What? When? Why?
Latest Happenings in Business World
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.
KEY MARKET INSIGHTS:
SEGMENTS ANALYZED IN THIS REPORT: