Global Biopharmaceutical Contract Manufacturing Market Size, Share, Trends, COVID-19 Impact & Growth Analysis Report – Segmented By Product Type, Therapeutic Area, Application & Region – Industry Forecast (2024 to 2029)

Updated On: June, 2024
ID: 7599
Pages: 175

Biopharmaceutical Contract Manufacturing Market Size (2024 to 2029)

The global biopharmaceutical contract manufacturing market size was worth USD 7.79 billion in 2024. It is expected to rise at a CAGR of 9.10% and value USD 12.04 billion by 2029.

Biopharmaceutical is a complicated field that combines both pharmaceuticals and healthcare requirements. Formulating, getting approvals, and distributing drugs made for human consumption is difficult as it has many steps. The manufacturing, research and development, clinical trials, FDA approvals, and logistics/retail and marketing are all critical for the success of a biopharmaceutical company. Therefore, the work and management on multiple fronts can get quite complicated; this is where biopharmaceutical companies hire contract manufacturing agencies to make their work. In addition, contract tract manufacturing companies can help clear the strict regulations of drug manufacturing so that the companies can focus on more research and development. 

Global Biopharmaceutical Contract Manufacturing Market Drivers:

The global biopharmaceutical contract manufacturing market is majorly driven by the faster pace of production with contract manufacturing organizations, less cost compared to own manufacturing facilities, and entry-level pharmaceutical production companies looking for investors. In addition, faster approvals for patent sharing, intellectual property copyright rules, higher demand for the drugs by the people, less production capacity, and others are expected to promote the growth rate of the biopharmaceutical contract manufacturing market. Any big pharma giant cannot manufacture every single drug on its own, so they opt for contractual obligations with small companies to produce drugs by entering with an MOU or by investments in the production.The growing adoption of CMOs by biopharmaceutical manufacturers is one of the significant factors propelling the market growth.

There have been a lot of budding entries in the field of CMOS in recent years. This has allowed critical pharmaceutical manufacturers to independently reduce the burden of manufacturing every new drug. Pharma industries see this as an opportunity to reduce their investments in manufacturing by going for outsourcing to these organizations. Due to this, the amount spent on manufacturing can be diverted to the R&D division for efficient drug inventions. For CMOs, there is an opportunity with the biopharmaceutical contract manufacturing market expansion in the form of Mergers, acquisitions, and joint ventures with big companies. These actions make the CMOS realize the opportunities to make their organizations financially stable and technologically capable.

Global Biopharmaceutical Contract Manufacturing Market Restraints:

There are a few restraints for the global biopharmaceutical contract manufacturing market to expand as the small companies lack specialized experience in biopharmaceutical manufacturing, abuse of patent sharing details, easy reverse engineering of the drug composition formula, etc., are restraining the market for further expansion. These factors provoke the pharma giants to install their production facilities with huge investments undermining the efficacy of contract manufacturing organizations (CMOS).

Significant challenges faced by the key market players are the lack of technological capabilities of small companies, the lack of strategic management of resources, and the lack of quality oversight. Due to these factors, many big companies opt for in-house production facilities to manufacture biopharmaceutical products. This poses a threat to the expansion of CMOs for further expansion addition, the lack. Furthermore, the lack of intellectual property rules in many countries, and unbridled patent rights in some countries also challenge the market growth of contract manufacturing organizations.

COVID-19 impact on the global biopharmaceutical contract manufacturing market:

Biopharmaceutical companies are on the frontline, working to innovate more products to treat the patients infected with covid 19. Many companies are on the journey of genome sequencing and inventing a viable vaccine candidate for COVID-19. In addition, many. Many oral and intravenous drugs are being administered to patients on a large scale. The critical manufacturing players alone cannot meet such demand, so there is an increase in contractual terms with small players driving the supply and expanding the market. So, all these biotech entities are striving to investigate the virus and its strains; many investments are diverted to big and small companies. 

