Global Pharmaceutical Contract Manufacturing Research Report 2025 (Status and Outlook)
Report Overview:
With the rapid development of the global pharmaceutical industry and the continuously changing market demands, pharmaceutical contract manufacturing outsourcing (CMO/CDMO) has increasingly become a key strategy for pharmaceutical companies to improve production efficiency, reduce costs, and accelerate drug commercialization. Pharmaceutical contract manufacturing outsourcing is not just a simple outsourcing of production; it is a comprehensive service system that spans the entire pharmaceutical value chain, including drug development, process optimization, manufacturing, and commercialization. Especially driven by the advancement of innovative drug development, CDMO companies, with their strong technical capabilities and flexible production models, have become indispensable partners for the global pharmaceutical industry.
The pharmaceutical contract manufacturing market refers to the industry where pharmaceutical companies outsource drug production to professional third-party organizations, commonly referred to as Contract Manufacturing Organizations (CMO) or Contract Development and Manufacturing Organizations (CDMO). This market covers oral solid dosage forms (such as tablets and granules), including formulation preparation, granulation, tablet pressing, coating, and packaging, as well as injectable forms (such as vials, syringes, and ampoules), which include sterile drug preparation, sterile filling, freeze-drying, labeling, and quality control services. The clients of this market include branded pharmaceutical companies, generic drug manufacturers, and biotechnology companies lacking internal production capabilities.
Pharmaceutical manufacturing outsourcing encompasses both CMO and CDMO markets. CMO refers to Contract Manufacturing for pharmaceuticals, where CMO companies provide support services for drug production, such as process development and formulation development, upon receiving a commission from pharmaceutical companies. As pharmaceutical companies continue to enhance cost control and raise production efficiency demands, some CMO companies have extended their service chains and evolved into CDMO companies that can offer high-value-added services. CDMO companies, while accepting production orders, combine their own process development capabilities with large-scale production capacity, providing a highly integrated approach to the pharmaceutical company's research, procurement, and production supply chain systems. They replace simple production capacity output with high-value-added technical outputs, thus helping clients improve production efficiency and reduce manufacturing costs.
The business model of CDMO is order-driven, where they deeply explore the needs of core clients in large Biopharma (biopharmaceutical companies) while actively expanding their market in small and medium-sized Biotech (biotechnology companies). By building both broad market coverage (large pharmaceutical companies' large-scale orders) and in-depth client services (full-cycle services for innovative Biotech), CDMOs strengthen their ability to flexibly allocate production capacity and implement technology transfer. For Biopharma, their product pipelines are spread across different stages of development, and there is a significant demand for large-scale production in the later stages. During operations, Biopharma must coordinate research, production, and commercialization resources to ensure the efficient operation of the entire supply chain. Faced with increasingly fierce market competition and rising cost pressures, Biopharma is actively shifting toward a light-asset operation model—by divesting production functions and relying on outsourcing services to reduce costs and increase efficiency.
For many Biotech companies, which are more focused on drug innovation, especially in the early clinical research phase, there are significant capability gaps in the later stages of the entire industry chain, such as process development and commercialization production. Due to limitations in financial scale and risk-bearing capacity, as well as the time-consuming and capital-intensive nature of building in-house production capacity, Biotech companies often face challenges in process development and technology accumulation. By leveraging CDMO services, Biotech can focus limited resources on core research areas and effectively break through the bottlenecks in the later stages of development, accelerating the conversion process from research to production.
According to data from Bosson Research, the global pharmaceutical manufacturing outsourcing market reached USD 89.581 billion in 2024 and is expected to expand at a high compound annual growth rate (CAGR) of about 14.20% from 2025 to 2033, reaching approximately USD 295.945 billion by 2033.
The booming development of the innovative drug industry provides a broad prospect for the pharmaceutical manufacturing outsourcing market. As global pharmaceutical companies and emerging biotechnology companies continue to increase investments in innovative drug research and development, the global market size for innovative drugs has grown from USD 564 billion in 2018 to USD 737 billion in 2023 and is expected to continue expanding. The continuous investment by pharmaceutical companies in R&D has driven the discovery of new drugs, which offer superior efficacy, safety, and convenience compared to existing therapies. Meanwhile, advances in biotechnology and drug research are accelerating the development of innovative drugs and promoting the popularization of personalized medicine. Breakthroughs in genomics and molecular diagnostic technologies have made precision medicine and personalized therapies possible, providing pharmaceutical companies with more opportunities to introduce innovative therapies and meet unmet medical needs. The increase in healthcare spending further supports this trend, providing strong support for the continued growth of the pharmaceutical manufacturing outsourcing industry.
