Generic Pharmaceuticals Contract Manufacturing

Global Generic Pharmaceuticals Contract Manufacturing Market to Reach US$92.7 Billion by 2030

The global market for Generic Pharmaceuticals Contract Manufacturing estimated at US$73.2 Billion in the year 2024, is expected to reach US$92.7 Billion by 2030, growing at a CAGR of 4.0% over the analysis period 2024-2030. API, one of the segments analyzed in the report, is expected to record a 3.1% CAGR and reach US$53.0 Billion by the end of the analysis period. Growth in the Drug Product segment is estimated at 5.3% CAGR over the analysis period.

The U.S. Market is Estimated at US$19.9 Billion While China is Forecast to Grow at 7.2% CAGR

The Generic Pharmaceuticals Contract Manufacturing market in the U.S. is estimated at US$19.9 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$18.7 Billion by the year 2030 trailing a CAGR of 7.2% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.7% and 3.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.3% CAGR.

Global Generic Pharmaceuticals Contract Manufacturing Market – Key Trends & Drivers Summarized

Why Is Contract Manufacturing Becoming Essential for Generic Pharmaceuticals?

The generic pharmaceuticals contract manufacturing market has witnessed significant expansion as pharmaceutical companies increasingly outsource drug production to specialized contract manufacturing organizations (CMOs). With the growing demand for cost-effective and high-quality generic medications, pharmaceutical firms are leveraging CMOs to streamline production, ensure regulatory compliance, and accelerate market entry. Contract manufacturers provide end-to-end services, including formulation development, active pharmaceutical ingredient (API) production, packaging, and logistics, enabling pharmaceutical brands to focus on research, marketing, and commercialization.

The rising patent expirations of blockbuster drugs have fueled the demand for generic pharmaceuticals, driving companies to seek efficient and scalable manufacturing solutions. CMOs offer advanced capabilities in large-scale production while ensuring compliance with Good Manufacturing Practices (GMP) and regulatory standards set by the FDA, EMA, and WHO. Additionally, the increasing complexity of drug formulations, including controlled-release tablets, injectables, and biosimilars, has prompted pharmaceutical firms to partner with contract manufacturers equipped with state-of-the-art facilities and expertise in complex dosage forms. As regulatory scrutiny intensifies and competition in the generic drug market rises, contract manufacturing is becoming an indispensable strategy for pharmaceutical companies worldwide.

Which Factors Are Driving the Demand for Generic Drug Contract Manufacturing?

The demand for generic pharmaceuticals contract manufacturing is largely driven by cost efficiency, regulatory expertise, and global market expansion. With governments and healthcare providers pushing for affordable drug alternatives to reduce healthcare costs, the need for high-volume generic drug production has surged. Contract manufacturers help pharmaceutical companies lower production costs by leveraging economies of scale, optimizing supply chains, and reducing capital expenditures on manufacturing infrastructure.

Additionally, stringent regulatory requirements have made in-house manufacturing increasingly complex and resource-intensive. CMOs specialize in regulatory compliance, ensuring that generic drugs meet international quality and safety standards. This is particularly crucial for companies entering highly regulated markets such as the United States, Europe, and Japan. The increasing prevalence of chronic diseases, including cardiovascular disorders, diabetes, and cancer, has also fueled demand for generic medications, prompting pharmaceutical companies to outsource production to meet rising global needs. As the pharmaceutical industry continues to evolve, contract manufacturing is expected to play a vital role in enhancing efficiency, scalability, and affordability in generic drug production.

What Are the Latest Technological Advancements in Generic Pharmaceuticals Contract Manufacturing?

Technological advancements in pharmaceutical contract manufacturing have significantly improved efficiency, quality, and production capabilities. The adoption of continuous manufacturing technology has revolutionized drug production by enabling real-time monitoring, reducing waste, and minimizing batch-to-batch variability. This innovation enhances productivity and accelerates time-to-market for generic drugs, addressing the growing demand for rapid and cost-effective medication production.

Automation and artificial intelligence (AI) have also transformed contract manufacturing by optimizing quality control, predictive maintenance, and supply chain management. AI-driven analytics help manufacturers detect potential defects, optimize production schedules, and ensure regulatory compliance with greater accuracy. Additionally, the integration of advanced formulation techniques, such as nanoencapsulation and liposomal drug delivery, has enabled CMOs to develop complex generics, including long-acting injectables and biosimilars. As pharmaceutical contract manufacturing continues to embrace digitalization and innovation, the industry is poised for enhanced efficiency and higher-quality drug production.

What Factors Are Fueling the Growth of the Generic Pharmaceuticals Contract Manufacturing Market?

The growth in the generic pharmaceuticals contract manufacturing market is driven by several factors, including the increasing demand for affordable medications, regulatory complexities, and advancements in manufacturing technologies. Governments and healthcare providers worldwide are emphasizing cost-effective drug alternatives, leading to a surge in generic drug production. The rising expiration of branded drug patents has further fueled the market, creating opportunities for contract manufacturers to support large-scale production.

Additionally, the globalization of pharmaceutical supply chains and the need for GMP-compliant facilities have prompted pharmaceutical companies to partner with CMOs specializing in regulatory compliance and quality assurance. The shift toward biosimilars and specialty generics has further increased demand for contract manufacturing expertise in complex formulations. Furthermore, the adoption of digital technologies, automation, and AI-driven manufacturing processes has enhanced production efficiency, reducing operational costs and improving drug quality. As the pharmaceutical landscape continues to evolve, contract manufacturing will remain a key enabler of scalability, cost-effectiveness, and global market expansion for generic drug producers.

SCOPE OF STUDY:

The report analyzes the Generic Pharmaceuticals Contract Manufacturing market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Product (API, Drug Product); Drug (Branded Generics, Unbranded Generics); Route of Administration (Oral, Parenteral, Topical, Other Route of Administrations); Application (Oncology Application, Immunology Application, Antidiabetic Application, Neurology Application, Anticoagulants Application, Cardiovascular Application, Respiratory Application, Pain Application, HIV Antivirals Application, Other Applications)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 47 Featured) -

• AbbVie Inc.
• Aurobindo Pharma Limited
• Boehringer Ingelheim
• Catalent Pharma Solutions
• CordenPharma
• Dr. Reddy`s Laboratories
• Fareva
• Hovione
• Jubilant Life Sciences Limited
• Laurus Labs Limited
• Lonza Group
• Lupin Limited
• Piramal Pharma Solutions
• Recipharm AB
• Samsung Biologics
• Siegfried Holding AG
• Sun Pharmaceutical Industries Ltd.
• Teva Pharmaceutical Industries Ltd.
• Thermo Fisher Scientific
• WuXi AppTec

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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