Pharmaceutical Contract Manufacturing Market Size, Share & Trends Analysis Report By Product (Small Molecule, Biologics), By Drug, By Service, By Scale of Operation, By Workflow, By Application, By End Use, By Company, By Region,- Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2025-2034

Pharmaceutical Contract Manufacturing Market Size and Research

The pharmaceutical contract manufacturing market size was exhibited at USD 129.38 billion in 2024 and is projected to hit around USD 331.03 billion by 2034, growing at a CAGR of 9.85% during the forecast period 2025 to 2034.

Pharmaceutical Contract Manufacturing Market Key Takeaways:

• The API manufacturing segment captured the largest market share of 70.68% in 2024.
• The small molecules segment dominated the global pharmaceutical contract manufacturing industry in 2024.
• The biologics segment is expected to grow at a significant CAGR over the forecast period. 
• The generics segment held the largest market share in 2024.
• The branded segment is expected to register a CAGR of 9.64% during the forecast period.
• In 2024, the batch segment dominated the market, accounting for a revenue share of 88.88%.
• On the other hand, the continuous segment is expected to experience significant growth at a specific (CAGR) during the forecast period.
• The commercial segment dominated the global pharmaceutical contract manufacturing industry in 2024.
• The oncology segment dominated the global pharmaceutical contract manufacturing industry and accounted for a revenue share of 23.55% in 2024.
• On the other hand, the cardiovascular diseases segment is expected to experience significant growth at a specific (CAGR) during the forecast period.
• The small company size segment dominated the market with the largest revenue share 51.0% in 2024.
• On the other hand, the biotechnology companies segment is expected to experience significant growth at a specific (CAGR) rate during the forecast period.
• The North American pharmaceutical contract manufacturing industry accounted for the largest share of 39.0% in 2024.

Report Scope of Pharmaceutical Contract Manufacturing Market

The global pharmaceutical industry is rapidly evolving with changing dynamics to bring new drugs to market, which has led to the support of external partners such as contract manufacturing organizations (CMOs) to support them in product manufacturing efficiently and cost-efficiently. This market growth is attributed to the rising cost of drug development, increased demand for pharmaceutical drugs, and rising adoption of technological advancement in CMO production facilities.

The market major offers contract manufacturing services, focusing on the production of drugs based on the pharmaceutical company’s formula, ensuring smooth, efficient production of pharmaceutical products to meet demands. Thus, these CMOs support pharmaceutical companies to reduce their capital expenditure and operational costs while boosting their drug development process & potentially getting life-saving medications to patients faster.

Furthermore, most small-to-mid-sized pharmaceutical companies benefit from CMOs, which support them in focusing on their core competencies and tackling the complexities of production for a company contracting them. In addition, most contract manufacturing providers are highly specialized in the availability of various sterile filling equipment that supports increased production, further enhancing the process of drug production without compromising quality. Besides, the surge in drug discovery techniques and growing focus on quality control systems to ensure that products meet industry standards drive the market growth.

Moreover, rapid technological advances are also reshaping contract manufacturing to improve efficiency while enabling effective drug customization. Technological advancements such as advanced manufacturing technologies, data analytics and, artificial intelligence (AI) and, quality by design (QbD), and process analytical technology (PAT) support continuous evolution and demand for new manufacturing capacities to accelerate drug development timelines. For instance, data analytics and AI are transforming various aspects of the pharmaceutical industry by harnessing major amounts of data generated throughout the manufacturing process. It can further support optimizing production, predict equipment failures, and ensure regulatory compliance. Moreover, CMOs with expertise in formulation development and clinical trial production are expected to boost AI-driven discoveries into real-world treatments.Moreover, the growing requirement for branded and generic drugs is one of the significant factors for the growth of the pharmaceutical contract manufacturing industry.

Thus, the role of contract manufacturing (CMOs) in the pharmaceutical industry offers a comprehensive range of tailored solutions from pharmaceutical development to commercial services, further accelerating drug development, minimizing cost, and improving efficiency.

