Semi-Solid CDMO Market - Global Industry Size, Share, Trends, Opportunity & Forecast 2019-2029F, Segmented by Route of Administration (Topical, Transdermal, Others), By Product (Ointments, Creams and Lotions, Pastes, Gels, Others), By Service (Contract Development, Contract Manufacturing), By End User (Pharmaceutical Companies, Biopharmaceutical Companies, Others), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 32.27 Billion
CAGR (2026-2031)	10.62%
Fastest Growing Segment	Topical
Largest Market	North America
Market Size (2031)	USD 59.13 Billion

Market Overview

The Global Semi-Solid CDMO Market will grow from USD 32.27 Billion in 2025 to USD 59.13 Billion by 2031 at a 10.62% CAGR. The Global Semi-Solid CDMO Market comprises specialized contract organizations responsible for the formulation and manufacturing of topical and transdermal dosage forms, such as creams, ointments, and gels. The primary drivers fueling market expansion include the rising global prevalence of dermatological disorders requiring topical treatments and the increasing reliance of pharmaceutical companies on external partners to manage complex rheological processing. This outsourcing strategy allows companies to optimize capital expenditure and focus internal resources on drug discovery rather than maintaining specialized manufacturing infrastructure.

However, the market faces significant challenges regarding stringent regulatory requirements for demonstrating bioequivalence in complex semi-solid formulations, which can delay product approvals and increase development costs. According to the CPHI Annual Report, in 2024, 49% of pharmaceutical industry respondents expressed a 'highly positive' outlook for the growth of the contract services sector over the subsequent 18 months. This statistic reflects strong industry confidence in the outsourcing model, even as manufacturers navigate the technical difficulties associated with semi-solid stability and viscosity compliance.

Key Market Drivers

The strategic shift towards outsourcing for operational and cost efficiency acts as a primary catalyst for the Global Semi-Solid CDMO Market. Pharmaceutical companies are increasingly divesting complex manufacturing assets to specialized partners to mitigate the high capital expenditure associated with maintaining rheological stability and regulatory compliance in cream and ointment production. This trend is exemplified by significant consolidation and capacity expansion within the sector. According to Bora Pharmaceuticals, April 2024, in the 'Bora Pharmaceuticals Completes the Acquisition of Upsher-Smith' announcement, the company invested $210 million to acquire Upsher-Smith Laboratories, significantly expanding its United States manufacturing footprint for semi-solids and oral dosages. Such investments enable CDMOs to offer integrated scale-up solutions, allowing drug developers to concentrate strictly on R&D and commercialization strategies.

Simultaneously, the increasing global prevalence of dermatological and mucosal disorders is driving substantial demand for advanced topical therapies. As the incidence of conditions like psoriasis, eczema, and skin cancer rises, there is a parallel surge in the need for novel semi-solid formulations, directly boosting market revenue. According to Almirall, February 2025, in the 'FY 2024 Financial Results & Business Update', the company reported Net Sales of €985.7 million for 2024, a 10.2% increase driven largely by its European dermatology business. This heightened demand for dermatological products directly translates into growth for contract manufacturers. According to Recipharm, in 2025, the company achieved record-breaking revenue of €827 million for the fiscal year 2024, reflecting the robust health of the contract services sector amid rising therapeutic needs.

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Key Market Challenges

The stringent regulatory requirements for demonstrating bioequivalence in complex semi-solid formulations represent a substantial hurdle hampering the growth of the Global Semi-Solid CDMO Market. Unlike solid dosage forms, semi-solids such as creams and gels possess intricate rheological properties that make proving consistency to regulators exceptionally difficult. This complexity necessitates prolonged development phases and expensive validation, forcing CDMOs to allocate significant resources toward compliance rather than capacity expansion. Consequently, extended timelines delay the transition of products from development to commercial manufacturing, creating a bottleneck in the revenue streams of contract organizations.

This regulatory friction stifles market momentum by increasing the financial risk for pharmaceutical clients, potentially leading to reduced outsourcing volumes or project delays. The impact of such operational hurdles is quantifiable within the wider industry. According to the Drug, Chemical & Associated Technologies Association (DCAT), in 2024, 54% of pharmaceutical industry executives identified regulatory complexity as the primary barrier to business operations. This statistic underscores how compliance burdens act as a braking mechanism on the sector's trajectory, limiting the speed at which CDMOs can capitalize on the rising demand for topical treatments.

Key Market Trends

Strategic industry consolidation through specialized M&A activities is reshaping the competitive landscape of the semi-solid CDMO sector, as organizations seek to create end-to-end development and manufacturing platforms for complex topical products. This trend is driven by the need to integrate fragmented capabilities, such as formulation development, clinical testing, and commercial production, under a single entity to streamline supply chains for pharmaceutical clients. A significant development in this area occurred when two leading specialized contract organizations combined their resources to enhance their service offerings for dermatological and transdermal therapies. According to MedPharm, July 2024, in the 'MedPharm Announces Merger with Tergus Pharma' press release, the company finalized a merger with Tergus Pharma to establish a comprehensive CDMO focused specifically on topical and transepithelial products, thereby expanding their capacity to handle hormone-based and high-potency formulations.