REPORT COVERAGE:

REPORT METRIC

DETAILS

Market Size Available

2024 to 2029

Base Year

2023

Forecast Period

2024 to 2029

Segments Covered

By Product Type, Therapeutic Area, Application, and Region

Various Analyses Covered

Global, Regional & Country Level Analysis, Segment-Level Analysis; DROC; PESTLE Analysis; Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities

Regions Covered

North America, Europe, APAC, Latin America, Middle East & Africa

Marketer Leader Profiled

Biomeva GmbH, Boehringer Ingelheim GmbH, WuXi Biologics, Abzena Plc, Lonza Group AG, Probiogen AG, Sandoz International GmbH, Fujifilm Diosynth Biotechnologies, KBI Biopharma, Inc., Cytovance Biologics, Inc.

 

This research report on the global biopharmaceutical contract manufacturing market has been segmented and sub-segmented into the following categories.

Global Biopharmaceutical Contract Manufacturing Market – By Product Type:

  • Insulin       
  • Monoclonal Antibodies     
  • Growth Factors     
  • Interferons             
  • Recombinant Proteins       
  • Vaccines   
  • Others      

Of all these segments, vaccines and insulin segments lead the way as these are used in inhibiting diabetes and other seasonal flu cases. Diabetes is a rising problem with growing prevalence worldwide. According to WHO statistics, around 422 million people worldwide have diabetes, further promoting the segment. Additionally, the rising spread of infectious diseases is leading to more vaccines. For instance, the covid 19 pandemic led to rising demand for vaccination against the disease. According to WHO, as of November 2022, 12,959,275,260 vaccine doses have been delivered worldwide. 

Global Biopharmaceutical Contract Manufacturing Market – By Therapeutic Area:

  • Infectious Disease               
  • Cardiovascular Disease       
  • Oncology 
  • Metabolic Disease               
  • Respiratory Disorder           
  • Autoimmune Disease         
  • Neurology               
  • Ophthalmology     
  • Others    

Out of all these segments, oncological and cardiovascular disease-related segments lead the market as many pharma companies outsource their oncological drug production to different companies. Additionally, rising cancer and cardiovascular problems worldwide support the growth f the segments. For instance, according to WHO statistics, nearly 10 million deaths, or nearly one in six deaths, wiere caused by cancer in 2020, making it the leading cause of death globally. On the other hand, with 17.9 million deaths per year, cardiovascular diseases (CVDs) are the leading cause of death worldwide.

Global Biopharmaceutical Contract Manufacturing Market – By Application:

  • Clinical       
  • Commercial         

The clinical application market segment registers the highest growth in biopharmaceutical pharma production based on the application. Clinical trials to produce new drugs are essential to determine their capacity in the market. These trials also help to clear the FDA guidelines for life-saving drugs. Therefore, the entire investment in the research and development of a drug relies heavily on clinical trial procedures. Therefore, the segment is gaining traction because of its importance. 

However, the commercial segment is also expected to show significant growth during the forecast period due to the heavy emphasis on earning revenue from pharma companies. In addition, commercial contract manufacturing companies help large enterprises properly invest and distribute their revenues to earn more profits driving the segment. 

Global Biopharmaceutical Contract Manufacturing Market – By Region:

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

Geographically, the North American biopharmaceutical contract manufacturing market is the leading market for the contract manufacturing of biopharmaceutical products. This can be attributed to the large-scale investments in CMOS and better intellectual property rights-related laws. The North American region takeovers the global market primarily based on market collaborations and agreements, as key business strategies lead to growth and expansion worldwide. Such large organizations also buy minor-scale biopharmaceutical companies in the Asia Pacific to reinforce their market presence. The Oncology area is witnessing significant growth owing to an increase in cancer-related diseases. The market has also observed growth in R&D and a surge in innovative developments in manufacturing.

The biopharmaceutical contract manufacturing market in Europe had a considerable share of the global market in 2023 and is anticipated to hold a substantial share of the global market during the forecast period.

