What? When? Why?

Latest Happenings in Business World

Share on



Global Pharmaceutical Contract Manufacturing Market Size To Grow USD 161.72 Billion By 2026

Regions studied under this global pharmaceutical contract manufacturing market report are North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.


As per the report published by Market Data Forecast, the size of the global pharmaceutical contract manufacturing market is estimated to grow USD 161.72 billion by 2026 from USD 109.96 billion in 2021, showcasing a CAGR of 8.02% from 2021 to 2026.

The COVID-19 pandemic has increased various companies' R&D and manufacturing efforts to develop and distribute vaccines and drugs against the SARS-CoV-2 virus. Such vaccine-related research activities in pharmaceutical and biotechnology companies, research centers, and academic research institutes have played a vital role in the operations and production of various products. Many pharmaceutical and biotech companies are currently partnering with CROs and CDMOs with agreements, partnerships, and collaborations to increase work efficacy and cost-effectiveness. The market is expected to grow with improved market demand and developments during the forecast period.

Factors such as rising demand for biologic therapies, increasing emphasis on personalized drugs, growth in nuclear drugs, growing population, and advancements in cell and gene therapies are primarily expected to boost the global pharmaceutical contract manufacturing market during the forecast period. In addition, the market is further estimated to witness positive growth during the forecast period due to the growing number of U.S. FDA-approved manufacturing facilities, presence of skilled labor, and low operating costs while selecting a partner for outsourcing.

Moreover, there is high demand for improvement in quality healthcare services and expenditure, which are also anticipated to contribute to the market's growth. According to World Bank statistics, the GDP across the globe had increased from 9.08% in 2001 to 9.84% in 2018, while the expenditure on health per capita has increased from $493 in 2001 to $1,110.88 in 2018. This is coupled with the growing focus on many pharmaceutical companies for production processes and drug R&D.

The complexity of biopharmaceutical services and highly personalized medical devices and therapies drive greater complexity in supply chain operations and leads to greater reliance on contract manufacturing. In addition, other factors such as the expiration of patents of major therapeutic brands, growing demand for generic drugs, and adoption of new manufacturing technologies such as CROs and CMOs positively influence this market.

However, the market participants mainly face many challenges during the manufacturing process, such as labeling, packaging, sterilization, and delivery and supply issues. Moreover, the lack of process knowledge can lead to a faulty product line and affect the market. In addition, differences in trade policies between various countries are expected to challenge the market's growth rate.


  • Large pharmaceutical companies are based on end-users, the global pharmaceutical contract manufacturing market. In 2021, this segment accounted for the largest share of the market, and this trend is anticipated to continue during the forecast period. This segment growth can be attributed to many factors such as high demand for end-to-end services, increased pricing pressure, and the growing need to reduce costs due to expiring branded pharmaceutical patents.
  • Based on the region, the regional market in North America had generated the most revenue and will continue to dominate the market during the forecast timeline. The growth of this regional market can be attributed to the increasing elderly population, favorable initiatives are taken by the government, rising demand for generics, and increased consumption of organic products. In addition, the U.S and Canada have taken various research initiatives in biotechnology and the pharmaceutical sector, which is boosting the market growth in these regions.
  • Meanwhile, the pharmaceutical contract manufacturing market in Asia-Pacific (APAC) will be experiencing the fastest growth due to low labor costs, large population, relaxed regulations, abundant availability of raw materials, improving infrastructure, increased demand for generics, and increase in production capacities. In addition, the presence of a large number of national and international players and relatively low investments needed to establish manufacturing facilities will boost the market growth.
  • Some of the major vendors in the global pharmaceutical contract manufacturing market are Catalent, Pharmaceutical Product Development LLC, AbbVie, Baxter BioPharma Solutions, Patheon, Grifols International, S.A., Dalton Pharma Services, Boehringer Ingelheim Biopharmaceuticals GmbH, and Lonza AG.


By Service:

  • Manufacturing
    • API/Bulk Drugs
    • Advanced Drug Delivery Formulations Packaging
    • Packaging
    • Finished Dose Formulations
      • Solid Formulations
      • Liquid Formulations
      • Semi-solid Formulations
  • Research
    • Oncology
    • Vaccines
    • Inflammation & Immunology
    • Cardiology
    • Neuroscience
    • Others

By End-User:

  • Big Pharmaceutical Companies
  • Small & Medium-Sized Pharmaceutical Companies
  • Generic Pharmaceutical Companies
  • Other End Users

By Region:

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • The Middle East and Africa

WRITTEN BY: Market Data Forecast

Market Data Forecast