Pharmaceutical Contract Manufacturing Market By Service Insights

In terms of service, the market is segmented into API manufacturing, finished drug product manufacturing, and packaging services. Finished drug product manufacturing further includes oral solids, liquids, topicals, and others. The API manufacturing segment captured the largest market share of 70.68% in 2024. This significant growth can be attributed to rising outsourcing trends, cost efficiency, and the need for regulatory compliance. Producing active pharmaceutical ingredients (APIs) is one of the most critical processes in pharmaceutical production, as it helps create lifesaving medications for patients. In addition, most contract manufacturing is increasingly investing in high-potency active pharmaceutical ingredients (HPAPIs) and continuous manufacturing processes to enhance the efficiency and sustainability of the drugs. For example, 40-50% of the costs associated with generic oral solid drugs are attributed to APIs. These ingredients are vital for diagnosing, curing, mitigating, treating, or preventing diseases, as well as for affecting the structure or function of the body.

Besides, the manufacturing of API is a complex process that operates within a highly regulated environment, necessitating precision and strict adherence to global standards to ensure the safety, quality, and efficacy of the drugs produced. Furthermore, the demand for biologics, specialty APIs, and custom synthesis is driving innovation, while advanced process technologies improve production efficiency. Regulatory harmonization across agencies like the FDA, EMA, and PMDA also has a significant impact on global API supply chains. In addition, the growing aging population and the prevalence of various diseases have also contributed to the pharmaceutical APIs segment growth, further increasing the need for contract manufacturing services and contributing to overall market growth.

On the other hand, the packaging services segment is expected to grow at the fastest CAGR over the forecast period. The growth is due to increasing demand for lifesaving pharmaceuticals and the rising partnerships among pharmaceutical companies and contract manufacturing organizations (CMOs) to provide a range of services, including manufacturing and packaging. In addition, the need for cost-effective packaging solutions and the requirement for packaging of lifesaving medications are crucial in ensuring that these products reach patients effectively.

Innovations in the primary packaging industry are also becoming more prevalent, particularly for small-batch production. Furthermore, pharmaceutical contract manufacturing has emerged significantly, leading to increased production capacity and reduced time-to-market for new product launches. This segment offers various packaging options, including blister packaging, bottle and vial packaging, ampoule and capsule packaging, tubes, sachets, pouches, and stick packs. These solutions help pharmaceutical companies enhance efficiency and maintain product integrity throughout the supply chain, from primary packaging and labeling to shipping, storage, and distribution to end users. This trend is expected to drive market growth over the estimated time.

Pharmaceutical Contract Manufacturing Market By Product Insights

Based on product, the market is segmented into small molecules and biologics. Biologics further includes monoclonal antibodies, vaccines, recombinant proteins, and others. The small molecules segment dominated the global pharmaceutical contract manufacturing industry in 2024. Small-molecule drugs have been the backbone of the pharmaceutical industry for nearly a century. The segment growth is driven by the increasing volume of small molecule production; the growing advantages the CMOs offer will simplify manufacturing compared to large molecule biologics. Besides rising outsourcing demand, cost-effectiveness supports enhancing efficiency, scalability, and quality control in small molecule drug production. Moreover, several pharmaceutical companies are shifting their focus on contract manufacturing to develop novel small-molecule drugs to treat various indications in areas such as oncology, immunology, and infectious diseases. This is expected to drive the segment growth over the estimated period.

The biologics segment is expected to grow at a significant CAGR over the forecast period. This growth is attributed to high investments and ongoing innovation in therapeutic & other medications. In addition, the increasing adoption of advanced technologies such as artificial intelligence, the rising outsourcing trends, and the growing research and development (R&D) activities by pharmaceutical companies are key factors propelling the segment's growth. Moreover, a favorable regulatory environment is also anticipated to support market growth. Furthermore, contract manufacturing organizations (CMOs) support enhancing speed to market by offering high production capabilities and state-of-the-art manufacturing facilities, which further contributes to the growth of the biologics segment. Such factors are expected to drive the segment growth during the forecast period.

