Dublin, Sept. 14, 2023 (GLOBE NEWSWIRE) -- The "Active Pharmaceutical Ingredients CDMO Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)" report has been added to ResearchAndMarkets.com's offering.
The Active Pharmaceutical Ingredients (API) Contract Development and Manufacturing Organization (CDMO) market is on a growth trajectory, poised to witness a significant expansion from USD 108.73 billion in 2023 to USD 164.32 billion by 2028. This projected Compound Annual Growth Rate (CAGR) of 8.61% during the forecast period (2023-2028) underscores the robust evolution of the sector.
Pandemic Impact and High Demand for CDMO Services
The API CDMO market experienced substantial upheaval due to the COVID-19 pandemic. The global demand for CDMO services surged as vaccines and therapeutics for the coronavirus were developed and distributed. In response to the crisis, CDMOs exhibited exceptional adaptability and responsiveness, playing a pivotal role in catering to the pharmaceutical industry's needs.
Diverse CDMO Services Driving Pharmaceutical Innovation
CDMOs provide a spectrum of services to pharmaceutical companies, spanning drug development, supply chain management, commercial API and drug manufacturing, and packaging. These services enable pharmaceutical enterprises to lower costs associated with development and manufacturing, minimize capital investments, accelerate timelines, and leverage cutting-edge technologies.
In particular, the first half of 2021 showcased the CDMO industry's significant involvement in COVID-19 vaccine manufacturing. This period also witnessed notable merger and acquisition activities, signifying the growing importance of CDMOs within the bio/pharmaceutical landscape.
Key Trends and Market Dynamics
- Commercial Segment Dominance: The demand for pharmaceutical products surged during the pandemic, prompting nations to consider localization regulations for production. Many pharmaceutical companies expanded their manufacturing footprint, and CDMOs emerged as the primary source of additional capacity. Partnerships between pharmaceutical giants like AstraZeneca, Moderna, and Pfizer, and various CDMOs, including Lonza, Catalent, and Emergent Biosolutions, underscored this trend.
- Asia-Pacific Market Share: China and India offer cost-effective manufacturing capabilities, making them key players in the API CDMO market. India's low-cost manufacturing, especially for generic APIs, and China's strong market presence for nonexclusive APIs have solidified their positions.
Market Drivers and Restraints
Among the drivers propelling the API CDMO market are increasing investments in pharmaceutical research and development, rising demand for generic drugs, the complexity of manufacturing processes, and patent expiration. However, the market is not without challenges, including concerns about data quality and security, as well as compliance issues associated with outsourcing.
Leading Players in the API CDMO Market
The API CDMO market features a range of major players, including Cambrex Corporation, Patheon (Thermo Fisher Scientific Inc.), Recipharm AB, CordenPharma International, Samsung Biologics, Lonza, Siegfried, Piramal Pharma Solutions, AbbVie Inc., and Catalent Inc.
The evolving role of API manufacturers in the pharmaceutical supply chain, driven by changing customer demands and global competition, is reshaping the industry. Traditional generic firms are seeking bulk activities in China and India, while specialty pharmaceutical companies are driving demand for more specialized capabilities.
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