Global Pharmaceutical Manufacturing Market Overview
Pharmaceutical Manufacturing Market Size was valued at USD 512.5 Billion in 2022. The pharmaceutical manufacturing market industry is projected to grow from USD 552.98 Billion in 2023 to USD 1015.984 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.90% during the forecast period (2024 - 2032). A considerable change has occurred in the pharmaceutical sector as a result of technological developments, low-cost manufacturing techniques, and greater investment. The market has grown as a result of these market drivers.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Pharmaceutical Manufacturing Market Trends
- Growing incidence of chronic diseases is driving the market growth
The need for pharmaceutical manufacturing is being driven by the rising incidence of chronic diseases and the aging of the population. This tendency can be related to chronic illnesses like diabetes and cancer, which require early treatment due to their devastating side effects. For instance, according to the World Health Organization's (WHO) September 2022 update, non-communicable diseases (NCDs), usually referred to as chronic diseases, are to blame for nearly 41 million deaths worldwide, or 71% of all fatalities. According to the same source, diabetes, cancer, and cardiovascular disorders round up the top five NCDs. Low- and middle-income nations account for over 77% of all NCD fatalities.
The growing need for targeted therapeutics and customized medicine is one of the major market trends in the worldwide pharmaceutical manufacturing industry. Technology and genetics advancements have opened the door to more individualized and accurate treatments, which has caused a change in pharmaceutical manufacturing toward smaller batches and flexible production methods. There is also a growing emphasis on the development of biologics and biosimilars as a result of the growth in chronic illnesses and the need for cutting-edge therapies. Pharmaceutical manufacturers emphasize waste reduction, improved energy efficiency, and the adoption of green manufacturing processes to fulfill environmental regulations and consumer needs, which has enhanced the relevance of sustainability and eco-friendly operations.
The rising need for medical supplies and drugs around the world is one factor driving the pharmaceutical manufacturing market. The need for pharmaceuticals has increased as a result of the expanding population, rising rates of infectious diseases, and chronic disorders. The demand for novel pharmaceuticals and therapies has also increased as a result of population aging and medical technology improvements. To fulfill the escalating demand on the market, pharmaceutical producers are compelled to increase their production capacity, make investments in R&D, and use innovative manufacturing techniques. Thus, driving the pharmaceutical manufacturing market revenue.
Pharmaceutical Manufacturing Market Segment Insights
Pharmaceutical Manufacturing Molecule Type Insights
The pharmaceutical manufacturing market segmentation, based on molecule type includes Biologics & Biosimilars (Large Molecules) and Conventional Drugs (Small Molecules). The conventional drugs (small molecules) segment dominated the market. Comparing small molecules to large molecules, small molecules hold a market share of over 50%. The sustained dominance of small molecule medications in the pharmaceutical business is also due to a number of other factors, including molecular potency, drug product complexity, industry mix, and manufacturing trends.
Pharmaceutical Manufacturing Drug Development Type Insights
The pharmaceutical manufacturing market segmentation, based on drug development type, includes In-house and Outsource. The outsource category generated the most income. Due to a number of related advantages, this market is expected to grow profitably in the future. There are many benefits to outsourcing operations, including cheaper costs overall and for drug research, better manufacturing efficiency, and simpler regulatory compliance.
Figure 1: Pharmaceutical Manufacturing Market, by Drug Development Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Pharmaceutical Manufacturing Formulation Insights
The pharmaceutical manufacturing market segmentation, based on formulation includes Tablets, Capsules, Injectable, Sprays, Suspensions, Powders and Other Formulations. The tablets segment dominated the market. This expansion can be due to the wide distribution of tablet-based medications in different formulations, such as film-coated, enteric-coated, orally disintegrating, and effervescent tablets.
Pharmaceutical Manufacturing Route of Administration Insights
The pharmaceutical manufacturing market segmentation, based on route of administration, includes Oral, Topical, Parenteral, Inhalations and Other Routes of Administration. The oral category generated the most income. Due to their accessibility, simplicity in manufacture, and ease of administration for patients, oral dosage forms are recommended. The marketability of oral medications has also improved because to developments in drug delivery technology like targeted drug delivery and prolonged release formulations.
Pharmaceutical Manufacturing Therapy Area Insights
The pharmaceutical manufacturing market segmentation, based on therapy area includes Cardiovascular Diseases (CVDs), Pain, Diabetes, Cancer, Respiratory Diseases and Other Diseases. The cancer segment dominated the market. A large investment in cancer research, a strong product pipeline, and technological improvements all have an impact on the cancer segment's growth.
