Pharmaceutical Contract Manufacturing Market Expected to Hit $140 Billion by 2030

Medicine

Image Credit: Adobe Stock Images/Alexej

According to a new report by Roots Analysis, the global pharmaceutical contract manufacturing market is anticipated to be worth $140 billion at the start of the next decade. Additionally, it is expected to grow at a rate of 6.5% during the forecast period of 2022-2030. Due to the challenges and resource-intensive nature of establishing independent capabilities, pharmaceutical companies are increasingly outsourcing development and manufacturing operations. This trend is a result of the demand for safer and more effective drugs, accelerated by the COVID-19 pandemic, according to the report.1

Currently, the diverse market offers reduced time-to-market, cost benefits, and access to innovative technologies, with mergers and acquisitions shaping the landscape as companies aim to provide comprehensive services from early development to commercial production. Driving the industry is the demand for cost-effective drug production, adoption of advanced technologies, and outsourcing to streamline drug development. Challenging these strengths are high initial investment costs and dependence on the reliability of contract manufacturing organizations (CMOs).1

Earlier this month, another report by Technavio indicated that by 2027, the market will grow $58 billion, with North America accounting for 41% of the growth. 2

“Increasing demand for effective and cost-effective solutions in the production of pharmaceutical products is driving growth,” stated the report. “Often these medicines are specially formulated and require special production methods that do not exist in-house for drug companies.”

By 2030, application programing interface (API) is expected to capture 64% of revenue share. Originator APIs and injectables lead in their respective segments. Commercial operations, small pharmaceutical companies, and Asia-Pacific are expected to dominate their categories.1

Recent developments have included:

  • Back in September, Strides Pharma announced a demerger of its CDMO and soft gelatin businesses.
  • In October, Egis Pharmaceuticals announced the expansion of its drug substance contract development and contract manufacturing services in Hungary.
  • Also in October, Advent International and Warburg Pincus completed the acquisition of Baxter International’s BioPharma Solutions business as a standalone CDMO.1

Overall, the industry is aiming for sustainable growth by overcoming financial barriers and enhancing partnerships with reliable CMOs, reflecting a dynamic and responsive sector poised for emerging opportunities in the global pharmaceutical landscape. 1

References

1. Pharmaceutical Contract Manufacturing Market Size to Hit USD 140 billion by 2030 Say, Roots Analysis. PR Newswire. January 15, 2024. Accessed January 15, 2024. https://www.prnewswire.com/news-releases/pharmaceutical-contract-manufacturing-market-size-to-hit-usd-140-billion-by-2030-say-roots-analysis-302034703.html

2. Pharmaceutical Contract Manufacturing Market to grow by USD 58 billion from 2022 to 2027, North America to account for 41% of market growth – Technavio. PR Newswire. January 5, 2023. Accessed January 15, 2024. https://www.prnewswire.com/news-releases/pharmaceutical-contract-manufacturing-market-to-grow-by-usd-58-billion-from-2022-to-2027-north-america-to-account-for-41-of-market-growth—technavio-302026185.html

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