New York, Jan. 30, 2024 (GLOBE NEWSWIRE) -- According to Market.us, the global CDMO market size is forecasted to exceed USD 322.7 Billion by 2033, with a promising CAGR of 7.2% from 2024 to 2033.
A Contract Development and Manufacturing Organization (CDMO) offers crucial services in drug development and manufacturing for both the pharmaceutical industry and clients. The growing demand for manufacturing services, coupled with outsourcing contracts from numerous pharmaceutical companies, is driving the expansion of the CDMO market. As the consumer base expands, there is a noticeable shift towards preferring natural and local products over larger brands. To capture a share of this market, strategic use of technology, allocation of resources, and a well-defined plan become essential. Notably, East Asia has secured a significant portion of the market share, accounting for approximately 20% of the overall CDMO market.
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Key Takeaway
- By Product, the CDMO Market is divided into hair products, lip products, skin products, eye products, body hygiene, and oral hygiene. Skin products segment has maintained a stronghold on the market in 2023.
- Based on CMO Type, the market shows distinct segments, namely, API, Finished Product, and Packaging. The API (Active Pharmaceutical Ingredients) segment was the largest contributor to the CDMO market in 2023.
- As far as CRO Type is considered, the market is classified into discovery, preclinical, clinical trial, and laboratory services. The clinical trial segment contributed the most to the market.
- North America remained the top contributor to the market, with its revenue share amounting to 35.1%.
- Asia-Pacific is expected to undergo a period of significant growth with an unmatched CAGR.
Factors affecting the growth of the CDMO market
- The CDMO market is driven by the escalating incidence of chronic diseases. This phenomenon is attributed to the growing popularity and adaption of western lifestyle.
- The growth of the market is also affected by influx of new players in the market. Increasing investments are expected to further propel market expansion.
- The strict regulatory policies and stringent approval processes have negatively impacted the growth of the market, a trend expected to continue in the future.
- Increasing demand for novel therapeutics is expected to the accelerate the process of market expansion.
Top Trends in the Global CDMO Market
- Increased funding in Research and Development (R&D), with about half of the pharmaceutical R&D spending occurring in the United States, is anticipated to accelerate market growth in the Contract Development and Manufacturing Organization (CDMO) sector. CMOs play a crucial role by channeling funds into innovative technologies and facilities to support numerous outsourcing entities.
- Key players in the market are capitalizing on investments from Asian houses and establishing research alliances to facilitate drug discovery, invest in Asia, and gain advanced procurement knowledge. According to expert reports, mergers & acquisitions (M&A) and consolidations have been the primary growth drivers in the CDMO industry over the past decade. This trend has been observed through 92 publicly reported internal investments from selected global CDMO businesses, reflecting a comprehensive picture of the M&A ecosystem in the CDMO sector.
- Strategically positioned CDMOs have rapidly adapted their manufacturing lines to meet the growing demand for smaller and more diverse projects. New alliances have been formed to accelerate capacity growth and support the industry's evolution, particularly in areas like vaccine production.
Market Growth
The Contract Development and Manufacturing Organization (CDMO) market is poised for significant growth, driven by factors such as increased funding in Research and Development (R&D), with a substantial portion occurring in the United States. CMOs play a pivotal role in this landscape by contributing to innovative technologies and facilities, thus supporting a diverse array of outsourcing entities. The market's key players are capitalizing on investments from Asian entities, forming strategic research alliances, and gaining advanced procurement knowledge. Mergers & acquisitions (M&A) and consolidations have emerged as primary growth drivers, as evidenced by a comprehensive analysis of 92 publicly reported internal investments from selected global CDMO businesses over the past decade. This strategic evolution has allowed CDMOs to adapt swiftly to meet the escalating demand for smaller and more varied projects, fostering alliances that accelerate capacity growth, particularly in critical areas like vaccine production, and positioning the industry for ongoing evolution.