The APAC biopharmaceutical contract manufacturing market is expected to showcase a promising growth rate with countries such as China, India, Japan, Korea, etc., due to Low operating and manufacturing costs, a desirable location for outsourcing, increasing demand for biologics, partnerships with regional and international organizations, increased consolidation, and the presence of pharma and biopharma companies are all positive factors supporting the growth of the market in the region. 

The biopharmaceutical contract manufacturing market in Latin America is expected to grow at a CAGR of 10.04 % from 2024 to 2029.

The biopharmaceutical contract manufacturing market in MEA is anticipated to value USD 0.55 billion by 2028. 

KEY MARKET PARTICIPANTS:

Noteworthy companies operating in the global biopharmaceutical contract manufacturing market profiled in this report are Patheon N.V., Rentschler Biotechnologie GmbH, AbbVie Contract Manufacturing (An AbbVie Company), Biomeva GmbH, Boehringer Ingelheim GmbH, WuXi Biologics, Abzena Plc, Lonza Group AG, Probiogen AG, Sandoz International GmbH, Fujifilm Diosynth Biotechnologies, KBI Biopharma, Inc., Cytovance Biologics, Inc., Baxter Biopharma Solutions, Vetter Pharma International GmbH, Catalent, Inc., Samsung Biologics Co., Ltd. and Ajinomoto Althea, Inc.

Growing pharmaceutical development offers lucrative opportunities for contractual manufacturing organizations to prosper. Recently, the AstraZeneca vaccine for COVID-19 has partnered with Serum Institute of India to manufacture the vaccine; SII has entered into three other Indian firms for manufacturing the vaccine addition; in addition, the Russian vaccine giant gamaleya research institute partnered with Dr. Reddy's laboratories to manufacture the sputnik vaccine. These agreements are taking place on a large scale due to the increase in the usage of biologics in the field.

RECENT MARKET DEVELOPMENTS

  • In November 2022, AstraZeneca agreed to sell its West Chester, Ohio, facility to busy biomanufacturing startup National Resilience. In conjunction with the sale, the pharmaceutical companies reached a "long-term" biomanufacturing agreement, as part of which Resilience will continue to produce "selected AstraZeneca medicines."
  • In November 2022, A 15-million-euro ($14.6 million) facility expansion for ReiThera, an Italian biotech and contract manufacturing company, was opened with a focus on large-scale viral vectors for vaccines and gene therapies. According to a November 3 company release, the debut came after operational approval from the Italian Medicines Agency.
  • In November 2022, after learning that Fosun Pharma would try to sell off its $3.8 billion company, Gland, the Indian pharmaceutical company, went to the Bombay Stock Exchange to react. Bloomberg News was the first to disclose that Chinese company Fosun consulted an adviser to assess interest in its majority position in Gland. This M&A shock led to a rise in Gland Pharma's shares early on Tuesday. Industry players and buyout firms are evaluating Gland's business, according to people familiar with the situation who spoke with Bloomberg.
  • In November 2022, two prominent contract manufacturers from Europe are joining the action amid a wave of CEO changes in the biopharma industry. After seven years as the head of the German CDMO, Frank Mathias, Ph.D., announced Monday that he would be leaving Rentschler.

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Frequently Asked Questions

What was the size of the biopharmaceutical contract manufacturing market worldwide in 2023?

The global biopharmaceutical contract manufacturing market size was valued at USD 6 billion in 2023. 

Which region is growing the fastest in the global cough syrup market?

Geographically, the North American biopharmaceutical contract manufacturing market accounted for the most significant global market share in 2022. 

At What CAGR, the global biopharmaceutical contract manufacturing market is expected to grow from 2024 to 2029?

The global biopharmaceutical contract manufacturing market is estimated to grow at a CAGR of 9.10% from 2024 to 2029. 

Which are the significant players operating in the biopharmaceutical contract manufacturing market?

Rentschler Biotechnologie GmbH, AbbVie Contract Manufacturing (An AbbVie Company), Biomeva GmbH, Boehringer Ingelheim GmbH, WuXi Biologics, Abzena Plc, Lonza Group AG, Probiogen AG, Sandoz International GmbH are some of the significant players operating biopharmaceutical contract manufacturing market

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