.3 Packaging Services
  8.5.5 Historic and Forecasted Market Size By Application
  8.5.5.1 Generic Drugs
  8.5.5.2 Branded Drugs
  8.5.5.3 Biologics
  8.5.5.4 Over-the-Counter (OTC) Drugs
  8.5.6 Historic and Forecasted Market Size By End User
  8.5.6.1 Pharmaceutical Companies
  8.5.6.2 Biotechnology Companies
  8.5.6.3 Contract Research Organizations
  8.5.7 Historic and Forecast Market Size by Country
  8.5.7.1 China
  8.5.7.2 India
  8.5.7.3 Japan
  8.5.7.4 South Korea
  8.5.7.5 Malaysia
  8.5.7.6 Thailand
  8.5.7.7 Vietnam
  8.5.7.8 The Philippines
  8.5.7.9 Australia
  8.5.7.10 New Zealand
  8.5.7.11 Rest of APAC
 8.6. Middle East & Africa Contract Pharmaceutical Manufacturing Market
  8.6.1 Key Market Trends, Growth Factors and Opportunities
  8.6.2 Top Key Companies
  8.6.3 Historic and Forecasted Market Size by Segments
  8.6.4 Historic and Forecasted Market Size By Type
  8.6.4.1 Active Pharmaceutical Ingredients (APIs)
  8.6.4.2 Formulations
  8.6.4.3 Packaging Services
  8.6.5 Historic and Forecasted Market Size By Application
  8.6.5.1 Generic Drugs
  8.6.5.2 Branded Drugs
  8.6.5.3 Biologics
  8.6.5.4 Over-the-Counter (OTC) Drugs
  8.6.6 Historic and Forecasted Market Size By End User
  8.6.6.1 Pharmaceutical Companies
  8.6.6.2 Biotechnology Companies
  8.6.6.3 Contract Research Organizations
  8.6.7 Historic and Forecast Market Size by Country
  8.6.7.1 Turkiye
  8.6.7.2 Bahrain
  8.6.7.3 Kuwait
  8.6.7.4 Saudi Arabia
  8.6.7.5 Qatar
  8.6.7.6 UAE
  8.6.7.7 Israel
  8.6.7.8 South Africa
 8.7. South America Contract Pharmaceutical Manufacturing Market
  8.7.1 Key Market Trends, Growth Factors and Opportunities
  8.7.2 Top Key Companies
  8.7.3 Historic and Forecasted Market Size by Segments
  8.7.4 Historic and Forecasted Market Size By Type
  8.7.4.1 Active Pharmaceutical Ingredients (APIs)
  8.7.4.2 Formulations
  8.7.4.3 Packaging Services
  8.7.5 Historic and Forecasted Market Size By Application
  8.7.5.1 Generic Drugs
  8.7.5.2 Branded Drugs
  8.7.5.3 Biologics
  8.7.5.4 Over-the-Counter (OTC) Drugs
  8.7.6 Historic and Forecasted Market Size By End User
  8.7.6.1 Pharmaceutical Companies
  8.7.6.2 Biotechnology Companies
  8.7.6.3 Contract Research Organizations
  8.7.7 Historic and Forecast Market Size by Country
  8.7.7.1 Brazil
  8.7.7.2 Argentina
  8.7.7.3 Rest of SA

Chapter 9 Analyst Viewpoint and Conclusion
9.1 Recommendations and Concluding Analysis
9.2 Potential Market Strategies

Chapter 10 Research Methodology
10.1 Research Process
10.2 Primary Research
10.3 Secondary Research