Pharmaceutical Contract Manufacturing Market By Drug Insights

Based on drug, the market is categorized into generics and branded segments.  The generics segment held the largest market share in 2024. The segment growth is driven by rising patent expirations, increased outsourcing by pharmaceutical companies, and rising requirements for cost-effective medicines. Besides, continuous manufacturing trends and technological advancements have led growth of the segment. Furthermore, the low manufacturing costs have encouraged various pharmaceutical companies in developed economies to outsource their manufacturing activities to CMOs.

The branded segment is expected to register a CAGR of 9.64% during the forecast period. The branded drug contract manufacturing segment is experiencing steady growth as pharmaceutical companies increasingly outsource production to Contract Manufacturing Organizations (CMOs). Besides, due to the rising complexity of drug formulations, most pharmaceutical manufacturers producing branded drugs are turning to contract manufacturing organizations for their expertise in advanced formulations, biologics, sterile injectables, and novel drug delivery systems. Moreover, stringent regulations from the FDA, EMA, and MHRA have increased the number of high-quality, GMP-compliant manufacturing facilities. In addition, emerging technologies are transforming the landscape of branded drug manufacturing with the growing demand for personalized medicine, biologics, and specialty drugs. Likewise, strategic partnerships, mergers, and acquisitions are shaping the industry, enabling pharmaceutical companies to focus on R&D and commercialization while ensuring reliable, high-quality drug production.

Pharmaceutical Contract Manufacturing Market By Scale Of Operation Insights

Based on scale of operation, the market is categorized into batch and continuous segments. In 2024, the batch segment dominated the market, accounting for a revenue share of 88.88%. A key trend in the market is batch outsourcing, as it offers smaller companies the opportunity to save operational costs and significantly reduces the preparation and adjustment of equipment before commencing the production of each batch. Such factors are anticipated to drive the segment growth.

On the other hand, the continuous segment is expected to experience significant growth at a specific (CAGR) during the forecast period. Pharmaceutical continuous manufacturing (CM) is considered a crucial technology in the pharmaceutical contract manufacturing process, with a growing emphasis on producing innovative drugs. The segment growth can be attributed to greater efficiency, cost reduction, and improved product quality. Besides, continuous manufacturing (CM) technologies are increasingly being adopted to meet the growing demand for faster, more flexible, seamless, scalable drug production, which is expected to drive the segment over the estimated time.

Pharmaceutical Contract Manufacturing Market By Workflow Insights

Based on workflow, the market is segmented into clinical and commercial. The commercial segment dominated the global pharmaceutical contract manufacturing industry in 2024 owing to a strong pipeline for pharmaceutical drug development and large-scale commercial manufacturing, among others. Besides, several pharmaceutical companies are turning to commercial contract manufacturing to access advanced infrastructure and expertise due to the increasing influx of novel therapies & orphan drugs and higher returns on approved products. The above factors are expected to drive market growth. The clinical segment is anticipated to register a significant CAGR during the forecast period. The segment is driven by a growing number of clinical trials and increasing demand for specialized CMO services. Such factors are anticipated to drive the market growth.

Pharmaceutical Contract Manufacturing Market By Application Insights

Based on application, the market is segmented into oncology, infectious diseases, neurological disorders, cardiovascular diseases, metabolic disorders, autoimmune diseases, respiratory diseases, ophthalmology, gastrointestinal disorders, hormonal disorders, hematological disorders, and others.

The oncology segment dominated the global pharmaceutical contract manufacturing industry and accounted for a revenue share of 23.55% in 2024. The segment is expected to grow due to the increasing number of cancer cases worldwide. For instance, the Cancer Atlas mentioned that there will be 29 million cancer cases across the globe by 2040. Recent trends in pharmaceutical products have shifted with growing R&D for cancer treatments. The pharmaceutical sector has witnessed significant growth due to the rising demand for oncology drugs & therapies fueled by innovative targeted treatments and personalized medicine approaches, leading to a rise in demand for pharmaceutical contract manufacturing.

