The global Pharmaceutical Contract Manufacturing Market continues to demonstrate strong momentum as outsourcing becomes a core strategy for pharmaceutical and biopharmaceutical companies worldwide. Valued at US$193.99 billion in 2024, the market increased to US$209.90 billion in 2025 and is projected to reach US$311.95 billion by 2030, representing a robust CAGR of 8.2% during the forecast period. This growth reflects the rising need for specialized manufacturing solutions, regulatory compliance expertise, and scalable capacity—especially as the pipeline of complex biologics expands.
Several structural trends are fueling this rapid expansion. The surge in GLP-1 drug demand, increased outsourcing for Antibody–Drug Conjugate (ADC) manufacturing, and the patent expiration of blockbuster biologics are opening the door for advanced biosimilar production. At the same time, evolving regulatory expectations—such as Annex-1 revisions, PFAS restrictions, and mounting pricing pressure on drugs in the US and Europe—pose challenges for CDMOs and pharmaceutical companies. Despite these hurdles, the contract manufacturing sector continues to expand, supported by innovation and increasing reliance on outsourcing partnerships.
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Market Overview and Key Insights
The pharmaceutical contract manufacturing landscape is undergoing a major transformation. With more pharmaceutical companies shifting towards leaner operating models, outsourcing has become a strategic approach to optimize cost, accelerate time-to-market, and leverage specialized expertise. Contract development and manufacturing organizations (CDMOs) offer a full spectrum of services—from drug development and formulation to large-scale biologics and fill-finish operations.
The industry’s growth is deeply connected to market dynamics such as:
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Increased demand for high-potency and complex drugs
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Expansion of biosimilar pipelines
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Need for global supply chain resilience
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Rising investments in advanced biomanufacturing technologies
The availability of an extensive infrastructure, skilled talent pool, and regulatory-aligned facilities positions leading CDMOs as indispensable partners for pharma and biotech innovators.
Market Segmentation by Service
The pharmaceutical contract manufacturing market is divided into several key services:
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Drug development services
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Pharmaceutical manufacturing services
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Biologic manufacturing services
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Packaging & labelling services
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Fill-finish services
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Other specialized services
Pharmaceutical Manufacturing Leads the Market
In 2024, pharmaceutical manufacturing services dominated the market. This segment continues to thrive due to:
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Increased demand for innovative and generic drugs
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Need for large-scale production to meet global healthcare demands
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Rising complexity in formulations, including HPAPIs, controlled-release drugs, and sterile injectables
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Benefits of outsourcing, such as access to advanced equipment, experienced personnel, and regulatory expertise
Manufacturers are increasingly adopting flexible production models, allowing pharmaceutical companies to adapt quickly to market fluctuations. This adaptability—combined with enhanced focus on efficiency and reduced time-to-market—positions pharmaceutical manufacturing services as a central driver of industry growth.
Sub-segmentation: API vs. FDF Manufacturing
Within the pharmaceutical manufacturing services category, the market is further divided into:
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API (Active Pharmaceutical Ingredient) manufacturing
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FDF (Finished Dosage Form) manufacturing
API Manufacturing Dominates in 2024
The API manufacturing segment is set to claim the largest share in 2024. This dominance is fueled by:
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Growth in demand for APIs due to the rise of chronic and lifestyle diseases
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Expansion of the global generics market
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Increasing complexity of molecules, such as peptides, oligonucleotides, and HPAPIs
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A global shift toward outsourcing to CDMOs to ensure cost efficiency, compliance, and scalability
CDMOs offer specialized containment facilities essential for handling highly potent compounds, making them preferred partners for API production across the industry.
Regional Outlook: Asia Pacific Leads Growth
Geographically, the pharmaceutical contract manufacturing market spans:
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North America
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Europe
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Asia Pacific
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Latin America
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Middle East
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Africa
Asia Pacific Expected to be the Fastest-Growing Region
The Asia Pacific region is projected to witness the fastest growth due to:
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Strong cost advantages
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Expanding pharmaceutical manufacturing capabilities
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Rapidly growing healthcare infrastructure
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Supportive government regulations and investments
Countries like China, India, South Korea, and Singapore are emerging as global CDMO hubs. Regional players such as WuXi Biologics, Asymchem, Piramal Pharma Solutions, Divi’s Laboratories, and global giants like Lonza, Thermo Fisher Scientific, and Boehringer Ingelheim continue to expand their presence to tap into APAC’s competitive advantage.
Increasing demand for biosimilars, generics, and next-generation therapies—combined with favorable trade policies and capacity expansions—positions the Asia Pacific region as the future backbone of global pharmaceutical contract manufacturing.
Key Market Players
The global pharmaceutical contract manufacturing market is highly competitive, with major companies shaping industry direction. Prominent players include:
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Thermo Fisher Scientific (US)
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Catalent, Inc. (US)
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Lonza (Switzerland)
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WuXi Biologics (China)
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Merck KGaA (Germany)
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Samsung Biologics (South Korea)
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Boehringer Ingelheim (Germany)
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Siegfried Holding AG (Switzerland)
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Evonik Industries (Germany)
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FUJIFILM Holdings (Japan)
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Almac Group (UK)
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Asymchem (China)
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Charles River Laboratories (US)
Thermo Fisher Scientific Inc.
Thermo Fisher has strengthened its position through:
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Its Accelerator Drug Development platform, integrating CDMO and CRO services.
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Expansion of key manufacturing sites in Missouri, Ohio, Massachusetts, and North Carolina.
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Scalable capabilities to support small molecules, biologics, and advanced therapies.
Catalent, Inc. (Novo Holdings)
Catalent remains a leading CDMO, offering expertise in:
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Oral, injectable, and respiratory drug delivery
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Drug substance manufacturing and formulation
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End-to-end commercial manufacturing
The company recently expanded production at its Madison facility, enhancing capacity for both clinical and commercial biologics manufacturing.
Conclusion
The pharmaceutical contract manufacturing market is entering a transformative phase marked by scientific innovation, growth in biologics and biosimilars, and increasing reliance on outsourcing partners. Despite pricing pressures and regulatory challenges, the sector is poised for sustained expansion—driven by advanced capabilities, global capacity expansions, and rising demand for specialized manufacturing services.
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