Pharmaceutical Contract Manufacturing

Global Pharmaceutical Contract Manufacturing Market to Reach US$159.6 Billion by 2030

The global market for Pharmaceutical Contract Manufacturing estimated at US$117.8 Billion in the year 2024, is expected to reach US$159.6 Billion by 2030, growing at a CAGR of 5.2% over the analysis period 2024-2030. Pharmaceutical, one of the segments analyzed in the report, is expected to record a 5.9% CAGR and reach US$93.8 Billion by the end of the analysis period. Growth in the Biopharmaceutical segment is estimated at 4.3% CAGR over the analysis period.

The U.S. Market is Estimated at US$35.4 Billion While China is Forecast to Grow at 6.3% CAGR

The Pharmaceutical Contract Manufacturing market in the U.S. is estimated at US$35.4 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$26.9 Billion by the year 2030 trailing a CAGR of 6.3% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 4.1% and 4.7% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.7% CAGR.

Global Pharmaceutical Contract Manufacturing Market - Key Trends & Drivers Summarized

What Is Pharmaceutical Contract Manufacturing, and Why Is It Essential?
Pharmaceutical contract manufacturing involves outsourcing the production of pharmaceutical products to third-party organizations. This business model allows pharmaceutical companies to focus on their core competencies such as drug discovery, development, and marketing, while contract manufacturers (CMOs) handle the complexities of production, including compliance with stringent regulatory standards. This partnership is crucial for small and mid-sized biotech firms that may lack the infrastructure or capital to invest in manufacturing facilities. Moreover, even large pharmaceutical companies leverage this model to enhance flexibility, manage costs, and reduce time to market for new medications.

How Are Global Regulations Shaping the Market?
Regulatory compliance is a pivotal aspect of pharmaceutical contract manufacturing, with stringent guidelines set by authorities like the FDA (U.S. Food and Drug Administration), EMA (European Medicines Agency), and other global regulatory bodies. These regulations ensure that pharmaceutical products are consistently produced and controlled to quality standards. Contract manufacturers must adapt to these evolving regulations, which often involve substantial investments in technology and processes to ensure compliance. As regulatory pressures increase, pharmaceutical companies are increasingly relying on CMOs that can navigate complex regulatory landscapes, thus ensuring the safety, efficacy, and quality of pharmaceutical products.

What Technological Advances Are Impacting Contract Manufacturing?
Technological advancements are profoundly transforming pharmaceutical contract manufacturing. Innovations such as continuous manufacturing, which streamlines production and improves efficiency, are becoming more prevalent. Automation and robotics have also been widely adopted to enhance precision and reduce human error in production processes. Additionally, advanced analytics and real-time monitoring systems are being implemented to ensure quality control throughout the manufacturing process. These technologies not only improve product quality but also reduce waste and enhance scalability, making the production process more cost-effective and efficient.

What Drives the Growth in the Pharmaceutical Contract Manufacturing Market?
The growth in the pharmaceutical contract manufacturing market is driven by several factors, including the rising demand for generic medicines, the increasing complexity of drug production, and the expansion of the biologics market. As patent cliffs lead to increased generic competition, pharmaceutical companies are turning to CMOs to expedite production and capitalize on market opportunities. The complexity of producing new generations of drugs, especially biologics and personalized medicines, also necessitates specialized capabilities that many pharmaceutical firms find more feasible to outsource. Additionally, the shift towards personalized medicine is pushing companies to adapt to flexible and scalable production processes, which contract manufacturers are equipped to handle. These trends, combined with the global push for cost efficiency and faster time-to-market, continue to drive significant growth in this sector, highlighting its critical role in the pharmaceutical industry’s supply chain.

SCOPE OF STUDY:

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

Segments:
Product Type (API/Bulk Drugs, Advanced Drug Delivery Formulations, Packaging, Finished Dose Formulations, Other Product Types); Application (Pharmaceutical, Biopharmaceutical); End-Use (Sterile, Non-Sterile)

Geographic Regions/Countries:
World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Rest of Europe; Asia-Pacific; India; Rest of Asia-Pacific; Rest of World.

Select Competitors (Total 192 Featured) -

• AbbVie Inc.
• Aenova Holding GmbH
• Catalent Inc.
• Enteris BioPharma, Inc.
• Jubilant Pharma Ltd.
• Kemwell Biopharma Pvt. Ltd.
• Lifecore Biomedical
• Lonza Group Ltd.
• Thermo Fisher Scientific, Inc.
• WuXi AppTec Co., Ltd.

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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