Global Vaccine Contract Manufacturing Market By Vaccine Type (Inactivated Vaccines, Attenuated Vaccines, RNA Vaccines, Subunit Vaccines, and Toxoid-based Vaccines), By Process (Downstream (Analytical & QC Studies, Fill and Finish, Packaging, Others) and Upstream (Bacterial Expression Systems, Baculovirus/Insect Expression Systems, Mammalian Expression Systems, Yeast Expression Systems, Others)), By Scale of Operations (Preclinical, Clinical, and Commercial), By End-use (Human Use and Veterinary), Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

Global Vaccine Contract Manufacturing Market size is expected to be worth around US$ 5.0 billion by 2033 from US$ 2.4 billion in 2023, growing at a CAGR of 7.6% during the forecast period 2024 to 2033.

Rising demand for vaccines, driven by global immunization efforts and the need to combat emerging infectious diseases, is fueling growth in the vaccine contract manufacturing market. Pharmaceutical companies are increasingly outsourcing vaccine production to specialized contract manufacturers to enhance capacity, reduce costs, and accelerate time-to-market.

Recent advancements in bioprocessing technologies, coupled with flexible manufacturing capabilities, are enabling contract manufacturers to produce a wide range of vaccines, including those for viral, bacterial, and mRNA-based platforms. In August 2024, Africa CDC entered a strategic partnership with Bavarian Nordic to expand Mpox vaccine production in Africa, highlighting the critical role of contract manufacturing in meeting regional vaccine needs.

Opportunities in the market include scaling production for pandemic preparedness, advancing cold-chain logistics, and optimizing production for personalized vaccines. Trends such as continuous manufacturing and the integration of automation and AI into production processes are further shaping the landscape, offering greater efficiency and adaptability.

Key Takeaways

• In 2023, the market for vaccine contract manufacturing generated a revenue of US$ 4 billion, with a CAGR of 7.6%, and is expected to reach US$ 5.0 billion by the year 2033.
• The vaccine type segment is divided into inactivated vaccines, attenuated vaccines, RNA vaccines, subunit vaccines, and toxoid-based vaccines, with attenuated vaccines taking the lead in 2023 with a market share of 35.7%.
• Considering process, the market is divided into downstream and upstream. Among these, downstream held a significant share of 59.2%.
• Furthermore, concerning the scale of operations segment, the market is segregated into preclinical, clinical, and commercial. The commercial sector stands out as the dominant player, holding the largest revenue share of 66.4% in the vaccine contract manufacturing market.
• The end-use segment is segregated into human use and veterinary, with the human use segment leading the market, holding a revenue share of 72.6%.
• North America led the market by securing a market share of 40.1% in 2023.

By Vaccine Type Analysis

The attenuated vaccines segment led in 2023, claiming a market share of 35.7% owing to its ability to elicit strong and long-lasting immune responses. The increasing use of attenuated vaccines for infectious diseases such as measles, mumps, and rubella is anticipated to drive demand. Furthermore, the advancement of genetic engineering techniques that allow for safer and more effective attenuated strains is expected to contribute to growth.

The rising incidence of infectious diseases in developing regions, coupled with the affordability of large-scale production, is likely to support further expansion. Governments and global health organizations are also anticipated to increase their focus on immunization programs, boosting the demand for attenuated vaccines.

By Process Analysis

The downstream held a significant share of 59.2% due to the increasing complexity of vaccine purification and formulation processes. As biopharmaceutical companies focus on optimizing product yield and purity, downstream processes such as filtration, chromatography, and ultrafiltration are likely to see increased demand.

Advancements in purification technologies, including single-use systems, are projected to streamline operations and reduce contamination risks, further enhancing growth. Additionally, the rising demand for high-quality vaccines, particularly with the expansion of RNA and protein-based vaccines, is anticipated to support investment in downstream processing.

By Scale of Operations Analysis

The commercial segment had a tremendous growth rate, with a revenue share of 66.4% owing to as more vaccines advance from clinical trials to full-scale production. The need for large-scale manufacturing facilities to meet the global demand for vaccines, particularly those addressing public health crises, is anticipated to drive this segment.

Contract manufacturers are likely to benefit from long-term agreements with pharmaceutical companies for commercial production, enabling them to expand capacity and capabilities. Furthermore, the increasing focus on pandemic preparedness and the stockpiling of essential vaccines by governments is expected to contribute to the expansion of the commercial segment.

