European Pharmaceutical Contract Manufacturing Market 2022-2028

European Pharmaceutical Contract Manufacturing Market 2022-2028

Pharmaceutical contract manufacturing is referred to third-party manufacturing of pharma products or management of services ranging from pre-clinical research, pre-formulation, scale-up, method development, and commercialization. Contract manufacturing companies sign a mutual agreement between two companies, where one company develops products or raw materials for the other company. The other company then uses these products in the manufacturing of finished products. Outsourcing the manufacturing services in the pharmaceutical industry enable the companies to divert workforce to other processing tasks, which as a result makes monetary savings and reduce the time for R&D activities. The drug development companies save up to 30-35% of the drug development cost via contract manufacturing procedure. Therefore, in order to remain competitive in the market, contract manufacturing is considered as crucial support for the companies. European pharmaceutical contract manufacturing market is projected to witness a steady growth rate of 7.7% during the forecast period (2021-2028). The market was valued at around $38.6 billion in 2017 and is projected to reach nearly $60.3 billion in 2028. Increasing demand for generic drugs has raised the healthcare expenditure in the region. This, in turn, has increased the transition of companies towards contract manufacturing. Moreover, advances in drug discovery and increasing R&D investments are anticipated to propel the demand for contract manufacturing in the pharmaceutical industry in the near future.

European pharmaceutical contract manufacturing market has been segmented on the basis of manufacturing process type, product type, route of administration, and services. As per manufacturing process type, the market is segmented into sterile manufacturing and non-sterile manufacturing. Among which, the sterile manufacturing segment held a dominant position in the European pharmaceutical contract manufacturing market.

Based on product type, the market is segmented into over-the-counter (OTC) drugs, active pharmaceutical ingredients (API), finished dosage formulations, and others. Among which, the API segment dominates the pharmaceutical contract manufacturing market in Europe.

Based on the route of administration, the market is segmented into oral administration, inhaled administration, parenteral administration, and others. Among these administrations, the oral administration segment held a dominant position in the European pharmaceutical contract manufacturing market. Based on services, the market is segmented into R&D, manufacturing, and non-clinical services. Among the services, the manufacturing segment held a dominant position in the European pharmaceutical contract manufacturing market.

European pharmaceutical contract manufacturing market is segmented into the UK, Germany, Italy, Spain, France, and the rest of Europe (RoE). Rest of Europe held the highest market share. The market in RoE is dominating the overall European region attributed to the significant contribution of contract manufacturers present in countries such as Switzerland, Denmark, Sweden, and Belgium. The market in RoE is estimated to grow at a CAGR of 7.5% during the forecast period. This is attributed to an increase in healthcare expenditure and significant pharmaceutical sales in the RoE region.