Pharmaceutical Contract Manufacturing Market Growth Analysis 2024-2032 | Trends, Key Players, and Innovations in Drug Development, Biologics, and Specialty Medicines

Pharmaceutical Contract Manufacturing Market Size and Growth Analysis

The Pharmaceutical Contract Manufacturing Market is poised for significant growth from 2024 to 2032, driven by increasing outsourcing of drug development and production. The market is segmented by biologics (API, FDF), drug development, and services, including pharmaceutical manufacturing (API, FDF - tablet, capsule, injectable). Key end-users include big pharma, small & medium-sized pharma, and generic pharma, using contract manufacturers for cost efficiency and scalability.

The study by MarketDigits provides insights into the partner & customer ecosystem, competitive landscape, and regional footprints, highlighting product services, key features, and market positioning of industry players.

The Pharmaceutical Contract Manufacturing Market is estimated at USD 140.61 billion in 2024 and is expected to expand to USD 267.33 billion by 2032, registering a CAGR of 7.40% throughout the 2024-2032 forecast period.

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Why the Demand for Pharmaceutical Contract Manufacturing Has Increased in Recent Years

Rising Demand for Generic Medications

With the expiration of patents for many blockbuster drugs, the global pharmaceutical industry has seen a surge in demand for generic medications. Generic drugs are more affordable alternatives to branded medications, leading pharmaceutical companies to outsource production to Contract Manufacturing Organizations (CMOs) to efficiently scale up operations. The increasing regulatory approvals for generic drugs are further fueling this trend.

High Costs of In-House Drug Development

Developing new pharmaceutical drugs in-house is an expensive and time-consuming process. Estimates suggest that the cost of bringing a new drug to market can exceed $2 billion and take over a decade. To optimize costs and reduce time-to-market, many pharmaceutical firms are increasingly relying on CMOs, which offer cost-effective manufacturing solutions without compromising on quality.

Focus on Core Competencies

Pharmaceutical companies are shifting their focus toward research and development (R&D) and commercialization, leaving the manufacturing process to specialized CMOs. This strategic move allows companies to allocate resources more effectively while leveraging the expertise and infrastructure of contract manufacturers to meet growing production demands.

Advancements in Biologic Therapies

The global pharmaceutical industry has witnessed a rapid shift toward biologic therapies and personalized medicines, which require specialized manufacturing capabilities. CMOs with expertise in biologics, monoclonal antibodies, and cell and gene therapies have become critical partners in pharmaceutical production, further driving the demand for contract manufacturing services.

Why Demand for Pharmaceutical Contract Manufacturing Is Expected to Increase in the Coming Years

The PCM market is expected to witness continued growth due to evolving industry trends and increasing investment in pharmaceutical R&D. The following factors are projected to drive demand further in the coming years:

Expansion of Biologics and Specialty Medicines

The pharmaceutical sector is increasingly focusing on biologics and specialty medicines, which require advanced manufacturing technologies. As more companies invest in the development of highly specialized drugs, the demand for CMOs equipped with the necessary expertise and infrastructure will continue to rise.

Increasing Investments in Pharmaceutical R&D

The global pharmaceutical industry is experiencing a notable increase in R&D spending, leading to a growing pipeline of new drug candidates. As pharmaceutical companies move from clinical trials to commercialization, the need for scalable and flexible manufacturing solutions from CMOs will expand.

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Latest Technologies and Innovations by Leading Pharmaceutical Contract Manufacturing Companies (2024-2025)
Major companies are expanding their biopharmaceutical capabilities, investing in gene therapy, and enhancing biologic drug production to meet increasing global demand. Below are the latest innovations and technologies adopted by top PCM companies in 2024-2025.

Thermo Fisher Scientific, Inc. | Cold and Ultra-Cold Storage Services
Thermo Fisher Scientific is a global leader in pharmaceutical contract development and manufacturing (CDMO) solutions. In March 2024, the company expanded its cold and ultra-cold storage services, enhancing its biorepository and clinical trial capabilities.

These advancements aim to support temperature-sensitive pharmaceuticals and biologics, ensuring optimal storage conditions for critical drug products.

Lonza Group | Acquisition of Genentech's Biologics Facility for $1.2 Billion
Lonza Group continues to strengthen its biologics manufacturing capabilities. In March 2024, the company acquired Genentech's biologics manufacturing site in Vacaville, USA, for USD 1.2 billion.

This move significantly enhances Lonza's ability to scale up biologics production and meet the increasing demand for monoclonal antibodies and other complex biologic drugs.

Catalent, Inc. | Advancements in Gene Therapy Manufacturing

Catalent has positioned itself as a leader in gene therapy manufacturing. In May 2024, the company partnered with Siren Biotechnology to develop Adeno-Associated Virus (AAV)-based gene therapies for cancer treatment.

This partnership highlights Catalent's commitment to advancing next-generation cell and gene therapies, addressing the growing demand for personalized medicine.

Samsung Biologics | Large-Scale Biologics Production
Samsung Biologics continues to dominate the biopharmaceutical contract manufacturing sector. In 2024, the company reported a 23% increase in sales, driven by its expansion of biologics manufacturing facilities.

Samsung Biologics has made strategic investments in advanced biologic drug production, including monoclonal antibodies, biosimilars, and recombinant proteins, to meet the rising demand for biologic therapeutics worldwide.

AbbVie, Inc. | Bioconjugation Technologies
AbbVie is actively investing in bioconjugation technologies, which combine biologic molecules with chemical entities to enhance drug efficacy. This approach has significant potential in oncology and targeted therapies.

AbbVie's advancements in bioconjugation-based drug development demonstrate its commitment to next-generation pharmaceutical innovations.

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Frequently Asked Questions (FAQs) about the Pharmaceutical Contract Manufacturing Market

What is Contract Manufacturing in Pharmaceuticals?
Contract manufacturing in the pharmaceutical industry involves outsourcing the production and development of pharmaceutical products to specialized third-party organizations, commonly referred to as Contract Manufacturing Organizations (CMOs) or Contract Development and Manufacturing Organizations (CDMOs).

These organizations provide a range of services that include drug formulation, process development, large-scale production, and packaging. Utilizing contract manufacturing, pharmaceutical companies can use external expertise and resources, enabling cost savings, enhanced productivity, and improved quality control.

This model allows companies to focus more on their core competencies such as research and development (R&D) and marketing, while outsourcing manufacturing tasks to experienced service providers.

Which is the Largest Contract Manufacturing Pharmaceutical Company in the US?

As of 2024, Catalent, Inc. is recognized as the largest contract manufacturing pharmaceutical company in the United States.

With a strong presence in the pharmaceutical and biopharmaceutical sectors, Catalent reported contract development and manufacturing revenues of approximately $4.1 billion in 2023.

Catalent provides comprehensive services that span across drug formulation, clinical trial supply, commercial production, and packaging, catering to a wide range of pharmaceutical clients.

What is the Largest Pharma CDMO?

Lonza Group is globally recognized as the largest Contract Development and Manufacturing Organization (CDMO).

As of 2023, Lonza reported revenues of CHF 6.7 billion (approximately $6.97 billion), solidifying its position as a leader in the biopharmaceutical manufacturing sector.

Lonza provides integrated services ranging from drug discovery through to commercial production, specializing in the manufacturing of biologics and advanced therapies such as monoclonal antibodies, gene therapies, and cell therapies.

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