Pharmaceutical & Biopharmaceutical Contract Manufacturing Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Active Pharmaceutical Ingredients (API), Finished Dosage Formulation, Advanced Drug Delivery Products, Over the Counter (OTC) Medicines, Others), By Service (Pharmaceutical Manufacturing Services, Biologics Manufacturing Services, Drug Development Services, Others), By Region and Competition, 2020-2030F

Market Overview

Global Pharmaceutical & Biopharmaceutical Contract Manufacturing Market was valued at USD 13.05 Billion in 2024 and is expected to reach USD 18.41 Billion by 2030 with a CAGR of 6.10%. Contract Development and Manufacturing Organizations (CDMOs) have become vital partners for pharmaceutical and biotech companies, offering specialized capabilities in drug formulation, active pharmaceutical ingredient (API) synthesis, and commercial-scale manufacturing.

Pharmaceutical firms are increasingly outsourcing their manufacturing operations to reduce capital expenditure, accelerate time-to-market, and maintain flexibility in response to shifting regulatory and market conditions. This trend is especially prominent in the biopharmaceutical sector, where the production of biologics, biosimilars, and cell and gene therapies requires advanced technologies and stringent quality control standards. Despite its promising outlook, the market faces several challenges. Regulatory requirements are becoming increasingly complex, necessitating continuous investment in compliance systems and quality assurance protocols.

Key Market Drivers

Growth in Healthcare Industry

The global healthcare industry generates annual revenues exceeding USD 4 trillion. Among its most significant and profitable segments are pharmaceuticals and biotechnology, accounting for nearly USD 850 billion, followed by medical technology and diagnostics, which contribute over USD 400 billion. The ongoing expansion of the global healthcare industry is a key driver of growth in the pharmaceutical and biopharmaceutical contract manufacturing market. As healthcare systems across the world continue to evolve, there is an increasing demand for innovative therapies, large-scale production capabilities, and accelerated time-to-market for new drugs. These needs have prompted pharmaceutical and biopharmaceutical companies to increasingly outsource manufacturing activities to specialized contract manufacturing organizations (CMOs) and contract development and manufacturing organizations (CDMOs).

One of the primary reasons for this shift is the rising pressure on drug developers to manage costs while maintaining compliance with stringent regulatory standards. Manufacturers argue that the lengthy timelines and substantial costs associated with developing new drugs are key drivers behind elevated drug prices. Research indicates that the cost of research and development for a single drug can range from USD 314 million to USD 4.46 billion, depending on factors such as the therapeutic area, data availability, and underlying modeling assumptions. As the healthcare industry grows more competitive and innovation-driven, companies are focusing on core competencies such as R&D and commercialization, while leveraging contract manufacturers for their technical expertise, global production infrastructure, and regulatory know-how. This collaboration enables more efficient drug production and supports the scalability required to meet increasing demand.

Surge in Technological Advancements

The global pharmaceutical and biopharmaceutical contract manufacturing market is witnessing significant growth, strongly propelled by a surge in technological advancements. Recent advancements in pharmaceutical contract manufacturing are being driven by the integration of automation, artificial intelligence (AI), and data analytics. These technologies are significantly improving operational efficiency, strengthening quality assurance processes, and reducing the likelihood of human error. The adoption of advanced robotics and automated packaging solutions is also contributing to lower contamination risks and enhanced product uniformity. These innovations are reshaping production capabilities, enhancing operational efficiency, and enabling contract manufacturers to meet the increasingly complex demands of pharmaceutical and biotechnology companies worldwide.

One of the primary areas of technological transformation is in process automation and digitalization. Contract manufacturing organizations (CMOs) and contract development and manufacturing organizations (CDMOs) are increasingly adopting advanced manufacturing technologies such as robotics, continuous manufacturing, and real-time analytics. These systems allow for greater precision, reduced production errors, and increased scalability, making it possible to deliver high-quality products at a faster pace and lower cost. As pharmaceutical companies aim to reduce time-to-market and focus more on core research and commercialization, reliance on technologically advanced CMOs is growing.

