CDMO Market By Product Type (Hair Products, Lip Products, Skin Products, Eye Products, Body Hygiene), By CMO Type (Api, Finished Product, And Packaging), By CRO Type (Discovery, Preclinical, Clinical Trial) By Region And Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends And Forecast 2024-2033

Report Overview

The Global CDMO Market Size is expected to be worth around USD 322.7 Billion by 2033 from USD 161 Billion in 2023, growing at a CAGR of 7.2% during the forecast period from 2024 to 2033.

Contract Development and Manufacturing Organization (CDMO) provides services like drug manufacturing development for the pharmaceutical industry and clients. Various pharmaceutical companies are increasing due to the high demand for manufacturing with contracts of outsourcing services will help to raise the CDMO market.

The consumer base is increasing and will shift towards natural and local products rather than large brands. Technology, other resources, and a specific plan are needed for acquiring the market. Hence, East Asia has acquired a large part of a share of the market, about 20%.

Key Takeaways

• Market Projection: CDMO market set to reach USD 322.7 Billion by 2033, growing at a CAGR of 7.2% from 2024 to 2033.
• Product Leadership: Skin products command over 37.1% market share in 2023, driving revolutionary impact and high growth.
• CMO Dominance: Active Pharmaceutical Ingredients (API) lead with 41.5% market share, showcasing sustained manufacturing growth.
• Clinical Trials Prowess: Clinical Trial Services dominate with a substantial 47.2% market share in 2023, driven by partnerships and innovations.
• Growth Drivers: Factors like a Westernized lifestyle, economic growth, and a growing population stimulate the CDMO market.
• Expansion Challenges: Strict government restrictions and declining approvals for biologics and small molecules hinder market growth.
• Industry Opportunities: Partnerships with CDMOs rise, meeting the increased demand for novel therapeutics and expanding service capabilities.
• Trend Impact: R&D funding, particularly in the U.S., significantly contributes to the CDMO market’s growth.
• Regional Dynamics: North America dominates with a 35.1% market share in 2023, while Asia Pacific experiences the highest growing CAGR, driven by lower costs and rising chronic disorders.

Product Analysis

The Skin Products Segment Dominated Global CDMO Market

The global CDMO market is segmented on product types into hair products, lip products, skin products, eye products, body hygiene, and oral hygiene. Among these products, In 2023, Skin Products held a dominant market position, capturing more than a 37.1% share in the global CDMO market.

Because these are used in face care creams, face serums, body lotions, and sunscreen lotions these give a revolutionary impact during the forecast period. Hence, skin products segment growth and segment scope are high.

CMO Type Analysis

Active Pharmaceutical Segment Dominated Global CDMO Market

The global CDMO market is segmented on CMO service types into API, Finished Product, and Packaging. Among these products, In 2023, API held a dominant market position, capturing more than a 41.5% share in the global CDMO market. API manufacturing growth key factors are increasing the quantity of biologics API in the pipeline stage and the growing selection of biologics API into a number of therapies. Manufacturing of solid, injectable, dosage forms and others are segmented from the manufacturing of finished products.

The second largest revenue share of the CMO market is the manufacturing of finished products segment anticipating considerable growth in the forecast period because of increasing demand for segments such as injectables further give an increase in desire for delivery systems of injectables namely auto-injectors, syringes for management of biologics and biosimilar.

CRO Type Analysis

Clinical Trial Services Segment Dominated Global CDMO Market

The global CDMO market is segmented on CRO segment service types into Discovery, preclinical, clinical trial, and laboratory services. Among these products, In 2023, Clinical Trial held a dominant market position, capturing more than a 47.2% share in the global CDMO market.

Because of key factors such as the increasing need for productive development and the rising number of ongoing product development. Furthermore, a boost in funds in R&D with increasing partnerships for clinical trial outsourcing among top pharma companies will increase the need for clinical trial services.

Moreover, increasing overall global CDMO market growth in the forecast period. Patient-centric innovations by a lot of pharmaceutical companies can be an important factor in supplying dose monitoring specialty in packaging for boosting patient adherence. Moreover, rapid partnerships among the CDMO market to increase demand for new packing solutions are going to help increase the packaging segment market in the forecast period.

Key Market Segments

By Product Type

• Lip Products
• Skin Products
• Eye products
• Body Hygiene
• Oral Hygiene

By CMO Type

• API
• Finished Product
• Packaging

By CRO Type

• Discovery
• Preclinical
• Clinical Trial
• Laboratory Services

Drivers

Growing Acceptance of A Westernised Lifestyle, Improving Economic Growth, And Population Boom is Market Drivers

The growing acceptance of a Westernized lifestyle, improving economic growth, and population boom are reasons for the chronic disease burden is growing substantially over the world. The World Health Organization (WHO) predicts that by 2025, non-communicable illnesses will account for 55% of all disease burdens.

hence, Pharmaceutical businesses are being encouraged to develop efficient pharmaceutical solutions to quicken the healing process of the rising rate of chronic illnesses and the geriatric population. Furthermore, the ability of CDMOs to streamline the pharmaceutical distribution chain and the implementation of the one-stop-shop model to introduce efficient drug goods to the market are projected to drive the growth of the CDMO market during the course of the forecast period.

Emphasis on Investments and New Players Entering the Market Through Partnerships are Market Drivers

Many CDMOs are placing a major emphasis on investments to create innovative compounds and broaden their geographic reach. Moreover, another significant driver projected to boost the CDMO market expansion during the forecast period is an increase in the number of new players entering the market through partnerships. Generic manufacturers increased in local CDMO can increase the reach of products.

