CMO/CDMO Market Size was valued at USD 22.8 Billion in 2022. The CMO/CDMO market industry is projected to grow from USD 24.14 Billion in 2023 to USD 38.19 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.90% during the forecast period (2024 - 2032). Increased outsourcing of pharmaceutical manufacturing and development activities by pharmaceutical and biotechnology companies are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for CMO/CDMO is being driven by the rising new age contract producers striving for greater flexibility and responsiveness. CMO/CDMO) market, driven by their emphasis on greater flexibility and responsiveness. These emerging players are capitalizing on advancements in technology, process optimization, and supply chain management to offer tailored solutions that meet the dynamic needs of pharmaceutical and biotechnology companies. By prioritizing flexibility, they can swiftly adapt to changes in client requirements, regulatory landscapes, and market demands, enabling seamless integration within the client's value chain. This agility is particularly crucial in the pharmaceutical industry, where rapid shifts in market dynamics, such as changing consumer preferences or emerging therapeutic trends, necessitate quick adjustments in production schedules and formulations.
Moreover, the emphasis on responsiveness enables new-age contract producers to establish closer collaborations with their clients, fostering a more symbiotic relationship that transcends traditional vendor-client dynamics. By actively engaging in continuous communication and feedback loops, these CMOs/CDMOs can better understand their clients' evolving needs and proactively propose innovative solutions or process improvements. This collaborative approach not only enhances the quality and efficiency of manufacturing operations but also facilitates knowledge exchange and technology transfer, driving mutual growth and success.
Furthermore, growing regulatory complexities and the increasing demand for personalized medicine are further propelling the need for adaptable and agile manufacturing partners. New-age contract producers leverage their expertise in navigating regulatory frameworks and their investment in flexible manufacturing platforms to address these challenges effectively. Whether it's scaling up production to meet surging demand or swiftly pivoting to produce niche therapies, these CMOs/CDMOs are well-positioned to accommodate diverse requirements while maintaining compliance and quality standards.
The emphasis on greater flexibility and responsiveness by growing new-age contract producers is a significant driving force behind the expansion of the market. Their ability to adapt quickly, collaborate closely with clients, and navigate regulatory complexities positions them as invaluable partners in the pharmaceutical and biotechnology industries, driving innovation, efficiency, and growth across the value chain. Thus, driving the CMO/CDMO market revenue.
The CMO/CDMO Market segmentation, based on service, includes Contract Development, Contract Manufacturing, and Others. In 2023, the contract manufacturing segment dominated the market due to its ability to offer flexible and scalable solutions to pharmaceutical and biotechnology companies, allowing them to efficiently meet fluctuating demand and reduce operational costs. By outsourcing manufacturing processes to specialized CMO/CDMO providers, companies can focus on core competencies such as research, development, and marketing while leveraging the expertise and infrastructure of external partners for manufacturing activities. This trend towards outsourcing manufacturing functions has propelled the growth of the contract manufacturing segment within the market, driving innovation and collaboration across the industry.
Figure 1: CMO/CDMO Market, by Service, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The CMO/CDMO Market segmentation, based on product, includes Hair Products, Skin products, Lip products, Eye Products, Body Hygiene, and Oral Hygiene. In 2023, the skincare products category will dominate the market due to the high demand for personalized and innovative formulations catering to diverse consumer needs. The skincare industry's continuous pursuit of new ingredients, formulations, and delivery systems necessitates collaboration with CMOs/CDMOs possessing specialized expertise and capabilities. This demand drives substantial outsourcing in the skincare sector as companies leverage the manufacturing proficiency and flexibility offered by CMOs/CDMOs to swiftly bring new products to market while maintaining quality standards.
The CMO/CDMO Market segmentation, based on form, includes Solid Form & Powder, Lotions, Creams, and Others. In 2023, the solid & powder category dominated the market due to their widespread applications across various pharmaceutical formulations, including tablets, capsules, and powders for oral administration. These dosage forms offer advantages such as ease of handling, stability, and precise dosing, making them preferred choices for both drug developers and patients. As a result, CMOs and CDMOs specializing in solid form and powder manufacturing play a pivotal role in meeting the industry's demand for high-quality, cost-effective dosage forms.
By region, the study provides the market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American CMO/CDMO market area will dominate this market, owing to a robust pharmaceutical and biotechnology industry, advanced infrastructure, regulatory expertise, and a large pool of skilled professionals. The region's strategic location, coupled with its focus on innovation and quality, positions North American CMOs and CDMOs as preferred partners for companies seeking reliable and high-quality outsourcing services.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, and South Korea.
Figure 2: CMO/CDMO Market Share By Region 2023 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's CMO/CDMO market accounts for the second-largest market share due to the increasing investments in biopharmaceutical research and development. Further, the German CMO/CDMO market held the largest market share, and the UK CMO/CDMO market was the fastest growing market in the European region.