The implementation of green chemistry and sustainable supply chain practices has simultaneously emerged as a critical operational priority, influenced by increasing regulatory pressure and client demands for environmentally responsible manufacturing partners. CDMOs are aggressively adopting decarbonization strategies, optimizing energy usage, and reducing waste generation within their semi-solid production facilities to align with global environmental standards. This commitment to sustainability is becoming a decisive factor in securing long-term contracts with major pharmaceutical innovators who prioritize ESG compliance. According to PCI Pharma Services, March 2024, in the 'Inaugural ESG Report', the organization formally committed to a sustainability strategy that includes a target to reduce its Scope 1 and 2 Greenhouse Gas emissions by 40% by 2030, reflecting the sector's intensified focus on minimizing its environmental footprint.

Segmental Insights

The topical segment is currently the fastest-growing category within the Global Semi-Solid CDMO Market, primarily driven by the rising global prevalence of dermatological disorders. Pharmaceutical companies are increasingly prioritizing the development of creams, gels, and ointments to provide effective localized treatment while minimizing the side effects associated with oral medications. This shift has necessitated greater reliance on contract manufacturers that possess the specialized facilities required to produce these complex formulations. Consequently, the demand for outsourcing continues to rise as firms seek to ensure product quality and meet the evolving needs of the healthcare sector.

Regional Insights

North America holds a dominant position in the Global Semi-Solid CDMO Market due to the strong presence of major pharmaceutical companies and increasing investment in dermatological research. The high prevalence of skin conditions in the region drives substantial demand for topical treatments, such as creams and gels, which increases reliance on contract manufacturing services. Additionally, strict compliance requirements enforced by the US Food and Drug Administration compel companies to partner with specialized external providers to ensure regulatory adherence. This focus on quality assurance and operational efficiency secures the region's leading status in the global sector.

Recent Developments

• In July 2025, Bora Pharmaceuticals announced the installation of a high-performance filling line at its manufacturing facility in Mississauga, Ontario, to expand its production capabilities for dermatologic products. The new tube-filling line is designed to handle metal, plastic, and laminate tubes, significantly increasing the site's annual capacity to meet the growing demand for semi-solid formulations. This investment complements the company's existing expertise in topical drug development and manufacturing, allowing it to better serve clients with high-volume production needs. The upgrade reinforces the facility's position as a North American hub for complex semi-solid dosage forms, supporting the company's strategy to broaden its global service offerings.
• In September 2024, Blue Wolf Capital Partners LLC finalized the acquisition of seven pharmaceutical manufacturing facilities from Recipharm, a global contract development and manufacturing organization. The transaction includes sites in Sweden, France, and Spain that specialize in the development and manufacturing of oral solid, semi-solid, and liquid dosage forms. These facilities, which serve over 120 customers worldwide, will operate as a new independent platform focused on delivering high-quality manufacturing services. The acquisition allows the private equity firm to establish a significant footprint in the CDMO sector, leveraging the acquired sites' regulatory expertise and extensive capabilities in producing complex semi-solid formulations for diverse therapeutic applications.
• In July 2024, MedPharm and Tergus Pharma announced their merger to form a comprehensive contract development and manufacturing organization dedicated to topical and transepithelial pharmaceuticals. The consolidation of these two specialized entities creates an end-to-end service provider with enhanced capabilities in scientific research, clinical trial manufacturing, and commercial production. The combined organization, operating under the MedPharm brand, aims to deliver integrated solutions for semi-solid formulations, including hormone-based and high-potency drugs. This strategic union leverages the complementary strengths of both companies to support pharmaceutical clients in navigating complex development pathways and meeting the increasing demand for advanced dermatological treatments.
• In June 2024, Aterian Investment Partners completed the acquisition of Contract Pharmaceuticals Limited Canada, a leading contract development and manufacturing organization based in Mississauga, Ontario. This strategic transaction enhances the firm's portfolio in the life sciences sector by adding specialized capabilities in non-sterile liquid and semi-solid dosage forms. The acquired company is recognized for its expertise in developing and manufacturing topical prescription and regulated over-the-counter products for global markets. This acquisition allows the investment firm to support the manufacturer's continued growth and innovation in the competitive topical drug market, serving a diverse client base of major pharmaceutical companies.

Key Market Players

• The Lubrizol Corporation
• Cambrex Corporation
• Contract Pharmaceuticals Limited
• Bora Pharmaceuticals
• Ascendia Pharmaceuticals
• Pierre Fabre group
• Piramal Pharma Limited
• DPT Laboratories, LTD
• LGM Pharma
• Pace Analytical Services, LLC.

By Product	By Service	By End User	By Region
Ointments Creams and Lotions Pastes Gels Others	Contract Development Contract Manufacturing	Pharmaceutical Companies Biopharmaceutical Companies Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Semi-Solid CDMO Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Semi-Solid CDMO Market, By Product:

• Ointments
• Creams and Lotions
• Pastes
• Gels
• Others

• Semi-Solid CDMO Market, By Service:

• Contract Development
• Contract Manufacturing

• Semi-Solid CDMO Market, By End User:

• Pharmaceutical Companies
• Biopharmaceutical Companies
• Others

• Semi-Solid CDMO Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE