Oral Solid Dosage Contract Manufacturing Market to Hit US$ 57.9 Bn by 2032, Driven by Outsourcing Demand

✅ Global Oral Solid Dosage Contract Manufacturing Market Set to Reach US$ 57.9 Bn by 2032

The global oral solid dosage (OSD) contract manufacturing market is projected to expand significantly in the coming years. Valued at US$ 38.0 Bn in 2025, the market is forecasted to reach US$ 57.9 Bn by 2032, growing at a steady CAGR of 6.2% from 2025 to 2032. The increasing complexity of drug formulations, the cost-efficiency of outsourcing, and the growing focus on core competencies by pharmaceutical companies are among the leading factors driving this growth.

Among all formulations, tablets dominate the OSD market due to their convenience, patient compliance, and extended shelf life. North America is currently the largest regional market, fueled by a strong presence of pharmaceutical giants, advanced manufacturing infrastructure, and favorable regulatory frameworks. The region's mature healthcare ecosystem encourages outsourcing to meet stringent quality and production standards.

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✅ Key Highlights from the Report

➤ The market is projected to grow from US$ 38.0 Bn in 2025 to US$ 57.9 Bn by 2032.
➤ Tablets remain the most in-demand product in oral solid dosage contract manufacturing.
➤ North America is expected to continue dominating the global market during the forecast period.
➤ Cost efficiency and flexibility are primary reasons driving contract manufacturing adoption.
➤ Increased outsourcing of generic drugs is accelerating demand for OSD contract services.
➤ Rising demand for specialized formulation technologies is enhancing market growth.

✅ Frequently Searched Question

What are the benefits of oral solid dosage contract manufacturing for pharmaceutical companies?

Oral solid dosage (OSD) contract manufacturing provides several advantages to pharmaceutical companies seeking efficiency, scalability, and compliance. First and foremost, contract manufacturing organizations (CMOs) offer cost reduction by eliminating the need to invest heavily in facilities, labor, and equipment. This allows companies to redirect resources toward R&D and innovation.

Secondly, CMOs provide technical expertise and regulatory knowledge, especially useful in handling complex formulations or meeting stringent regulatory standards in different countries. The ability to scale production quickly also gives pharmaceutical firms the agility to meet changing market demand without delay.

Furthermore, outsourcing to experienced manufacturers reduces time-to-market, a critical factor in competitive therapeutic categories. By leveraging a CMO's specialized capabilities and global supply chains, companies can achieve a faster, more compliant, and cost-effective product launch strategy.

✅ Market Segmentation

The oral solid dosage contract manufacturing market is segmented by product type, which includes tablets, capsules, powders, and granules. Tablets lead the market segment due to their widespread use in both branded and generic pharmaceuticals. Capsules follow closely, especially in nutraceuticals and products requiring modified-release formulations. Demand for customized and high-potency oral solids is also rising.

In terms of end-users, the market serves large pharmaceutical companies, small and medium-sized pharma enterprises, and biotechnology firms. Larger firms outsource production to focus on high-level R&D, while smaller companies use CMOs for access to specialized technologies and compliance support. The growing prevalence of chronic diseases has also increased demand from generic drug manufacturers looking to meet global supply needs.

✅ Regional Insights

North America dominates the global OSD contract manufacturing market, attributed to its strong pharmaceutical base, advanced technology adoption, and favorable FDA guidelines. Companies in the region increasingly rely on contract partners for quality assurance and cost-effective production.

Asia-Pacific is emerging as a rapidly growing market due to lower labor costs, increasing regulatory harmonization, and a growing pharmaceutical ecosystem in countries like India and China. The region is becoming a global hub for cost-efficient drug production and export.

✅ Market Dynamics

Market Drivers

The rise in outsourcing trends across the pharmaceutical industry is one of the strongest drivers. Companies are increasingly seeking external manufacturing partners to reduce operational costs, focus on innovation, and meet global supply chain demands. The rising prevalence of chronic diseases and aging populations has also boosted demand for oral drugs, leading to increased OSD production outsourcing.

Market Restraints

Despite the promising growth, the market faces challenges such as regulatory complexities, data integrity concerns, and supply chain disruptions. Regulatory bodies like the FDA and EMA require strict compliance, and any lapses in documentation or production quality can delay approvals or result in penalties. Furthermore, reliance on third-party suppliers introduces risks related to quality control and delivery timelines.

Market Opportunities

There is a rising opportunity in the development of modified-release formulations, such as enteric-coated or sustained-release tablets. Additionally, the biosimilars and generics market is growing, providing ample room for CMOs specializing in OSDs. Technology integration, such as continuous manufacturing, is also opening up scalable and faster production methods that can differentiate providers in a competitive landscape.

✅ Reasons to Buy the Report

☑️ Understand current and projected market size from 2025 to 2032
☑️ Identify leading segments and emerging opportunities by product type and end-user
☑️ Gain insights into regional trends and growth hotspots
☑️ Learn about major players and competitive strategies in the global landscape
☑️ Stay updated on technological innovations and regulatory developments

✅ Company Insights

✦ Catalent, Inc.
✦ Lonza Group Ltd.
✦ Recipharm AB
✦ Thermo Fisher Scientific Inc.
✦ Patheon N.V.
✦ Aenova Group
✦ Jubilant Life Sciences Ltd.
✦ Almac Group
✦ Dr. Reddy's Laboratories
✦ Piramal Pharma Solutions

■ In January 2024, Catalent expanded its high-potency OSD manufacturing capabilities in the U.S. to meet increasing demand for oncology therapies.

■ In March 2025, Recipharm announced a strategic partnership with a major European pharma company to provide full-scale oral solid dosage production and packaging services.

✅ Conclusion

The global oral solid dosage contract manufacturing market is witnessing sustained growth driven by the pharmaceutical industry's evolution toward greater efficiency and specialization. With rising drug demand, especially in generics and chronic therapies, the reliance on CMOs is only expected to grow. Technological advancements, regional expansion, and regulatory alignment are further fueling the market's momentum. As the industry shifts toward leaner operations and quicker product development, CMOs that offer quality, compliance, and scalability are poised to thrive through 2032 and beyond.

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