The Asia-Pacific CMO/CDMO Market is expected to grow at the fastest CAGR from 2024 to 2032. This is due to increasing investments in healthcare infrastructure, rising pharmaceutical outsourcing activities, lower operational costs, and a growing pool of skilled labor. Moreover, China’s CMO/CDMO market held the largest market share, and the Indian CMO/CDMO market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the CMO/CDMO market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the CMO/CDMO industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global CMO/CDMO industry to benefit clients and increase the market sector. In recent years, the CMO/CDMO industry has offered some of the most significant advantages to several industries. Major players in the CMO/CDMO market, including Swiss American CDMO, Pierre Fabre Group, Zymo Cosmetics, Fareva, Biofarma Srl C.F., Chemineau, C.O.C. Farmaceutici Srl and Paragon Nordic, and others, are attempting to increase market demand by investing in research and development operations.
HK Inno.N Corporation is a leading technology company based in Hong Kong, specializing in innovative solutions across various industries. The company focuses on research and development, particularly in areas such as artificial intelligence, biotechnology, and renewable energy. HK Inno.N Corporation has gained recognition for its cutting-edge products and services, contributing significantly to the advancement of technology in the region. With a strong emphasis on sustainability and efficiency, the company is committed to addressing global challenges through its technological innovations.
Its diverse portfolio includes projects ranging from smart city initiatives to healthcare advancements, demonstrating its versatility and impact on society. HK Inno.N Corporation continues to expand its reach both domestically and internationally, forging partnerships and collaborations to drive further innovation and growth. In May 2022, HK Inno. N Corporation and Dr. Reddy’s Laboratories signed a partnership to supply and commercialize the patented novel molecule Tegoprazan of HK Inno. Corporation for gastrointestinal diseases in India and six important developing markets.
Cipla Limited is a renowned Indian multinational pharmaceutical company headquartered in Mumbai, India. It is one of the largest pharmaceutical companies in India, with a strong presence globally. Cipla is known for its wide range of affordable and high-quality generic medicines, covering areas such as respiratory, cardiovascular, anti-retroviral, and oncology drugs. The company has a rich history of innovation and has played a significant role in providing access to affordable healthcare worldwide. In July 2022, Cipla Health Limited, a wholly owned subsidiary and consumer healthcare arm of Cipla Limited, acquired Endura Mass, which is a popular nutritional supplement brand in the weight gain category from Medinnbelle Herbacare Private Limited.
CMO/CDMO Industry Developments
June 2023: Catalent broadened the scope of its One Bio suite solution, including development, manufacturing, and supply for a range of biotechnological modalities inclusive of recombinant proteins and antibody, cellular and gene therapy, and also mRNA.
January 2023: Catalent signed a development and license agreement with Ethican Pharmaceuticals Inc. According to the agreement, Catalent can use its Zydis technology to generate pharmaceutical products containing cannabidiol and tetrahydrocannabinol for Ethican’s use in clinical trials for a variety of conditions.
January 2023: Thermo Fisher Scientific Inc. acquired Binding Site Group. The Binding Site broadened the already expanded specialized diagnostic range of Thermo Fisher by adding ground-breaking innovation in multiple myeloma diagnosis and monitoring.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 22.8 Billion |
| Market Size 2023 | USD 24.14 Billion |
| Market Size 2032 | USD 38.19 Billion |
| Compound Annual Growth Rate (CAGR) | 5.90% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Service, Product, Form, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea |
| Key Companies Profiled | Swiss American CDMO, Pierre Fabre Group, Zymo Cosmetics, Fareva, Biofarma Srl C.F., Chemineau, C.O.C. Farmaceutici Srl and Paragon Nordic |
| Key Market Opportunities | · Increasing demand for outsourcing services in the pharmaceutical and biotechnology industries |
| Key Market Dynamics | · Growing complexity of drug development and manufacturing processes |
Frequently Asked Questions (FAQ) :
The global market size was valued at USD 24.14 Billion in 2023.
The global market is projected to grow at a CAGR of 5.90% during the forecast period, 2024-2032.
North America had the largest share in the global market.
The key players in the market are Swiss American CDMO, Pierre Fabre Group, Zymo Cosmetics, Fareva, Biofarma Srl C.F., Chemineau, C.O.C. Farmaceutici Srl, and Paragon Nordic, among others.
The contract manufacturing category dominated the market in 2023.
The skincare products had the largest share in the global market.
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Assistant Manager He holds an experience of about 7+ years in market research and business consulting, working under the spectrum of life sciences and healthcare domains. rahul conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. his expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc. in addition to the above, his other responsibility includes strategic tracking of high growth markets & advising clients on the potential areas of focus they could direct their business initiatives
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