Formulation Development Outsourcing Market To Reach $79.8 Billion By 2033

Formulation Development Outsourcing Market Growth & Trends

The global formulation development outsourcing market size is expected to reach USD 79.8 billion by 2033, registering a CAGR of 9.1% from 2026 to 2033, according to a new report by Grand View Research, Inc. The high burden of chronic and infectious diseases, the growing focus on improving the bioavailability of poorly soluble drugs, and the complications associated with drug development are contributing to the demand for formulation development services globally. Furthermore, the COVID-19 outbreak has influenced the need for clinical trials to find an effective treatment against the contagious virus. This has resulted in significant investments in research and development (R&D) to develop therapeutics, which are expected to drive the market.

According to Pharma R&D Annual Review 2022, biopharmaceutical and anticancer drugs are the major drugs in the development stage in the year 2022, this is expected to improve the demand for formulation development of these drugs post-pandemic. Globally, pharmaceutical companies are making significant contributions to R&D activities. For instance, Merck’s R&D cost was USD 2,516.8 million in 2020 as compared to USD 2,494.8 million in 2019. Similarly, Biogen’s R&D expenses accounted for USD 3,990.9 million in 2020. The company’s R&D expenditure increased by 75% as compared to 2019. The significant increase in R&D expenditure is likely to have a positive impact on the market.

A significant number of drugs fail to reach late-stage clinical trials owing to complications associated with formulation development. Moreover, strict regulations regarding the development of drugs are further contributing to the demand for outsourcing formulation development. Such factors are expected to improve the demand. The COVID-19 incidence has been significantly reduced owing to the growing vaccination drive globally. As a result, the CRO and CDMO are once again concentrating on the development of drugs for oncology and other disorders. For instance, in April 2022, Labcorp collaborated with Xcell Biosciences to support the company in developing cell and gene therapies for treating cancer, Parkinson’s disease, and other rare diseases. Such initiatives by the CDMOs are likely to promote the demand for the formulation development outsourcing of drugs used in the treatment of cancer and other rare diseases. 

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Formulation Development Outsourcing Market Report Highlights

• By service, formulation development held the largest revenue share of 77.3% in 2025. The preformulation segment is expected to grow at the second-fastest CAGR during the forecast period.

• By formulation, the oral segment led the formulation development outsourcing industry with the largest revenue share of 65.2% in 2025. The injectable segment is expected to grow at the fastest CAGR during the forecast period.

• By therapeutic area, the oncology segment led the formulation development outsourcing industry with the largest revenue share of 28.1% in 2025. The cardiovascular segment is anticipated to register the second-fastest CAGR during the forecast period.

• By end-use, the pharmaceutical and biopharmaceutical companies segment led the formulation development outsourcing market with the largest revenue share of 50.5% in 2025. The government and academic institutes segment is anticipated to grow at a significant CAGR during the forecast period.

• Asia Pacific dominated the formulation development outsourcing market with the largest revenue share of 45.7% in 2025.

Formulation Development Outsourcing Market Segmentation

Grand View Research has segmented global formulation development outsourcing market report based on service, formulation, therapeutic area, end-use, and region:

Formulation Development Outsourcing Service Outlook (Revenue, USD Million/Billion, 2021 - 2033)

• Preformulation

• Formulation Development

Formulation Development Outsourcing Formulation Outlook (Revenue, USD Million/Billion, 2021 - 2033)

• Oral

• Injectable

• Topical

• Others

Formulation Development Outsourcing Therapeutic Area Outlook (Revenue, USD Million/Billion, 2021 - 2033)

• Oncology

• Infectious Disease

• Neurology

• Hematology

• Respiratory

• Cardiovascular

• Dermatology

• Others

Formulation Development Outsourcing End-use Outlook (Revenue, USD Million/Billion, 2021 - 2033)

• Pharmaceutical and Biopharmaceutical Companies

• Government and Academic Institutes

• Others

Formulation Development Outsourcing Regional Outlook (Revenue, USD Million/Billion, 2021 - 2033)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France

  • Italy

  • Spain

  • Denmark

  • Sweden

  • Norway

• Asia Pacific

  • Japan

  • China

  • India

  • Australia

  • Thailand

  • South Korea

• Latin America

  • Brazil

  • Argentina

• Middle East & Africa

  • South Africa

  • UAE

  • Saudi Arabia

  • Kuwait

  • Qatar

  • Oman

 List of Key Players of Formulation Development Outsourcing Market

• SGS S.A.

• Intertek Group plc

• Recipharm

• Lonza

• Charles River Laboratories International, Inc.

• Eurofins Scientific SE

• Element

• Labcorp

• Thermo Fisher Scientific, Inc.

• Catalent Inc.