Topical Drugs CDMO Market Size, Share & Trends Analysis Report By Formulation (Semi-solid Formulations, Liquid Formulations Drugs, Solid Formulations, Transdermal Products), By Service, By End-use, By Region, And Segment Forecasts, 2025 - 2033

Topical Drugs CDMO Market Growth & Trends

The global topical drugs CDMO market size is expected to reach USD 14.22 billion by 2033, registering a CAGR of 7.5% from 2025 to 2033, according to a new report by Grand View Research, Inc. There is an increasing need for specialized topical drugs to address various skin-related and dermatological conditions. Healthcare providers and patients seek customized solutions, leading to a rise in demand for CDMOs with specialized expertise in topical drugs.

The market is fragmented, with several players having similar technological and processing capabilities. The development of innovative drug delivery technologies, such as microemulsions, nanotechnology, and transdermal patches, has extended the abilities of CDMOs to create more patient-friendly and effective topical drug products. Furthermore, a growing trend towards personalized medicine has significantly boosted demand for topical drug CDMOs, as they play a fundamental role in personalizing topical treatments to individual patient conditions and needs.

Collaborations between CDMOs and pharmaceutical companies have risen, with CDMOs contributing to the manufacturing and development of innovative and new topical drugs. Pharmaceutical firms significantly opt for outsourcing with an aim to focus on core competencies such as research, distribution, and marketing while entrusting manufacturing services to dedicated CDMOs. The increasing number of FDA approvals and product launches in topical medications significantly contributes to CDMOs specializing in topical drug manufacturing growth. For instance, in May 2022, Dermavant Sciences received the U.S. Food and Drug Administration (FDA) approval for its VTAMA (tapinarof) cream, 1%, for the topical management of plaque psoriasis in adults.

The COVID-19 pandemic negatively impacted the market. The pandemic has significantly disrupted the global supply chains, affecting the accessibility of manufacturing capabilities and raw materials. Several clinical studies, including those for topical medicine, were temporarily delayed or put on hold owing to safety concerns. This disturbed the testing and development of new topical drug treatments and formulations. However, by adopting strategic initiatives such as acquisition and partnerships with specialized drug providers, the industry regained its market shares by 2021.

Topical Drugs CDMO Market Report Highlights

• Based on formulation, the semi-solid formulations segment held the largest revenue share of 66.44% in 2024.The segment is driven by the growing demand for creams, gels, and ointments and the rise in clinical trials involving topical drugs. The cream sub-category, on the other hand, held the lion’s share owing to increasing approval of topical creams for several medical conditions.
• Based on the service, the contract manufacturing segment held the largest revenue share in 2024. The high shares of the segment are majorly due to the growing demand for outsourced manufacturing services, driven by the cost-effectiveness of outsourced manufacturing.
• In terms of end-use, the biopharmaceutical companies segment is anticipated to witness highest CAGR during the forecast period owing to the rise in focus on R&D activities pertaining to the development of topical medication.
• Asia Pacific is anticipated to register the significant CAGR over the forecast period. The region's substantial growth is primarily attributed to the cost-effective manufacturing of topical products due to lower labor and operational costs in several Asian economies.