Key Development Trends
Global Pharmaceutical Companies’ R&D Spending Growth
According to Sullivan data, large pharmaceutical companies contributed approximately 64% of global R&D spending in 2023, growing at a compound annual growth rate (CAGR) of 5.3% from 2018 to 2023. Looking ahead, R&D spending from small pharmaceutical and biotechnology companies is expected to grow faster, with their combined share projected to increase from 22% in 2023 to 26% by 2028. Small pharmaceutical and biotechnology companies are expected to maintain healthy growth rates of 4.6% and 7.4% respectively from 2023 to 2028. The strong performance in biotechnology R&D spending is largely driven by the venture capital (VC) funding available to early-stage biotechnology firms, which has surged from $17.1 billion in 2018 to $21.4 billion in 2023. Increasing accessibility to technology acquisition and drug discovery capabilities has also contributed to higher innovation potential among small pharmaceutical and biotechnology companies.
CRDMO Growth Trend
In recent years, the integrated contract research and manufacturing organizations (CRDMOs) have experienced rapid growth. More pharmaceutical innovators are opting to partner with a single provider to cover the entire pharmaceutical value chain, from R&D to manufacturing. This trend is particularly crucial for small pharmaceutical companies and biotechnology firms with limited resources and streamlined teams, as it helps reduce the coordination and management costs associated with multiple partners. Traditionally, pharmaceutical companies have worked with contract research organizations (CROs) for drug discovery and contract development and manufacturing organizations (CDMOs) for drug development and production. There is some overlap in services, such as active pharmaceutical ingredient (API) production and formulation development.
However, with the increasing demand for drug development and manufacturing, pharmaceutical innovators are increasingly relying on integrated CRDMO services. By centralizing R&D and manufacturing capabilities in the same organization, CRDMOs provide a seamless path from early-stage research to commercial-scale production, enabling more efficient, collaborative, and rapid progression across all stages of drug development. This integrated model not only enhances decision-making speed and project execution but also strengthens technology transfer, fosters communication and collaboration, and ultimately improves project outcomes. The rise of integrated CRDMOs is becoming a significant driver in accelerating drug development and improving industry efficiency. Many CRDMOs have succeeded by establishing labs and R&D facilities closer to clients, and by conducting larger-scale R&D and manufacturing in low-cost regions. Establishing in innovation centers helps tap into the latest research trends, access global talent, and foster potential collaborations. At the same time, facilities in low-cost regions such as India provide a competitive cost advantage for large-scale drug discovery, product development, and commercialization.
CDMO companies are shifting from traditional manufacturing-focused businesses to integrated service platforms, adapting to the global pharmaceutical industry's trend of supply chain integration and high-value upgrades. Through establishing or acquiring specialized CRO teams, CDMOs are actively engaging in early drug screening and discovery, pharmacodynamics, and safety evaluation, strengthening core capabilities such as clinical trial design, patient recruitment, and data analysis. These moves help CDMOs transition from simple manufacturers to comprehensive service providers.
Leading Companies Increasing Investment in Niche Segments
Top-tier companies are closely following the rapid development of the biopharmaceutical industry to capitalize on emerging segment opportunities, aiming to create a diversified business structure and enhance market competitiveness. These companies are entering niche segments that either relate closely to their existing technical expertise, markets, and resources, or they are venturing into entirely new areas. There are two main types of companies entering emerging niche segments: the first type includes CDMOs that have accumulated advantages in the small molecule drug sector and are expanding into the large molecule field. The second type includes CDMOs focused on large molecule drug R&D and production services, which are further extending their reach into more specialized fields.
Global Pharmaceutical Contract Manufacturing Market: Competitive Landscape
The global pharmaceutical contract manufacturing market is characterized by the dominance of large enterprises, with a few multinational companies holding the majority of market share. According to Bosson Research, major players such as Lonza, Catalent, Thermo Fisher Scientific, WuXi AppTec, and Samsung Biologics lead the market. Regionally, North America and Europe dominate CDMO services, collectively accounting for approximately 70% of the market share, while the Asia-Pacific region, with its rapid growth, is becoming an emerging focal point. Emerging markets like China and India, due to their cost advantages and technological advancements, have attracted an increasing number of international pharmaceutical companies to outsource their manufacturing.
The main players in the pharmaceutical manufacturing outsourcing industry can be classified into three categories: large multinational CDMOs, such as WuXi AppTec, Lonza, and Catalent, which provide comprehensive services across a broad spectrum of small and large molecules. These large multinational companies typically have multiple production facilities globally to meet the diverse needs of clients. The second category is mid-sized specialized CDMOs, which mainly serve companies focused on specific technologies or therapeutic areas, such as cell and gene therapy, continuous manufacturing, etc. For instance, Porton Biopharma has a strong competitive advantage in small molecule pharmaceutical manufacturing outsourcing, while Pharmablock specializes in the development and production of drug molecule building blocks. The third category is small niche players, typically focusing on specific regions or technologies, such as local companies in emerging markets or small enterprises with unique technologies. For example, HiPep specializes in chemical synthesis and drug discovery with a distinctive technology platform.