Macroeconomic Factors
The growth of the Contract Development and Manufacturing Organization (CDMO) market is significantly influenced by various macroeconomic factors. Economic stability and growth in major regions, such as North America, Europe, and Asia-Pacific, play a pivotal role as they impact pharmaceutical industry investments and outsourcing trends. Additionally, government policies and regulations, especially those related to healthcare and drug development, shape the operating environment for CDMOs. Access to funding for research and development activities, both from public and private sectors, also influences the CDMO market's trajectory. Furthermore, global demographic trends, including population growth and aging, contribute to the increasing demand for pharmaceuticals, driving the need for CDMO services. Technological advancements, trade policies, and geopolitical factors further shape the macroeconomic landscape, impacting the overall growth and dynamics of the CDMO market.
Regional Analysis
North America held a dominant market share, leading in the revenue growth of the global CDMO market. The region claimed a market share of 35.1% in 2023. This was primarily attributed to the economic strength of large countries like the United States and Canada, with the presence of major pharmaceutical companies in the United States contributing significantly to the region's substantial market share. Meanwhile, Asia Pacific exhibited the highest CAGR in the CDMO market during the forecast period, driven by its cost-effectiveness compared to the U.S. and other industrialized economies. The region's biopharmaceutical industry is influenced by factors such as the increasing prevalence of lifestyle and chronic disorders like heart disease and diabetes, coupled with advancements in technology facilitating patient recruitment and access to experts for conducting clinical trials.
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Scope of the Report
| Report Attributes | Details |
| Market Value (2023) | USD 161 Billion |
| Forecast Revenue 2033 | USD 322.7 Billion |
| CAGR (2024 to 2033) | 7.2% |
| North America Revenue Share | 35.1% |
| Base Year | 2023 |
| Historic Period | 2018 to 2022 |
| Forecast Year | 2024 to 2033 |
Market Drivers
The substantial increase in the prevalence of chronic diseases worldwide is attributed to the growing adoption of a Westernized lifestyle, improving economic growth, and a booming population. According to the World Health Organization (WHO), non-communicable diseases are expected to constitute 55% of the total disease burden by 2025. As a result, pharmaceutical companies are being encouraged to develop effective pharmaceutical solutions to address the rising incidence of chronic illnesses and the expanding geriatric population. Additionally, the CDMO's capacity to streamline the pharmaceutical distribution chain and the implementation of the one-stop-shop model for efficient drug product introduction into the market are anticipated to drive the growth of the CDMO market throughout the forecast period.
Market Restraints
The growth of the CDMO market during the forecast period is expected to face impediments primarily due to stringent government regulations and a decrease in the approval rates for numerous biologics and small molecules in developed nations. Additionally, small-scale CDMOs are susceptible to process errors, compromised quality, and pricing challenges in the absence of modern technology, further constraining market expansion. Furthermore, the intricacy and fragility of active compounds, along with challenges in formulation development, coupled with the necessity for a highly skilled workforce, contribute to the high level of difficulty in the industry.
Market Opportunities
To expedite drug development timelines, pharmaceutical companies globally, both small and large, are strategically forming partnerships with contract development and manufacturing organizations (CDMOs) to meet the rising demand for innovative therapeutics. These CDMOs offer comprehensive services spanning the entire supply chain from drug development to commercialization, encompassing areas like drug discovery, API, dosage form development, preclinical and clinical trials, and final product manufacturing. The CDMO services market is poised for substantial growth during the forecast period, driven by factors such as the increasing complexity of therapies and the absence of internal manufacturing capabilities in numerous small pharmaceutical enterprises, presenting significant expansion opportunities.
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Report Segmentation of the CDMO Market
Product Insight
The global Contract Development and Manufacturing Organization (CDMO) market is categorized based on product types, including hair products, lip products, skin products, eye products, body hygiene, and oral hygiene. Within these categories, skin products account for the highest revenue share in the overall CDMO market. This dominance is attributed to the significant impact of skin products, such as face care creams, face serums, body lotions, and sunscreen lotions, leading to a revolutionary influence during the forecast period. Consequently, the growth and scope of the skin products segment are notably high.
