Pharmaceutical: Contract Manufacturing

Pharmaceutical Contract Manufacturing Market Growth

According to IQ4I, the global Pharmaceutical Contract Manufacturing market is expected to grow at a mid-single-digit CAGR to reach $95,904.9 million by 2025.

Market Growth Drivers

The pharmaceutical market is showing rapid growth due to the rise in population, increased incidence of diseases such as infectious diseases, oncology, and cardiovascular issues, and rising healthcare spending. Pharmaceutical companies are increasingly outsourcing contract manufacturing due to a lack of advanced facilities or time, or to have backup manufacturing support. This trend benefits contract manufacturing service providers and is expected to increase their share in the pharmaceutical manufacturing market.

API and FDF Manufacturing

Pharmaceutical contract manufacturing services focus on the manufacturing of Active Pharmaceutical Ingredients (API) and Finished Dosage Forms (FDF). APIs are categorized into biologics (large molecules) and synthetic (small molecules). According to IQ4I analysis, synthetic molecules account for 65% to 70% of the API market, while biologics represent 30% to 35%.

Global API Market Growth

The increasing availability of small molecule drugs for major diseases and the number of small molecule drugs in the pipeline are significant factors driving the growth of the synthetic API market. The contract manufacturing market for APIs is expected to grow steadily through 2025, driven by the demand for generics, government initiatives, and an increasing number of API manufacturers.

FDF Manufacturing Trends

The FDF market, particularly solid dosage forms, is projected to grow due to evolving consumer demands and advancements in new dosage forms. Injectable dosage forms are the fastest-growing segment, with a projected CAGR of 11.4% from 2018 to 2025, due to the immediate drug delivery it offers in emergency situations.

Regional Insights

North America dominated the market in 2018 and is expected to grow steadily, driven by a developed healthcare sector, increasing clinical trials, and rising demand for generic drugs. Asia-Pacific is the fastest-growing region, with India and China leading due to lower labor costs, regulatory ease, and increasing production capacities.