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Key Market Challenges

Complexity in Biopharmaceutical Manufacturing

The complexity of biopharmaceutical manufacturing presents a significant challenge in the global pharmaceutical and biopharmaceutical contract manufacturing market. Unlike traditional small-molecule drugs, biopharmaceuticals such as monoclonal antibodies, recombinant proteins, vaccines, and cell and gene therapies are derived from living organisms, which introduces a high degree of variability and process sensitivity. This complexity demands specialized infrastructure, advanced technological capabilities, and rigorous quality control protocols.

Biopharmaceutical production involves intricate upstream and downstream processes, including cell line development, fermentation, purification, and formulation, each of which must be carefully controlled to ensure product consistency and efficacy. Even minor deviations in temperature, pH, or raw material quality can affect the final product’s stability or biological activity, posing considerable risks in large-scale manufacturing. Consequently, CDMOs must invest heavily in process optimization, analytics, and risk mitigation strategies, which can lead to extended development timelines and increased costs.

Key Market Trends

Increased Focus on Cell and Gene Therapy Manufacturing

A prominent trend shaping the global pharmaceutical and biopharmaceutical contract manufacturing market is the intensified focus on cell and gene therapy manufacturing. By the end of 2023, a total of 76 cell and gene therapies had been introduced worldwide representing more than twice the number launched as of 2013. As the healthcare industry embraces precision medicine and curative treatments for complex and rare diseases, cell and gene therapies have emerged as transformative modalities with significant therapeutic potential. However, the complexity, cost, and infrastructure requirements associated with their production have led many developers to seek specialized contract manufacturing partnerships.

Unlike traditional small-molecule drugs, cell and gene therapies involve highly intricate manufacturing processes, often tailored to individual patients or small populations. This demands stringent quality controls, advanced bioprocessing capabilities, and compliance with evolving regulatory frameworks. As a result, contract manufacturing organizations (CMOs) and contract development and manufacturing organizations (CDMOs) with proven expertise in these areas are becoming indispensable partners for biopharmaceutical companies.

Segmental Insights

Product Type Insights

Based on Product Type, Active Pharmaceutical Ingredients (API) have emerged as the fastest growing segment in the Global Pharmaceutical & Biopharmaceutical Contract Manufacturing Market in 2024. One of the key factors driving this growth is the complexity and cost associated with API synthesis. The production of high-quality APIs often involves multiple, sensitive chemical processes, strict regulatory compliance, and advanced technologies. Many pharmaceutical companies, especially small to mid-sized firms, lack the infrastructure or expertise to carry out these activities in-house. As a result, they are outsourcing API production to experienced contract manufacturing organizations (CMOs) and contract development and manufacturing organizations (CDMOs) that possess the necessary technical capabilities, economies of scale, and global regulatory certifications.

Service Insights

Based on Service, Pharmaceutical Manufacturing Services have emerged as the fastest growing segment in the Global Pharmaceutical & Biopharmaceutical Contract Manufacturing Market during the forecast period. This is due to the increasing demand for cost-efficient, scalable, and high-quality drug production solutions across the pharmaceutical industry. With growing pressure to accelerate time-to-market while maintaining regulatory compliance, pharmaceutical companies are increasingly outsourcing their manufacturing operations to specialized contract manufacturing organizations (CMOs) to focus on core competencies such as R&D and commercialization.

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Regional Insights

Based on Region, North America have emerged as the dominating region in the Global Pharmaceutical & Biopharmaceutical Contract Manufacturing Market in 2024. The region benefits from a technologically advanced manufacturing ecosystem. North American CMOs are pioneers in adopting cutting-edge technologies such as continuous manufacturing, single-use bioprocessing systems, and digital twins, which enable improved efficiency, scalability, and compliance. These technological capabilities are especially critical for complex biologics and advanced therapies like cell and gene treatments, where precision and quality assurance are paramount.

