Global 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 2023-2032

Report Overview

In 2022, Global cdmo market was valued at USD 150.2 Bn. Between 2023 and 2032, this market is estimated to register the highest CAGR of 6.9%.

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%.

Market Scope

By 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, skin products have the largest revenue 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.

By CMO Service 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, the Active pharmaceutical Segment has the largest revenue 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.

By CRO Service 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, the Clinical trial services Segment has the largest revenue 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

Market Dynamics

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, to fund 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, investment 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

With a market share, North America dominated the central regional market revenue growth of the global CDMO market in 2022. North America has the largest revenue share due to the presence of the United States and Canada like large economies. One of 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.

Recent Development

• In September 2022: Lonza completed multifunctional potent Potent API in Visp. These help the expansion of ADC payload manufacturing capacity and development capacity, further supporting the manufacturing and research pipeline from conventional studies to commercial studies.
• In Jun 2022: Pfizer established facilities in Freiburg of Germany with Bristiol-Myers Squibb to help European manufacturing of medication. Near about 14 thousand square meter area of the new branch can increase overall capacity by 150%.
• In April 2022: Aenova unveiled a new building for active chemicals at Regensburg. In this position very good medications and especially for cancer diseases. Aenova can increase the capacity of manufacturing by an investment of 10.5 million to reach the increasing demand of the CDMO market.

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.

Report Scope