Oral Solid Dosage Contract Manufacturing Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2032 - By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East

The global OSD contract manufacturing market is expected to be valued at US$ 36.4 Bn in 2025 and projected to reach US$ 60 Bn by 2032, expanding at a CAGR of 7.40% between 2025 and 2032. Rising demand for cost-efficient outsourcing, expanding generic drug pipelines, and increasing reliance on CDMOs (Contract Development and Manufacturing Organizations) for regulatory expertise and technological support are propelling market growth.

Market Insights

The OSD contract manufacturing industry covers a wide array of services, ranging from tablets, capsules, and softgels to powders and gummies. These dosage forms remain highly preferred owing to their stability, convenience, and affordability compared with other drug delivery methods. Pharmaceutical and biopharmaceutical companies are increasingly partnering with CDMOs to reduce production costs, accelerate time-to-market, and leverage advanced facilities. Moreover, the growing nutraceutical sector is further amplifying the demand for outsourced OSD production, boosting market expansion across both developed and emerging economies.

Market Growth Drivers

The market is being fuelled by the rising prevalence of chronic diseases, which continues to drive the consumption of tablets and capsules. Expanding demand for generic and over-the-counter drugs is encouraging pharmaceutical companies to outsource large-scale production. Additionally, growing pressure to optimize costs and reduce capital expenditure on manufacturing facilities is shifting preference toward CDMOs. Advanced capabilities in controlled-release formulations, coupled with global demand for nutraceuticals and wellness supplements, further enhance growth momentum.

Market Restraints

Several challenges limit the growth trajectory of the OSD contract manufacturing industry. Stringent regulatory compliance across the U.S., EU, and other mature markets poses significant hurdles for manufacturers. High upfront investment in modern production technologies and continuous manufacturing processes can restrict smaller firms from competing effectively. Concerns regarding intellectual property security during outsourcing agreements remain another critical barrier. Furthermore, inconsistent quality standards in low-cost production hubs can discourage outsourcing decisions by multinational pharmaceutical companies.

Market Opportunities

The market is poised for new opportunities as pharmaceutical companies increasingly focus on specialized dosage forms, including sustained- and controlled-release products. Growing demand for nutraceuticals and dietary supplements provides further scope for OSD outsourcing. Asia-Pacific is emerging as a key hub, offering low-cost, large-scale manufacturing with skilled labor and supportive government initiatives. Adoption of advanced technologies like continuous manufacturing and digital quality monitoring systems by CDMOs will also create fresh growth avenues. Strategic alliances, mergers, and acquisitions are expected to accelerate innovation and expand service portfolios in the years ahead.

Regional Outlook
• North America: Leads the market, driven by the strong presence of pharmaceutical giants, advanced infrastructure, and outsourcing strategies focused on efficiency.
• Europe: Experiences steady demand for contract manufacturing due to patent expirations and the rise of generic formulations. Germany, Switzerland, and the UK remain key outsourcing hubs.
• Asia Pacific: Forecast to grow at the fastest pace, supported by India and China’s cost-efficient manufacturing ecosystems and expanding healthcare investments.
• Latin America: Demonstrates rising demand for affordable generics and improved healthcare access, fueling outsourcing.
• Middle East & Africa: Remains an emerging market, gradually gaining traction with infrastructure upgrades and increasing focus on cost-effective drug availability.

Leading Companies

Major players in the OSD contract manufacturing space are focused on expanding service offerings, entering strategic partnerships, and investing in technology upgrades. These include:
• Recipharm
• Aenova Holding
• Catalent
• AbbVie
• Patheon N.V. (Thermo Fisher Scientific)
• NextPharma
• Lonza Group AG
• Merck KGaA
• Aurobindo Pharma Limited
• Siegfried AG
• Piramal Pharma Solutions
• Corden Pharma
• HERMES PHARMA GmbH
• Medipaams India Private Limited
• Alpex Pharma
• Abaris Healthcare Pvt Ltd
• Ardena Holdings N.V.
• Aphena Pharma Solutions
• Actiza Pharmaceutical Private Limited
• Sunwin Healthcare PVT. LTD
• Kosher Pharmaceuticals
• Boehringer Ingelheim BioXcellence
• Others

Market Segmentation

By Dosage Form
• Tablets
• Capsules
• Softgels
• Powders
• Granules
• Gummies
• Others

By Mechanism
• Immediate Release
• Delayed Release
• Controlled Release

By Application
• Drug Product Development
• Fill & Finish Product Manufacturing
• Packaging / Labelling
• Others

By End User
• Pharmaceutical Companies
• Biopharmaceutical Companies
• Emerging/Virtual Pharma Companies
• Nutraceutical Companies

By Region
• North America
• Latin America
• Europe
• Asia Pacific
• Middle East & Africa

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