Japan Contract Development And Manufacturing Organization Market Size, Share & Trends Analysis Report By Product (API, Drug Product), By Workflow (Clinical, Commercial), By Application, And Segment Forecasts, 2023 - 2030

Report Overview

The Japan contract development and manufacturing organization market size was estimated at USD 11.6 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 5.9% from 2023 to 2030. Growing demand for biopharmaceuticals, a high burden of diseases, and the rising geriatric population are some of the key growth drivers. There is also increasing investment by various contract development and manufacturing organizations (CDMOs) for facility and service expansion. For instance, in November 2020, WuXi AppTec expanded its services offered by Cell & Gene Therapy Platform. The platform can now develop, manufacture, and introduce cell and gene therapies faster and with greater predictability.

The COVID-19 pandemic significantly affected the industry in Japan. According to the World Health Organization (WHO), by September 2022, 20,488,312 cases of COVID-19 were reported in the country. The COVID-19 pandemic increased the demand for vaccines to prevent the disease in the country. However, despite a rise in the demand for COVID-19 vaccines, the rollout of vaccines was slow compared to other countries. Many CDMOs in Japan expanded their facilities to increase their capacity during the pandemic.

The biopharmaceutical industry's margins also shrunk due to rising pricing pressure, regulatory challenges, and patent expiration. Contract services were viewed as a "strategic competitive weapon" by biopharmaceutical and pharmaceutical companies because they assisted in overcoming these issues. These services save their customers money. They also helped save time, which could be efficiently utilized in operating and managing a manufacturing & research facility.

Contract manufacturing enables low-cost product development, reducing a product's overall manufacturing cost. Furthermore, outsourcing services aid in the removal of trade barriers and the entry of firms into foreign markets. Due to these benefits, several companies have chosen to outsource biopharmaceutical manufacturing rather than invest in production equipment and hire skilled labor.

There is a growing demand for biopharmaceutical drugs in Japan to diagnose and treat various chronic diseases. As per the International Trade Administration (ITA), Japan is one of the world’s largest pharmaceutical markets, accounting for USD 109.6 million in 2020, and is actively involved in improving access to biopharmaceutical drugs.

For instance, in June 2021, the Japan Ministry of Health, Labour, and Welfare approved virotherapy teserpaturev for treating patients with malignant glioma. Such approvals are expected to improve access to biopharmaceutical drugs in the country, thereby boosting the demand for manufacturing in the country.

Product Insights

Based on product, the Japan CDMO market is segmented into API and drug product. The API segment accounted for 81.0% of revenue share in 2022 and is expected to grow at the fastest CAGR of 6.0% during the forecast period. Growing demand for new drugs in Japan and the high disease population in the country are supporting the segment's growth.

The increase in the interest of the government in improving the adoption of generics and the continuous expansion of facilities by market players are further supporting the segment's growth. For instance, in March 2022, Sumitomo Chemical Company, Limited expanded its facility in Japan to improve its capacity for manufacturing API and intermediates for small-molecule drugs.

Based on drug product, the market is segmented into oral solid dose, semi-solid dose, liquid dose, and others. The oral solid dose segment accounted for the highest share of 47.5% in 2022. The liquid dose segment is anticipated to experience the fastest CAGR of 7.2% over the forecast period from 2023 to 2030. The market is expanding due to a growing demand for biopharmaceuticals such as biologics, biosimilars, and cell and gene therapy.

Workflow Insights

Based on workflow, the market is segmented into clinical and commercial. The commercial segment dominated with the largest revenue share of 88.0% in 2022. The growing demand for generic drugs in the country and the increase in the approval of biosimilar drugs and regenerative medicines contribute to the segment’s growth. The disease burden contributing to the demand for high consumption of drugs is further supporting the growth.

However, the clinical segment is expected to grow at the fastest CAGR of 6.2% during the forecast period. This segment includes CDMO services for clinical trials, such as manufacturing dosages for clinical trials and other clinical trial supplies. Japan has a significant number of pharmaceutical companies. These pharmaceutical companies are getting clinical trial dosage manufacturing outscored by CDMO to improve their profit margin.

Application Insights

The oncology segment accounted for 35.1% of the revenue share in 2022 and is also projected to be the fastest-growing segment with a CAGR of 6.4% over the forecast period owing to the high cancer burden in the country. Approval of regenerative products and virotherapy for cancer treatment further supports the market's growth. For instance, according to a report published by the World Health Organization, the number of new cases in Japan was 10,286,658 in 2020, of which 599,243 cases were found in males and 429,415 cases in females. Based on application, the Japanese CDMO market is categorized into hormonal, glaucoma, cardiovascular disease, diabetes, and other segments.

Glaucoma is also expected to register a significant CAGR of 6.2% during the forecast period due to the rising number of the geriatric population residing in Japan. The WHO states that glaucoma is the world's second-largest cause of blindness. The growing need for lowering the disease burden of glaucoma is further expected to boost the industry's growth in Japan during the forecast period.

Key Companies & Market Share Insights

Some key players are undertaking various strategic initiatives to gain a competitive advantage. Partnerships, new service launches, and expansion are some of the key strategic initiatives adopted by the market players. For instance, in March 2022, WuXi AppTec launched Tetracycline-Enabled Self-Silencing Adenovirus (TESSA) technology to speed the production of adeno-associated viruses for producing drugs for cell and gene therapy. Some prominent players in the Japan contract development and manufacturing organization market include:

• CordenPharma International

• WuXi AppTec

• Cambrex Corporation

• Recipharm AB

• Lonza

• Catalent, Inc.

• Laboratory Corporation of America Holdings

• Thermo Fisher Scientific, Inc.

• Samsung BioLogics

• FUJIFILM Corporation

• Sumitomo Chemical Company, Limited

• CMIC HOLDINGS Co., LTD.

• Bushu Pharmaceuticals Ltd.

• Nipro Corporation

Japan Contract Development And Manufacturing Organization Market Report Scope

Japan Contract Development And Manufacturing Organization Market Report Segmentation

This report forecasts revenue growth at the country level and analyses the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the Japan contract development and manufacturing organization market report based on product, workflow, and application:

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • API

    • Type

      • Traditional Active Pharmaceutical Ingredient (Traditional API)

      • Highly Potent Active Pharmaceutical Ingredient (HP-API)

      • Antibody Drug Conjugate (ADC)

      • Others

    • Synthesis

      • Synthetic

        • Solid

        • Liquid

      • Biotech

    • Drug

      • Innovative

      • Generic

    • Manufacturing

      • Continuous Manufacturing

      • Batch Manufacturing

  • Drug Product

    • Oral Solid Dose

    • Semi-solid Dose

    • Liquid Dose

    • Others

• Workflow Outlook (Revenue, USD Million, 2018 - 2030)

  • Clinical

  • Commercial

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Oncology

  • Hormonal

  • Glaucoma

  • Cardiovascular Disease

  • Diabetes

  • Others