Restraints

Strict Government Restrictions and The Decline In The Approval Of Numerous Biologics And Small Molecules In Developed Countries Are Market Restraints

The primary factors most likely to hinder the growth of the CDMO market during the forecast period are the existence of strict government restrictions and the decline in the approval of numerous biologics and small molecules in developed countries. However, without modern technology, small-scale CDMOs are more likely to experience process errors, poor quality, and pricing issues, all of which are predicted to restrain the market’s expansion.

Moreover, with the aforementioned factor, the fragility and complexity of active compounds, formulation development, and the need for a skilled workforce pose high difficulty.

Opportunities

Partnerships with CDMOs Increased Need For Novel Therapeutics

In order to shorten the timelines involved in the drug development process, many small and large pharmaceutical companies across the globe are strategically partnering with several contract development and manufacturing organizations (CDMO) due to the increased need for novel therapeutics.

These services cover the entire supply chain between drug development to commercialization and are currently provided by a large number of CDMOs, including drug discovery, API, dosage form development, preclinical, clinical trials, final product manufacturing, etc.

Even during the forecast period, it has huge opportunities due to growth factors such as the increased complexity of therapies and the lack of internal manufacturing capabilities in several small pharmaceutical businesses that would drive the expansion of the CDMO services market.

Trends

R&D Funding Is Likely to Increase the Market Growth

About half of all pharmaceutical R&D spending is spent in the United States. CMO has an important role in the CDMO market, in funding innovative technology and facilities to support a large number of outsourcing entities.

The market’s key players are profiting from Asian house investments and seeking research alliances to develop drug discovery, invest in Asia, and obtain high-end procuring knowledge.

Mergers & Acquisitions and Consolidations Were The Primary Growth Drivers

Based on a poll done in July 2022 by EY market report, mergers & acquisitions (M&A) and consolidations were the primary growth drivers for the CDMO industry over the previous ten years. This team examined 92 publicly reported internal investments from 15 chosen global CDMO businesses Moreover these present a comprehensive picture of the M&A ecosystem of CDMO.

The strategically placed CDMO modified its manufacturing line quickly to accommodate the growing need for lesser and more varied projects. New alliances were formed, allowing CDMO participants to accelerate capacity growth even more and support the industry continues to evolve in sectors like vaccine production.

Regional Analysis

North America Dominated the Central Regional Market

In 2023, North America held a dominant market position, capturing more than a 35.1% share and holds USD 56.5 Billion market value for the year. North America has the largest revenue share due to the presence of the United States and Canada like large economies. One of the dominating pharmaceutical companies is in the United States hence, large market shares of the CDMO market.

Asia Pacific Has Highest Growing CAGR in CDMO Market

Asia Pacific has the highest growing CAGR in the CDMO market in the forecast period. because the region is less expensive than the U.S. and other industrialized economies.

Hence, Major factors influencing biopharmaceutical industry growth in the region include the rising prevalence of lifestyles and chronic disorders including heart and diabetes disease, as well as patient recruitment and the accessibility of experts conducting clinical trials with advanced technologies.

Key Regions

North America

• The US
• Canada
• Mexico

Eastern Europe

• Russia
• Poland
• The Czech Republic
• Greece
• Rest of Eastern Europe

Western Europe

• Germany
• France
• The UK
• Spain
• Italy
• Portugal
• Ireland
• Austria
• Switzerland
• Benelux
• Nordic
• Rest of Western Europe

APAC

• China
• Japan
• South Korea
• India
• Australia & New Zealand
• Indonesia
• Malaysia
• Philippines
• Singapore
• Thailand
• Vietnam
• Rest of APAC

 Latin America

• Brazil
• Colombia
• Chile
• Argentina
• Costa Rica
• Rest of Latin America

Middle East & Africa

• Algeria
• Egypt
• Israel
• Kuwait
• Nigeria
• Saudi Arabia
• South Africa
• Turkey
• United Arab Emirates
• Rest of MEA

Key Players Analysis

Lonza from Switzerland has the highest revenue share in the CDMO market. Whereas, Wuxi from China will have the highest growth rate in the forecast period. Several competitors have a very high impact on pricing, small-size providers, and competition in direct sources. To obtain a competitive advantage, it is expected that market sellers will focus on providing one-stop-shop services. With access to substantial resources, the CMO would be able to engage in these operations, making it more difficult for new competitors to enter the market and boosting competition.

Market Key Players

With the presence of many local and regional players, the market for companion diagnostics is fragmented market. Market players are subject to intense competition from top prominent market players, particularly those with strong brand recognition and high distribution networks. To stay on top of the market in company ranking, Pharma companies have gained various expansion key strategies such as partnerships and product launches to obtain a competitive edge.

The following are some of the prominent players in the global CDMO industry:

• Lonza
• Wuxi
• Catalent
• FAREVA SA
• Recipharm AB
• Samsung Biologics
• Delpharm
• Siegfried
• Boehringer Ingelheim
• Aenova Group
• Labcorp Drug Development
• Thermo Fisher Scientific Inc.
• Parexel International Corporation
• Other Key Players

Recent Development

• In January 2024, Thermo Fisher Scientific’s GMP facility in Philadelphia bolsters its cell and gene therapy offerings, solidifying its prominent role in this transformative medical landscape.
• In December 2023, Lonza’s collaboration with Evotec integrates CDMO proficiency and drug discovery platforms for comprehensive solutions in personalized medicine, amplifying industry impact.
• In October 2023, Catalent’s acquisition of Metrics Contract Services enhances its clinical packaging and labeling, focusing on biologics for robust late-stage capabilities.
• In September 2023, Samsung Biologics’ joint venture with Boehringer Ingelheim fortifies biosimilar development and manufacturing, combining Samsung’s CDMO strength with Boehringer Ingelheim’s biosimilar expertise.

Report Scope