Pharmaceutical Manufacturing Prescription Insights
The pharmaceutical manufacturing market segmentation, based on prescription, includes Prescription Medicines and Over-the-counter (OTC) Medicines. The over-the-counter (OTC) medicines category generated the most income because of the ongoing shift from prescription to OTC. This move from prescription to over-the-counter medications has the potential to help people both monetarily and in terms of improved health.
Pharmaceutical Manufacturing Age Group Insights
The pharmaceutical manufacturing market segmentation, based on age group includes Children & Adolescents, Adults and Geriatric. The geriatric segment dominated the market. One in eleven people were 65 years of age or older in 2021, according to the World Population Prospects. The considerable growth potential of the geriatric sector is highlighted by the expectation that this percentage will rise to one in six people by the year 2050.
Pharmaceutical Manufacturing Sales Channel Insights
The pharmaceutical manufacturing market segmentation, based on sales channel, includes Retail and Non-retail. The retail category generated the most income. More people are choosing self-medication to treat minor health conditions as a result of rising medical costs and health insurance rates. OTC medications are very popular among customers due to their affordability and convenience. The acceptance of medications from retail stores has so significantly increased, fueling the expansion of this market segment.
Pharmaceutical Manufacturing Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American pharmaceutical manufacturing market area will dominate this market. This can be attributable to the various strategic alliances created in the area between existing and developing pharmaceutical firms. On a scale, the U.S. in particular occupied a prominent position in terms of prescription drug spending per capita. Additionally, the majority of clinical trials and drug efficacy studies carried out globally were in the U.S.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: PHARMACEUTICAL MANUFACTURING MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe pharmaceutical manufacturing market accounts for the second-largest market share due to a significant elderly population and favourable reimbursement scenario. On the other hand, it is predicted to see a quick pace of expansion due to rising investment by big manufacturers, rising acceptance of contract research companies, and rising per-capita healthcare spending. Further, the German pharmaceutical manufacturing market held the largest market share, and the UK pharmaceutical manufacturing market was the fastest growing market in the European region
The Asia-Pacific Pharmaceutical Manufacturing Market is expected to grow at the fastest CAGR from 2024 to 2032. This can be ascribed to a number of things, such as a sizable client base, rising healthcare costs, an increase in disease incidence, and the availability of legislative frameworks that are favorable. Additionally, the area has recently embraced new technologies and undergone a digital transformation to guarantee sustainable patient care. Different national-level policies in Asian nations have pushed for the use of big data and AI in healthcare. Moreover, China’s pharmaceutical manufacturing market held the largest market share, and the Indian pharmaceutical manufacturing market was the fastest growing market in the Asia-Pacific region.
Pharmaceutical Manufacturing Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the pharmaceutical manufacturing market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their 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, pharmaceutical manufacturing industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the pharmaceutical manufacturing industry to benefit clients and increase the market sector. In recent years, the pharmaceutical manufacturing industry has offered some of the most significant advantages to medicine. Major players in the pharmaceutical manufacturing market are attempting to increase market demand by investing in research and development operations includes F. Hoffmann-La Roche Ltd.; Novartis AG; GlaxoSmithKline plc; Pfizer, Inc.; Merck & Co., Inc.; AstraZeneca; Johnson & Johnson; Sanofi SA; Eli Lilly and Company; AbbVie, Inc.; Thermo Fisher Scientific, Inc.; Wuxi Apptec; Samsung Biologics; FUJIFILM Diosynth Biotechnologies U.S.A., Inc.; Lonza; Catalent Pharma Solutions; and Jubilant Pharmova Limited.
Eli Lilly and Company (Lilly) is a healthcare organization that is involved in the discovery, development, and commercialization of drugs for use in human healthcare. The business sells medications for neurological issues, autoimmune illnesses, cancer, men's health, musculoskeletal issues, endocrinology, diabetes, and cardiovascular conditions. Through independent wholesale distributors, the company sells its pharmaceutical health items.
AstraZeneca Plc (AstraZeneca) is a biopharmaceutical firm that focuses on the development, manufacturing, and marketing of a variety of prescription medications. It creates goods for the treatment of ailments like cancer, autoimmune, infectious, neurological, and respiratory, cardiovascular, renal, and metabolic problems. Vaccines, prescription medications, and biologics are all part of the company's product line. Through distributors, local representative offices, and wholly-owned local marketing firms, AstraZeneca offers its products.
Key Companies in the pharmaceutical manufacturing market include
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F. Hoffmann-La Roche Ltd.
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Novartis AG
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GlaxoSmithKline plc
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Pfizer, Inc.
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Merck & Co., Inc.
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AstraZeneca
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Johnson & Johnson
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Sanofi SA
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Eli Lilly and Company
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AbbVie, Inc.
