Latin America Pharmaceutical Contract Manufacturing & Research Services Market Size, Share & Trends Analysis Report By Service (Manufacturing, Research), By Country, And Segment Forecast, 2022 - 2030

Report Overview

The Latin America pharmaceutical contract manufacturing and research services market size was valued at USD 19.8 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 7.5% from 2022 to 2030. Drug shortfall, tighter budgets, rising competition, patent expiration, and insufficient resources are some of the major factors boosting growth in the market. The time- and cost-saving benefits associated with the implementation of outsourcing are contributing to market growth. The key players are consistently capitalizing on technology, infrastructure, and personnel to gain a bigger share of the outsourcing revenue. Moreover, an increase in collaborations between pharmaceutical companies and outsourcing companies for developing COVID-19 treatments is boosting the market growth.

The ongoing COVID-19 pandemic has positively impacted the contract manufacturing market. As the development of mRNA vaccines and subsequent manufacturing at a global scale to respond to the COVID-19 pandemic represents a leap forward in the production facilities. With increased focus on CDMO activity for commercial supply, the demand for outsourced early phase development services and technology is growing in line with this new generation of molecules.

Moreover, new product launches and novel drug delivery mechanisms that are expected to enter the market in record timelines are anticipated to drive outsourcing demand. The key players entered into strategic partnerships for the development of COVID-19 treatments. For instance, in May 2020, Lonza announced a strategic collaboration agreement for ten years with Moderna to empower the manufacture of Spikevax COVID-19 vaccine and further Moderna Services in the future.

Furthermore, the shift from cost control to value-added solutions, the introduction of novel technologically equipped facilities, and risk-sharing between pharma and CMOs are expected to serve as drivers. Companies have started financing efforts to meet the snowballing demand for biological drugs, which in turn, leads to a surge in the development of pharmaceutical products. This steady commercial success of biopharmaceuticals is expected to accelerate the growth of the Latin America pharmaceutical contract manufacturing & research services market over the forecast period.

Biopharmaceuticals Manufacturing is recognized as a leading sector in terms of growth potential. Many healthcare entities believe that this sector would be one of the top 10 revenue generators in the forthcoming years. Moreover, the market players are making continuous efforts for the development of this sector to meet the increasing demand for bio-based pharmaceuticals, which in turn, is anticipated to result in a surge of CMOs for biopharmaceutical production. This healthy growth of biopharmaceuticals has resulted in the development of a large Service pipeline.

Understanding the cost-effectiveness associated with contract manufacturing, many firms have begun to outsource parts of their biopharmaceutical manufacturing to contract manufacturers. Furthermore, in-house R&D at biopharmaceutical majors is no longer the sole source of successful innovation in the industry, with novel molecules discovered by small-to-mid capital companies before being acquired by established players. As a consequence, CROs have increasingly begun to highlight contract wins with such smaller biotech entities as an important driver of sustainability in volumes.

Latin American companies are enhancing their global market presence by investing efforts in the modification and expansion of domestic specialty manufacturing facilities as well as focusing on worldwide partnerships. On the other hand, the expansion of international and well-established companies, such as Pharmaceutical Product Development Inc (PPD) and QuintilesIMS, in countries like Brazil, Mexico, Argentina, and Chile is expected to fuel growth in Latin American pharmaceutical contract manufacturing & research services market. These countries are perceived to have great potential for pharmaceutical development.

Services Insights

Manufacturing dominated the service segment with a 66.3% revenue share as of 2021. Based on service the market is segmented into manufacturing and research. Contract manufacturing services comprise the solutions and facilities for the manufacture of API/bulk drugs, advanced drug delivery formulations, packaging, and finished dose formulations. These services accounted for the largest share in 2021, in terms of revenue generation, as a large number of global companies are seeking the outsourcing of therapeutic development from the production of drug substances (APIs) to finished drug products due to limited capacity and lack of expertise.

Finished dose formulations are anticipated to expand at the fastest CAGR over the forecast period. Among these, solid dosage forms held the largest revenue share in 2021 due to the higher outsourcing done for powdered formulations. It is expected to rise in the coming years as it represents a significant share of the outsourcing of finished dose formulations. Solid dose manufacturing and oral delivery of new drug candidates, fixed-dose formulations, controlled-release drugs, and reformulation of existing drugs are some of the factors likely to accelerate the growth of the segment.

Contract research services are expected to witness the fastest year-on-year growth. One of the major drivers for this growth is the clinical testing cost requirement that has skyrocketed in the past few years, and the total cost is expected to increase by a few million dollars every year. Consequentially, this compels pharmaceutical companies to outsource the clinical research aspects of drug development.

Regional Insights

Brazil accounted for the largest share of over 78% in 2021. Factors driving revenue generation in this country include the developing biotechnology hub in the north-eastern region of the country. Moreover, the low manufacturing costs of pharmaceuticals and the presence of a significant number of GMP-certified plants are attracting investors from other countries to establish their presence in Brazil. This is expected to have a positive impact on the market for pharmaceutical contract manufacturing & research services in Latin America.

Moreover, the rise in pharmaceutical spending is supporting the development of the healthcare system in the country. Recently, Brazil implemented one of the major universal healthcare systems in the world, the Unified Health System—the Sistema Único de Saúde—for enhancing the healthcare system in the country. This is expected to foster the development of CMOs/CROs in the country.

Key Companies & Market Share Insights

Some of the prominent players operating in this industry include Boehringer Ingelheim GmbH; Lonza; Pfizer, Incorporated. (Pfizer CenterOne); Charles River Laboratories International, Inc; Albany Molecular Research, Inc; Covance, Inc. (LabCorp); QuintilesIMS; Pharmaceutical Service Development, LLC; Recipharm AB; AbbVie, Inc. These entities are undertaking endeavors to maintain their share in the market during the forecast period, including acquisitions & mergers, regional expansions, and enhancement of service provisions. Some prominent players in the Latin America pharmaceutical contract manufacturing & research services market include:

• Boehringer Ingelheim GmbH

• Lonza

• Pfizer, Incorporated. (Pfizer CenterOne)

• Charles River Laboratories International, Inc

• Albany Molecular Research, Inc

• Covance, Inc. (LabCorp)

• QuintilesIMS

• Pharmaceutical Service Development, LLC

• Recipharm AB

• AbbVie, Inc.

Latin America Pharmaceutical Contract Manufacturing & Research Services Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the regional and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the Latin America pharmaceutical contract manufacturing & research services market report based on services and country:

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

  • Manufacturing

    • API/Bulk Drugs

    • Advanced Drug Delivery Formulations Packaging

    • Packaging

    • Finished Dose Formulations

      • Solid Formulations

      • Liquid Formulations

      • Semi-solid Formulations

  • Research

    • Oncology

    • Vaccines

    • Inflammation & Immunology

    • Cardiology

    • Neuroscience

    • Others

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

  • Brazil

  • Mexico

  • Colombia

  • Argentina

  • Chile

  • Venezuela

  • Rest of Latin America