Biopharmaceuticals contributing to manufacturing outsourcing trend

Research by Roots Analysis predicts the pharmaceutical contract manufacturing market will value $140 billion by 2030.

As such, the sector is expected to grow at a compounded annual growth rate (CAGR) of 6.5 percent between 2022-2030. 

The report noted that there has been “considerable” merger and acquisition activity in recent years within the pharmaceutical contract manufacturing market.

This is due to these companies looking to meet to the varied needs of pharmaceutical developers, according to the authors.

Driving factors of the pharmaceutical contract manufacturing market

The report also highlighted other key driving factors for the market during the forecast period include continued technology innovation within production technologies and greater demand for small molecule products. Furthermore, a larger need for cost-effective drug production and implementation of advanced technologies such as biologics and cell and gene therapies are other contributing factors.

Increasing the outsourcing of manufacturing activities is helping pharmaceutical companies to focus on their core capabilities. This is contributing to a more streamlined and efficient approach to drug development, according to the report.

A shift towards advanced therapeutic approaches, such as biopharmaceuticals and biosimilars, “has led pharmaceutical companies to explore outsourcing options for manufacturing”, the research stated.

Roots Analysis also emphasised the importance of players in the contract manufacturing market in supporting the changing needs of the pharmaceutical industry; especially with the rising demand of generic drugs due to patent expirations.

Additional factors

The research also shared that at 51 percent, small pharmaceutical companies will hold a dominate share of the market by 2030.

Yet large companies are set to expand the market at a higher CAGR of 9.1 percent between 2022-2030.

Additionally, the report described that a rising demand for clinical trial support services means there is greater opportunity for organisations in the market.

According to the report, the Asia-Pacific region will dominate the during the forecast period. Based on the research by Roots Analysis, it is expected to hold 37 percent of the market share by 2030.

However, the report stated that key challenges for the market include companies being constrained by their dependence on the quality and reliability of contract manufacturing organisations (CMOs). Additionally, high initial investment costs for equipment and facilities. Yet the global pharmaceutical contract manufacturing market intends to achieve sustainable growth by enhancing partnerships with reliable CMOs, according to the report.

Based on the research, key players within pharmaceutical contract manufacturing market include:

• Altasciences
• Almac
• Cambrex
• Catalent
• Recipharm
• Syngene
• Thermo Fisher Scientific
• WuXi AppTec