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Thermo Fisher Scientific, Inc.
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Wuxi Apptec
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Samsung Biologics
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FUJIFILM Diosynth Biotechnologies U.S.A., Inc.
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Lonza
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Catalent Pharma Solutions
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Jubilant Pharmova Limited
Pharmaceutical Manufacturing Industry Developments
August 2023:The establishment of Lifera, a contract manufacturing company in the commercial stage, was announced by the sovereign wealth fund of Saudi Arabia. The new organization seeks to foster the growth of the regional biopharmaceutical industry.
May 2023:Cadila Pharma, an Ahmedabad-based company, and the state of Gujarat signed a Memorandum of Understanding (MoU) to jointly invest Rs. 1,000 crore in a variety of ongoing pharmaceutical projects. Cadila plans to open a new plant for active medicinal ingredients after investing the money over a three-year period.
April 2022:Arranta Bio and CDMO Vibalogics were purchased by Recipharm. The purchases are in line with Recipharm's aim to expand its market share in the biologics sector while concentrating on the production of unique ATMPs (advanced therapy medicinal products).
Pharmaceutical Manufacturing Market Segmentation
Pharmaceutical Manufacturing Molecule Type Outlook (USD Billion, 2018-2032)
Pharmaceutical Manufacturing Drug Development Type Outlook (USD Billion, 2018-2032)
Pharmaceutical Manufacturing Formulation Outlook (USD Billion, 2018-2032)
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Tablets
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Capsules
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Injectable
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Sprays
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Suspensions
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Powders
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Other Formulations
Pharmaceutical Manufacturing Route of Administration Outlook (USD Billion, 2018-2032)
Pharmaceutical Manufacturing Therapy Area Outlook (USD Billion, 2018-2032)
Pharmaceutical Manufacturing Prescription Outlook (USD Billion, 2018-2032)
Pharmaceutical Manufacturing Age Group Outlook (USD Billion, 2018-2032)
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Children & Adolescents
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Adults
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Geriatric
Pharmaceutical Manufacturing Sales Channel Outlook (USD Billion, 2018-2032)
Pharmaceutical Manufacturing Regional Outlook (USD Billion, 2018-2032)
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
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Report Attribute/Metric
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Details
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Market Size 2022
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USD 512.5 Billion
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Market Size 2023
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USD 552.98 Billion
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Market Size 2032
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USD 1015.984 Billion
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Compound Annual Growth Rate (CAGR)
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7.90% (2024-2032)
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Base Year
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2023
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Market Forecast Period
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2024-2032
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Historical Data
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2018- 2022
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Market Forecast Units
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Value (USD Billion)
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Report Coverage
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Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
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Segments Covered
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Molecule Type, Drug Development Type, Formulation, Route of Administration, Therapy Area, Prescription, Age Group, Sales Channel, and Region
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Geographies Covered
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North America, Europe, Asia Pacific, and the Rest of the World
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Countries Covered
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The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
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Key Companies Profiled
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F. Hoffmann-La Roche Ltd.; Novartis AG; GlaxoSmithKline plc; Pfizer, Inc.; Merck & Co., Inc.; AstraZeneca; Johnson & Johnson; Sanofi SA; Eli Lilly and Company; AbbVie, Inc.; Thermo Fisher Scientific, Inc.; Wuxi Apptec; Samsung Biologics; FUJIFILM Diosynth Biotechnologies U.S.A., Inc.; Lonza; Catalent Pharma Solutions; Jubilant Pharmova Limited
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Key Market Opportunities
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Pharmaceutical Companies' Increasing Spending on Research and Development
Pharmaceutical Manufacturing Technology Advancements
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Key Market Dynamics
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Growing Chronic Disease Burden and Aging Population
Increase in Pharmaceutical Companies' Use of Outsourcing for Drug Development
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Frequently Asked Questions (FAQ) :
The pharmaceutical manufacturing market size was valued at USD 512.5 Billion in 2022.
The market is projected to grow at a CAGR of 7.90% during the forecast period, 2024-2032.
North America had the largest share in the market
The key players in the market are F. Hoffmann-La Roche Ltd.; Novartis AG; GlaxoSmithKline plc; Pfizer, Inc.; Merck & Co., Inc.; AstraZeneca; Johnson & Johnson; Sanofi SA; Eli Lilly and Company; AbbVie, Inc.; Thermo Fisher Scientific, Inc.; Wuxi Apptec; Samsung Biologics; FUJIFILM Diosynth Biotechnologies U.S.A., Inc.; Lonza; Catalent Pharma Solutions; Jubilant Pharmova Limited.
The tablets category dominated the market in 2022.
The oral category had the largest share in the market.