By End-use Analysis

The human use segment grew at a substantial rate, generating a revenue portion of 72.6% due to the rising demand for vaccines to prevent infectious diseases in humans. The global focus on immunization against diseases such as COVID-19, influenza, and HPV is projected to drive the growth of this segment.

Increased government funding and initiatives to promote universal vaccination coverage are also likely to support this expansion. Furthermore, the growing elderly population, which is more susceptible to infectious diseases, is expected to increase demand for vaccines targeting age-related conditions. Advancements in mRNA and protein-based vaccines for human use are also estimated to fuel growth in this segment.

Key Market Segments

By Vaccine Type

• Inactivated Vaccines
• Attenuated Vaccines
• RNA Vaccines
• Subunit Vaccines
• Toxoid-based Vaccines

By Process

• Downstream
  • Analytical & QC Studies
  • Fill Finish
  • Packaging
  • Others
• Upstream
  • Bacterial Expression Systems
  • Baculovirus/Insect Expression Systems
  • Mammalian Expression Systems
  • Yeast Expression Systems
  • Others

By Scale of Operations

• Preclinical
• Clinical
• Commercial

By End-use

• Human Use
• Veterinary

Drivers

Rising investment activities drive the vaccine contract manufacturing market

Rising investment in vaccine production facilities drives significant growth in the vaccine contract manufacturing market. Pharmaceutical companies continue to expand their capabilities to meet the increasing global demand for vaccines.

For example, in July 2024, AstraZeneca announced a USD 254 million investment to enhance vaccine manufacturing at its Cambridge facility, which is anticipated to boost production capacity and efficiency. Such investments enable contract manufacturers to adopt advanced technologies and scale operations, making it easier to meet the growing demand from pharmaceutical firms.

Increased funding and infrastructure expansion also improve the ability to respond to urgent vaccine requirements during pandemics and other public health crises, supporting the overall market trajectory.

Restraints

Stringent regulatory requirements restrain the vaccine contract manufacturing market

Stringent regulatory requirements are anticipated to impede the growth of the vaccine contract manufacturing market. The production of vaccines involves complex processes that must adhere to strict regulatory standards to ensure safety, efficacy, and quality. These regulatory demands often require contract manufacturers to invest heavily in compliance measures, such as advanced testing, validation procedures, and quality control systems.

Navigating the regulatory landscape across different countries adds to the complexity and cost of manufacturing, making it more challenging for companies to quickly scale operations. Delays in regulatory approvals and the need for compliance with various international standards further hamper the market’s ability to expand efficiently and meet growing demand.

Opportunities

Increasing collaborations among market players present an opportunity for the vaccine contract manufacturing market

Growing collaborations between key market players create significant opportunities for the vaccine contract manufacturing market. In June 2022, Merck and Agilent Technologies partnered to enhance process analytical technologies for downstream processing, addressing critical gaps in the manufacturing process. Such collaborations foster innovation and technological advancements, allowing companies to streamline production and improve efficiency.

Strategic partnerships between pharmaceutical firms and contract manufacturers enhance knowledge sharing and resource pooling, enabling the development of more effective and scalable vaccine production solutions. As companies increasingly collaborate to overcome challenges in manufacturing, these initiatives are expected to drive market growth and enhance the capacity to meet global vaccine demands.

Impact of Macroeconomic / Geopolitical Factors

Macroeconomic conditions and geopolitical developments significantly shape the vaccine contract manufacturing market. Inflationary pressures and rising raw material costs have increased production expenses, making it difficult for smaller manufacturers to remain competitive. Geopolitical tensions and trade restrictions disrupt the global supply chain, delaying the transportation of essential components needed for vaccine production.

However, increased government investments in pandemic preparedness and public health infrastructure positively influence market growth. Countries are placing greater emphasis on localizing production to ensure supply chain resilience. Favorable international trade agreements and collaborations among nations encourage technological advancements and faster product approvals, driving the industry’s expansion.

As governments continue to prioritize vaccine development for future pandemics, the market is expected to experience steady growth.

Latest Trends

Rising Vaccine Production Driving the Vaccine Contract Manufacturing Market

Rising vaccine production rates are projected to significantly boost the vaccine contract manufacturing market. In May 2024, BioNTech secured $145 million from CEPI to expand its mRNA vaccine production capacity, showcasing the growing trend of increased investment in vaccine manufacturing. This surge in production is driven by the ongoing global demand for vaccines to address various infectious diseases, including COVID-19 and emerging threats.

Growing advancements in biotechnology and scaling up production facilities further support the trend. With more pharmaceutical companies seeking external manufacturing partners to meet demand, the market is estimated to expand rapidly in the coming years. This rise in production is likely to foster new collaborations and innovations, solidifying the role of contract manufacturers in the global vaccine supply chain.

Regional Analysis

North America is leading the Vaccine Contract Manufacturing Market

North America dominated the market with the highest revenue share of 40.1% owing to increased demand for vaccine production capabilities and strategic partnerships between governments and pharmaceutical companies. A key development contributing to this expansion was Moderna, Inc.’s announcement in April 2022 to build a cutting-edge mRNA vaccine manufacturing facility in Quebec.

This move, part of a long-term partnership with the Canadian government, significantly boosted Moderna’s production capacity and revenue in the region. The need for rapid vaccine production during the pandemic, coupled with technological advancements in mRNA platforms, has further propelled the demand for contract manufacturing services.

Additionally, investments in expanding manufacturing infrastructure and rising government funding for vaccine development have played a crucial role in market growth.

The Asia Pacific region is expected to experience the highest CAGR during the forecast period

Asia Pacific is expected to grow with the fastest CAGR owing to increasing demand for biologics and advanced therapies. In June 2023, FUJIFILM Corporation opened a new commercial office in Tokyo to enhance sales and customer support for contract development and manufacturing services. This initiative aims to strengthen partnerships with Asia-based pharmaceutical and biotechnology companies, providing them with tailored manufacturing solutions.

The region’s growing pharmaceutical sector, combined with rising investments in research and development, is likely to boost the market. Additionally, government initiatives to strengthen local manufacturing capabilities and reduce reliance on imports are anticipated to further drive market growth in the region.

Key Regions and Countries

North America

• US
• Canada

Europe

• Germany
• France
• The UK
• Spain
• Italy
• Russia
• Netherland
• Rest of Europe

Asia Pacific

• China
• Japan
• South Korea
• India
• Australia
• New Zealand
• Singapore
• Thailand
• Vietnam
• Rest of APAC

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• South Africa
• Saudi Arabia
• UAE
• Rest of MEA

Key Players Analysis

The major players in the vaccine contract manufacturing market are actively engaged in the development and introduction of innovative products, as well as implementing strategic initiatives aimed at enhancing their competitive positioning. Key players in the vaccine contract manufacturing market focus on expanding their production capacities to meet growing global demand.

They form strategic partnerships with pharmaceutical companies and governments to secure long-term manufacturing contracts. Investing in cutting-edge technologies and flexible manufacturing platforms enables them to offer scalable solutions for various vaccine types. Companies also emphasize regulatory compliance and quality assurance to maintain trust and credibility.

Additionally, they explore opportunities in emerging markets to diversify their client base and increase revenue streams.

Top Key Players

• PRA Health Sciences
• Pharmaceutical Product Development, LLC
• Moderna
• Merck KgaA
• IDT Biologika GmbH
• ICON plc.
• Cytovance Biologics
• Cobra Bio
• Catalent, Inc.
• Ajinomoto Althea, Inc.

Recent Developments

• In December 2023, Ajinomoto Co., Inc. acquired shares of All Forge Biologics Holdings, LLC. This acquisition aims to accelerate production capabilities for the manufacturing and development of biologics. This expansion is expected to promote growth and innovation in Japan, strengthening Ajinomoto’s role in the vaccine contract manufacturing market by enhancing its capacity to produce biologics more efficiently.
• In August 2022, Moderna signed an agreement with the Canadian government to establish a messenger RNA (mRNA) vaccine manufacturing facility in Canada. This partnership aims to provide Canadians with access to domestically produced mRNA vaccines for respiratory viruses such as SARS-CoV-2, influenza, and respiratory syncytial virus. The construction of this facility will significantly contribute to the growth of the vaccine contract manufacturing market by increasing regional production capacity for essential vaccines.

Report Scope