CMO Type Insight
The global Contract Development and Manufacturing Organization (CDMO) market is categorized based on CMO service types, which include Active Pharmaceutical Ingredient (API), Finished Product, and Packaging. Among these, the Active Pharmaceutical Ingredient segment holds the largest revenue share in the global CDMO market. The growth of API manufacturing is driven by factors such as a rise in the quantity of biologics API in the pipeline stage and an increasing adoption of biologics API across various therapies. The manufacturing of finished products is further segmented into solid, injectable, dosage forms, and others.
The second-highest revenue share in the CMO market is attributed to the manufacturing of finished products segment, which is expected to experience significant growth in the forecast period. This growth is fueled by an increasing demand for segments like injectables, with a rising desire for delivery systems such as auto-injectors and syringes for the administration of biologics and biosimilars.
CRO Type Insight
The global Contract Development and Manufacturing Organization (CDMO) market is segmented into Discovery, Preclinical, Clinical Trial, and Laboratory Services within the Contract Research Organization (CRO) segment. The Clinical Trial Services segment holds the largest revenue share, driven by factors such as the increasing demand for efficient development, ongoing product development initiatives, and heightened R&D investments with growing partnerships for clinical trial outsourcing among major pharmaceutical companies. This surge in clinical trial services is expected to contribute to the overall growth of the global CDMO market. Additionally, patient-centric innovations by pharmaceutical companies and rapid partnerships within the CDMO market are anticipated to boost the packaging segment, with a focus on dose monitoring specialty and new packaging solutions, enhancing patient adherence in the forecast period.
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Recent Development of the CDMO Market
- In August 2023, Catalent, a leading provider of delivery technologies, development, and manufacturing solutions for drugs, has revealed its intention to undergo a strategic review. This decision comes following a settlement with activist investor Elliott Investment Management.
- In October 2023, Lonza revealed its intention to construct a commercial-scale aseptic Current Good Manufacturing Practice (cGMP) filling line at its facility in Stein, Switzerland. This new facility is designed to support the aseptic filling of highly potent antibody drug conjugates (ADCs) and lyophilization under containment. The addition of this advanced filling line underscores Lonza's commitment to enhancing its manufacturing capabilities, particularly in the production of complex and potent pharmaceuticals.
- In January 2024, WuXi AppTec disclosed plans to enhance its manufacturing capabilities with the construction of two new peptide manufacturing plants. These facilities will be located at the company's Changzhou and Taixing sites in China, contributing to an increased total reactor volume of 32,000 liters for solid-phase peptide synthesis. This strategic expansion underscores WuXi AppTec's commitment to meeting the growing demand for peptide manufacturing and aligning with the evolving needs of the biopharmaceutical industry.
Market Segmentation
By Product Type
- Lip Products
- Skin Products
- Eye products
- Body Hygiene
- Oral Hygiene
By CMO Type
- API
- Finished Product
- Packaging
By CRO Type
- Discovery
- Preclinical
- Clinical Trial
- Laboratory Services
By Geography
- North America
- US
- Canada
- Europe
- Germany
- France
- The UK
- Spain
- Italy
- Russia
- Netherland
- Rest of Europe
- Asia Pacific
- China
- Japan
- South Korea
- India
- 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
Competitive Landscape:
The Contract Development and Manufacturing Organization (CDMO) market is a presence of numerous local and regional players. Intense competition is observed among market participants, particularly from leading players with strong brand recognition and extensive distribution networks. In order to secure top positions in company rankings, pharmaceutical companies have adopted various expansion strategies, including partnerships and product launches, to gain a competitive edge in the market.
Market Key Players:
- Lonza
- Wuxi
- Catalent
- FAREVA SA
- Recipharm AB
- Samsung Biologics
- Delpharm
- Siegfried
- Boehringer Ingelheim
- Aenova Group
- Labcorp Drug Development
- Thermo Fisher Scientific Inc.
- Parexel International Corporation
- Other Key Players
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