Pharmaceutical Contract Manufacturing Market Forecasts to 2028 – Global Analysis By Service (Active Pharmaceutical Ingredient (API) Manufacturing, Finished Dosage Formulation (FDF) Development & Manufacturing, Drug Discovery, Preclinical Studies, Medical

Pharmaceutical Contract Manufacturing Market Forecasts to 2028 – Global Analysis By Service (Active Pharmaceutical Ingredient (API) Manufacturing, Finished Dosage Formulation (FDF) Development & Manufacturing, Drug Discovery, Preclinical Studies, Medical Coding & Writing, Monitoring, Clinical Data Management, Bio-Statistics, Site Management and Protocol Development), Molecule Type (Small Molecules and Large Molecules), End User and By Geography

According to Stratistics MRC, the Global Pharmaceutical Contract Manufacturing Market is accounted for $143.02 billion in 2022 and is expected to reach $210.34 billion by 2028 growing at a CAGR of 6.6% during the forecast period. Pharmaceutical contract manufacturing is the method through which pharmaceutical medications are made under contract. It is the practice of contracting out the job of creating medicine including pills, tablets and capsules for consumption by a third party. A variety of services such as drug development, manufacturing, and commercial production, documentation of compliance with FDA regulatory standards, and pre-formulation are offered by pharma contract manufacturing businesses to pharmaceutical corporations. It relieves pharmaceutical companies from the cost and burden of hiring and training workers during periods of labor shortage.

According to the CPhI Pharma Index 2020, India is the primary beneficiary of API manufacturing and CRO chemistry services outsourcing, rebalancing away from China.

Market Dynamics:

Driver:

High cost of in-house drug development

For small- and medium-sized pharmaceutical enterprises, the process of drug research and development is highly costly and time-consuming. The cost of producing the formulation and developing drugs internally goes up as a result. Factors such as high failure rates for medications, high costs of discovery and lack of funding forces the pharmaceutical firms to outsource their drug development procedures to pharmaceutical contract manufacturing which propels the market's expansion.

Restraint:

Compliance with regulatory guidelines

Poor quality of produced pharmaceuticals and the related authority’s noncompliance with standards and regulations has major ramifications for the company and its brand name. In the pharmaceutical sector, the contractor's brand is used to market the manufactured medication ingredient or formulation. Large volumes of data must be given to the regulatory authorities in order to accomplish properly. Data processing and submissions of various formulas become challenging, which raises the possibility of regulatory filing mistakes. This aspect will probably impede market expansion.

Opportunity:

Raising demand in major economies

Since the labor costs and manpower advantages, emerging nations are centers for outsourcing bioprocesses. Competitive companies are encouraged to engage in developing markets by the availability of modern manufacturing technology and the cheap production and labor costs offered by emerging nations. Further the growing interest of pharmaceutical companies in outsourcing drug discovery due to the constant rise in vaccine demand, drying up of the pipeline for antibiotics, and rising R&D costs is fueling the market expansion.

Threat:

Implementation of serialization

Serialization is the act of providing each service or product item a unique identification by utilizing a specified coding type, enabling it to be tracked and traced along the supply chain. The implementation of a reliable pharma serialization solution necessitates a substantial financial investment in software, hardware, employee training, and manufacturing lines that are properly prepared. Consequently, the market might encounter a problem as a result.

Covid-19 Impact

Several healthcare markets were either favourably or badly influenced by the COVID-19 epidemic. But the pharmaceutical contract development and manufacturing business has benefited hugely. The outbreak sparked the development of various pharmaceutical products, including antiviral vaccines, antibody therapies, and corona virus-related vaccines. To ensure the long-term viability of their businesses, pharmaceutical companies were encouraged to work with contract development and manufacturing companies.

The active pharmaceutical ingredient (API) manufacturing segment is expected to be the largest during the forecast period

The active pharmaceutical ingredient (API) manufacturing segment is estimated to have a lucrative growth. API is the acetaminophen contained in a painkiller pill. APIs are produced by processing chemical compounds. It is an active component in a pharmaceutical drug that produces the required effect on the body to treat a condition. Its therapeutic impact and improved preventative care is accelerating the segment’s growth.

The big pharma segment is expected to have the highest CAGR during the forecast period

The big pharma segment is anticipated to witness the fastest CAGR growth during the forecast period. Growing investment in the development of cell and gene therapies, an increase in the number of biologics undergoing pipeline investigations and the rising need for targeted pharmacological treatments are the key factors projected to propel the segment’s expansion.

Region with largest share:

North America is projected to hold the largest market share during the forecast period. A significant number of pharmaceutical businesses operate in this area. Generics are in extremely high demand, and as a result, research funding for pharmaceutical contract development and manufacture has skyrocketed. The cash-rich character of American businesses is to blame for the industry's monopoly status in contract manufacturing.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period, owing to the spout of significant investments. Due to their rising manufacturing capabilities, nations like Singapore, China and India have been identified as important participants in the pharmaceutical sector. This expansion is made possible by an increase in the number of businesses outsourcing work to these nation’s emerging economies.

Key players in the market

Some of the key players profiled in the Pharmaceutical Contract Manufacturing Market include Thermo Fisher Scientific Inc, Boehringer Ingelheim Group, Lonza Group AG, Accenture plc, Catalent Inc, Pfizer CentreSource, Cognizant Technology Solutions, ATOS SE, Catalent, Inc., Covance, Inc, Genpact Limited, Quintiles Transnational Corporation, Abbvie, Inc., Baxter International Inc., Reddy’s Laboratories Ltd., Aurobindo Pharma, Pfizer, Inc., The Almac Group, Teva Pharmaceutical Industries Ltd. and Piramal Enterprises Ltd.

Key Developments:

In May 2023, Accenture has agreed to acquire Objectivity, a digital engineering firm specializing in cloud and platform development services that help clients accelerate their transformation journey for rapid innovation.

In March 2023, Aurobindo Pharma announced that its subsidiary Eugia Pharma Specialities has received final approval from the U.S. Food and Drug Administration (U.S. FDA) to manufacture and market cancer drug Lenalidomide Capsules, in different strengths.

In September 2022, Thermo Fisher Scientific Inc. unveiled the Thermo Scientific™ DynaSpin™ Single-Use Centrifuge system at the Bioprocess International annual conference in Boston, MA. The system is specifically designed to provide an optimal single-use solution for large-scale cell culture harvesting.

Services Covered:
• Active Pharmaceutical Ingredient (API) Manufacturing
• Finished Dosage Formulation (FDF) Development & Manufacturing
• Drug Discovery
• Preclinical Studies
• Medical Coding & Writing
• Monitoring
• Clinical Data Management
• Bio-Statistics
• Site Management
• Protocol Development

Molecule Types Covered:
• Small Molecules
• Large Molecules

End Users Covered:
• Big Pharma
• Small & Medium Sized Pharma
• Generic Pharma

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements