Pharma contract manufacturing market to grow to $130bn by 2026
Growth in the global pharmaceutical contract manufacturing market will be driven by rising consumption of medicines and increasing commercialisation of generic and innovative therapies, among other factors.
Rising demand for therapeutics, especially in developing markets, is expected to expand the global pharmaceutical contract manufacturing market to $130.2 billion by 2026. The market was valued at approximately $100 billion in 2020.
According to market research, factors promoting the 4.6 percent compound annual growth rate (CAGR) of the market include the increasing commercialisation of generics and emerging technologies and small biotechs with limited or no production capabilities driving development in the biopharmaceutical sector. In addition, investigators cited the increasing geriatric patient population, growing consumption of medicines, rising healthcare expenditure, improving healthcare infrastructure in emerging markets and mounting pressure to reduce healthcare costs as other factors driving market growth.
Within the $130.2 billion valuation, the active pharmaceutical ingredients (API)/bult drugs segment is account for $81.5 billion, growing at a CAGR of 4.4 percent between 2021 and 2026 (the forecast period). Meanwhile, growth in the advanced drug delivery formulations segment is expected to reach 3.8 percent.
Based on region, China, the world`s second largest economy, is forecast to reach a projected market size of $21.1 Billion by 2026, achieving a 5.6 percent CAGR.
Japan, Canada and Germany are also expected to grow significantly, witnessing 3.6 percent, 4.1 percent and 4.2 percent CAGRs, respectively, over the forecast period.
Lower labour costs, presence of significant talent pool and growing domestic markets are some of the factors driving growth in the Asia-Pacific region.
Meanwhile, the presence of a significant number of pharmaceutical and biopharmaceutical companies, and several of the leading firms worldwide puts the US and Europe ahead in the global market. The US market, the largest segment, was valued at $31.6 billion in 2021.
According to the report, the packaging segment of the market will be worth $15.6 billion by 2026, as contract manufacturing organisations increasingly adopt newer and efficient ways to package products, increasing demand for new machinery. For instance, efforts are underway to automate packaging of personalised cell and gene therapies.
The major markets, the US, Canada, Japan, China and Europe, accounted for $8 billion worth of the market in 2020 and are anticipated to reach $11.3 Billion by the close of the forecast period.
China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India and South Korea, the market in Asia-Pacific is forecast to reach $3.4 billion by the year 2026.
Key market players include Abbvie Inc, Almac Group, Baxter International, Inc., Boehringer Ingelheim GmbH, Catalent Pharma Solutions Inc., Cobra Biologics Holding AB, CordenPharma International, Evonik Industries AG, Lonza Group Ltd., NextPharma Technologies Holding Ltd., Recipharm AB, Siegfried AG, Thermo Fisher Scientific Inc and Vetter Pharma International GmbH.