Pharmaceutical Contract Manufacturing Market Size to Worth USD 300.34 Billion by 2032, Growing at a 7.15% CAGR – SNS Insider
Pharmaceutical Contract Manufacturing Market Growth is Driven by Rising Demand for Cost-Effective Drug Production and Technological Advancements.
Pune, Feb. 20, 2025 (GLOBE NEWSWIRE) — Pharmaceutical Contract Manufacturing Market Size & Growth Analysis:
According to SNS Insider, The Pharmaceutical Contract Manufacturing Market was valued at USD 161.76 billion in 2023 and is projected to reach USD 300.34 billion by 2032, with a compound annual growth rate (CAGR) of 7.15% from 2024 to 2032. The Pharmaceutical Contract Manufacturing Market is growing at a significant rate, due to the rising demand for cost-effective drug production, technological advancements, and increasing complexities of pharmaceutical formulations globally.
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Market Analysis
To reduce operational costs, streamline production processes and focus on core competencies such as research and development (R&D), the pharmaceutical industry is outsourcing manufacturing activities to contract manufacturers on a large scale. The increase in the proportion of biologics, personalized medicines, and specific demand for generic drugs drive the need for special manufacturing capabilities adding to this trend. Meanwhile, the stringent regulatory requirement coupled with demand to comply with Good Manufacturing Practices (GMP) is luring pharmaceutical companies to collaborate with experienced contract manufacturers. Factors such as surging prevalence of chronic illnesses, rising healthcare costs, and rising demand for low-cost therapies are driving the market. Chronic diseases are responsible for about 71% of all deaths globally (by WHO), which severely fuels the necessity for pharmaceutical products.
Further, the market growth is driven by various initiatives and funding from the government level to offer support for pharmaceutical manufacturing. As an example, a significant amount of funding has been spent by the U.S. Department of Health and Human Services (HHS) to bolster domestic production capacities for pharmaceuticals to reduce dependency on foreign manufacturers. Likewise, the European Union Horizon Europe Program is investing in cutting-edge technologies to enhance the pharmaceutical supply chain fortification capacity for the region.
Pharmaceutical Contract Manufacturing Market Report Scope
| Report Attributes | Details |
| Market Size in 2023 | US$ 161.76 billion |
| Market Size by 2032 | US$ 300.34 billion |
| CAGR | CAGR of 7.15% From 2024 to 2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Data | 2020-2022 |
| Key Regional Coverage | North America (US, Canada, Mexico), Europe (Eastern Europe [Poland, Romania, Hungary, Turkey, Rest of Eastern Europe] Western Europe] Germany, France, UK, Italy, Spain, Netherlands, Switzerland, Austria, Rest of Western Europe]), Asia Pacific (China, India, Japan, South Korea, Vietnam, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (Middle East [UAE, Egypt, Saudi Arabia, Qatar, Rest of Middle East]), Africa [Nigeria, South Africa, Rest of Africa], Latin America (Brazil, Argentina, Colombia Rest of Latin America) |
Segmentation Analysis
By Services
Pharmaceutical Manufacturing Services led the Pharmaceutical Contract Manufacturing Services Market in 2023 with 32% of the total revenue. This section covers the manufacture of APIs, FDFs, and packing services. Due to the complex nature of drug formulations there is a growing requirement of specialized manufacturing facilities which is the propelling factor for these services. The Drug Development Services segment is expected to grow with the highest CAGR of 9.72% over the forecast period. It includes pre-formulation studies through formulation of clinical trial manufacturing. As per the report, the demand for drug development services is driven by the increasing shift towards personalized medicine and biologics, as these products require extensive R&D and specialized manufacturing processes.
By End User
In 2023, Large Pharmaceutical Companies had the largest market share, accounting for about 30% of total revenue. They are also looking to outsource manufacturing activities to minimize capital expenditure and improve effectiveness. Contract manufacturing enables large pharmaceutical companies to minimize in-house production, focus on innovation and commercialization, and employ the expertise of contract manufacturers for the actual manufacturing process. Small and Medium-Sized Enterprises (SMEs) segment is another growing segment due to the need for cost-effective manufacturing solutions and the access to advanced technologies. SMEs may also not have the resources to set a production plant in-house, and thus contract manufacturing becomes a lucrative option for them.
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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
Major Players Analysis Listed in this Report are:
- 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)
Regional Analysis
In 2023, North America led the global pharmaceutical contract manufacturing market, accounting for 25% of the total revenue. The region’s dominance is attributed to the presence of a well-established pharmaceutical industry, advanced manufacturing technologies, and stringent regulatory standards. The U.S. is the largest market in the region, driven by high healthcare expenditures, a strong focus on R&D, and government initiatives to boost domestic pharmaceutical production. For instance, the 2022 CHIPS and Science Act allocated funds to enhance the U.S. pharmaceutical supply chain, reducing dependency on foreign manufacturers.
In the forecast period, the Asia-Pacific region is expected to be the fastest growing due to rapid industrialization, rising healthcare investment backed by an abundant pool of low-cost labour. Pharmaceutical contract manufacturing services are becoming more popular in countries like China, India, and Japan as they provide economical solutions and cutting-edge facilities. The Indian government already has the PLI scheme for the pharma sector, which will boost the domestic manufacturing capacity and also attract foreign investments.
Recent Developments
- In 2023, Catalent, Inc. opened a new biologics manufacturing facility in Bloomington, Indiana, to keep up with demand for cell and gene therapies.
- In January 2024, Swiss biopharmaceutical major Lonza Group AG got regulatory approval for its high-potency active pharmaceutical ingredient (HPAPI) manufacturing facility.
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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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