Oral Solid Dosage Contract Manufacturing Market to Reach US$ 57.9 Billion by 2032, Driven by a 6.2% CAGR - Insights from Persistence Market Research

The global Oral Solid Dosage (OSD) Contract Manufacturing Market is experiencing a significant transformation fueled by advancements in drug delivery technologies, cost-efficiency, and increasing demand for scalable production capabilities. As of 2025, the market size is projected to reach US$ 38 billion, and by 2032, it is forecasted to grow to US$ 57.9 billion, reflecting a CAGR of 6.2% during the forecast period from 2025 to 2032.

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Oral solid dosage forms such as tablets, capsules, and powders remain the most preferred forms of drug administration due to their convenience, patient compliance, and long shelf life. Among all product types, tablets are projected to dominate, accounting for a 39.4% share in 2025. Geographically, North America is expected to lead, contributing 40.5% of the global market. This leadership stems from its robust pharmaceutical infrastructure, early adoption of novel technologies, and strong regulatory framework. The market's growth is also driven by increasing chronic disease prevalence, which escalates the demand for innovative and scalable pharmaceutical production solutions.

✦ Key Highlights from the Report

✦ The need for cost-effective drug production propels pharmaceutical companies to outsource OSD manufacturing to CDMOs.
✦ Tablets are forecasted to dominate with a 39.4% share in 2025, driven by their ease of use and production.
✦ Immediate release formulations will lead with a 52.3% market share, attributed to their fast-acting nature.
✦ Big pharma and biotech companies are expected to hold 43.4% of the market in 2025, reflecting their reliance on outsourcing.
✦ Drug product development applications are projected to claim 60.3% of the market, indicating rising innovation in dosage forms.
✦ North America will dominate with 40.5% of the global market share in 2025, thanks to advanced infrastructure and regulatory support.

Market Segmentation: Product Types, Applications, and End Users

The oral solid dosage contract manufacturing market is segmented into product types, end users, and applications. Among product types, tablets dominate due to their stability, ease of administration, and cost-effective manufacturing. Immediate-release, controlled-release, and enteric-coated tablets are increasingly popular as they improve patient outcomes and allow tailored release profiles. Capsules and powders also hold significant shares, especially for specialized or high-dose formulations.

By application, the market is driven largely by drug product development, expected to hold a 60.3% market share. Contract development services for innovative and bioavailable formulations are in high demand. Additionally, clinical trial material production and commercial manufacturing are essential segments, especially as pharmaceutical companies focus on accelerated drug approvals and market launches.

For end users, big pharma and biotech companies are at the forefront, expected to represent 43.4% of the market in 2025. Their reliance on CDMOs is rooted in cost-saving imperatives, access to advanced technologies, and scalable manufacturing capabilities. Smaller and mid-sized pharma firms, while holding smaller shares, are increasingly turning to outsourcing models as they lack the in-house infrastructure for advanced manufacturing.

Regional Insights: Market Dynamics by Geography

North America leads the global market, accounting for over 40.5% of total market share in 2025. This dominance is supported by a well-established pharmaceutical ecosystem, government backing, and the presence of global CDMO leaders. Regulatory agencies such as the FDA play a crucial role in pushing innovation and ensuring compliance.

Europe follows closely, driven by a growing focus on personalized medicine and high-quality standards. Countries like Germany, Switzerland, and the U.K. are emerging as key outsourcing hubs due to their strong biotech and pharmaceutical industries.

Asia-Pacific is witnessing rapid growth, primarily driven by low-cost manufacturing, a growing patient population, and improving regulatory frameworks. India and China, in particular, offer massive outsourcing opportunities with cost advantages and improving quality standards.

Latin America and the Middle East & Africa represent emerging markets, where demand is increasing for generics and branded drugs. However, infrastructural limitations and regulatory challenges somewhat hinder rapid expansion in these regions.

Market Drivers

The growth of the oral solid dosage contract manufacturing market is significantly fueled by the cost-efficiency and scalability offered by CDMOs. Pharmaceutical companies are increasingly outsourcing drug production to reduce overhead costs, focus on core competencies, and accelerate drug development timelines. The shift toward specialty drugs and complex formulations further drives demand for experienced manufacturing partners.

Technological advancements such as continuous manufacturing, real-time monitoring, and AI-integrated quality assurance are enhancing production precision and reducing batch failures. Additionally, the rise in chronic diseases such as diabetes, cardiovascular disorders, and cancer has led to a growing need for scalable and consistent oral solid dosage production.

Market Restraints

Despite growth potential, the market faces certain challenges in regulatory compliance and quality control. Contract manufacturers must navigate stringent regulations from the FDA, EMA, and other international bodies. Non-compliance can lead to product recalls, financial penalties, and damaged reputations.

Small CMOs, in particular, often struggle with high compliance costs and complex documentation, which delay approval timelines. Additionally, outsourcing to low-cost regions such as India or China introduces risks such as supply chain disruptions, communication gaps, and differences in regulatory standards, all of which may impede market efficiency and growth.

Market Opportunities

The market presents robust opportunities as pharmaceutical companies increasingly shift toward outsourced solutions to enhance operational efficiency. The rising complexity of new drug formulations, especially biologics and highly potent oral therapies, necessitates advanced manufacturing platforms.

CDMOs with capabilities in modified-release, high-potency, and personalized dosage forms stand to gain a competitive advantage. Moreover, strategic expansions and investments are key to tapping into unmet demand. For example, Catalent's and Lonza's recent facility expansions in the U.K., Switzerland, and the U.S. are aimed at scaling capacity and meeting growing demand for oral solid dosage medications.

# Frequently Asked Questions (FAQs)

How Big is the Oral Solid Dosage Contract Manufacturing Market?
What is the Projected Growth Rate of the Oral Solid Dosage Contract Manufacturing Market?
Who are the Key Players in the Global Oral Solid Dosage Contract Manufacturing Market?
What is the Market Forecast for Oral Solid Dosage CMOs Through 2032?
Which Region is Estimated to Dominate the Oral Solid Dosage Industry through the Forecast Period?

Company Insights

• Catalent Inc.
• Lonza Group AG
• Piramal Pharma Solutions
• Recipharm AB
• Patheon (Thermo Fisher Scientific Inc.)
• Aenova Group
• Almac Group
• Delpharm
• NextPharma Technologies
• Fareva

Recent Developments:

• In March 2024, Catalent expanded its Kansas City OSD facility to enhance capabilities in high-potency drugs and advanced release formulations.
• In April 2024, Lonza announced a US$ 100 million investment in its Swiss OSD facility to support oncology and rare disease drug production.

Conclusion

The Oral Solid Dosage Contract Manufacturing Market is positioned for robust growth through 2032, supported by a wave of outsourcing trends, technological innovation, and the rising complexity of pharmaceutical formulations. As the industry matures, CDMOs with agile operations, global compliance capabilities, and a focus on innovation will thrive. North America's market leadership, tablet dominance, and the reliance of big pharma on third-party manufacturers all signal a future where strategic partnerships and advanced manufacturing are at the core of pharmaceutical growth. For stakeholders, understanding market trends and capitalizing on emerging opportunities will be crucial to navigating the evolving landscape.

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