On the other hand, the cardiovascular diseases segment is expected to experience significant growth at a specific (CAGR) during the forecast period. The segment is driven by the increasing prevalence of cardiovascular diseases, which has fueled the segment's growth. For instance, according to World Heart Report 2023 revealed that over half a billion people globally are affected with cardiovascular diseases, resulting in nearly a million deaths. Hence, the growing innovation of pharmaceutical products is expected to propel market growth.

Pharmaceutical Contract Manufacturing Market By Company Size Insight

Based on company size, the market is segmented into small, medium, and large. The small company size segment dominated the market with the largest revenue share 51.0% in 2024. The high growth of the segment is mainly due to the presence of growing employee strengths, facilities and increasing venture funding. The company ideally has 100+ employees participating in developing innovative drugs. Contract manufacturing with a total turnover of over USD 10 million and above committed to annual investment outlays have increased with rising sales.

On the other hand, the medium segment is expected to grow at a significant CAGR during the forecast period. Most medium or “midsized” companies have 100 to 500 employees participating in the end-to-end development of innovative drugs; however, their concentration is limited to specific therapy areas. In addition, these medium companies have a revenue of around USD 10 million to 1,000 million. Such factors are anticipated to drive the market growth.

Pharmaceutical Contract Manufacturing Market By End Use Insights

Based on end-use, the market is segmented into pharmaceutical and biotechnology companies. In 2024, the pharmaceutical companies segment dominated the market attributed to the increasing trend of outsourcing end-to-end services, especially among small and mid-sized pharmaceutical companies that lack expertise in drug development. The demand for outsourcing services in the pharmaceutical industry is emerging due to the rising need for CMO services for various therapeutics, increased investments in research and development (R&D), and technological advancements. Furthermore, the growing number of drug pipelines in pharmaceutical and biopharmaceutical companies is expected to contribute to the expansion of this segment throughout the forecast period.

On the other hand, the biotechnology companies segment is expected to experience significant growth at a specific (CAGR) rate during the forecast period. Increasing preference for outsourcing among biotechnology, midsized biotechnology, and emerging companies to gain better knowledge of outsourcing pharmaceutical drugs has led to the growth of the market. Likewise, an increasing number of new pharmaceutical drugs contribute to market growth.

Pharmaceutical Contract Manufacturing Market By Regional Insights

The North American pharmaceutical contract manufacturing industry accounted for the largest share of 39.0% in 2024. This can be attributed to several factors, including technological advancements, growing demand for pharmaceutical products, and the increasing outsourcing of pharmaceutical production to third-party manufacturers. Besides, CMOs mainly support pharmaceutical companies in reducing operational costs, further boosting production. In addition, the rising adoption of advanced technologies such as AI and machine learning is optimizing various drug development and manufacturing stages. Moreover, the demand for contract manufacturing is expected to drive efficiency and innovation and save costs for R&D.

Pharmaceutical contract manufacturers enable companies to focus on their core capabilities, comply with regulatory requirements, and enhance their service offerings for various formulations and specialty drugs. This has resulted in an increasing demand for contract manufacturing organization (CMO) services, particularly with a shift towards cost-effective, high-quality production and strategic partnerships, as well as mergers and acquisitions (M&A) to gain competitive advantages. As the pharmaceutical landscape evolves, contract manufacturing organizations will continue to play an integral role in creating successful outcomes for innovators and end users.

U.S. Pharmaceutical Contract Manufacturing Market Trends

The pharmaceutical contract manufacturing industry in the U.S. held the largest share in 2024. This growth is driven by the expansion of the overall drug market and increasing trends in outsourcing. In addition, the development of generics has significantly benefited the market, as pharmaceutical manufacturers outsource as much as 80% of their production to contract manufacturing organizations (CMOs). CMOs play a crucial role for small to midsize pharmaceutical companies to support them in gaining a competitive edge in the challenging drug manufacturing landscape. With strategic initiatives such as partnerships with CMOs, these companies can access testing facilities with minimal initial investment.

