The pharmaceutical contract manufacturing market is witnessing robust growth, largely fueled by the increasing prevalence of chronic and infectious diseases. This expansion is further supported by the growing demand for biologics and biopharmaceuticals. Additionally, pharmaceutical and biotechnology companies are actively strengthening their R&D pipelines, with a particular focus on biologics, biosimilars, and advanced modalities such as gene and cell therapies.
DelveInsight’s Pharmaceutical Contract Manufacturing Market Insights report delivers a thorough analysis of the current and forecasted market, including market shares of leading pharmaceutical contract manufacturing companies, key market drivers, barriers, emerging trends, and an overview of prominent companies operating in the sector.
Key Takeaways from the Pharmaceutical Contract Manufacturing Market Report
- The global pharmaceutical contract manufacturing market is projected to grow from USD 188 billion in 2024 to USD 362 billion by 2032, reflecting strong and sustained expansion.
- The market is expected to achieve a CAGR of ~7% during the forecast period from 2025 to 2032.
- Leading players in the pharmaceutical contract manufacturing sector include Lonza, Pfizer Inc., Catalent, Inc., Boehringer Ingelheim International GmbH, Samsung Biologics, WuXi AppTec, Thermo Fisher Scientific Inc., Baxter, Recipharm AB, Merck KGaA, CordenPharma, Siegfried Holding AG, Aenova Group, Almac Group, Alcami Corporation, FUJIFILM Holdings Corporation, Novartis AG, Avery Dennison Corporation, Danaher Corporation, Syntegon Technology GmbH, and others.
- Among all regions, North America is expected to experience the fastest growth during the forecast period.
- In the drug type segment, biologics accounted for the largest market share in 2024.
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Key Factors Contributing to the Rise in Growth of the Pharmaceutical Contract Manufacturing Market
Rising Demand for Cost-Efficient Drug Production
Pharmaceutical companies increasingly outsource production to contract manufacturers to reduce capital expenditure, operational costs, and financial risks associated with maintaining large-scale manufacturing facilities. Contract manufacturing allows firms to concentrate on core competencies like R&D and marketing while benefiting from the cost efficiencies of specialized manufacturers.
Increasing Complexity of Drug Formulations
The production of complex biologics, personalized medicines, and advanced formulations requires specialized expertise and state-of-the-art equipment. Many pharmaceutical companies lack the in-house capabilities for such sophisticated production, driving reliance on contract manufacturers with the technical know-how and regulatory compliance infrastructure.
Growing Generic Drug Market
The demand for generic drugs is rising worldwide due to the expiration of blockbuster drug patents and the need for affordable medications. Contract manufacturers facilitate rapid and cost-effective scaling of generic production, accelerating market access and enabling companies to respond to competitive pricing pressures.
Regulatory Compliance and Quality Standards
Strict regulatory requirements from agencies such as the FDA, EMA, and WHO pose challenges for pharmaceutical companies. Contract manufacturing organizations (CMOs) invest heavily in compliance and quality systems, making them preferred partners for reliable production while mitigating regulatory risks.
Technological Advancements
Integration of advanced technologies, including continuous manufacturing, automation, and process analytical technology (PAT), has improved efficiency and scalability in contract manufacturing. Pharmaceutical companies benefit from these innovations without heavy capital investment, promoting greater adoption of outsourcing strategies.
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Regional Pharmaceutical Contract Manufacturing Market Insights
North America is projected to hold the largest share of the pharmaceutical contract manufacturing market, driven by factors such as a growing population with chronic and infectious diseases and increasing emphasis on drug discovery and development. Rising demand for biologics and biopharmaceuticals, along with higher R&D spending, significantly contributes to market expansion.
The market is further supported by substantial research investments from major pharmaceutical companies in the region. The U.S. leads globally in clinical research, representing 29% of all clinical trials worldwide, with 159,403 trials listed as of 2025 (ClinicalTrials.gov). The increase in clinical trials fuels demand for pharmaceutical contract manufacturing services, including API production, PK/PD studies, dosage development, and immunogenicity testing, which are critical for establishing drug safety and efficacy.
In response, leading industry players are expanding their service offerings. For instance, in August 2024, SGS introduced specialized pharmaceutical contract manufacturing services in North America covering all phases of drug development—from early discovery to Phase I–III trials—including method transfer, development and validation, PK/PD bioanalysis, ELISA, multiplex assays, immunogenicity assessments, and other bioassays.
Collectively, these factors reinforce North America’s dominance in the pharmaceutical contract manufacturing market, driven by robust healthcare demand, extensive R&D activity, and increasing need for advanced and effective therapies.
Learn why North America is driving growth in the pharmaceutical contract manufacturing market with a snapshot of the Pharmaceutical Contract Manufacturing Market Outlook
Recent Developmental Activities in the Pharmaceutical Contract Manufacturing Market
- In October 2024, Samsung Biologics announced its largest contract manufacturing agreement to date with a major Asia-based pharmaceutical company. Production will take place at Samsung Biologics’ advanced facility in Songdo, South Korea.
- In September 2024, Samsung Biologics launched innovative biologics development platforms S-AfuCHO™ and S-OptiCharge™. S-AfuCHO™ is a cell line platform designed to produce fucosylated antibodies with enhanced ADCC activity, while S-OptiCharge™ is an upstream process platform capable of modulating a molecule’s charge variant distribution.
Pharmaceutical Contract Manufacturing Overview
Pharmaceutical contract manufacturing involves outsourcing drug manufacturing to third-party companies, known as contract manufacturing organizations (CMOs). These organizations produce drugs in various dosage forms on behalf of pharmaceutical companies that may lack manufacturing facilities or strategically choose to outsource.
Outsourcing to CMOs offers benefits such as cost savings, improved operational efficiency, and access to advanced technologies and regulatory expertise. Pharmaceutical companies gain flexibility to scale production without heavy capital investment, enabling greater focus on research, drug development, and commercialization. This model also supports faster time-to-market, which is critical in today’s competitive and innovation-driven pharmaceutical environment.
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About DelveInsight
DelveInsight is a leading healthcare-focused market research and consulting firm that provides clients with high-quality market intelligence and analysis to support informed business decisions.
