Global Biopharmaceutical Contract Manufacturing Market Extends at a Healthy CAGR of 14.57% by 2031

Introduction

A contract manufacturing organization (CMO) or contract development and manufacturing organization (CDMO) refers to a corporation that provides contract-based drug research and production services to the pharmaceutical industry. By outsourcing the production process, pharmaceutical and biopharmaceutical manufacturing companies can prioritize their core competencies and free up internal resources required to boost process efficiency.

Market Dynamics

Surge in Manufacturing Capacity Expansion Post-Covid by CDMOS and CMOS Drives the Global Market

Biopharmaceutical manufacturing facilities continue to expand as CMOs increase their manufacturing capacity post-covid. Increasing capital investments are being made in biomanufacturing areas that remain active for CDMOs/CMOs, including both old and innovative modalities. Manufacturers of biopharmaceuticals are outsourcing a growing number of functions, a trend projected to continue on a moderate scale. In addition, the outsourcing budget has increased over the past few years, making up for what the recession took away. Industry participants of all sizes and locations are acquiring financing and laying the groundwork for new facility expansions to meet this demand. Thus, the increase in manufacturing capacity expansion by CDMOS and CMOS post-covid drives market expansion.

Mergers and Acquisitions among Biopharmaceutical Manufacturers Creates Tremendous Opportunities

In the past decade, the pharmaceutical contract manufacturing industry as a whole has witnessed several M&As transactions, some of which are significant, and these transactions are transforming the industry. Between 2015 and 2017, the pharmaceutical CMOs business as a whole experienced 130 acquisitions of service providers. Approximately 70% of acquirers were strategic, suggesting they were running businesses instead of investment firms. A few CMOs changed hands due to the acquisition of their parent company. However, many CMOs were bought by pharma/biotech firms trying to ensure their product supply.

Recently, mergers and acquisitions of companies and manufacturing facilities have been a prominent aspect of the pharma/biotech CMOs market. M&A transactions receive increased coverage in the biopharmaceutical business news media, with speculations regarding deal values, strategic intent, and, most significantly, corporations pursuing potential targets. Thus, mergers and acquisitions among biopharmaceutical contract manufacturing companies generate profitable growth potential for the sector.

Regional Analysis

North America is the most significant shareholder in the global biopharmaceutical contract manufacturing market and is anticipated to grow at a CAGR of 14.65% during the forecast period. Significant investments by firms in R&D to enhance their pipelines for chronic autoimmune disorders are expected to accelerate the introduction of innovative medicines in North America. Steroids and nonsteroidal anti-inflammatory drugs (NSAIDs) dominated the treatment of inflammatory illnesses for several decades. But the development of new compounds and biosimilars has dramatically improved the health of people in this region. In addition, the participation of numerous governmental and commercial organizations whose goals are to educate patients and physicians about inflammatory illnesses and promote research and development in disease management is altering therapy dynamics. For instance, the Leona M. and Harry B. Helmsley Charitable Trust is an organization established in the United States that invests in research to uncover novel therapeutics for Crohn's disease and attempts to hasten the development of revolutionary treatments.

Europe is anticipated to experience a CAGR of 14.47% over the forecast period. The growing geriatric population and incidence of autoimmune illnesses, respiratory problems, and cancer are increasing the need for biopharmaceuticals and expanding the biopharmaceutical and biotechnology businesses. These key variables also contribute to the expansion of contract manufacturing of biopharmaceuticals in Europe. The biopharmaceutical outsourcing sector is driven by the increased focus of European governments on R&D, which has resulted in more investments. In addition, the European healthcare system is developing patient-centered health systems by signing and creating the Tallinn Charter, prioritizing the delivery of continuous, high-quality treatments.

Key Highlights

• The global biopharmaceutical contract manufacturing market was valued at USD 12.94 billion in 2022. It is estimated to reach USD 44.01 billion by 2031, growing at a CAGR of 14.57% during the forecast period (2023–2031).
• By products, the global biopharmaceutical contract manufacturing market is divided into finished dosage form and active pharmaceutical ingredients (APIs). The finished dosage form segment is responsible for the largest market share and is anticipated to grow at a CAGR of 14.79% over the forecast period.
• By biologics, the global biopharmaceutical contract manufacturing market is segmented into monoclonal antibodies (mAbs), vaccines, and others. The monoclonal antibodies (mAbs) segment owns the highest market share and is expected to grow at a CAGR of 16.33% over the forecast period.
• By expression system, the global biopharmaceutical contract manufacturing market is divided into mammalian and non-mammalian. The mammalian segment is the highest contributor to the market and is anticipated to grow at a CAGR of 14.89% over the forecast period.
• By the scale of operation, the global biopharmaceutical contract manufacturing market is segmented into commercial and research (clinical and preclinical). The commercial segment owns the highest market share and is anticipated to grow at a CAGR of 14.51% over the forecast period.
• By company size, the global biopharmaceutical contract manufacturing market is divided into large and very large companies and small and mid-sized companies. The large and very large company segment is the highest contributor to the market and is estimated to grow at a CAGR of 14.41% over the forecast period.
• North America is the most significant shareholder in the global biopharmaceutical contract manufacturing market and is anticipated to grow at a CAGR of 14.65% during the forecast period.

Competitive Players

Competitive Players

The key players in the global biopharmaceutical contract manufacturing market are Merck KGAA, AGC Biologics, Catalent, FUJIFILM, Patheon, Piramal Pharma Solutions, Pfizer, Serum Institute of India, WuXi Biologics, Samsung BioLogics, Thermo Fisher Scientific, Inc., AbbVie, Inc., Emergent BioSolutions, Biocon, BioCina, Ajinomoto, Albany Molecular Research Inc., Asymchem, Cobra Biologics, Charles River Laboratories, Goodwin Biotechnology, and KBI Biopharma.

Recent Developments

Market News

• In December 2022, Pfizer Inc. stated that the U.S. Food and Drug Administration (FDA) had accepted a Biologics License Application (BLA) for its investigational pentavalent meningococcal vaccination candidate for review (MenABCWY). Pfizer made MenABCWY to protect people ages 10 to 25 from meningococcal disease caused by the most common serogroups.
• In January 2023, Forge Biologics and Oculogenex announced an AAV contract development and manufacturing partnership.

Segmentation

Global Biopharmaceutical Contract Manufacturing Market: Segmentation

By Product

• Finished Dosage Form
• Active Pharmaceutical Ingredients (APIs)

By Biologics

• Monoclonal Antibodies (mAbs)
• Vaccines
• Others

By Expression System

• Mammalian
• Non-Mammalian

By Scale of Operation

• Commercial
• Research (Clinical and Preclinical)

By Company Size

• Large and Very Large Companies
• Small and Mid-sized Companies

By Regions

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa