Pharmaceutical Contract Manufacturing Market Size, Share, By Type (Active Pharmaceutical Ingredient (API) Manufacturing, Finished Dosage Formulation (FDF) Development & Manufacturing, and Secondary Packaging), and By Region - Trends, Analysis and Forecast till 2034

Pharmaceutical contract manufacturing is when a corporation employs a third party to manufacture pharmaceuticals for them, providing flexibility and cost savings. Contract manufacturing refers to a business model in which a company engages a manufacturer to make its products or components. It is a method of producing items by leveraging the resources and expertise of an experienced manufacturer to benefit the contracting company.

Examples include commuter train lines, rubber products, textiles, heavy machinery, and plastic injection molding. Industrial contract manufacturers can also manufacture some industrial electronic products.

Pharmaceutical manufacturing refers to the industrial-scale synthesis of pharmaceutical medications as part of the pharmaceutical business. Drug production can be divided into several unit activities, including milling, granulation, coating, tablet pressing, and others.

In this arrangement, the contract manufacturer produces parts or components for a product. They will then provide the parts or components to the hiring firm for assembly or another third-party assembler. A contract manufacturing organization, or CMO, assists pharmaceutical and biotechnology companies in developing novel medication compounds. Their services may include commercial production, drug development, formal stability, formulation development, method development, pre-formulation, and registration batches.

It's also why contract manufacturing is a good alternative if you're trying out a new product line or want to test the waters of greater output. Rather than investing heavily in the in-house production of an unproven new product, you can save money by contracting out production. A contract manufacturer (CM) is a manufacturer who enters into a contract with a company to supply components or products. It's a sort of outsourcing. A contract manufacturer doing packing processes is known as a copacker or contract packager.

Pharmaceutical contract manufacturing is separated into two key stages: the creation of the active pharmaceutical ingredient or drug, often known as primary processing, and secondary manufacturing, which converts the active pharmaceuticals into products appropriate for administration.

Drivers of the Pharmaceutical Contract Manufacturing Market:

In-house drug development:

• It costly and time-consuming, particularly for small and medium-sized pharmaceutical enterprises. To save money, many corporations have decided to outsource their drug development procedures to contract development and manufacturing organizations (CDMOs).

Increasing demand for generic drugs:

• The increased prevalence of chronic diseases, combined with the need for cost-effective treatment methods, has resulted in an increase in demand for generic medications. This tendency has spurred the rise of the pharmaceutical contract manufacturing sector, as generic medicine producers frequently use CDMOs for production.     

Regulatory compliance support:

• CDMOs help pharmaceutical businesses navigate the complex regulatory landscape and maintain compliance with tight criteria. This support is critical to market success and a major driver of the pharmaceutical contract manufacturing sector.

Restrains in the Pharmaceutical Contract Manufacturing Market:

Dependence on Contract Manufacturers:

• Pharmaceutical businesses that rely too much on external partners risk becoming vulnerable. Issues such as capacity restrictions, financial stability issues, or interruptions in contract manufacturers' supply chains may have an impact on the timely and dependable production of pharmaceutical products, exposing pharmaceutical businesses to potential hazards.

Increasing Number of Pharmaceutical Companies Establishing Their Own Manufacturing Facilities:

• Pharmaceutical businesses are investing in their own manufacturing facilities to cut costs, impeding the expansion of the contract pharmaceutical manufacturing sector.

Strict Government standards:

• Contract manufacturers may find it difficult to comply with the pharmaceutical industry's strict standards. This can cause delays and higher prices, making it less appealing for pharmaceutical businesses to outsource manufacture.

The pharmaceutical contract manufacturing market is segmented based on type and region.

Based on the type, the target market is segmented into active pharmaceutical ingredient (API) manufacturing, finished dosage formulation (FDF) development & manufacturing, and secondary packaging. Active pharmaceutical ingredient (API) manufacturing is the dominating segment for the global pharmaceutical contract manufacturing market due to a rise in the prescription of API than the other drugs.

Regional Insights:

Based on the region the global pharmaceutical contract manufacturing market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The North America region is the dominating region for the global pharmaceutical contract manufacturing market because the United States is the world’s largest market for the drugs, and almost half of the R&D funding is spent on the biotechnology and pharmaceutical market. Besides this the Asia Pacific region show the significant growth during the forecast period due to increase in- house investment and companies are also being in partnership based on the research and increasing investment in the manufacturing in the Aisa Pacific region.

Pharmaceutical Contract Manufacturing Market, By Type:

• Active Pharmaceutical Ingredient (API) Manufacturing
• Finished Dosage Formulation (FDF) Development & Manufacturing
• Secondary Packaging

Pharmaceutical Contract Manufacturing Market, By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating the global pharmaceutical contract manufacturing market involves Catalent Inc., Reci pharm AB, Jubilant Life Sciences Ltd., Patheon Inc., Boehringer Ingelheim, Pfizer Centre Source, Aenova Group, Famar S.A., Baxter BioPharma Solutions, and Lonza Group. Prominent players operating in the target market are focusing on strategic partnerships as well as the launching of the products to gain a competitive edge in the target market. For instance, in 2017, Catalent announced that it has completed the acquired the Cook Pharmica LLC, and provide the drug substance and drug product manufacturing and related services.

• Catalent Inc.
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategy
• Recipharm AB
• Jubilant Life Sciences Ltd.
• Patheon Inc.
• Boehringer Ingelheim
• Pfizer CentreSource
• Aenova Group
• Famar S.A.
• Baxter BioPharma Solutions
• Lonza Group

 “*” marked represents similar segmentation in other categories in the respective section.