Recent Development

• In May 2025, Lonza, a leading contract development and manufacturing organization (CDMO), introduced its new Design2Optimize platform aimed at advancing the process development and manufacturing of small molecule active pharmaceutical ingredients (APIs). This proprietary platform leverages an optimized design of experiments (DoE) methodology, a statistical framework for refining process and reaction parameters. Designed to significantly shorten development timelines, Design2Optimize employs a model-based strategy to guide experimental planning under optimal conditions. When integrated with Lonza’s AI-powered route scouting capabilities and high-throughput experimentation (HTE), the platform enables rapid evaluation of reaction scenarios, streamlining development workflows, deepening process insight, and accelerating the transition from molecular design to commercial production.
• In 2025, Purdue University, in partnership with Eli Lilly and Co. and Merck & Co. Inc., established the Young Institute Pharmaceutical Manufacturing Consortium a strategic initiative aimed at driving innovation in pharmaceutical manufacturing. Based within Purdue’s William D. and Sherry L. Young Institute for Advanced Manufacturing of Pharmaceuticals, the consortium is focused on transforming the production of sterile injectables and advancing aseptic manufacturing technologies to enhance product quality, safety, and regulatory compliance. The initiative will leverage the combined research expertise of Purdue, Lilly, and Merck, building on their strong collaborative research ties and workforce development efforts.
• In May 2025, Shilpa Biologicals, a full-service contract development and manufacturing organization (CDMO), announced the launch of a dedicated bioconjugation suite at its Dharwad facility in India. This strategic expansion establishes Shilpa Biologicals as one of the few global CDMOs with end-to-end capabilities for clinical and commercial-scale manufacturing of all three core components of antibody-drug conjugates (ADCs) payloads/linkers, monoclonal antibodies, and bioconjugation within a single, integrated campus. The new suite is supported by one of the industry’s most extensive payload and linker libraries and features multi-ton capacity for high-potency active pharmaceutical ingredients (HPAPIs).
• In February 2025, Recipharm, a prominent global contract development and manufacturing organization (CDMO), announced the launch of its new Pilot Scale Development Centre in Germany. This facility enhances Recipharm’s existing product development capabilities by ensuring a smooth transition from product development to commercial manufacturing. Now fully operational with advanced equipment, the centre enables the development and GMP-compliant pilot-scale production of blends, granules, tablets, and hard capsules, including both single and dual-filling formats. These expanded capabilities further strengthen Recipharm’s expertise in dry and wet granulation, as well as in material characterization and material science.

Key Market Players

• Jubilant Pharmova Limited
• JRS PHARMA GmbH & Co.
• Boehringer Ingelheim GmbH
• Lonza Group
• Rentschler Biotechnologie GmbH
• Inno Biologics Sdn Bhd
• INCOG BioPharma Services
• Baxter Biopharma Solutions
• Catalent Pharma Solutions
• Kemwell Biopharma Private Limited

Report Scope

In this report, the Global Pharmaceutical & Biopharmaceutical Contract Manufacturing Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Pharmaceutical & Biopharmaceutical Contract Manufacturing Market, By Product Type:

o   Active Pharmaceutical Ingredients (API)

o   Finished Dosage Formulation

o   Advanced Drug Delivery Products

o   Over the Counter (OTC) Medicines

o   Others

• Pharmaceutical & Biopharmaceutical Contract Manufacturing Market, By Service:

o   Pharmaceutical Manufacturing Services

o   Biologics Manufacturing Services

o   Drug Development Services

o   Others

• Pharmaceutical & Biopharmaceutical Contract Manufacturing Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Pharmaceutical & Biopharmaceutical Contract Manufacturing Market.

Available Customizations:

Global Pharmaceutical & Biopharmaceutical Contract Manufacturing Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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