In international markets, especially in mature markets such as Europe and North America, the competitive landscape of the pharmaceutical manufacturing outsourcing industry is changing. With increasing concerns about the security and stability of global supply chains, many countries and regions are emphasizing local production and supply chain diversification. For instance, the U.S. government has proposed "reshoring" policies to encourage pharmaceutical companies to bring some production processes back to the domestic market, while Europe is also promoting local production to reduce reliance on external supply chains. This shift has prompted some multinational pharmaceutical companies to reassess their outsourcing strategies and increase demand for local pharmaceutical manufacturing outsourcing services.
At the same time, pharmaceutical manufacturing outsourcing companies in emerging markets such as China and India, leveraging their cost advantages and technological advancements, are gradually making their mark on the global stage, attracting increasing business from international pharmaceutical companies. In the Chinese market, the demand for pharmaceutical manufacturing outsourcing continues to grow. As China’s pharmaceutical industry shifts from generic drugs to innovative drugs, the demand for innovative drug research and development is rising, providing a vast market opportunity for pharmaceutical manufacturing outsourcing companies. The Chinese government has introduced a series of policies supporting innovative drug R&D, such as the Drug Market Authorization Holder (MAH) system and reforms to the new drug review and approval system, further driving the development of the pharmaceutical manufacturing outsourcing industry.
Global Pharmaceutical Contract Manufacturing Market: Market Segmentation Analysis
The research report includes specific segments by region (country), manufacturers, Type, and Application. Market segmentation creates subsets of a market based on product type, end-user or application, Geographic, and other factors. By understanding the market segments, the decision-maker can leverage this targeting in the product, sales, and marketing strategies. Market segments can power your product development cycles by informing how you create product offerings for different segments.
Key Company
Lonza Group
Thermo Fisher Scientific
Catalent
WuXi Biologics
Samsung Biologics
Fresenius Kabi
Siegfried
Fujifilm Diosynth Biotechnologies
Boehringer Ingelheim
Evonik Industries
Pfizer CentreOne
Fareva
Curia Global
Vetter Pharma
Recipharm
Charles River Laboratories
Zhejiang Jiuzhou Pharmaceutical Co., Ltd
Aenova
MilliporeSigma
Simtra BioPharma Solutions
Piramal Pharma Solutions
PCI
Asymchem Laboratories (Tianjin) Co., Ltd
AGC Inc.
Miltenyi Biotec (Miltenyi Bioindustry division)
Ajinomoto Bio-Pharma Services
AbbVie
Apeloa Pharmaceutical Co., Ltd
Market Segmentation (by Type)
Compound Synthesis
Chemical Drug Intermediates/API
Chemical Drug Formulations
Others
Market Segmentation (by Application)
Branded Pharmaceuticals
Generic Drugs
Biopharmaceuticals/Biologics
Others
Geographic Segmentation
North America
Europe
Asia-Pacific
South America
Middle East and Africa
Key Benefits of This Market Research:
• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Pharmaceutical Contract Manufacturing Market
• Overview of the regional outlook of the Pharmaceutical Contract Manufacturing Market:
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• Access to date statistics compiled by our researchers. These provide you with historical and forecast data, which is analyzed to tell you why your market is set to change
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• The concise analysis, clear graph, and table format will enable you to pinpoint the information you require quickly
• Provision of market value (USD Billion) data for each segment and sub-segment
• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market
• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region
• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled
• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players
• The current as well as the future market outlook of the industry concerning recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions
• Includes in-depth analysis of the market from various perspectives through Porter’s five forces analysis
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Chapter Outline
Chapter 1 mainly introduces the statistical scope of the report, market division standards, and market research methods.
Chapter 2 is an executive summary of different market segments (by region, product type, application, etc), including the market size of each market segment, future development potential, and so on. It offers a high-level view of the current state of the Pharmaceutical Contract Manufacturing Market and its likely evolution in the short to mid-term, and long term.
Chapter 3 makes a detailed analysis of the Market's Competitive Landscape of the market and provides the market share, capacity, output, price, latest development plan, merger, and acquisition information of the main manufacturers in the market.
Chapter 4 is the analysis of the whole market industrial chain, including the upstream and downstream of the industry, as well as Porter's five forces analysis.
Chapter 5 introduces the latest developments of the market, the driving factors and restrictive factors of the market, the challenges and risks faced by manufacturers in the industry, and the analysis of relevant policies in the industry.
Chapter 6 provides the analysis of various market segments according to product types, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different market segments.
Chapter 7 provides the analysis of various market segments according to application, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different downstream markets.
Chapter 8 provides a quantitative analysis of the market size and development potential of each region and its main countries and introduces the market development, future development prospects, market space, and capacity of each country in the world.
Chapter 9 details the production of products in major countries/regions and provides the production of major countries/regions.
Chapter 10 introduces the basic situation of the main companies in the market in detail, including product sales revenue, sales volume, price, gross profit margin, market share, product introduction, recent development, etc.
Chapter 11 provides a quantitative analysis of the market size and development potential of each region in the next five years.
Chapter 12 provides a quantitative analysis of the market size and development potential of each market segment (product type and application) in the next five years.
Chapter 13 is the main points and conclusions of the report.
