PUBLISHER: Grand View Research | PRODUCT CODE: 1678668
PUBLISHER: Grand View Research | PRODUCT CODE: 1678668
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.