Press release
Pharmaceutical Contract Manufacturing Market: Global Growth, Key Drivers, and Regional Trends
Pharmaceutical Contract Manufacturing Market by Service (Drug Development, Pharmaceutical (API, FDF - Parenteral, Tablet, Capsule), Biologics (API, FDF), Packaging & Labelling, Fill-finish), Molecule (Small, Large (ADC, CGT)) - Global Forecast to 2030
The global Pharmaceutical Contract Manufacturing Market continues to expand as pharmaceutical companies increasingly rely on outsourcing partners to accelerate drug development, scale production, and manage costs. The market was valued at US$193.99 billion in 2024, increased to US$209.90 billion in 2025, and is expected to reach US$311.95 billion by 2030, growing at a strong CAGR of 8.2% between 2025 and 2030.
This rapid growth reflects rising demand for specialized manufacturing capabilities, driven by new drug pipelines, biologics innovation, and global regulatory needs.
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Key Market Drivers 1. Rising Demand for GLP-1 Drug Manufacturing
The surge in GLP-1-based therapies for diabetes and weight management has created significant opportunities for the pharmaceutical contract manufacturing market. These therapies require complex manufacturing technologies, making outsourcing to experienced CDMOs essential for scale, compliance, and speed to market.
2. Growing Outsourcing of Antibody-Drug Conjugates (ADCs)
ADCs are gaining commercial momentum due to their targeted mechanism of action in oncology. As more ADCs move from clinical development to commercialization, pharmaceutical companies are increasingly outsourcing manufacturing to CDMOs with specialized capabilities in high-potency compounds, conjugation, and sterile fill-finish.
3. Patent Expiry of Major Biologics
A large number of blockbuster biologics are nearing patent expiry, creating strong demand for biosimilars. CDMOs are becoming strategic partners in enabling cost-effective, compliant biologic and biosimilar manufacturing. This trend is expected to contribute significantly to the market's growth through 2030.
4. Challenges: Pricing Pressure and Regulatory Costs
While market demand is increasing, the outlook is tempered by: - Pricing pressure in the US and Europe affecting innovator drugs, generics, and biosimilars - Rising compliance costs due to regulations such as Annex-1 for sterile manufacturing and PFAS restrictions
These factors may slow growth for smaller CDMOs that lack resources for infrastructure upgrades.
Market Segmentation by Service
The pharmaceutical contract manufacturing market is segmented into several service categories: - Drug development services - Pharmaceutical manufacturing services - Biologic manufacturing services - Packaging & labelling services - Fill-finish services - Other support services
Pharmaceutical Manufacturing Services Hold the Largest Market Share (2024)
In 2024, pharmaceutical manufacturing services accounted for the largest share of the CDMO market. Several factors contribute to this dominance:
A. Growing production needs for innovative and generic drugs Pharma companies increasingly outsource high-volume manufacturing to CDMOs to reduce cost and avoid large capital investments.
B. Access to advanced technology and global manufacturing capacity CDMOs offer expertise in areas such as: - High-potency drug manufacturing - Controlled-release formulations - Sterile injectables - Continuous manufacturing
C. Need for flexible production models As demand for specific products fluctuates, outsourcing enables companies to scale production quickly without internal capacity constraints.
D. Improving supply chain efficiency CDMOs help shorten time-to-market by providing end-to-end production capability, from raw materials to final dosage forms.
These advantages make pharmaceutical manufacturing services a key contributor to overall market growth.
API Manufacturing Dominates Within Manufacturing Services
Within pharmaceutical manufacturing services, the market is further segmented into:
*
API Manufacturing Services
*
FDF (Finished Dosage Form) Manufacturing Services
API Manufacturing Leads in 2024
API manufacturing services are expected to capture the largest share in 2024 due to the critical role APIs play in the therapeutic effect of medicines. Several factors support this strong position:
- Rising prevalence of chronic and lifestyle diseases is increasing the global need for APIs. - The expanding generics market depends heavily on efficient API production. - Complex APIs-such as peptides, oligonucleotides, and highly potent APIs (HPAPIs)-require specialized facilities and containment strategies. - Pharmaceutical companies prefer outsourcing APIs to CDMOs with deep regulatory experience and cost-efficient manufacturing capacity.
Given the rising complexity of modern therapeutics, API manufacturing will continue to be a cornerstone of the pharmaceutical contract manufacturing market.
Regional Insights: Asia Pacific Emerges as the Fastest-Growing CDMO Hub
The global pharmaceutical contract manufacturing market is geographically segmented into: North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa.
Asia Pacific Leads Market Growth Through 2030
The Asia Pacific CDMO market is projected to expand the fastest over the forecast period. Key growth drivers include:
1. Cost Advantages and High-Quality Standards
Countries such as China, India, South Korea, and Singapore offer manufacturing at lower operational costs while still meeting global regulatory requirements.
2. Strengthening Infrastructure and Skilled Workforce
The region has seen heavy investments in biologics facilities, cleanrooms, containment technologies, and quality control systems.
3. Growing Demand for Generics and Biosimilars
Asia Pacific is both a production hub and a major consumer market, driving strong domestic and export opportunities.
4. Expansion by Regional and Global CDMOs
Prominent Asia-based CDMOs include: - WuXi Biologics - WuXi AppTec - Samsung Biologics - Asymchem - Jubilant Pharmanova - Piramal Pharma Solutions - Divi's Laboratories
Leading global CDMOs such as Lonza, Thermo Fisher Scientific, and Boehringer Ingelheim continue to expand their footprints in the region through new facilities and partnerships.
Together, these factors position Asia Pacific as a strategic center for pharmaceutical manufacturing and outsourcing.
Key Players in the Pharmaceutical Contract Manufacturing Market
Major companies operating in the global CDMO industry include: - Thermo Fisher Scientific (US) - Catalent (US) - Lonza (Switzerland) - AbbVie (US) - WuXi AppTec (China) - WuXi Biologics (China) - Merck KGaA (Germany) - Siegfried Holding (Switzerland) - Evonik (Germany) - Boehringer Ingelheim (Germany) - FUJIFILM Holdings (Japan) - Samsung Biologics (South Korea) - Almac Group (UK) - Vetter (Germany) - Alcami (US) - Asymchem (China) - Charles River Laboratories (US)
These companies continue to invest in new technologies, capacity expansion, and strategic collaborations to support growing demand from global pharmaceutical and biotech firms.
Conclusion
The pharmaceutical contract manufacturing market is entering a period of sustained growth, driven by innovation in biologics, rising GLP-1 and ADC outsourcing, and expanding opportunities in generics and biosimilars. As pharmaceutical companies seek flexible, cost-effective, and compliant manufacturing solutions, CDMOs will play an increasingly strategic role in global drug development and production.
Asia Pacific's rapid rise as a CDMO powerhouse further strengthens the industry's long-term outlook. With strong demand, expanding capabilities, and continued investment, the pharmaceutical contract manufacturing market is well-positioned for robust growth through 2030.
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