Furthermore, CMOs significantly enhance the existing pharmaceutical product portfolio of pharmaceutical companies. The market provides state-of-the-art facilities, quality control measures, and resilient supply chains for production. Hence, the growing need for innovative drugs, the rising prevalence of diseases, and the increasing presence of pharmaceutical companies have all led to an increased demand for CMO services. As these services offer advanced production capabilities and shorter time-to-market, making CMOs strategic partners for drug production. Such factors are expected to drive market growth.

Europe Pharmaceutical Contract Manufacturing Market Trends

The pharmaceutical contract manufacturing market in Europe is anticipated to experience significant growth due to stringent regulatory requirements and an increasing demand for biologics & specialty drugs. This trend has emphasized the need for innovation capabilities, which fuels the demand for pharmaceutical contract manufacturing services in the region. Furthermore, contract manufacturing organizations (CMOs) provide pharmaceutical companies with opportunities to explore the latest innovations in the industry. CMOs also help streamline operations, ensure regulatory compliance, and accelerate the time-to-market for new therapies. This targeted focus on new product innovation will further drive market growth. In addition, contract manufacturers offer specialized services and include advanced facilities and equipment, benefiting from the latest technology, which indeed benefits the pharmaceutical companies.

In addition, pharmaceutical contract manufacturers ensure quality product production while achieving cost efficiencies and improved operational effectiveness. Moreover, technological advancements such as continuous manufacturing, automation, and AI-driven process optimization enhance efficiency and scalability. The regulatory framework enforces high standards for Good Manufacturing Practices (GMP) compliance, quality assurance, and supply chain transparency. These factors are expected to drive market growth over the estimated time period.

Germany's pharmaceutical contract manufacturing industry held the largest revenue share in the European region in 2024. This market is primarily driven by the expanding pharmaceutical industry and the increasing demand for contract manufacturing (CMO) services that support the production of life-saving medications for regional healthcare markets. In addition, the German pharmaceutical CMO market offers customers a wide and flexible range of new product innovation with its advanced technologies, and services. These contract manufacturers support the pharmaceutical companies to reduce regulatory risks, accelerate time to market, enhance supply chains, and introduce new products as quickly as possible. Furthermore, stringent regulations and evolving industry standards require contract manufacturers to implement quality management systems that comply with proper manufacturing practices, ensuring compliance and prioritizing patient safety fuel the market growth. Such factors are expected to drive the market.

The UK pharmaceutical contract manufacturing industry is anticipated to grow over the forecast period. This growth is primarily due to the growing need for contract manufacturing for efficient and increased pharmaceutical production to reduce the time to market, further fueling the market. In addition, contract manufacturing services help pharmaceutical companies reduce storage costs, shorten manufacturing timelines, and minimize facility requirements. This enables these companies to focus more on research and development for new drugs. Furthermore, these services aim to create potential collaborations which further support to overcome the challenges of manufacturing capabilities. Such factors are anticipated to drive the market.

Asia Pacific Pharmaceutical Contract Manufacturing Market Trends

Asia Pacific pharmaceutical contract manufacturing industry is projected to register a significant CAGR during the forecast period. This growth can be attributed to various factors, such as growing pharmaceutical product requirements, the presence of well-established pharmaceutical companies, technology adoption, and several opportunities in this region that drive market growth. Moreover, countries such as Japan, China, and India are increasingly focusing on expanding their facilities plants, providing contract manufacturing services for small biologics and biologics, further supporting the establishment of a foothold in the APAC region. Furthermore, there is a rising emphasis on developing blockbuster new drugs, which has raised concerns about the infrastructure needed for drug development and production. As a result, the region has a growing need for contract manufacturing services. In addition, the increasing number of pharmaceutical products driven by a rising disease burden is expected to be a significant factor fueling the growth of the pharmaceutical contract manufacturing market in Asia Pacific.

China's pharmaceutical contract manufacturing industry held the largest share in 2024. The Chinese CMO market is driven by the rapidly expanding pharmaceutical drug industry and the advantages offered by contract manufacturing organizations (CMOs). The advantages include cost-effectiveness and advanced manufacturing capabilities to innovate new drugs. These contract manufacturing significantly benefits pharmaceutical companies by enhancing efficiency and providing access to specialized services, which further improve productivity, flexibility, and innovation in the production of quality products such as active pharmaceutical ingredients (APIs), biologics, sterile injectables, and high-potency drugs.

