Pharmaceutical Contract Manufacturing Market To Reach $224.51 Billion By 2030

Pharmaceutical Contract Manufacturing Market Growth & Trends

The global pharmaceutical contract manufacturing market size is expected to reach USD 224.51 billion by 2030, according to a new report by Grand View Research, Inc. The market is anticipated to grow at a CAGR of 9.84% from 2025 to 2030. Growth in the market can be attributed to benefits offered to pharmaceutical companies, such as cost efficiencies, the ability to leverage contract manufacturing facilities to streamline production, and the opportunity to focus on core competencies. In addition, the market is driven by the increasing demand for biologics, biosimilars, high-potency active pharmaceutical ingredients (HPAPIs), and personalized medicine.

The expansion of pharmaceutical companies into new product innovations has led to the increased demand for contract manufacturing organization (CMO) services for clinical trials, packaging, and regulatory compliance. Technological integrations among CMOs, such as continuous manufacturing, automation, and AI-driven process optimization, are further propelling pharmaceutical production. These innovations enhance efficiency, reduce waste, and improve product quality and standards.

The pharmaceutical contract manufacturing industry is expected to experience continued growth during the forecast period, as CMO providers play a crucial role in helping companies meet the regulatory requirements of the FDA, EMA, and ICH. Moreover, the growing demand for both branded and generic drugs is a significant factor in the expansion of the pharmaceutical contract manufacturing industry. As various generic drugs reach patent expiration, pharmaceutical companies are innovating new generic versions to meet this demand. Hence, many of these pharmaceutical companies are relying on CMO services to fulfill market needs efficiently and effectively.

In addition, regulation is one of the significant factors for pharmaceutical products that have fueled the demand for pharmaceutical contract manufacturing. The FDA plays a pivotal role in ensuring the safety and efficiency of pharmaceuticals in the market. Likewise, strategic partnerships and accelerating product launches drive market growth. For instance, in December 2024, Lonza mentioned the expansion of its service offering orally delivered biologic therapies to support innovative capsule companies' unique development and manufacturing needs. The product launch will help patients explore innovative delivery solutions to mitigate bioavailability challenges.

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Pharmaceutical Contract Manufacturing Market Report Highlights

• The API manufacturing segment dominated the market with a share of 70.68% in 2024. Growth in the segment can be attributed to increasing HPAPI production, rising demand for continuous API manufacturing, growing FDA approval for the market, and the launch of new products.

• Based on product, the small molecule segment held the largest market share in 2024, which is attributed to the increasing demand for generics, specialty drugs, and HPAPIs, and growing innovations of drugs have enhanced the requirement for CMO’s efficiency, scalability, and regulatory compliance further driving the market growth.

• The generics segment dominated the market in 2024 owing to the increasing prevalence of chronic diseases, growing patent expirations, and rising demand for cost-efficient drugs.

• Based on scale of operation, the batch segment dominated the market. It accounted for 88.88% in 2024, attributing to various benefits such as batch production and major support for saving operational costs.

• The commercial segment dominated the market in 2024. Growth in this segment can be attributed to the increasing launch of various products that help treat diseases.

• The oncology segment held the largest market share in 2024 based on application. This segment is driven by increasing cancer incidences and new pharmaceutical drug requirements.

• The pharmaceutical companies segment held the largest market share in 2024 based on end-use. Pharmaceutical companies utilize contract manufacturing to lower costs, increase scalability, and speed up time-to-market. CMOs offer expertise in API synthesis, formulation, and regulatory compliance. In addition, outsourcing provides access to advanced technologies, flexible production capacity, and optimized global supply chains.

• The small company size segment dominated the market in 2024 due to increasing employee strengths, facilities, and venture funding.

• Asia Pacific is expected to register the fastest growth rate of 10.80% CAGR over the forecast period. Due to the rising number of pharmaceutical companies & contract manufacturing organizations in countries like Japan, China, and India, Asia Pacific will likely witness rapid growth over the estimated time. Furthermore, the availability of a skilled workforce within the region at a lower cost compared to the U.S. is another factor that is anticipated to propel the market growth.

Pharmaceutical Contract Manufacturing Market Segmentation

Grand View Research has segmented the global pharmaceutical contract manufacturing market based on service, product, drug, scale of operation, workflow, application, end use, company size, and region: 

Pharmaceutical Contract Manufacturing Service Outlook (Revenue, USD Million, 2018 - 2030)

• API Manufacturing

• Finished Drug Product Manufacturing

• Oral Solids

• Liquids

• Topical

• Others

• Packaging Services

Pharmaceutical Contract Manufacturing Product Outlook (Revenue, USD Million, 2018 - 2030)

• Small Molecule

• Biologics

• Monoclonal Antibodies

• Vaccines

• Recombinant Proteins

• Others

Pharmaceutical Contract Manufacturing Drug Outlook (Revenue, USD Million, 2018 - 2030)

• Generics

• Branded

Pharmaceutical Contract Manufacturing Scale of Operation Outlook (Revenue, USD Million, 2018 - 2030)

• Batch

• Continuous

Pharmaceutical Contract Manufacturing Workflow Outlook (Revenue, USD Million, 2018 - 2030)

• Clinical 

• Commercial

Pharmaceutical Contract Manufacturing Application Outlook (Revenue, USD Million, 2018 - 2030)

• Oncology

• Infectious Diseases

• Neurological Disorders

• Cardiovascular Disease

• Metabolic Disorders

• Autoimmune Diseases

• Respiratory Diseases

• Ophthalmology

• Gastrointestinal Disorders

• Hormonal Disorders

• Hematological Disorders

• Others

Pharmaceutical Contract Manufacturing End Use Outlook (Revenue, USD Million, 2018 - 2030)

• Pharmaceutical Companies

• Biotechnology companies

Pharmaceutical Contract Manufacturing Company Size Outlook (Revenue, USD Million, 2018 - 2030)

• Small

• Medium

• Large

Pharmaceutical Contract Manufacturing Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France

  • Italy 

  • Spain

  • Denmark

  • Sweden

  • Norway

• Asia Pacific

  • Japan

  • China

  • India

  • Thailand 

  • South Korea

  • Australia

• Latin America

  • Brazil

  • Argentina

• Middle East and Africa (MEA)

  • South Africa

  • Saudi Arabia

  • UAE

  • Kuwait

List of Key Players in the Pharmaceutical Contract Manufacturing Market

• 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