In addition, government support for pharmaceutical drug innovation is expected to further boost market growth. Major pharmaceutical hubs in China, such as Shanghai, Beijing, and Jiangsu, offer services in custom synthesis, formulation development, and clinical trial manufacturing. Furthermore, the need for supply chain diversification is expected to contribute to market growth over the estimated period.

Japan pharmaceutical contract manufacturing industry is the second largest in the Asia Pacific region, and it is expected to provide a robust opportunity for pharmaceutical contract manufacturing services thereby driving market growth. The country is experiencing an increasing aging population and a rising incidence of diseases, leading to a rising requirement for various pharmaceutical drugs and contract manufacturing services. In addition, the dependence on contract manufacturing organizations (CMOs) is expected to enhance the global sales and supply of pharmaceutical products in the country. These factors are projected to propel market growth during the estimated time period.

The pharmaceutical contract manufacturing market in India is expected to experience significant growth at a lucrative CAGR during the forecast period. This growth is driven by an increasing focus on research and development (R&D) to support the pipeline of generics, biologics, biosimilars, and personalized medicines, along with a rising demand for cost-efficient production services. Contract manufacturing organizations (CMOs) support pharmaceutical companies to focus on their core competencies while reducing the costs associated with in-house manufacturing. Besides, the services are in increasing demand as they offer major benefits by the existing facilities of CMOs. These factors are expected to contribute to the market's growth in the upcoming years.

Some of the prominent players in the pharmaceutical contract manufacturing market include:

• AbbVie Contract Manufacturing
• Almac Group
• Boehringer Ingelheim BioXcellence
• Catalent
• Dr. Reddy's Laboratories
• Fareva
• Fujifilm Diosynth Biotechnologies
• Jubilant HollisterStier
• Lonza Group
• Patheon (Thermo Fisher Scientific)
• Pfizer CentreOne
• Prakruti Life Science
• Recipharm
• Samsung Biologics
• Siegfried Holding AG
• Vetter Pharma
• WuXi AppTec

Pharmaceutical Contract Manufacturing Market Recent Developments

• In October 2024, Samsung Biologics mentioned a contract manufacturing partnership with an Asian pharmaceutical company. This partnership is valued at USD 1.24 billion, making it one of the most significant contracts signed by a single client to date. In addition, the production will take place in South Korea at Samsung Biologics' biomanufacturing facility, and the partnership will run through December 2037. With the agreement, Samsung Biologics' total contracts for 2024 have exceeded USD 3.3 billion.
  
  
• In March 2023, Pfizer mentioned a USD 183 million contract manufacturing partnership with Samsung Biologics. In addition, after two years, the Samsung Biologics mentioned the agreement to manufacture COVID-19 vaccines for Moderna, as well as for other leading mRNA vaccine producers, including Pfizer. This is the first time Korea's top conglomerate Samsung Group's biotechnology unit unveiled its CMO contract with Pfizer.    

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2034. For this study, Nova one advisor, Inc. has segmented the pharmaceutical contract manufacturing market

By Service

• API Manufacturing
• Finished Drug Product Manufacturing

• • Oral Solids
  • Liquids
  • Topical
  • Others

• Packaging Services

By Product

• Small Molecule
• Biologics

• • Monoclonal Antibodies
  • Vaccines
  • Recombinant Proteins
  • Others

By Drug

• Generics
• Branded

By Scale of Operation

• Batch
• Continuous

By Workflow

• Clinical 
• Commercial

By Application

• Oncology
• Infectious Diseases
• Neurological Disorders
• Cardiovascular Disease
• Metabolic Disorders
• Autoimmune Diseases
• Respiratory Diseases
• Ophthalmology
• Gastrointestinal Disorders
• Hormonal Disorders
• Hematological Disorders
• Others

By End Use

• Pharmaceutical Companies
• Biotechnology companies

By Company Size

• Small
• Medium
• Large

By Regional

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa (MEA)